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$6bn Needed to Fix Refineries, Says NNPC

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  • $6bn Needed to Fix Refineries

About $6bn worth of investment is needed to adequately rehabilitate and revamp the country’s refineries, the Nigerian National Petroleum Corporation has said.

The Group Managing Director, NNPC, Dr. Maikanti Baru, disclosed this as he unveiled the investment opportunities in the Nigerian oil and gas sector to international investors at the ongoing Offshore Technology Conference taking place in Houston, Texas, United States.

Baru, who was represented by the corporation’s Chief Operating Officer, Gas and Power, Mr. Saidu Mohammed, said the plan of the national oil firm was to upgrade the combined capacity of the refineries to 700,000 barrels per day.

The refineries located in Port Harcourt, Warri and Kaduna have a combined nameplate crude oil refining capacity of 445,000bpd, but currently refine far below that.

Baru was quoted in a statement issued on Wednesday by the spokesperson for the NNPC, Ndu Ughamadu, as saying, “For the refineries, our plan is to rehabilitate and revamp our existing four refineries.

“On successful rehabilitation and revamp, our plan is to upgrade their combined nameplate capacity from 445,000bpd to 700,000bpd within the next few years. We will require investments of between $5bn and $6bn.”

Explaining that the NNPC was mindful of the need to construct new refineries, Baru said the big picture was to transit from a net crude oil exporter to a net petroleum product exporter as more value and opportunities abound in the latter.

The GMD noted that the corporation’s presence at the OTC was not only to look out for potential investors, but to search for partners who would deploy their cutting-edge technologies to enable the corporation achieve its goals.

He said the opportunities in Nigeria’s oil sector could be divided into five distinct areas across the value chain, adding that these were upstream oil and gas development, gas infrastructure and power plants, refineries, downstream as well as ventures and new businesses.

He said within the upstream segment, the NNPC planned to increase its oil reserve base to 40 billion barrels by 2020, adding that based on its upstream growth plan, the corporation would raise about $13bn and $16.5bn over the next five years.

Under the gas infrastructure and power plants, he said there were investment opportunities to the tune of between $9bn and $11bn in the oil and gas sector.

The NNPC boss noted that in the downstream segment, there were opportunities in the construction of new crude and product pipelines, pumping station upgrade, revamp of LPG plants, and construction of new LPG storage tanks, filling stations and equipment supply.

“The provision of coastal vessels and tugboats and other ancillary support services are equally areas that will yield high returns on investment. We will require investments of about $3bn in this area,” Baru added.

In the ventures and new business segment, the GMD stated that opportunities existed for the establishment of pipe mills, equipment leasing (rigs, Floating Production Storage and Offloading vessels) and operations and maintenance services.

According to Baru, oil and gas resources will still be relevant in the global energy mix for a very long time to come as inferred from the global demand and supply forecasts.

“The Nigerian petroleum industry remains by far the largest and most vibrant in sub-Saharan Africa, with lots of potential, especially in the deep water and untapped gas resources and refining. We invite you all to come and participate in this process,” the NNPC GMD added.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Investment

Union Bank Launches Investment App M36 for Fixed-income Products, Others

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M36, a new digital platform designed to deliver a wide range of investment products directly to individuals, has launched in Nigeria.

Through an innovative, user-friendly app, M36 offers investment options not typically available on self-service digital platforms including foreign currency transactions, commercial papers, local and foreign denominated bonds, treasury bills and other fixed income products.

M36 also offers bespoke solutions for both new and experienced investors as well as a 24-hour lifestyle concierge service to meet the needs of discerning customers.

In a rapidly evolving environment with changing consumer behavior fueled by technology and growing access to information, M36 is looking to expand opportunities for investors at all levels, while also simplifying the process of investing.

M36 was developed by Union Bank as part of its strategic focus on delivering superior customer solutions leveraging technology and innovation.

The Bank partnered with several asset management companies to deliver the broad range of investment products on the M36 platform.

