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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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Kingmaker of Muguland: Dr. Banwo Releases Leaked Preview of Highly Anticipated Thriller

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Kingmaker of Muguland: Dr. Banwo Releases Leaked Preview of Highly Anticipated Thriller

Kingmaker of Muguland: Dr. Banwo Releases Leaked Preview of Highly Anticipated Thriller

 

Dr. Ope Banwo has officially released the leaked portion of his upcoming book, “The Kingmaker of Muguland”, one of the year’s most anticipated political thrillers.

A section of the book surfaced on various online platforms days ago, sparking a frenzy of downloads and heated discussions on social media. While it remains unclear how the excerpt was leaked, some speculate it may have happened during the editing process, possibly by one of Dr. Banwo’s staff.

In response, Dr. Banwo has made the leaked portion of the book accessible to the public on the official website [https://www.Kingmakerofmuguland.com/leaked](https://www.Kingmakerofmuguland.com/leaked) to ensure everyone can enjoy an early look at the story.

“The Kingmaker of Muguland” is a high-stakes thriller that examines themes of power, politics, and corruption in the fictional African nation of Muguland. The book, set for global release on November 17, follows the story of Chief Bisola Eleniyan, a masterful political kingmaker whose influence shapes the future of the nation.

Chief Bisola Eleniyan, the novel’s central figure, is a shadowy yet powerful character who controls Muguland’s political landscape from behind the scenes. Far more influential than any elected official, Eleniyan decides who rises to power and who falls, controlling the nation’s direction without ever holding a public office. His return from exile and strategic moves to reclaim power create a gripping narrative that explores the lengths one person will go to hold sway over an entire country.

Kingmaker of Muguland: Dr. Banwo Releases Leaked Preview of Highly Anticipated Thriller

 

The novel delves into the undercurrents of African politics, reflecting real-life struggles with corruption, influence, and ambition that resonate with readers familiar with such themes. Eleniyan, a controversial figure plagued by allegations of corruption and questionable financial dealings, embodies the type of leader who manipulates systems rather than individual politicians, thriving within the fractured political environment of Muguland.

In celebration of the book’s official release, Dr. Banwo will host a virtual launch event on November 17 via Zoom, where the first 100 attendees will receive free print copies. Following the release, “The Kingmaker of Muguland’ will be available at over 60,000 retailers worldwide, including Amazon, Barnes & Noble, and Kobo.

With its timely themes and gripping narrative, “The Kingmaker of Muguland” promises to be a thought-provoking read that captures the intrigue of political power plays and the cost of unchecked ambition.

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The Power of Building Resilience” By Prudent Ludidi

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The Power of Building Resilience” By Prudent Ludidi

 

Ladies and gentlemen,

Life is unpredictable. It’s full of twists and turns. Some days are easy others are hard.

But no matter what life throws at you, you have a choice, you can let challenges break you, or you can build resilience.

Resilience is the strength to withstand, to bounce back, to adapt, to overcome, it’s the power to face adversity head-on, to transform obstacles into opportunities, to turn setbacks into stepping stones!

Building resilience is not about being invincible. It’s about being human, it’s about acknowledging your vulnerabilities and working on them.

Resilience is built in both small and big moments of the everyday choices we make!

To get up when you’re tired, keep going when you’re struggling, to push through when you’re doubting. It’s built in the habits you form.

It’s important to understand that resilience is not just about surviving, it’s about thriving, growing, becoming stronger, more confident and more compassionate.

When you build resilience, you open yourself up to possibilities, you take risks, you innovate, you create and inspire.

So, how do you build resilience?
You start small.
You take care of yourself.
You practice self-compassion.
You seek support.
You focus on the present.
And you keep moving forward.
One step at a time.
Resilience is not a destination it’s a journey!

Because when you build resilience, you unlock your true potential to withstand unplanned inconveniences in your life.

You become unstoppable.
You achieve greatness.
You inspire others.

And you create a ripple effect of resilience that touches everyone around you.
Remember, resilience is not something you have or you don’t.

It’s something you build, day by day, moment by moment, choice by choice.
So, choose to build resilience, face your fears, push through challenges, choose to rise above obstacles, choose to become the best version of yourself!

You’re capable of thrive and succeed!

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Equatorial Guinea S*x Scandal: Woman Allegedly Commits Suicide

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Equatorial Guinea Sex Scandal: Woman Allegedly Commits Suicide

Equatorial Guinea Sex Scandal: Woman Allegedly Commits Suicide

 

Sadly, in a shocking turn of events related to the ongoing sex scandal in Equatorial Guinea, one of the women allegedly featured in explicit videos involving high-profile individuals reportedly took her own life.

The woman is believed to have been overwhelmed by the spread of the footage, which has gone viral and caused a media uproar in the country.

The scandal erupted after Baltasar Engonga, Director General of the National Financial Investigation Agency, was arrested on charges of misconduct, including allegedly recording over 400 videos involving wives of notable figures in the nation.

The videos, which surfaced amid a broader investigation into fraud, reportedly include intimate encounters with influential individuals, escalating the controversy.

This latest development has sparked a public outcry, with many calling for stronger measures to protect the privacy and dignity of those affected by the leaked content.

Meanwhile, officials in Equatorial Guinea are reportedly taking steps to control the scandal’s impact as they continue their investigation.

News360 Nigeria reports that Baltasar Engonga, the Director General of the National Financial Investigation Agency in Equatorial Guinea, was arrested following a shocking revelation of over 400 sextapes reportedly involving the wives of prominent figures in the country.

Engonga, 54, came under investigation for fraud, leading to an unannounced search of his residence and office, where officials discovered numerous CDs containing recordings of his alleged sexual encounters.

The tapes reportedly feature encounters with high-profile individuals, including relatives and wives of government officials, such as the sister of the President, the wife of the Director General of Police, and spouses of approximately 20 ministers.

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