Economy

Nigeria Will Refine 900,000 bpd This Year

Published

4 years ago

July 18, 2019

Nigeria Will Refine 900,000 bpd This Year

Barring any distortion in plans, Nigeria will be refining at least 900,000 barrels of oil per day (bpd) in the next 10 years. This was the submission of former Minister of State for Petroleum Resources, Dr Ibe Kachikwu.

In an interview with reporters in Abuja, the ex minister said the country is capable of achieving the feat in view of the efforts made by the Federal Government to crude production and refining in the country.

He said the country will be producing 650,000 barrels of crude oil per day from Dangote Petrochemical Refineries soon, ditto getting another 250,000 bcpd from 10 modular refineries in the Niger Delta region during that period.

Kachikwu said: ”The modular refinery, which was a concept we pushed in order to engender peace in the Niger-Delta region, is currently working successfully. Three modular refineries are nearing production, while seven of the refineries are at the verge of completing their Final Investment Destinations (FDIs) plans. So, if those 10 refineries come on board in the next two to five years, they will be providing 250,000 bpd.

He added: “This, when added to the output of Dangote Petrochemical Refineries, which is expected to refine 650,000 bpd, will bring the total refining capacity of Nigeria to 900,000 bpd. I tend to look at the refineries from the perspective of the volumes they are producing, not physical assets.

The refinery, Kachikwu said, is an export earner, adding that Nigeria needs to be able to supply product to meet the needs of countries in West Africa, East Africa and Southern Africa.

He said he made efforts to increase the country’ s crude output, by holding discussions with countries in the Gulf region on how to refine crude oil for Nigeria.

“I also made efforts to talk to the governments of countries in the Gulf Region such as Saudi Arabia, Qatar and China by trying to see whether they would be interested in coming in both for the purpose of building refininery plants for Greenfield and Brownfield projects and the response has been positive,” he added.

Nigeria, he said, is at the threshold of signing a Memorandum of Understsnding( MoU) with South Africa, which will cover refineries, as well as construction of pipelines and Liquefied Natural Gas( NLG) investment.

On PIB, the former Petroleum Minister, said the Petroleum Industry Bill will enable more investors come into the indudtry by widening spaces for them to contribute to the growth of the nation’s energy sector.

The bill, he said, will also protect the rights of those who have been given licenses, adding that through this, a safe operating environment will be created for investors.

Raising funds, Kachikwu said, would be made easier once there is a safe environment in the Industry.

He said the right to make the country proud behoves on all Nigerians, arguing that such idea would lead to the growth of the economy.

Achieving this feat, Kachikwu argued, would not happen if the country is looking at the economic growth from short term angle, adding that it was wrong on the part of Nigerians to conclude that the Federal Government has awarded oil blocks to some individuals in the last four yearrs.

The government, he said, has not given licenses out for operators in the maginal fields, stressing that Mr President intends to sanitise the industry, before oil blocks are giving out to Nigerians, who would make good use of them.

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Samed Olukoya

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

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Economy

August 2023 Witnesses Highest Revenue Allocation of the Year – N1.1 Trillion Shared

The driving force behind this boost in revenue can be attributed to foreign exchange gains that have contributed significantly to the government’s income stream.

Published

2 days ago

September 30, 2023

Temitayo Olukoya

The Federation Account Allocation Committee (FAAC) unveiled its allocation of N1.1 trillion to the three tiers of government for the month of August 2023, Investors King reports.

This substantial increase was detailed in a communiqué following the committee’s latest meeting. August allocation was the highest so far with an increase of N133.99 billion when compared to the N966.11 billion shared in July 2023.

The driving force behind this boost in revenue can be attributed to foreign exchange gains that have contributed significantly to the government’s income stream.

Breaking down the N1.1 trillion total distributable revenue, the statement reveals that it consists of distributable statutory revenue amounting to N357.4 billion, distributable Value Added Tax revenue totaling N321.94 billion, Electronic Money Transfer Levy revenue at N14.10 billion, Exchange Difference revenue of N229.57 billion, and an augmentation of NN177.09 billion.

Of this impressive sum, the Federal Government is set to receive N431.25 billion, while the State governments will be allocated N361.19 billion, and the local government Councils will obtain N266.54 billion.

