Business
How the Dangote Refinery Could Impact Nigeria’s Forex Crisis
How the Dangote Refinery Could Impact Nigeria’s Forex Crisis, Equally, the project is expected to reduce the pressure on foreign exchange drastically if sales of crude oil to Dangote are dominated by local currency.
Industry observers are of the notion that the project will meet 100 per cent of Nigeria’s demand for refined petroleum products with a surplus for export.
In addition, the refinery will also create employment, boost fuel supply across Africa, and generate foreign exchange earnings for Nigeria through the export of 40 per cent of its products.
Viewed as a game-changer for the revitalisation of Nigeria’s economy and the downstream petroleum products market in the entire African continent, the multi-dollar project is billed to elevate the status of the Naira that has been struggling for survival against the dollar.
With its first-rated management, and support from the government and other stakeholders, the project, regarded as a huge achievement for the Nigerian government, will without mincing words, reduce the nation’s dependence on fuel imports and save foreign exchange.
The News Agency of Nigeria (NAN) recalls that the world’s largest single-train refinery was inaugurated by former President Muhammadu Buhari on May 22, 2023, in Lagos, a few days before the change of baton with President Bola Tinubu, his successor.
However, some oil and gas experts in an exclusive interview with NAN, on Sunday, expressed optimism about the world-class project sited in Lekki, a Lagos State riverine community.
Speaking at the Federal Executive Council meeting recently, Zacch Adedeji, the Executive Chairman of the Federal Internal Revenue Service (FIRS), highlighted some of the benefits of the project to Nigeria.
Adedeji said that the pressure on foreign exchange would drastically reduce if sales of crude oil to Dangote were dominated by local currency.
According to the FIRS boss, Nigeria spends about 30 per cent to 40 per cent of its foreign exchange on the importation of petrol, thereby putting much demand on the country’s foreign reserve.
Adedeji said that the proposed transaction would be a game-changer for the foreign exchange market by saving what he termed hard-earned greenback instead of spending it on importation.
“What does this mean to our economy? The pressure on foreign exchange rates, today, will be reduced.
“We spend roughly 30 per cent to 40 per cent of our foreign exchange on the importation of PMS that we consume. That will be drastically reduced,” he said.
The FIRS boss noted that Nigeria would save $7.32 billion annually if all transactions of crude to local refineries were done in local currency as approved by the FEC.
He explained that Nigeria currently spends 600 million dollars on importation of petrol per month, amounting to about $9.72 billion annually.
According to him, selling crude oil and buying refined products from Dangote Refinery at local currency will save the country a total sum of $7.32 billion annually, a 94 per cent decline from actual spending.
“With the new approval, this will reduce to a maximum of 50 million dollars per month. When annualised, that is only 600 million dollars which is a total reduction of 94 per cent. In monetary terms, that is savings of about $7.32 billion,” Adedeji added.
Supporting Adedeji, an oil and gas consultant, Demola Adigun, described the project as a national treasure that must be supported to perform efficiently.
To derive expected value, Adigun listed advantages of the project to include job creation and value addition in the downstream as well as energy security.
He said that the Dangote refinery would significantly create other developments in the manufacturing economy.
The expert said that the government could support the refinery to create a healthy environment for Dangote refinery and other domestic refiners.
“Government can find ways to ensure that his products are purchased when available; government can support the refinery through improved and adequate regulations,” he said.
The expert advised that Dangote must also focus on supporting the extended development of the host community through providing ancillary services and infrastructure.
He added that the government can promote more independence of the regulator and only intervene when necessary, following the laws.
Rabiu Bello, a Senior Independent Non-Executive Director, Board of Seplat Energy Plc., described the successful startup of Dangote refinery as a game-changer in the development of Nigeria’s Midstream and Downstream Petroleum sectors that require transparent collaboration and stakeholder engagements for the realisation of the potential benefits.
To him, it is a great opportunity for Nigeria to be a refining hub and net exporter of petroleum and petrochemical products this decade.
Describing the Dangote refinery as a typical manufacturing plant that relies on a sustainable supply of raw materials to deliver value to its shareholders, Bello revealed that the survival instinct required by the refinery to survive is crude oil and natural gas, which is government-owned.
“Thus, the government can support the refinery-guaranteed crude oil and gas supplies to ensure sustainable operations of the refinery and petrochemical facilities.
“This should be implemented through strategic commercial cooperation and partnership that can create value for both the Dangote refinery and the government but more importantly, for the domestic Nigerian economy.
“A 20-billion-dollar investment in a refinery that is over 10 years is a huge value proposition that must be protected. But, a year supply of 650,000 barrels daily to the refinery at 90 dollars per barrel is worth more than 21 billion dollars.
“This is a significant percentage of federation revenue that must be protected sustainably through efficient operation of the refinery.
“Dangote Refinery is sufficient to pay for the crude and deliver adequate returns to refinery shareholders and the government,’ he explained.
Bello said that all domestic refineries including the NNPCL refineries should be treated equally and be supported with guaranteed crude supplies depending on their efficiency and operational capacity.
He added that the Midstream and Downstream regulator has sufficient legal authority to do the needful in ensuring that products satisfy quality.
He advised that the regulator should also develop proper regulatory frameworks to create a level-playing field for all players such that Nigerian consumers were not short-changed at any point in the supply chain.
He said that with complex refineries like Dangote and the new NNPCL refinery in Port Harcourt operating efficiently, Nigeria would start exporting lots of excess products such as Diesel and Kerosene by the time they start processing 500,000 per day.
The expert noted that the full benefits of Nigeria’s oil and gas sector could only be realised when the country develops the midstream and downstream segments of the value chain, which essentially means the development of oil and gas processing facilities.
He said that these critical infrastructures were required to convert crude oil and natural gas into petroleum products and petrochemicals such as petrol, diesel, kerosene for household and aviation, cooking gas, methanol, fertilisers, clean natural gas for power generation and other products used by industries.
“Without processing our oil and gas domestically, all these products must be imported from those countries who can buy our crude oil and gas and process it for their own use and export excess to those in need, like Nigeria.
“In summary, some of the benefits of having a critical midstream facility like Dangote Refinery in Nigeria include the guaranteed supply of products at a lower cost than import.
“Others include employment generation, import substitution, export earnings from sales of excess products to an international market and enhanced economic growth.”
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Business
NucleusIS Africa acquires Rigo Microfinance Bank
NucleusIS Africa acquires Rigo – NucleusIS Africa acquires Rigo…
NucleusIS Africa acquires Rigo – Africa’s fast growing technology…
Africa’s fast growing technology company completes 100% acquisition of Rigo Microfinance Bank, making it one of the biggest healthcare finance technology companies in Africa. NucleusIS Africa Limited, Africa’s fastest-growing technology company, has announced its acquisition of Rigo Microfinance Bank Limited. This landmark takeover is expected to strengthen NucleusIS Africa’s ability to deliver cutting-edge healthcare financing services across the continent.
Speaking on the acquisition at press time, Mr. Femi Niyi, Board Chairman of NucleusIS Africa Limited, expressed optimism about the expanded opportunities this acquisition creates. “This acquisition aligns perfectly with our vision of transforming healthcare financing in Africa. Combining our innovative solutions with Rigo Microfinance Bank’s financial services infrastructure will enable us to address critical healthcare challenges more effectively,” he said.
The acquisition underscores NucleusIS Africa’s mission to close the healthcare funding gap through technology-driven solutions. By integrating Rigo Microfinance Bank’s established financial infrastructure, the company aims to broaden its reach and enhance its ability to offer seamless, customized financial services to healthcare providers and patients.
Industry experts believe this acquisition positions NucleusIS Africa as the leading force in healthcare finance innovation across Africa. NucleusIS Africa will be able to better support medical service providers and expand access to essential healthcare services for more Africans.
With the added capacity, the company plans to introduce new financial products designed to support healthcare providers, facilitate patient financing, and significantly improve access to quality healthcare services.
The move is a strategic step toward reshaping Africa’s healthcare financing landscape.
The acquisition of Rigo Microfinance Bank Limited marks a new chapter in the company’s mission to create sustainable healthcare solutions through financial empowerment.
NucleusIS Africa Limited, founded in 2021, is a Nigerian Tech Company leading groundbreaking innovation to enhance healthcare access in Africa, through technology and finance driven solutions. The company’s flagship platform automates health insurance operations, connecting insurers, healthcare providers, and individuals across Nigeria and Ghana.Within the last few years, the organization has onboarded over 700,000 insured individuals, while partnering with major health insurance providers.
NucleusIS has also introduced a groundbreaking credit product – Provider Advance, that has transformed the financing landscape for healthcare businesses. Pharmacies, hospitals, laboratories, and other providers can access collateral-free business loans in as little as 48 hours, eliminating the traditional financing hurdles of collateral requirements and lengthy turnaround times.
Within the last few years NucleusIS has demonstrated its commitment to supporting the healthcare industry, having disbursed over ₦10 Billion in loans to healthcare businesses across Nigeria.
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Business
Fuel hike, bad roads behind onion shortage – Anambra traders
Fuel hike, bad roads – Fuel hike, bad roads…
Fuel hike, bad roads – Traders and buyers at…
Traders and buyers at Eke Awka Market, in Anambra State’s capital, have attributed the scarcity of onions to rising fuel prices and the country’s poor road network.
