A destroyed refinery By Favour Ifeoluwa & Akinola Ajibade The Nigerian National Petroleum Company Limited( NNPCL) says it has destroyed 134 illegal refineries in the last few weeks. Also, the company said 63 illegal pipeline connections were uncovered during the the weeks . The corporation, In a visual report, stated that at about 2 am on Sunday, a joint team of security agents discovered a large wooden boat illicitly loading stolen crude oil from Barge AGS01 within the OML 18 operating area, noted intelligence report a large wooden wooden boat was caught receiving crude oil from the barge. According to the state-owned oil firm, while the barge was towed away with a tugboat in custody, five speedboats used in towing the large wooden boat to the illegal loading site were also detained and the particulars of the tugboats and barge used for the operation were reportedly seized for further investigation. It further said that two large boats, which involve
By Favour & Akinola Ajibade
The Governor of Central Bank of Nigeria (CBN) has re-emphasised the needs for Dangote Refinery to help Nigeria in terms of fuel supply.
This happens, as the Monetary Policy Committee (MPC) raised interest rate to 18.5 percent.
Its Governor, Mr Godwin Emeifiele said while addressing journalists at the end of MPC meeting in Abuja.
According to him, the time has come for Dangote Refinery to repocicate the gestures shown to it by the Federal Government and CBN, by selling fuel at a good price to Nigerians.
He restated that there will be no subsidy, adding that freight cost and demurrage would reduce just as foreign exchange would be saved while other sectors of the economy would take advantage of this.
The CBN governor further said it would provide loans at single-digit interest rates to businesses across the country that are worth N8trillion in the last eight years, stressing that some of the loans have 10year tenure.
On the hike in MPR, Emeifiele said that the decision to do so was taken in order to further rein in inflation and dwindling fortunes of the local currency, Naira.
Recall that Nigeria has been grappling with a high inflation rate as well as a depreciating exchange rate both at the parallel and the official market.
Current figures at both markets show that even the unrealistic rate at the official market has not been steady, exchanging N463/$ on Tuesday as against N462/$.
Similarly, the rate fell to an average of N762/ $1 at the black market on Tuesday, May 23rd, 2023, representing a 0.26% depreciation from the previous day’s trading session, where it was valued at N760/1
This is coming on the heels of Nigeria’s real GDP which grew by 2.31 percent in Q1 2023 as against 3.52 in Q4 2022
However, the decision of the CBN was made on the back of the rising inflation rate in the Nigerian economy. Headline inflation rose to 22.22% in April 2023 from 22.04% recorded in the previous month, representing its highest level since September 2005.
Headline inflation rose to its highest level in over 17 years in April 2022, eroding the purchasing power of citizens,
CBN’s interest rate at 18.5 percent represents its highest level in 22 years.
The central bank continues to rein in inflation using monetary policy tweaks, by increasing interest rates, a development that curtailed credit access to the real sector of the economy, which operators, like many Nigerians, are faced with rising cost if electricity that is still epileptic and diesel, among others.
Emefiele at the post-MPC press briefing held on Wednesday 24th, 2023 stated that it has unanimously voted to hike its monetary policy rates or interest rates by 50 basis points, as 10 members voted for a 50 basis point hike and 1 member 25 basis point.
According to the governor, the MPC members believe that reducing MPR was not even considered and that a hold will be counterfactual to evidence on the ground.
They also cited evidence that raising rates was reducing inflation which may have risen to as high as 32% as against 22.22% if rates were not aggressively raised in April.
pay for the refined product in naira which will save scarce foreign exchange and generate revenue in exported refined petroleum products.
The Central Bank of Nigeria says Dangote refinery could engender foreign exchange savings of between US billion and US billion annually for Nigeria.
Support for allied industries
The establishment of the refinery is also likely to help reduce the cost of production for industries that rely on petroleum products such as diesel to power their operations. In turn, this should increase their competitiveness in the global market while promoting local industry capabilities.
The refinery could also create an environment for allied industries to emerge in and around it. For instance, businesses in transport, housing and telecommunications will benefit from the construction and operations of the refinery.
And the refinery should create jobs and entrepreneurship opportunities.
While under construction, the refinery employed about 40,000 workers – 29,000 Nigerians and 11,000 foreigners.
The jobs were in engineering, construction, manufacturing and operations, among other areas.
In full operation, the refinery, according to media reports, is expected to create over 250,000 direct and indirect jobs. I believe this is a fair estimate.
The country’s current unemployment rate is expected to reach 40.6% in 2023.
Possible increase in carbon footprint
The operation of Dangote refinery raises concerns about its potential impact on Nigeria’s net zero emission goals. Net zero is an ideal state where the amount of greenhouse gas emissions produced and greenhouse gas emissions taken out of the atmosphere is balanced.
Decarbonisation efforts are required for countries to achieve net zero but the path and time might differ as countries may want to take a gas-led approach to transition to renewable energy.
At the COP26 climate change meeting in 2021, President Muhammadu Buhari committed to net-zero emissions by 2060. This is to protect Nigeria’s environment and ecosystem from the impact of climate change and reduce the country’s greenhouse gas emissions.
Nigeria has an Energy Transition Plan to get closer to a more sustainable economy. The plan assumes greater use of natural gas as a “transition fuel”.
Oil refineries contribute about 4% of the global carbon emissions.
The Dangote refinery complies with World Bank, US, European and Nigerian norms for emissions and effluents.
The Dangote refinery is a significant step towards self-sufficiency in Nigeria’s energy sector
reports, is expected to create over 250,000 direct and indirect jobs. I believe this is a fair estimate.
The country’s current unemployment rate is expected to reach 40.6% in 2023.
Possible increase in carbon footprint
The operation of Dangote refinery raises concerns about its potential impact on Nigeria’s net zero emission goals. Net zero is an ideal state where the amount of greenhouse gas emissions produced and greenhouse gas emissions taken out of the atmosphere is balanced.
Decarbonisation efforts are required for countries to achieve net zero but the path and time might differ as countries may want to take a gas-led approach to transition to renewable energy.
At the COP26 climate change meeting in 2021, President Muhammadu Buhari committed to net-zero emissions by 2060. This is to protect Nigeria’s environment and ecosystem from the impact of climate change and reduce the country’s greenhouse gas emissions.
Nigeria has an Energy Transition Plan to get closer to a more sustainable economy. The plan assumes greater use of natural gas as a “transition fuel”.
Oil refineries contribute about 4% of the global carbon emissions.
The Dangote refinery complies with World Bank, US, European and Nigerian norms for emissions and effluents.
The Dangote refinery is a significant step towards self-sufficiency in Nigeria’s energy sector.
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