However, it’s essential to note that the total revenue available for August stood at N1.48 trillion, marking a 14% or 0.26 trillion decrease from the preceding month’s figure of N1.74 trillion.

The FAAC communiqué further underscores that various deductions were made, including N58.76 billion for the cost of collection, N254.05 billion for total transfers and refunds, and N71 billion allocated to savings. Additionally, the Excess Crude Account maintained a balance of $473,754.57.

The statement elaborated, “Gross statutory revenue of N891.934 billion was received for the month of August 2023. This was lower than the N1,150.424 billion received in July 2023 by N258.490 billion. The gross revenue available from the Value Added Tax was N345.727 billion. This was higher than the N298.789 billion available in July 2023 by N46.938 billion.”

Economy

Zambia’s Finance Minister Faces Dual Challenge in Upcoming Budget Address

Published

3 days ago

September 29, 2023

Samed Olukoya

As Zambia’s Finance Minister, Situmbeko Musokotwane, prepares to present the nation’s budget, he finds himself at a pivotal crossroads.

The second-largest copper producer in Africa is grappling with two pressing concerns: debt sustainability and soaring living costs.

Debt Restructuring Dilemma: Musokotwane’s foremost challenge is finalizing the $6.3 billion debt-restructuring deal with official creditors, led by China and France.

Delays have hindered disbursements from the International Monetary Fund (IMF) and left private creditors in limbo.

To reassure investors, a memorandum of understanding with the official creditor committee is urgently needed.

President Hakainde Hichilema emphasizes the importance of sealing these transactions to signal closure on this tumultuous chapter.

Plummeting Tax Revenue: The key copper-mining industry, which accounts for 70% of Zambia’s export earnings, is in turmoil.

First-half mining company taxes and mineral royalty collections have nosedived, adding to economic woes.

This, in turn, has depreciated the local currency, exacerbating imported inflation, particularly in fuel prices.

Rising Food Inflation: Musokotwane faces mounting political pressure to combat soaring living costs, with annual inflation reaching an 18-month high of 12%. Corn meal prices, a staple in Zambia, have surged by a staggering 67% in the past year.

Neighboring countries’ demand for corn has led to smuggling and further price spikes, raising concerns about food security.

Currency Woes: The kwacha’s value has been a barometer for the nation’s economic health. It depreciated by 16% since June 22, the worst performance among African currencies, reflecting the ongoing debt-restructuring uncertainty.

In his budget address, Musokotwane faces the daunting task of striking a balance between debt management, economic stability, and alleviating the burden on Zambia’s citizens.

The international community will keenly watch to see if his fiscal measures can steer the nation toward a path of recovery and prosperity.

Economy

IMF Urges Sub-Saharan African Nations to Eliminate Tax Exemptions for Fiscal Health

Published

4 days ago

September 28, 2023

Samed Olukoya

Sub-Saharan African countries have been advised by the International Monetary Fund (IMF) to tackle their fiscal deficits by focusing on eliminating tax exemptions and bolstering domestic revenue rather than resorting to fiscal expenditure cuts, which could hamper economic growth.

The IMF conveyed this recommendation in a paper titled ‘How to avoid a debt crisis in Sub-Saharan Africa.’

The IMF’s paper emphasizes that Sub-Saharan African nations should reconsider their overreliance on expenditure cuts as a primary means of reducing fiscal deficits. Instead, they should place greater emphasis on revenue-generating measures such as eliminating tax exemptions and modernizing tax filing and payment systems.

According to the IMF, mobilizing domestic revenue is a more growth-friendly approach, particularly in countries with low initial tax levels.

The paper highlights success stories in The Gambia, Rwanda, Senegal, and Uganda, where substantial revenue increases were achieved through a combination of revenue administration and tax policy reforms.

The IMF also pointed out that enhancing the participation of women in the labor force could significantly boost Gross Domestic Product (GDP) in developing countries.

The IMF estimates that raising the rate of female labor force participation by 5.9 percentage points, which aligns with the average reduction in the participation gap observed in the top 5% of countries during 2014-19, could potentially increase GDP by approximately 8% in emerging and developing economies.

In a world grappling with the weakest medium-term growth outlook in over three decades, bridging the gender gap in labor force participation emerges as a vital reform that policymakers can implement to stimulate economic revival.