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Fueling Uncertainty: Investigating Nigeria’s Subsidy Removal And Dangote Refinery Debacle* By Sylvester Audu

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Fueling Uncertainty: Investigating Nigeria's Subsidy Removal And Dangote Refinery Debacle* By Sylvester Audu

*Fueling Uncertainty: Investigating Nigeria’s Subsidy Removal And Dangote Refinery Debacle*
By Sylvester Audu

 

 

*In the midst of dwindling revenues and skyrocketing subsidy costs, Nigeria has taken a bold step by removing fuel subsidies, igniting controversy and unrest among its population. Despite the opposition’s claims that subsidy removal will disproportionately affect the poor, the government’s redirection of funds towards crucial sectors such as health and education paints a promising picture for Nigeria’s future. The recent World Bank loan of almost a billion dollars for palliative measures may provide temporary relief, but it is not seen a sustainable solution*.

 

 

Fueling Uncertainty: Investigating Nigeria's Subsidy Removal And Dangote Refinery Debacle*
By Sylvester Audu

 

 

However, the fate of the much-anticipated Dangote Refinery, meant to reduce Nigeria’s reliance on imported petroleum products, remains uncertain as unforeseen technical difficulties delay its completion.

 

 

 

 

 

The Dangote Refinery, announced in 2013 with an initial $3.3bn loan deal with local and foreign banks to fund the construction, was expected to transform Nigeria’s reliance on imported petroleum products and boost the country’s economy. With an initial completion date of 2018, the refinery was planned to produce enough refined petroleum to meet domestic needs and provide a surplus for export. However, the project has been plagued by continuous delays, attributed to factors such as lack of technical expertise, financial constraints, and poor project scoping.

 

 

 

 

 

*Reports suggest that the Dangote Group is lobbying for an additional $3 billion cash injection, which could add to Nigeria’s debt burden and divert funds from more immediate solutions to the subsidy removal. Adding to the concerns surrounding the Dangote Refinery is the agreement between the Nigerian government and the Dangote Group. The Nigerian government in 2021 agreed to provide $2.7billion in cash-and-crude to the Dangote Group to fund the construction of the refinery in return for 20% equity. On December 1, 2021, the Federal Government through NNPC made a payment of $1.038billion in two tranches of $519.5million each to Lekki Refinery Funding Limited account with the beneficiary bank, representing the first cash portion of the deal, with the balance to be paid by the government upon completion of the project. This money was a loan from one of the international finance institutions to NNPC.*

 

 

 

 

 

 

*With the company missing out on interest payments due January 2023 of 750million dollars which is still yet to be paid despite being structured by the banks almost three times, the project is faced with a big dilemma – and with it, Nigeria’s hopes for the refinery.*

As it stands, there is evidence to suggest that the Company has exceeded its single obligor limit with local Nigerian banks and no international bank is willing to extend funds to it. In addition, the company will need at least 3 billion dollars in addition to its annual interest payments of about 700million dollars to complete the project by 2025. Whilst there are already talks for a backdoor arrangement being proposed with the CBN to enable a commercial bank circumvent its single obligor limit to the company in order for it to raise further cash for it to pay its interest obligation of 750million dollars which have fallen due, such a move has been viewed cautiously by supporters and critics of the project alike.

*These reports also suggest that the company unsuccessfully approached the outgoing president Muhammadu Buhari administration to release the remainder cash sum of 1.7billion dollars which was to have been paid upon completion of the project. According to these reports, President Buhari backtracked after further due diligence was done on the project which revealed that the project would not be completed before 2025 unlike the December 2022 date the company had promised at the time of signing the agreement*.

*As a result, intense pressure is now being mounted on the incoming government of Bola Tinubu to pay the remainder sum of $1.7billion dollars upon taking office as well as approve a new cash injection of 3billion dollars and crude for additional 20% equity in the project so the company can raise sufficient cash in the short term to pay outstanding interest costs and complete the project.* This is premised on the fact that the new government has declared it wants to plug revenue gaps by removing the subsidy but the company has now given them the impression that the project will be completed by mid-2024 – which is far from the case. The incoming government must therefore be wary of yet another such lofty promise by the project owners as sources close to the Chinese company brought in to salvage the refinery project say a 2024 date is not feasible.

Should the incoming government go this route, it does nothing to solve the problems with the completion of the refinery, adds further unnecessary debt burden to the country and its citizens, and takes away money from critical and immediate solutions to the subsidy removal. Nigeria is already over-leveraged to the Dangote refinery project.

Many commentators believe that rather than relying on the uncertain completion of the Dangote Refinery, the Nigerian government should focus on the ongoing refurbishing exercise of its existing refineries. This strategy would not only provide a more reliable short-term palliative solution but also pave the way for a smoother transition from imported petroleum products. They should also encourage the modular refineries to ramp up production.

In addition, the Nigerian government should explore alternative strategies, such as investing in renewable energy sources, to reduce the nation’s reliance on imported petroleum products. This approach would provide long-term benefits to Nigeria’s economy and environment, while also fostering self-sufficiency in fuel production.