Chuka Emerole, Head, Treasury at Union Bank said about M36:

“M36 eliminates the traditional barriers to investing and offers investors direct access to financial instruments that would usually require the service of an investment or relationship manager.

“We’ve designed M36 to ensure simplicity in the onboarding and investing process while also empowering the customer to make sound investment choices based on their financial objectives.

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United States Firms Operating in Nigeria Plans to Invest $2.4 Billion in Nigeria – Report

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United States Firms Operating in Nigeria Plans to Invest $2.4 Billion in Nigeria – Report

A report compiled by the American Business Council, the United States Embassy, Verraki, KPMG and PwC showed American firms operating in Nigeria plans to invest $2.37 billion in the country in the next three years.

In the 2020 Nigeria Economic Impact Survey, the impact of US firms on the Nigerian economy was analysed while changes in business revenue, foreign investment, job creation, gross value added and plans for expansion were measured.

45 United States companies operating in Nigeria were surveyed and data obtained analysed, according to the report.

The report revealed that US companies in Nigeria created over 30,000 indirect jobs in 2019, a decline from three million in 2018 and over 13,100 direct jobs, down from 18,000 in 2018.

The firms realised N1.08 trillion in revenue in 2019, representing a decline from N1.47 trillion when compared to N1.47 trillion generated in 2018.

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Afreximbank, AAAM to Drive Automotive Investment

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Afreximbank, AAAM to Drive Automotive Investment

The African Export-Import Bank (Afreximbank) and the African Association of Automotive Manufacturers (AAAM) have entered into a Memorandum of Understanding (MoU) for the financing and promotion of the automotive industry in Africa.

President of Afreximbank, Prof. Benedict Oramah and President of AAAM/Managing Director of Nissan Africa, Mike Whitfield, signed the MoU in early February, according to a statement yesterday.

The deal formalised the basis for a partnership aimed at boosting regional automotive value chains and financing for the automotive industry while supporting the development of enabling policies, technical assistance, and capacity building initiatives.

Oramah, said, “the strategic partnership with AAAM will facilitate the implementation of the Bank’s Automotive programme which aims to catalyze the development of the automotive industry in Africa as the continent commences trade under the African Continental Free Trade Area (AfCFTA).”

Under the terms of the MoU, Afreximbank and AAAM will work together to foster the emergence of regional value chains with a focus on value-added manufacturing created through partnerships between global Original Equipment Manufacturers (OEM), suppliers, and local partners.

The two organisations plan to undertake comprehensive studies to map potential regional automotive value chains on the continent in regional economic clusters, in order to enable the manufacture of automotive components for supply to hub assemblers.

“To support the emergence of the African automotive industry, they will collaborate to provide financing to industry players along the whole automotive value chain. The potential interventions include lines of credit, direct financing, project financing, supply chain financing, guarantees, and equity financing, amongst others.

“The MoU also provides for them to support, in conjunction with the African Union Commission and the AfCFTA Secretariat, the development of coherent national, regional and continental automotive policies, and strategies.

“With an integrated market under the AfCFTA, abundant and cheap labour, natural resource wealth, and a growing middle class, African countries are increasingly turning their attention to support the emergence of their automotive industries.

“Therefore, the collaboration between Afreximbank and AAAM will be an opportunity to empower the aspirations of African countries towards re-focusing their economies on industrialisation and export manufacturing and fostering the emergence of regional value chains,” the statement added.

“The signing of the MoU with Afreximbank is an exciting milestone for the development of the automotive industry in Africa. At the 2020 digital Africa Auto Forum, the lack of affordable financing available for the automotive sector was identified as one of the key inhibiters for the growth and development of the automotive industry in Africa and having Afreximbank on board is a game changer and a hugely positive development,” CEO of AAAM, David Coffey said.

“It is wonderful to have a partner that is as committed as the AAAM to driving the development and growth of our sector on the continent; this collaboration will ensure genuine progress for our industry in Africa,” Coffey added.

Other areas covered by the MoU include working with the African Union and the African Organisation for Standardisation to harmonise automotive standards across the continent and developing an automotive focused training program for both the public and private sector.

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