Connect with us

Economy

Eko Modular Refinery Gets N360m Grant

Published

on

Dangote refinery
  • Eko Modular Refinery Gets N360m Grant

The United States of America Trade and Development Agency (USTDA) has approved a grant of $1 million (N360 million) for the detailed engineering design of 20,000 barrel per day (bpd) modular refinery in Lagos.

The Head, Media Communications, Integrated Oil and Gas Limited, Mr. Enyeribe Anyanwu who disclosed this in a statement said that the USA Ambassador to Nigeria, Mr. Stuart Symington confirmed the development during the official signing of the agreement in Lagos.

Symington commended the initiative of Eko petrochemical and refining company’s management just as he expressed the hope that the proposed 200, 000 barrel per day (bpd) production refinery would attract more investments to the country and develop host communities.

His words: ‘‘The grant was meant for detail engineering design and development of the proposed refinery in Tomaro Industrial Park in Lagos. I feel honoured to be part of the success story. I also promised to support the projects to actualisation”.

Symington applauded the Chairman of Integrated Oil and Gas Limited, Captain Emmanuel Iheanacho for his commitment to the project. He noted that Iheaneacho’s investment in the refinery project was coming at a time when the country needed it most.

He also praised the Federal Government for believing in the power of the individual citizens and entrepreneurs to undertake laudable projects for the nation’s development.

‘‘He is doing it at a time with a government that believes Nigeria can do what can be done anywhere in the world,’’ the ambassador added.

Iheaneacho who was the Minister of Interior during the administration of former President Goodluck Jonathan said the Eko Petrochem and Refining Company would complement efforts of the Federal Government in providing lasting solution to the problems of importation of refined petroleum products into the country.

He revealed that the USA Government, acting through the USTDA, has accelerated the process of the planned economic investments through the industrial development grant of $1 million, which it had seen fit to bestow
to us.

‘‘The grant is to be specially used to finance the completion of the detailed analysis of supporting technologies and engineering for the implementation of 20,000 bpd crude oil refinery,’’ he said.

The Chairman stated that in making the proposal, it was reasoned that the localisation of refining capacity if realised, would facilitate the conservation of scarce foreign exchange whilst generating major export earnings.

He said that there would also be enhanced economic value added opportunities to be realised in terms of jobs, profits and technology transfer which would become manifest.

Continuing, the former Minister said: ‘‘We are delighted by the USTDA award as it seems the USA Government and the trade agency have by this gesture, recognised the economic and development potential of our ongoing modular refinery project and the Tomaro Industrial Park/Free Trade Zone which today comes into formal existence.

‘‘By delivering this grant, the agency has demonstrated its commitment to the infrastructure development and economic growth of Nigeria, especially in the areas of export technologies and services that promote the country’s refining capacity”.

Iheanacho said that the company would continue to celebrate the delivery of the support assistance from the USTDA.

‘‘We also need to source investment funds, to fully actualise the built-up project. The scale of the cash investments required is of the order of $250 million. We expect to raise this huge sum from borrowing or from equity investment committed to the project. For any potential investor, please contact me and trust me it will be money well spent.

‘‘The vision of Eko Petrochem and Refining Company is to develop a modular scalable 20,000 bdp Greenfield refinery/topping plant. Several studies including the Front End Engineering Design (FEED) as well as the Environmental Impact Assessment (EIA) studies have been completed’’ he said.

According to him, the study for the detailed engineering design will soon be ready, prior to applying for the Approval to Construct (ATC) from Department of Petroleum Resources (DPR) as well as other regulatory approvals required.

The statement also quoted the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, commending the commitment of Iheanacho to the project.

He noted that finance was one of the major challenges facing most of those that had been licensed to build refineries in the country.

Kachikwu was said to have been represented at the occasion represented by the Executive Director/Coordinator, Nigeria National Petroleum Corporation, Refinery, Downstream and Infrastructural Development, Mr. Rabiu Suleiman,

He promised that the Federal Government would provide all the necessary support required by the company to make the refinery a reality.

