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Indigenous Firm to Spend N137.5bn on Industrial Island

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Lekki Deep Seaport
  • Indigenous Firm to Spend N137.5bn on Industrial Island

Genesis Worldwide Shipping Company which owns Integrated Oil and Gas Company, has announced that the total amount that will go into completion of its industrial free trade zone, also known as Tomaro Island, will be about $450m (N137.5bn).

The Chairman of the company, Captain Emmanuel Iheanacho, disclosed this on Tuesday while leading men of the Nigeria Customs Service, the Nigeria Export Processing Zone Authority and journalists on a facility tour of the Island.

Iheanacho, whose firm had earlier secured a grant of $1m from the American government to facilitate market study for the detailed engineering master plan of the island, said there were major investments in Tomaro Island spanning the oil and gas and maritime sectors.

He stated that the island would have a modular refinery with 20,000 barrels per day refining capacity, storage and re-supply tank farms with one billion litres storage capacity, as well as a slipway for local ship buildings with 15,000 tonnes capacity and dry dock facility where ships could load and discharge.

“When the country has issues with fuel supply, the Nigerian National Petroleum Corporation will be able to draw fuel from here for 15 days to supply the country until the problem is sorted out,” he noted.

According to Iheanacho, the tank farms are structured in such a way that they supply to ships and pump back from ships into tank farms located around the island.

“This tank farm is different from every other tank farm that relies on arrangement where ships supply tank farms and then lorries come and pick up the supply, but because we are located on an Island and because of the function that they are designed for, we supply by ship then actually pump back by ship to the tank farms that are located to the West,” he explained.

On the shipyard, he said that it would position Nigeria among ship building nations in the world and create over 2,000 jobs for the local people.

Iheanacho added, “Nigeria has for a long time wanted to be a builder of ships; now, the private sector is making this a reality. The jetty for berthing and loading vessels will be ready in nine months.

“The Tomaro Island is an industrial zone designed on the western side to attract people who will do manufacturing. We will set up 30 one-hectare plots for warehouses, plant house, office and manufacturing facilities, where manufacturers will come down with their raw materials to manufacture and export duty-free to other countries.”

The master plan of the island would include a helicopter servicing facility, hotels and living quarters, heliport, as well as waste treatment and disposal plants, Iheanacho noted.

An official of NEPZA, Mrs. Eloho Francis, expressed optimism that when completed, the project would create a lot of jobs and increase revenue generation for the nation.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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