A News Agency of Nigeria (NAN) survey conducted on Tuesday revealed that onions, a key condiment used to spice food, have become increasingly difficult to find and afford.
Obigaeli Nwokoye, a petty trader dealing in onions, explained that a few weeks ago, there was no onion available in the entire market due to bad roads. She added that suppliers from the northern part of the country faced delays, as the high cost of fuel and poor road conditions hindered transportation and logistics.
“Drivers coming from Kano face major challenges, which delay their deliveries to Awka.
“The government should address these issues and give special attention to food transporters to ensure a steady supply of food items.”
Mrs Chioma Okeke, another seller, shared that the price of a bag of onions had skyrocketed to ₦370,000, compared to ₦258,000 in November. She further noted that the price had steadily increased throughout the year, from between ₦70,000 and ₦90,000 in January to ₦110,000 to ₦170,000 around August/October.
“From November to December, the price jumped to between ₦250,000 and ₦300,000.”
Mrs Doris Beluchukwu, a buyer, expressed frustration at the soaring prices and scarcity.
“Onions that used to cost ₦100 or ₦200 are now priced between ₦500 and ₦2,000,” she said.
She also urged the government to ensure its food regulatory agencies functioned effectively, as some of the food shortages might be artificial.
“Government needs to act quickly to ensure a steady supply of basic food items to markets across the country,” Beluchukwu added.
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Business
Free Slots: An accessible way to enjoy casino games
Free Slots: An accessible – Free Slots: An accessible…
Free Slots: An accessible – According to statistics, the…
According to statistics, the revenue in the online gambling market is projected to reach 97.15 billion USD in 2024. This represents a revenue change of 14.1%. As more and more people want to enjoy the fun of the casino, it makes sense for online casinos to offer some games for free. In this article, we’ll tell you all about free slots and how you can access them for casino fun.
How Free Slots Work
Essentially, free slots are slot machine games that don’t cost you anything to play them. This means you can enjoy them as much as you want without worrying about spending any money. There are many benefits to this, of course. You can find your favorite games and enjoy them without the gambling element and you can try out new games to see if you like them before spending any of your hard-earned cash.
The games you can play will vary from site to site, just like their paid versions. You’ll get access to all of the common features like bonus rounds, free spins, and the progressive jackpot element if there is one. However, because you’re playing for free, anything you win will also be virtual, so there’s no chance of winning a payout—unless you’re using free spins from a no-deposit bonus, for example.
The Benefits of Free Online Slots
Free online slots have their advantages. Here’s a summary of why many people enjoy them:
It’s risk-free entertainment: You can play the games to your heart’s content without the fear of losing money being there.
Skill development: For slots that are more strategic or challenging, free slots and demo versions mean you get to practice your gameplay and familiarize yourself with the rules.
Work out how much you’d like to play with: When you play a game for free, you can test out its volatility and RTP (return to player) to see if it’s worth the risk of betting higher or whether you should stick to small amounts.
Diverse game selection: Free slots are available in a wide range of themes and styles. There are thousands of different ones available so you’ll always find something you enjoy.
Key Features to Look For in Free Slots
Ultimately, what you look out for depends on the individual, but some things will make the free slot experience better. This includes:
The graphics and sound: This enhances the gaming experience and some games are much better than others.
Return-to-player (RTP) percentage: Playing free slots allows you to test out games with different RTPs to see if you like playing them and they’re worth the risk if the RTP is lower.
Mobile compatibility: Trying out a game on a mobile device for the first time can be a bit hit-and-miss. Using a free version means you can see if it works well before spending your money.
Tips For Finding the Best Free Online Slots
To find the best free slots, you’ll need to look around. Some online casinos don’t allow you to play their games for free until you register while others are happy to let you try them out before you sign up.
Looking at online reviews by other players is also useful as you won’t then waste time playing games you know aren’t great. Also, there are plenty of sites that aren’t casinos that allow you to play games by top developers in demo mode.
The Potential Problem of Free Slots in Online Gaming
Realistically, software developers allow you to play their games for free because they want you to enjoy them. Online casinos offer free games to entice you to join and spend real cash. If you know this and are a responsible gamer, there’s no reason why you can’t have fun playing this way. All reputable sites have responsible gaming tools so if you do decide to stop playing the free versions, be sure to join a site that is licensed and reputable, then you have protection against problem gambling.
Conclusion
Free slots have so many advantages and as long as you’re aware of the potential downside and are a responsible gamer, there’s no reason why you can’t continue to enjoy free slots for as long as you want. These are an entry point into the world of online casinos but they can just be where you stop too. Free slots are a relaxed way of learning about casino gaming mechanics and can help you unwind.
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