‘‘We all know it is very difficult to raise funds. When you hear that the USTDA is extending its hands of fellowship and support to provide the initial seed funding required to go beyond the detailed engineering design; that also shows that behind him (the vision of this project), there is a partner that is likely to support and provide the financing required to establish the refinery. For him to be able to bring down to this island the USA Ambassador is another demonstration of the commitment and determination to do whatever is necessary to see this project come on stream.’’

Kachikwu said he was working hard to see how the company could be granted a pioneer status and secure various duty waivers, import facilitation of equipment and engineering review.

He urged the company to take the host communities along in order to create a harmonious relationship with them.

The Managing Director, V Fuels, Mr. Souheil Abboud, said the company was proud to partner the USTDA to actualise the fruition of the refinery.

“We believe very strongly in our commitment to serving the Nigerian people and are enthusiastic that the USTDA shares the same vision and commitment, just as he pointed out that the refinery would be a model for those looking to improve Nigeria’s local refining capacity and would contribute to the growing demand for fuel and electricity.

The USTDA helps companies to create the US jobs through the export of the USA goods and services for priority development projects in emerging economies. The 116 million dollars project to produce 20,000 barrel capacity modular refinery is located at Tomaro Island Port, off Takwa Bay in Amuwo-Odofin Local Government Area of Lagos State.

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.

Economy

Electricity Consumers Get 611,231 Meters Under MAP Scheme

Published

on

power project

Electricity Consumers Get 611,231 Meters Under MAP Scheme

A total of 611,231 meters have been deployed as at January 31, 2021 under the Meter Asset Provider initiative since its full operation despite the COVID-19 pandemic and other extraneous factors, the Nigerian Electricity Regulatory Commission has said.

NERC disclosed this in a consultation paper on the review of the MAP Regulations.

The proposed review of the MAP scheme is coming nearly four months after the Federal Government launched a new initiative called National Mass Metering Programme aimed at distributing six million meters to consumers free of charge.

“The existence of a huge metering gap and the need to ensure successful implementation of the MYTO 2020 Service-Based Tariff resulted in the approval of the NMMP, a policy of the Federal Government anchored on the provision of long-term low interest financing to the Discos,” NERC said.

The commission had in March 2018 approved the MAP Regulations with the aim of fast-tracking the closure of the metering gap in the sector through the engagement of third-party investors (called meter asset providers) for the financing, procurement, supply, installation and maintenance of meters.

It set a target of providing meters to all customers within three years, and directed the Discos and the approved MAPs to commence the rollout of meters not later than May 1, 2019.

But in February 2020, NERC said several constraints, including changes in fiscal policy and the limited availability of long-term funding, had led to limited success in meter rollout.

NERC, in the consultation paper, highlighted three proposed options for metering implementation going forward.

The first option is to allow the implementation of both the NMMP and MAP metering frameworks to run concurrently; the second is to continue with the current MAP framework with meters procured under the NMMP supplied only through MAPs (by being off-takers from the local manufacturers/assemblers).

The third option is to wind down the MAP framework and allow the Discos to procure meters directly from local manufacturers/assemblers (or as procured by the World Bank), and enter into new contracts for the installation and maintenance of such meters.

“Customers who choose not to wait to receive meters based on the deployment schedule of the NMMP shall continue to have the option of making upfront payments for meters which will be installed within a maximum period of 10 working days,” NERC said.

The regulator said such customers would be refunded by the Discos through energy credits, adding that there would be no option for meter acquisition through the payment of a monthly meter service charge.

“Where meters have already been deployed under the meter service charge option, Discos shall make one-off repayment to affected customers and associated MAPs. Such meters shall be recognised in the rate base of the Discos,” it added.

NERC urged stakeholders to provide comments, objections, and representations on the proposed amendments within 21 days of the publication of the consultation paper.

Continue Reading

Economy

Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

Published

on

Banana Island

Nigeria’s Economy Moving in Right Direction but Slow – Amina Mohammed

Nigeria is moving in the right direction economically but its movement is not fast, the United Nations stated on Thursday.

Deputy Secretary-General of the United Nations, Amina Mohammed, said this during a meeting at the headquarters of the Federal Ministry of Industry, Trade and Investment in Abuja.

She said the challenges in Nigeria were huge, its population large but described the country’s economy as great with lots of opportunities.

The UN scribe stated that after traveling by train and through various roads in the Northern parts of Nigeria, she discovered that the roads were motorable, although there were ongoing repairs on some of them.

Mohammed said, “This is a country that is diverse in nature, ethnicity, religious backgrounds and opportunities. But these are its strengths, not weaknesses.

“And I think the narrative for Nigeria has to change to one that is very much the reality.”

Speaking on her trips across parts of Nigeria, she said, “What I saw along the way is really a country that is growing, that is moving in the right direction economically. Is it fast enough? No. Is it in the right direction? Yes it is.

“And the challenges still remain with security, our social cohesion and social contract between government and the people. But I know that people are working on these issues.”

She said the UN recognised the reforms in Nigeria and other nations, adding that the common global agenda was the Sustainable Development Goals.

Mohammad commended Nigeria’s quick response to the COVID-19 pandemic, as she expressed hope that the arrival of vaccines would be the beginning of the end of COVID-19.

On his part, the Minister of Industry, Trade and Investment, Adeniyi Adebayo, told his guest that the Federal Government was working hard to make Nigeria the entrepreneurial hub of Africa.

Continue Reading

Economy

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

Published

on

petrol Oil

N10.7tn Spent on Fuel Subsidy in 10 Years – MOMAN

Nigeria spent a total of N10.7tn on fuel subsidy in the last 10 years, the Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, has said.

Oyebanji, who was the guest speaker at the 18th Aret Adams Lecture on Thursday, said N750bn was spent on subsidy in 2019.

He highlighted the need for a transition to a market-driven environment through policy-backed legislative and commercial frameworks, enabling the sustainability of the downstream petroleum sector.

“Total deregulation is more than just the removal of price subsidies; it is aimed at improving business operations, increasing the investments in the oil and gas sector value chain, resulting in the growth in the nation’s downstream petroleum sector as a whole,” he said.

The managing director of 11 Plc (formerly Mobil Oil Nigeria Plc) said steps had been taken, “but larger and faster leaps are now required.”

According to him, deregulation requires the creation of a competitive market environment, and will guarantee the supply of products at commercial and market prices.

“It requires unrestricted and profitable investments in infrastructure, earning reasonable returns to investors. It requires a strong regulator to enable transparency and fair competition among players, and not to regulate prices,” Oyebanji said.

He noted that MOMAN had recently called for a national debate by stakeholders to share pragmatic and realistic initiatives to ease the impact of the subsidy removal on society – especially on the most vulnerable.

He said, “A shift from crude oil production to crude oil full value realisation through deliberate investment in domestic refining and refined products distribution, creates the opportunity to transform the dynamics of the downstream sector from one of ‘net importer’ to one of ‘net exporter’, spurring the growth of the Nigerian economy.

“Effective reforms and regulations are key drivers for the growth within the refining sector. Non-functional refineries cost Nigeria over $13bn in 2019. If the NNPC refineries were operating at optimal capacity, Nigeria would have imported only 40 per cent of what it consumed in 2019.”

Full deregulation of the downstream sector remains the most glaring boost to potential investors in this space, according to Oyebanji.

He said, “As crude oil prices will fluctuate depending on the prevailing exchange rates, it will be astute to trade in naira to avoid inevitable price swings.

“There needs to be a balance between ensuring the sustainable growth of the crude oil value chain (upstream through downstream) and providing value for the Nigerian consumer and the Nigerian economy.”

He said the philosophy should be for the government to put the legislative and commercial framework in place and let the market develop by itself.

Continue Reading

Trending