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Economy

Nigeria, Niger Republic Sign MoU on Refinery, Pipeline Projects

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  • Nigeria, Niger Republic Sign MoU on Refinery, Pipeline Projects

The Federal Government on Tuesday signed a Memorandum of Understanding with Niger Republic to build a hydrocarbon and pipeline refinery in Katsina State.

The Minister of State for Petroleum Resources, Ibe Kachikwu; and Nigerian Minister of Energy and Oil, Faomakoye Gado, signed the agreement on behalf of their respective countries at the new Banquet Hall of the Presidential Villa, Abuja.

President Muhammadu Buhari and President Muhamamdou Issoufou of Niger Republic witnessed the signing of the agreement.

The refinery, which is to be built in Mashi town of Katsina State, is targeting to produce between 100,000 and 150,000 barrels of crude oil per day. It is projected to create over 2,500 direct and 10,000 indirect jobs.

The duration for the completion of the modular refinery project is put at between three and four years.

At the signing of the agreement, Buhari stated that the refinery, which will be the sixth after those of Warri, Kaduna, two in Port Harcourt, and the Dangote Petrochemical and Refinery in Lekki area of Lagos, would be private sector, driven with the full support of the governments of both countries.

He gave December 2018 deadline for the submission of the technical details of the project.

The project will see the construction of a pipeline network that will supply crude oil from the Republic of Niger to the refinery.

Buhari assured all stakeholders of Nigeria’s commitment to pursue the partnership with vigour and determination.

He said, “Nigeria sees this cooperation on crude oil export from the Republic of Niger and construction of refinery facilities in Katsina State as a win-win situation for both nations.

“The initiative will not only provide a reliable market for the stranded crude from the Niger Republic, but will also provide petroleum products for Nigeria, as it aggressively pursues its aspiration on petroleum product self-sufficiency.”

Buhari said, “In addition, it is my hope that the current frontier exploration efforts in the northern part of the country (Chad Basin, Gongola Basin, Sokoto Basin, Bida Basin and Benue trough) will also result in the provision of additional hydrocarbon inflow to the corridors of the proposed pipeline and a potential refinery around Kaduna axis.

“I am happy that several productive engagements held between the Nigerian and Nigerien authorities have resulted in the positive agreements to progress with activities on this important project.”

A steering committee chaired by the Nigerian Minister of State for Petroleum Resources and the alternate chairman, the Nigerien Minister of Petroleum, will provide strategic leadership, direction and governance oversight for the project.

Also, a senior level joint technical team set to develop the implementation road map and strategy on both the refinery and pipeline projects is led by Nigeria’s Rabiu Suleiman and supported by the Director General, Hydrocarbon, Niger Republic.

Buhari added, “It is my expectation that by December 2018, this group will come up with a detailed road map and guidelines leading to actual execution of the projects.

“The detailed road map should cover the following: Bankable feasibility studies for both the refinery and pipeline projects; optimal project site, pipeline routes and details; security plan and selected consortia of investors for both the refinery and pipeline projects.”

Issoufou, on his part, said the signing of the MoU constituted an important step, which would be mutually beneficial to both countries.

He noted that both countries wanted to work together to extend their economies, adding that Africa would not develop unless it was strengthened.

Issoufou stated, “We need to expand power and integration. This MoU is important for us to strengthen cooperation between our two countries. We are working as pioneer to develop our value chain. Nigeria is the natural leader of the integration process.

“We have decided to put two strategic technical committees in place in order to achieve the objectives of the projects. In the next few years, our cooperation will be to celebrate the export of oil from Niger to Nigeria.”

Kachikwu, in his remarks, said already, several expressions of interest from prospective investors had been received.

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

Seplat Petroleum Pays US$564.165 Million to Federal Government in 2020

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Seplat Petroleum, an indigenous Nigerian upstream exploration and production company, announced it paid a total sum of US$564.165 million to the Federal Government in 2020.

In the report on payments made available to the Nigerian Stock Exchange and seen by Investors King, Seplat Petroleum paid US$389.576 million to the Nigerian National Petroleum Corporation (NNPC) as production entitlement in 2020.

Production entitlement is the government’s share of production in the period under review from projects operated by Seplat.

This comprises crude oil and gas attributable to the Nigerian government by virtue of its participation as an equity holder in projects within its sovereign jurisdiction (Nigeria).

Also, Seplat paid US$130.009 million to the Department of Petroleum Resources in 2020. A breakdown of the amount showed US$111.633 million was paid as royalties while US$18.376 million was paid as fees.

Similarly, US$579,361 was paid as a fee to the Nigeria Export Supervision Scheme.

The energy company made another payment of US$17.935 million in fee for 2020.

While the Nigerian Content Development and Monitoring Board received US$4.826 million in fee from Seplat in 2020.

Seplat paid US$21.239 million in taxes to the Federal Inland Revenue Service in 2020.