*The removal of fuel subsidies offers Nigeria a unique opportunity to reassess its priorities and invest in a more sustainable future. By rejecting the new investment proposal for the Dangote refinery which has become an albatross whilst focusing on feasible alternative strategies, Nigeria can emerge stronger and more resilient in the face of global challenges. Can the incoming government afford to mortgage Nigeria’s scarce resources on a false hope? With billions of dollars and the country’s economy at stake, Nigeria cannot afford to pin all its hopes on the Dangote Refinery and even if the new government were to invest further in the project, there must be proper due diligence done before any investment is considered.*

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Eminent Lawyer: Prophet Israel Oladele Ogundipe ‘Genesis’ Applauds Barr. Oluwapelumi Jacob Olajengbesi’s Outstanding Legal Prowess

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Eminent Lawyer: Prophet Israel Oladele Ogundipe ‘Genesis’ Applauds Barr. Oluwapelumi Jacob Olajengbesi’s Outstanding Legal Prowess
… Opens a Multimillion Naira Abuja Chamber

It is essential to illustrate, without resorting to sensationalism or witch-hunts, the intimate and cordial relationship between celebrated World Televangelist Prophet Israel Oladele Ogundipe, fondly referred to as Genesis, and a proactive, renewed Abuja-based lawyer and human rights activist, Oluwapelumi Jacob Olajengbesi

 

 

Evidently, this positions everyone to believe any assertion Prophet Oladele makes about Olajengbesi. As the well-known Lagos prophet briefed the media in Lagos, he spoke about what attracted him to the Abuja-based lawyer and human rights activist.

 

 

He further expressed that his passion for championing the cause of the less privileged and the oppressed is what truly captivates and inspires his unwavering love.

 

According to Prophet Israel Oladele Ogundipe, Barrister Pelumi Olajengbesi earns his enduring respect and admiration for prioritizing the plight of the oppressed, despite being born into affluent circumstances with humble beginnings.

 

 

Olajengbesi reportedly embarked on studying law at a prestigious university, driven by his desire to challenge oppressors and individuals who wield significant power in the country, believing themselves to be above challenge.

 

 

In addition, Prophet Genesis extols the virtues of the esteemed Barrister Olajengbesi, who views himself as an advocate for the voiceless populace and a crusader for the authentic liberation of the people.

 

In addition to his praise, Prophet Genesis values his love for God and humanity, and also extended congratulations to Barrister Pelumi Olajengbesi, co-founder of Law Corridor, a law firm based in Abuja, on the launch of his new multi-millionaira chambers

He concluded by saying a heartfelt prayer that Barrister Pelumi will continue to grow and have a greater impact in Jesus’ name.

Oluwaseun Fabiyi a seasoned journalist writes from Lagos.

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You are a precious gem to me; Prophet Genesis marks Kemi King’s birthday with inspiring tributes and admiration

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You are a precious gem to me; Prophet Genesis marks Kemi King’s birthday with inspiring tributes and admiration.

 

Prophet Israel Genesis, a prominent televangelist, honors Kemi King, a woman of exceptional beauty and substance, on her birthday

I would also like to extend my admiration for her as an active and illustrious daughter of mine, an exceptional individual whose influence will forever be treasured in my life, exceeding the worth of diamonds, gold, and oil wells. I am deeply indebted to her for her unwavering commitment to supporting countless people around the world and myself

Your birthday provides an outstanding opportunity to acknowledge God’s kindness in your life and honor the wonderful gift that you are to many of us

Kemi Kemo the King, whom I fondly address as such, you embody a unique blend of sisterly love and angelic compassion, making you a precious gift to humanity, and as we celebrate your birthday, I express my heartfelt appreciation for your unwavering dedication to your family and community

On this wonderful day, at the same time, a dedicated black and shining pretty woman was born, she remains a trailblazer, an humble and spiritually nourished, a woman who can handle matters with wisdom, a woman who can let go even when provoked, a woman with quoted and unquoted vibes

As you mark another year of existence, I rejoice with you and express my heartfelt wishes for a bright and prosperous future. May the divine blessings of good health, happiness, and smooth realization of your aspirations be bestowed upon you, and may your labor yield rich dividends without obstacles

Please accept my heartfelt birthday greetings, my charming angel. I wish you continued success, happiness, and fulfillment in all aspects of your life. And many happy returns of the day

Oluwaseun Fabiyi a seasoned journalist writes from Lagos

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OTUNBA WASIU JAIYEOLA BAGS TASUED’S DOCTORATE DEGREE

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OTUNBA WASIU JAIYEOLA BAGS TASUED’S DOCTORATE DEGREE

 

In recognition of his impactful contributions to clothing and textile industry in Ogun state in particular and Nigeria in general, the Governing Council of Tai Solarin University of Education, ijagun is set to honour the Founder of Wessy Creations, Otunba Jaiyeola Wasiu, with the Doctor of Science, D.sc Ed (Honoris causa) in Textile and Clothing.

The letter of conferment of the award dated September 30, 2024 with reference number TASUED/REG.122/VOL.1/006 and signed by the Vice-Chancellor of the institution, Prof. Oluwole Banjo, indicated that: “The Award is in recognition of your passion for education, and numerous contributions to the advancement of human race in general.”

The letter reads further: “The University takes special recognition of your numerous professional achievements and community services, including your exemplary leadership roles in our Nation as an elder statesman whose modest achievements and accomplishments represent the idea of integrity and selflessness, which our University stand for.
“The University joins well-meaning Nigerians in celebrating your humble, worthy, and outstanding legacies in the service of humanity.
“We also congratulate you and your family on your many notable achievements in life”.

The conferment ceremony is slated for Thursday, 28th November, 2024 at the School Auditorium in Ijagun, Ijebu-Ode, Ogun State.

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