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We’ll Miss 2019 Target for Refineries’ Revamp – Kachikwu

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  • We’ll Miss 2019 Target for Refineries’ Revamp – Kachikwu

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has said the plan to get the nation’s ailing refineries to work at almost full capacity will not materialise by 2019.

Kachikwu stated this on Monday in Lagos at the 18th edition of the International HSE Biennial Conference on the Oil and Gas Industry in Nigeria organised by the Department of Petroleum Resources, in conjunction with other stakeholders.

Last year, the minister vowed to resign if the country failed to attain self-sufficiency in the refining of petroleum products by 2019.

When asked to state the year that Nigeria would be self-sufficient in refining petroleum products, Kachikwu, who was a guest on BBC Hard Talk in London on May 22, 2017, replied, “I have said 2019, and that is the target that I gave.”

Earlier on May 4, 2017, the Nigerian National Petroleum Corporation expressed commitment to actualise the December 2019 target set by the Federal Government to end the importation of petroleum products into the country.

The Group Managing Director, NNPC, Dr Maikanti Baru, was quoted in a statement as saying at the Nigeria Oil Industry Award Dinner during the Offshore Technology Conference 2018 in Houston, United States, that measures had been taken to achieve the target.

He explained that in terms of refining and production of local petroleum products, the ongoing arrangement with the original builders of the refineries to return them to at least 90 per cent capacity utilisation before the 2019 deadline was still intact.

Kachikwu said on Monday in a keynote address that 10 out of the over 40 licensed modular refineries had got into serious work, with three likely to come on stream towards the end of next year.

He said work was ongoing on the four refineries owned by the NNPC, adding, “Hopefully in the next board meeting next week, we will be able to come to final landing on the commercial terms for those investments. If we do, that brings in the processing of 445,000 barrels of crude.

“Even though I had wanted in my usual bullish nature to get this thing driven so that we can have all the refineries working by end of 2019, obviously it will slip a bit. But what is important that we must begin the process. We are going to deliver those barrels refined by 2020, so be it.”

On the refinery being built by Aliko Dangote in Lagos, with a capacity of 650,000 barrels per day, the minister said, “We are working very hard with him on it.”

The media reported on November 8, 2019 that the proposed rehabilitation of the nation’s refineries had suffered delays as the third-party financiers for the project had yet to be announced, more than a year after the NNPC said 28 firms had expressed interest in its financing.

Nigeria has four refineries, two in Port Harcourt and one each in Kaduna and Warri, with an installed capacity of 445,000 bpd, but they have continued to operate far below the installed capacity for many years.

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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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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Shut Down Depots Selling Petrol Above Approved Price – Marketers

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Shut Down Depots Selling Petrol Above Approved Price – Marketers

The Federal Government should close down depots that are selling petrol above the approved price, oil marketers said on Thursday.

National President, Independent Petroleum Marketers Association of Nigeria, Sanusi Fari, said the sale of petrol above government approved price by depot owners would soon lead to a hike in the commodity’s pump price.

Fari told journalists in Abuja that the government through its agencies such as the Department of State Services and the Department of Petroleum Resources should curb the development to avoid crisis in the downstream oil sector.

He said some private depot owners were selling at N165 per litre to independent marketers, way above the government stipulated price of N148 per litre.

Fari said, “Our challenge is the inconsistency in the pricing of petrol. Up till a week ago, government was still insisting that the February price for petrol remained unchanged.

“And most of the private depot owners are selling above the government stipulated price. As at today ( February 25, 2021) private depot owners are selling at N165 per litre to independent marketers.”

He added, “In the last six years, only NNPC imports refined products into this country and these tank farms buy their products from NNPC under a controlled price.

“This has affected our businesses seriously because government is insisting that we sell at the rate of N165, which is not going to work.”

The IPMAN president said filling station owners buy the product at N165 per litre from the private depots and incur other expenses such as transportation, rent, etc.

“So government cannot expect us to sell less than what we buy,” he said.

Fari added, “This is why we are calling on government and agencies that are saddled with the responsibility to control petrol pricing to urgently clamp down on depots that are selling above the stipulated price.”

The Nigerian National Petroleum Corporation, the country’s sole importer of patrol, recently stated that it never hiked the cost of petrol to depots.

It also enjoined the depot owners to sell the product at the approved rate and called on the DPR to enforce the stipulated price across the depots.

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