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Dangote refinery will strengthen Nigerian economy – National Assembly

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Dangote refinery will strengthen Nigerian economy - National Assembly

The Oil refinery being built by Dangote Group will strengthen the Nigerian currency and prevent economic crash down when it starts its operations.

This was stated by the Legislature on Tuesday, during an inspection visit to the site of the Dangote refinery, petrochemicals complex, fertilizer plant, and subsea gas pipeline projects in Lagos.

The Chairman, Senate Committee on Petroleum Industry Bill, Mr Sabo Nakuda, said, “With the new PIB coming up, we intend to visit all the other refineries, not only Dangote refinery”.

“We were in Kaduna yesterday (Monday). We are going to Port-Harcourt and Warri so that we know what the industry entails and what needs to be done to be captured in the bill so that there will be ease of operations.”

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Still, on the refinery, he said, “I’m totally overwhelmed. And looking at this investment here, it is unbelievable that a single individual can confront this kind of project at this time of our economic dispensation.”

Nakuda said outside the job creation, which the project will provide, “I’m sure that by the time this refinery comes on stream, even the local currency is going to be strengthened because we spend millions of dollars importing finished petroleum products.”

He said the National Assembly would give the project all necessary support to ensure that the refinery kicks off.

“If you don’t help this industry, this refinery to come on stream, then, it means the Nigerian economy is going to be doomed,” he added.

On the PIB, he said the lawmakers were working hard, to ensure its passage within the next two months.

The Chairman, Adhoc Committee on PIB, House of Representatives, Mr. Mohammed Monguno, also commended the Dangote Group for the project, saying it would help to diversify the economy and boost foreign exchange reserves.

He said, “The passage of the PIB will make sure that the enabling environment is created by way of legislation for such private investments to thrive, and make the oil and gas industry much more competitive to also attract further investments into the country.”

The Executive Director, Strategy, Capital Projects and Portfolio Development, Dangote Group, Mr. Devakumar Edwin, said the 650,000-barrels-per-day refinery could meet 100 percent of the Nigerian requirement of all liquid petroleum products and would have surplus for export.

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BoI Records N35.5bn Profit As Assets reaches N1.86trn

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BoI Records N35.5bn Profit As Assets reaches N1.86trn

The Bank of Industry – BoI has said it recorded a profit after tax of N35.54 billion for the financial year ended Dec. 31, 2020, as its total assets hit N1.86 trillion.

The Managing director, BoI, Mr Olukayode Pitan, in a statement, yesterday, said that the performance demonstrates resilience and strength and also indicates synergy with the various interventions developed by both the federal government, the Central Bank of Nigeria (CBN) as well as other strategic partners, despite the significant challenges in the operating environment on account of the impact of the COVID-19 pandemic.

The group’s total assets grew from 1.04 trillion to 1.86 trillion between 2019 and 2020, driven by the successful debt syndication of €1 billion and $1 billion that were concluded in March and December 2020 respectively.

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The group’s total equity increased by 14.8% from 293.08 in the previous year to 336.48 billion in 2020. Loans and advances grew marginally in 2020 by 1.3% to 749.84 bn from the 2019 position, a reflection of the adverse impact of the challenging operating environment on growth of new loans.

Profit before tax fell by 9.6% from 39.34 billion in 2019 to 35.54 billion, attributable to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers were responsible for this result.

Pitan explained that the bank, in line with CBN directive, also reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from 9% to 5% per annum for a period of one year and moratorium extension of 3 months (with a possible extension up to 12 months).

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Get On the Central Credit Management Platform – CBN to Banks

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Get On the Central Credit Management Platform - CBN to Banks

The Central Bank of Nigeria (CBN) has mandated all development finance institutions (DFIs), microfinance banks (MFBs), primary mortgage banks (PMBs) and finance companies (FCs) operating in the country to enrol on its credit risk management system (CRMS).

This was disclosed on Monday, in a circular, stating that the move was part of efforts to promote a safe and sound financial system in Nigeria.

The CRMS was introduced to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.

“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrollment of Other Financial Institutions (OFIs) on the CRMS Platform,” the CBN said in the circular that was signed by its director, financial policy and regulation department, Kevin Amugo.

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Based on the memo, Dr Amugo said all DFls, MFBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMS and to update same on monthly basis. The bank said Bank Verification Numbers (BVN) and Tax Identification Numbers (TIN) are the only basis for regulatory renditions.

“To ensure full compliance, OFls are reminded to conclude the tagging of ALL live credit files for ALL individual and non-individual borrowers with BVN and TIN respectively by May 14, 2021,” Amugo said.

He further advised the concerned OFls to acquaint themselves with the regulatory guidelines for the operations of the redesigned CRMS for commercial, merchant and non-interest banks in Nigeria (February 2017) and the additional regulatory guidelines of September 2017.

Kindly note that the CBN will monitor compliance with the requirements of this circular and non-compliance will attract appropriate sanctions,” he stated.

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We’re not aware of currency printing – Finance ministry CBN

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Get On the Central Credit Management Platform - CBN to Banks

The Central Bank of Nigeria – CBN, has denied knowledge of claim that Nigeria printed billions of naira last month to cushion its financial trouble.

This came, after the Edo State Governor, Godwin Obaseki, alleged that Nigeria printed Sixty Billion Naira, N60bn to augment what the three tiers of government shared in March.

Obaseki reportedly stated on Thursday that Nigeria was in a huge financial trouble, alleging that the Federal Government printed N60bn in March as part of federal allocation last month.

The Edo governor also expressed worry over the country’s increased borrowing, saying it was wrong to continue borrowing without a tangible plan for debt repayment.

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When contacted to comment on the development, the spokesperson of CBN, Osita Nwanisobi, told one of our correspondents that he was not aware of any N60bn that was printed.

“I am not aware of that (N60bn printed by government,” he told our correspondent on Saturday.

Similarly, when contacted to speak on the N60bn that was allegedly printed in March 2021, the Federal Ministry of Finance, Budget and National Planning said enquiries on the matter should be directed to the governor who made the allegation.

The media aide to the finance minister, Yunusa Abdullahi, said the Edo State governor or the CBN should be contacted.

“Please direct your questions to the governor who made the claim or the CBN,” he told our correspondent.

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