Therefore, Seplat Petroleum paid a total sum of US$564.165 million to the Federal Government in the 2020 financial year. See the details below.

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Economy

FIRS Sets N5.9 Trillion Revenue Target for 2021

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FIRS to Generate N5.9 Trillion Revenue  in 2021

Mohammed Nami, the Chairman of Federal Inland Revenue Service, FIRS, on Friday said the agency is projecting total revenue of N5.9 trillion for the 2021 fiscal year.

Nami stated this while meeting with the House of Representatives Committee on Finance led by Hon. James Falake on the Service’s 2021 budget defence of its proposed Revenue and Expenditure Estimates.

According to the Chairman, N4.26 trillion and N1.64 trillion were expected to come from non-oil and oil components, respectively.

However, Nami put the cost of collecting the projected revenue at N289.25 billion or 7 percent of the proposed total revenue for the year, higher than the N180.76 billion spent in 2020 to fund the three operational expenditure heads for the year.

He said: “Out of the proposed expenditure of N289.25 billion across the three expenditure heads, the sum of N147.08 billion and N94.97 billion are to be expended on Personnel and Overhead Costs against 2020 budgeted sum of N97.36 billion and N43.64 billion respectively. Also, the sum of N47.19 billion is estimated to be expended on capital items against the budgeted sum of N27.80 billion in 2020. The sum is to cater for on-going and new projects for effective revenue drive.

Speaking on while the agency failed to meet its 2020 target, Nami said “There’s lockdown effect on businesses, implementation directive also for us to study, research best practices on tax administration which involves travelling to overseas and we also have to expand offices and create offices more at rural areas to get closer to the taxpayers, we pay rent for those offices and this could be the reason why all these things went up.

“And if you have more staff surely, their salary will go up, taxes that you’re going to pay on their behalf will go up, the National Housing Fund contribution, PENCOM contribution will go up. Those promoted you have to implement a new salary regime for them. There’s also the issue of inflation and exchange rate differential”, he said.

 

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Economy

Gov Emmanuel Attracts $1.4b Fertilizer Plant to Akwa Ibom

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The Governor of Akwa Ibom State, Mr. Udom Emmanuel has signed an agreement for the citing of a multi billion fertilizer plant in his State.

Governor Emmanuel was part of a Nigerian delegation led by the Minister of State for Petroleum Resources, Chief Timipre Sylva, that visited Morocco to set out the next steps of the $1.4 Bln fertilizer production plant project launched in June 2018.

The agreement between the OCP Africa, the Nigerian Sovereign Investment Authority and the Akwa Ibom State Government will birth one of the biggest investments in the fertilizer production industry worldwide.

The signing ceremony took place at the Mohammed VI Polytechnic University (UMP6).

Mr. Emmanuel signed one of the agreements of the partnership, which covers a memorandum of understanding between OCP Africa, the Akwa Ibom State in Nigeria and the NSIA on land acquisition, administrative facilitation, and common agricultural development projects in the Akwa Ibom State.

Speaking while signing the agreement, Governor Emmanuel said, “Our state is receptive to investments and we are prepared to offer the necessary support to make the project a reality.

“With a site that is suitably located to enable operational logistics and an abundance of gas resources, all that is left is for the parties to accelerate the project development process”, Mr. Udom said.

The agreement reached between the Nigerian Government and the OCP further links OCP, Mobil Producing Nigeria (MPN), the NNPC, the Gas Aggregation Company Nigeria (GACN), and the NSIA.

The two partners agreed to strengthen further their solid partnership leveraging Nigerian gas and the Moroccan phosphate.

This project will lead to a multipurpose industrial platform in Nigeria, which will use Nigerian gas and Moroccan phosphate to produce 750,000 tons of ammonia and 1 million tons of phosphate fertilizers annually by 2025.

The visit of the Nigerian delegation to Morocco takes place within the frame of the partnership sealed between OCP Group and the Nigerian Government to support and develop Nigeria’s agriculture industry.

Following the success of the first phase of Nigeria‘s Presidential Fertilizer Initiative (PFI) and the progress of the fertilizer production plant project launched in 2018 by OCP and NSIA, the Moroccan phosphates group and the Nigerian government delegation have agreed on the next steps of their joint project which is rapidly taking shape.

Several cooperation agreements were inked on Tuesday at the Mohammed VI Polytechnic University (UM6P) by OCP Africa and the Nigerian delegation. Through these deals, OCP reaffirms its unwavering support of agricultural development initiatives in Nigeria including PFI.

OCP Africa and the NSIA have agreed, inter alia, to set up a joint venture which will oversee the development of the industrial platform that will produce ammonia and fertilizers in Nigeria.

The OCP has also pledged to supply Nigerian famers with quality fertilizers adapted to the needs of their soil at competitive prices and produced locally.

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