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Dangote Oil Refinery May be Delayed Till 2022

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  • Dangote Oil Refinery May be Delayed Till 2022

The oil refinery being built in Lagos by Dangote Group is unlikely to start production until 2022, two years later than the target date.

Reuters quoted sources with direct knowledge of the matter as saying this in a report on Friday.

The 650,000 barrel per day refinery, set to be Africa’s biggest, is expected to boost Nigeria’s growth and turn the country from an importer of refined products into an exporter.

Africa’s richest man, Aliko Dangote, told Reuters last month that he hoped to finish building the refinery in 2019 and to start production in early 2020.

However, the sources, who were said to have been on the site many times, said they did not expect petrol or diesel output before early 2022 and even then, many units at the refinery and accompanying petrochemical plant would not be complete.

The Executive Director, Dangote Group, Devakumar Edwin, who oversees the project, described the suggestion that the refinery was unlikely to start production until 2022 as the product of “someone’s wild imagination”.

“Ninety-five per cent of engineering has been completed; 90 per cent of procurement has been completed.”

“We started civil works in July last year and we have scheduled two and a half years for mechanical completion,” he said, referring to the point where a plant is ready to be handed over for inauguration.

Dangote, who expects the project to cost $12-14bn, said in July he had raised more than $4.5bn.

“I’ve never seen a refinery of that scale built in two years. It’s highly improbable due to the sequence of events that need to happen; it cannot be fast-tracked safely,” one of the sources advising the Nigerian government said.

The sources said a refinery on such a scale would likely need five years to complete and the piling underpinning the plant had only started in the second half of last year and would take some more months to complete.

Extra piling was needed to support the plant’s units in the swampy area, causing an unforeseen delay, the sources said.

Analysts also anticipate delays owing to the scale of the project in an area with limited infrastructure.

“In our forecast, we are putting late 2021 at the earliest for some petrol production but it may slip to 2022,” said Gary Still, executive director of CITAC, a specialist consulting company focused on African downstream energy.

Fuel shortages are common in Nigeria, despite the country of 180 million people being Africa’s biggest oil producer.

The existing 445,000 bpd refining system operates well below capacity due to corruption and lack of investment, leaving the state oil firm to import the bulk of its petrol and diesel needs paid for with cargoes of crude oil.

Edwin told Reuters last month that more than half the plant’s output could be exported after covering domestic needs.

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.

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Siemens Energy Nigeria Appoints Seun Suleiman as Managing Director

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Seun Suleiman is the New Managing Director of Siemens Energy Nigeria

Mr. Seun Suleiman is the new managing director of Siemens Energy Nigeria, the company announced on Wednesday.

According to the statement released by the energy company, Suleiman will be responsible for the entire management of operations and decisions on business policies and corporate strategy.

Commenting on his appointment, Suleiman said, “It is an absolute honor to lead the business for Siemens Energy Nigeria and I look forward to delivering on the brand’s promise of excellence.

Suleiman joined Siemens Energy in 2014, bringing over 15 years’ experience and deep expertise in the private sector across Europe and West Africa.

The statement said, “He is an accomplished business strategist and success-driven leader with strong business acumen. Suleiman has also been a core member of the executive management team at Siemens Energy serving in roles as Sales Director West Africa – Service Distributed Generation Oil & Gas and Vice President Service & Digital.

“Prior to this, he also held various functional and managerial positions with ABB Ltd UK, ABBNG Nigeria, Schneider Electric Nigeria and Dresser-Rand Nigeria Ltd.

It added that Suleiman was experienced in establishing operational excellence with specific competence in the power, oil and gas sectors.

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FG Reopens Osubi Airport Warri for Daylight Operations

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FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

JR Firms, an agribusiness firm with headquarters in Nigeria, has announced partnership with Sanit Wing Rwanda through the acquisition of 11 per cent stake in the company.

The CEO of the company, Mr Rotimi Olawale, explained in a statement that the partnership was in furtherance of its goals to ensure food security, create decent jobs and raise the next generation of agrarian leaders in Africa.

The stake was acquired through Green Agribusiness Fund, an initiative of JR Farms designed to invest in youth-led agribusinesses across Africa.

Sanit Wing Rwanda is an agro-processing company that processes avocado oil and cosmetics that are natural, quality, affordable, reliable and viable.

The vision of the company is to become the leading producers of best quality avocado and avocado by-products in Africa by creating value across the avocado value chain.

With focus on bringing together over 20,000 professional Avocado farmers on board and planting of three million avocado trees by 2025 through contract farming, the company currently works with One Acre Fund in supply of avocado to its processing facility.

The products of the company which include avocado oil, skin care (SANTAVO), hair cream and soap are being sold locally and exported to regional market in Kenya.

With the new partnership with JR Farms- the products of the company will enjoy more access to markets focusing on Africa and the European Union by leveraging on partnerships and trade windows available.

Aside funding, the partnership comes with project support in areas of market exposure, capacity building, exposure and other thematic support to grow the business over the next four years.

JR Farms has agribusiness operations in Nigeria, Rwanda, United States and Zambia respectively.

In Nigeria, the company deals in cassava value chain processing cassava to national staple “garri” which is consumed by over 80 million Nigerians on daily basis, while in Rwanda, it works in the coffee value chain with over 4,000 coffee farmers spread across the East Central African country.

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