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Dangote Refinery: Naira-For-Crude Deal Begins Tuesday — Tinubu Panel

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The Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency confirmed on Sunday that the supply of crude in naira by the Nigerian National Petroleum Company Limited to the Dangote Petroleum Refinery will begin on Tuesday, October 1, 2024.

On September 13, 2024, the committee announced that the Federal Executive Council, under the leadership of President Bola Tinubu, approved the sale of crude to local refineries in naira and the corresponding purchase of petroleum products in naira.

“From October 1, NNPC will commence the supply of about 385kbpd (385,000 barrels per day) of crude oil to the Dangote refinery to be paid for in naira,” the committee declared.

The Chairman of the Technical Sub-Committee is Zacch Adedeji, who also serves as Chairman of the Federal Inland Revenue Service.

When contacted on Sunday and asked if the plan for the crude oil supply to the $20bn Lekki-based plant is still intact, the Special Adviser on Media to the FIRS Chairman, Mr. Dare Adekanmbi, confirmed it is.

He stated, “I can confirm to you that the Chairman, Sub-Technical Committee, Zacch Adedeji, is working day and night to ensure that things go according to plans. He knows how important it is to have the agreement implemented as has been planned for the benefit of Nigerians.”

This indicates that NNPC will supply approximately 11.5 million barrels of crude oil to the Dangote refinery monthly, and under the deal, the plant will release equivalent volumes of refined diesel and petrol to the domestic market, also in naira.

The panel explained in September that this initiative would help reduce pressure on the naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products across the country.

“Since then, the implementation committee chaired by the Minister of Finance and we, the technical committee, have worked intensely with NNPC and Dangote refinery to fashion out the details of the modalities for the implementation of the FEC approval,” Adedeji stated.

While stating that crude would be sold to Dangote in naira from October 1, the committee chairman and FIRS boss said, “In return, the Dangote refinery will supply PMS (petrol) and diesel of equivalent value to the domestic market to be paid in naira.

“Diesel will be sold in naira by the Dangote refinery to any interested off-taker. PMS will only be sold to NNPC. NNPC will then sell to various marketers for now. All associated regulatory costs (NPA, NIMASA, etc.) will also be paid in naira. We are also setting up a one-stop shop that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative.”

Adedeji explained that the technical committee that developed the initiative will transition to an implementation execution and monitoring committee working out of Lagos for the next three to six months.

The committee, which includes the Permanent Secretary of the Federal Ministry of Finance, Mrs. Lydia Jafiya; the FIRS boss, as well as representatives from NNPC, Central Bank of Nigeria, AfreximBank, and the Nigerian Upstream Petroleum Regulatory Commission, was established to craft a robust template ensuring the successful implementation of the initiative.

Meanwhile, modular refineries have called on the government to create modalities for the supply of crude to their plants as well.

About 24 hours before the commencement deal, the modular refiners informed one of our correspondents that they were not involved in the negotiations.

The Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, Eche Idoko, said, “The committee is only discussing with Dangote at the moment.”

According to Idoko, the committee, during its inaugural meeting, stated that it would initiate the naira sale of crude with refineries producing petrol, noting that currently only the Dangote refinery is producing the commodity.

He mentioned that the association advocated for the committee to extend the sale to other refineries to avoid discrimination, “but they haven’t given us any feedback.”

Idoko stated, “Perhaps, during the October date, they will disclose more in terms of the modus they want to adopt. But at the moment, we have not received any clear communications as to how the naira sale will be administered other than the fact that they said they will start with PMS-producing refineries.”

The CORAN spokesman revealed that many modular refineries are facing significant crude challenges, hindering their fuel production.

He noted that some refineries with a capacity of 10,000 currently produce slightly above 3,000 barrels per day due to the unavailability of crude oil.

“A 6,000-capacity refinery now produces 1,000 barrels, but productions are inconsistent due to erratic crude supply,” he stated.

He added, “Our modular refineries are facing a serious crude crisis. Nothing has changed for modular refineries. There are talks with the government, but there hasn’t been any definite arrangement for supplies.”

Nigerians are hopeful that the naira crude sale scheduled to start on October 1 will lower the price of petrol.

Since it began selling petroleum on September 15, the Dangote refinery has not disclosed the price of the product.

The company denied selling at N898 per litre to the NNPC, asserting that the claim by the NNPC was misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded.

The Dangote refinery urged Nigerians to await a formal announcement from the presidential committee.

“We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by President Bola Tinubu, which will commence on October 1, 2024, bearing in mind that our current stock of crude was procured in dollars,” the Dangote Group stated.

However, the Federal Government has said it would not interfere in the price controversy between the NNPC and Dangote, asserting that the petroleum sector had been deregulated.

BIG STORY

JUST IN: Tinubu Directs Immediate Release Of Minors Facing Prosecution

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Nigeria’s President, Asiwaju Bola Ahmed Tinubu, has directed that all the minors arrested and facing prosecution in court over their alleged involvement in the #EndBadGovernance protest should immediately be released without prejudice to the law.

This follows the national outrage and international consternation that trailed the trial of the minors.

President Tinubu also directed the Minister of Humanitarian Affairs and Poverty Reduction to see to the welfare of the minors.

The Minister of Information and National Orientation, Mohammed Idris, disclosed this while briefing State House correspondents, in Abuja.

The Minister said that the President said all the law enforcement agents involved in the arrest, detention and prosecution of the minors be investigated and anyone found culpable, would face appropriate disciplinary action.

 

More to come…

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Court Orders Arrest Of Dana Airline MD, Hathiramani Ranesh, Over Alleged N1.3 Billion Fraud

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A Federal High Court in Abuja has issued an arrest warrant for the Managing Director of Dana Air, Mr. Hathiramani Ranesh, due to his alleged failure to appear in court.

The Attorney General of the Federation had filed a six-count charge against Ranesh and two others.

In count one, Ranesh and the two companies, alongside others at large, were alleged to have committed a felony between September and December 2018 within the premises of DANA Steel Rolling Factory in Katsina. They were accused of conspiring to remove, convert, and sell four units of industrial generators “i.e. three (3) units Ht of 9,000 KVA and 1 unit of 1,000 KVA; all valued at over N450 million, which form part of the Deed of Asset Debenture that were charged as collateral security for a bond issued in your favour, which Deed is still subsisting at all material times.”

In count three, the defendants and others at large at House No. 116, Oshodi-Apapa Expressway, Isolo-Lagos between April 7th and 8th, 2014, were alleged to have conspired to fraudulently divert the sum of N864 million.

This amount was said to be part of the bond proceeds from Ecobank meant for the resuscitation of production at Dana Steel Rolling Factory in Katsina for other unapproved uses.

In count five, the defendants and others at large were alleged to have “conspired to fraudulently remove and transfer to one Atlantic Shrimpers Account No: 0001633175 with Access Bank and divert the sum of N60,300,000 (Sixty Million Three Hundred Thousand Naira).”

The total amount involved in the charges is N1,374,300,000.

Justice Obiora Egwuatu ruled that Ranesh’s arrest was necessary after he was served with charges and failed to attend multiple court proceedings.

The judge noted that according to Section 184 of the Administration of Criminal Justice Act (ACJA), 2015, the court is authorized to issue an arrest warrant for any defendant who does not show up.

Justice Egwuatu stated, “The 1st defendant is bound to appear before the court, and if he does not, the court can issue a warrant for his arrest.” Consequently, he issued a warrant for Ranesh’s arrest, requiring him to appear in court on January 13, 2025, before any objections can be addressed. The case has been adjourned until that date for further hearing.

The Federal Government’s attorney, Mojisola-Okeya Esho, had previously requested the bench warrant, citing Ranesh’s absence in connection with a N1.3 billion fraud case against him.

However, defense lawyer B. Ademola-Bello contended that they had filed a preliminary objection regarding the court’s jurisdiction to hear the case, which had already been served to the prosecution.

Esho opposed the preliminary objection, asserting that the defendants should be present. Justice Egwuatu, who gave his ruling, ordered that Ranesh be arrested and brought to court on the nexta djourned date.

 

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JUST IN: President Tinubu Swears In Seven Ministers

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Nigeria’s President, Asiwaju Bola Ahmed Tinubu, has sworn in seven ministers-designates.

The ceremony was held in the council chamber of the Aso Rock villa on Monday.

The ministers-designate were confirmed by the senate in the committee of the whole after a screening exercise last week.

The senators spent hours asking them questions on portfolios assigned to them by the president.

The upper legislative chamber confirmed Nentawe Yilwatda as minister of humanitarian affairs and poverty alleviation, Muhammadu Maigari Dingyadi as minister of labour and employment, Bianca Odumegwu-Ojukwu as minister of state for foreign affairs, and Yusuf Abdullahi Ata as minister of state for housing and urban development.

Others are Idi Mukhtar Maiha as minister of livestock development, Jumoke Oduwole as minister of trade and investment, and Suwaiba Said Ahmad as the minister of state for education.

About two weeks ago, Tinubu sacked five ministers and asked the senate to screen and confirm these new ones to fill vacant and new portfolios in his cabinet.

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