A New Agenda For The NNPC’s Refineries…

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

List of Mobile Phone USSD Codes for Money Transfers for All Banks in Nigeria

As technology evolves, the financial sector is not left behind, Several softwares have been developed to make banking easier...

Top 10 Most Expensive Universities In Nigeria

For many Nigerians, high-quality higher education is a luxury. There are many private universities who are known not only...
A New Agenda For The NNPC’s Refineries...A New Agenda For The NNPC’s Refineries...

Against the background of periodic challenges with the supply and distribution of petroleum products, the board of the Nigerian National Petroleum Corporation (NNPC) approved the list of firms to be selected for the rehabilitation, operation and maintenance of its refineries at Kaduna, Warri and Port Harcourt last month.

The corporation’s already appointed advisors will be supplemented by independent audit, environmental and regulatory firms to undertake the necessary due diligence on the investment by the private sector.

  • The rehabilitation is to be carried out by the original refinery builders. This policy decision has been taken because of their inherent knowledge and competitive advantage. Additionally, they are best placed to provide the necessary performance guarantees.
  • Funding for the rehabilitation of each refinery is to be provided by an approved consortium under a prepayment structure. The consortia will have firms with a proven track record in the field. They will execute an operations and maintenance agreement, binding them, inter alia, to the refineries operating at 90% capacity.
  • The consortia are also required to include a firm with strong product marketing experience. This prerequisite is designed to underpin the sale of refined products on the open market.
  • The corporation expects the conclusion of the financing arrangements within three months and currently sees the rehabilitation of the refineries on or before end-2019.
  • The advantages of the project are clearly numerous. The first to mention is the scope for substantial FX savings on imported products. We recall that the refineries have a combined capacity to process 445,000 barrels of crude oil per day. The savings would allow the FGN to deploy the funds to other priority areas of the economy. The project also has great potential in terms of job creation.
  • Finally, the project will bring the upgrading and eventual replacement of oil pipelines. The technique of horizontal directional drilling is to be used for the installation of the pipelines several meters underground. This way, the security of the pipelines is greatly enhanced.
Read:  Oil Prices: At The Mercy Of Geopolitical Tensions
Read:  Future of Finance: Bitcoin is booming in Nigeria as both business users and speculators rush in

News Headlines

Nigeria sells US$2.5bn Eurobonds to replace naira debt:

Nigeria sold $2.5 billion of Eurobonds to lower funding costs by using the notes to refinance higher-yielding naira debt. According to the finance ministry, the country issued US$1.25bn of 12-year securities with a yield of 7.14% and a separate 20-year tranche, also US$1.25bn, at 7.7%. Investors placed more than US$11.5bn of orders, the ministry said. (Source: Bloomberg)

- Advertisement -

World Bank approves US$486m credit for Nigerian power grid work:

The World Bank has approved a US$486m credit facility to Nigeria for electricity grid improvements, the lender said on Friday. “The investments under the Nigeria Electricity Transmission Project will increase the power transfer capacity of the transmission network and enable distribution companies to supply consumers with additional power,” the World Bank said. (Source: Reuters)

Reps demand N800bn supplementary budget for fuel marketers:

Read:  Heineken Nigeria Emerged Winner in the Brand of the Year Category

The House of Representatives is unhappy over the lingering scarcity of petrol in the country and has asked the Executive to submit a N800bn (US$2.2bn) supplementary budget to the National Assembly to offset the debts allegedly owed fuel marketers. (Source: Punch)

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Lafarge Africa Plc Records N15.5bn PAT in 2019, Proposes N1.00k Dividend

Revenue declined by -2.2% to N213bn from N218bn in the previous quarter. Profit before tax stood at N17.9bn. ...

Chidi Nwaogu Wins Migration Entrepreneurship Prize by Swiss Government

Nigerian serial tech entrepreneur and software developer, Chidi Nwaogu, has just won the Migration Entrepreneurship Prize by the Swiss Federal Department of Foreign Affairs (FDFA)...

Enabling Remote Work – Synology VPN Plus Licenses Free Until September 30, 2020

In response to the ongoing COVID-19 pandemic, many businesses have adopted work from home policies. Synology's wireless routers feature powerful VPN server capabilities that...

BMW Group Focuses On Flexibility And Solidarity In Dealing With Coronavirus Pandemic

During the current coronavirus pandemic, protecting employees and taking responsibility for society is the number one priority for the BMW Group. At the same...
- Advertisement -
BrandsPur Weekly Cartoons
%d bloggers like this: