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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

 

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*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*.

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

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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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PRESIDENT TINUBU APPOINTS NIGERIA’S RENOWNED BANKER, JIM OVIA AS CHAIRMAN OF THE NIGERIAN EDUCATION LOAN FUND

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PRESIDENT TINUBU APPOINTS NIGERIA’S RENOWNED BANKER, JIM OVIA AS CHAIRMAN OF THE NIGERIAN EDUCATION LOAN FUND

PRESIDENT TINUBU APPOINTS NIGERIA’S RENOWNED BANKER, JIM OVIA AS CHAIRMAN OF THE NIGERIAN EDUCATION LOAN FUND

 

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Sahara Weekly Reports That President Bola Tinubu has approved the appointment of the Founder and Chairman of Zenith Bank Plc, Jim Ovia, CFR, as the Chairman of the Board of the Nigerian Education Loan Fund (NELFUND). This was announced in a State House Press Release by the
Special Adviser to the President on Media and Publicity, Chief Ajuri Ngelale on April 26,
2024.

PRESIDENT TINUBU APPOINTS NIGERIA’S RENOWNED BANKER, JIM OVIA AS CHAIRMAN OF THE NIGERIAN EDUCATION LOAN FUND

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According to the statement, ‘‘the President believes Mr. Ovia will bring his immense
a wealth of experience and professional stature to this role to advance the all-important
the vision of ensuring that no Nigerian student suffers in the consistent end to their pursuit of
higher education over a lack of funds and ensuring that Nigerian youths, irrespective
of who they are, have access to higher education and skills that will make them
productive members of society and core contributors to the knowledge-based global
economy of this century.’’

 

Jim Ovia, CFR, is the Founder and Chairman of Zenith Bank Plc, one of Africa’s largest
banks with over $21.4 billion in assets and shareholders’ funds of over US$2.4 billion as
of December 2023. Zenith Bank is a global brand listed on the London Stock Exchange
and the Nigerian Stock Exchange. In addition to major operations in Nigeria and other
West African countries, the Bank has sizeable operations in London and Dubai.
Jim Ovia is the Founder and Chancellor of James Hope University, Lekki, Lagos which
was recently approved by the National Universities Commission (NUC) to offer
postgraduate degrees in business courses. James Hope University commenced
activities in September 2023.

 

Through his philanthropy – the Jim Ovia Foundation – he has shown the importance of
accords good education. In support of the Nigerian youth, the Jim Ovia Foundation offers
scholarships to needy students through the Mankind United to Support Total Education
(MUSTE) initiative. Most of the beneficiaries of the Jim Ovia Foundation scholarship are now
accountants, business administrators, lawyers, engineers, doctors, etc.

 

He is the author of “Africa Rise and Shine”, published by ForbesBooks. The book which
encapsulates Zenith Bank’s meteoric rise, details the secrets of success in doing
business in Africa. He is an alumnus of the Harvard Business School (OPM), University
of Louisiana (MBA), and Southern University, Louisiana, (B.Sc. Business Administration).  Jim Ovia is a member of the World Economic Forum (WEF) Community
of Chairpersons and a champion of the Forum’s EDISON Alliance.

 

In recognition of Jim Ovia’s contributions to the economic development of Nigeria, in
2022, the Federal Government of Nigeria honored him with Commander of the Federal
Republic, CFR. Also, in May 2022, Jim Ovia was conferred with the National Productivity
Order of Merit (NPOM) Award by the Federal Government of Nigeria. Earlier, he has
been conferred with the national award of Member of the Order of the Federal Republic,
MFR, and Commander of the Order of the Niger, CON, in 2000 and 2011, respectively,
as a testament to his visionary leadership and contributions to Nigeria’s financial
services sector.

 

The National Student Loan Programme is a pivotal intervention that seeks to guarantee
sustainable higher education and functional skill development for all Nigerian students
and youths. The Nigerian Education Loan Fund, the implementing institution of this
innovation, demands excellence, and Nigerians of the finest professional ilk to guide and manage.

 

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Nigerians must support President Tinubu as he addresses Nigeria’s many challenges – Sola Adeyemo

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Nigerians must support President Tinubu as he addresses Nigeria’s many challenges - Sola Adeyemo

Nigerians must support President Tinubu as he addresses Nigeria’s many challenges – Sola Adeyemo

 

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A socio-commentator and public affairs analyst, Mr Sola Adeyemo has called on Nigerians to support President Bola Ahmed Tinubu in his efforts and commitment to turn the country around.

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Nigerians must support President Tinubu as he addresses Nigeria’s many challenges - Sola Adeyemo

 

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Adeyemo made the call Saturday morning in Lagos fielding questions from jounalists who paid him a courtesy visit on the sideline of the GTCO Food And Drink Festival organised and hosted by one of Nigeria’s biggest banks, Guaranty Trust Bank in Lagos.

 

“We must continue to support Mr President and remain united behind his policies as he works to bring the country out of the woods.

The Publisher and Editor-In-Chief of CityNews Newspaper said Nigerians must also shun actions capable of breaching peace in our society.

 

He added, “As an opinion leader in the country, I’m in total support of Mr President in his determination to around Nigeria’s economy and other challenges bedevilling our country.

 

 

 

Adeyemo who is also the President of Special Committe On BAT(Bola Ahmed Tinubu) for online journalists called on Nigerians in all walks of life to support the present administration as Nigeria is occupying a very important position in the scheme of things globally at this particulat point in time…because of the ‘resoucefulness,ingenuity and positive energy of its people’.

 

 

 

GTCO Food & Drink Festival is an annual food exhibition and sales event that projects the diverse angles of the food industry by connecting various businesses involved in the production and sale of food-related items to a cosmopolitan audience of food enthusiasts.

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Lagos To Ikere Ekiti: Primate Ayodele’s Homecoming with Charity and Salvation -by Folorunsho Hamsat

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Lagos To Ikere Ekiti: Primate Ayodele’s Homecoming with Charity and Salvation -by Folorunsho Hamsat

Lagos To Ikere Ekiti:
Primate Ayodele’s Homecoming with Charity and Salvation
-by Folorunsho Hamsat

Encouragement can seem like a good, but small thing to us. But encouragement is massive. Popular prophet, Elijah Babatunde Ayodele, understands in his dealings that encouragement is such an important element of church life that, like the Bible commands, he makes it his regular routine to encourage others, particularly, the downtrodden, to value life. For 30 years, Primate Ayodele has applied his Holy Spirit empowered ability not just to preach and prophesy, but to also encourage by giving.

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Lagos To Ikere Ekiti:
Primate Ayodele’s Homecoming with Charity and Salvation
-by Folorunsho Hamsat

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A typical village boy that he loves to call himself, the famous seer from the agricultural and mine Southwest town, Ikere Ekiti in Ekiti State, had profound spiritual insight to understand the mysteries of God early enough. Thus, when he escaped to Lagos in the mid-80s after suffering the disappointments of not realizing his childhood dream of studying Mass Communication or becoming a soldier, the zeal to excel in whatever he chose to do afterwards stole his attention.

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The task to forgive and love whomever he might have already had a strained relationship with back in his town of birth was first. He needed to move on and shine. Ayodele did not have a church when he became known for prophesying. Six years before he established the INRI Evangelical Spiritual Church, he had been noted as a possible replacement for one of the then globally known prophets, Primate Theophilus Olabayo. His prophecies rang through all corners of the globe. And his journey to attain leadership began in earnest.

 

Something occupied his thoughts; how to get to the top of the Mission and impact others. He said he then realized that the secret to the pinnacle of God’s assigned task is giving. Ayodele says that sharing does not only affect the receivers in positive ways, it also transforms the life of the giver in great ways. “I give out more than a half of what God has blessed me with, and I don’t expect any reward for this other than to be acknowledged as a man who shares from the little he has,” the servant of God declared while addressing journalists at his last birthday celebration in Lagos.

 

Ayodele’s passion to encourage and empower the oppressed, help those with lost hope to dream and hope again, blossomed. His prophecy aided by heart for charity, announced him to the world as unique among his contemporaries in God’s vineyard. On Thursday, 25th of April, 2024, Primate Ayodele returned to Ikere Ekiti, in a large entourage, wonderfully overwhelmed by the welcoming warmth by his kit and kin.

 

What a joy it was for the God’s servant to see a packed venue of Ikere Ekiti young and old folks, including the king and political leaders pouring their hearts out in prayer for him as he laid the foundation of the town’s branch of INRI Ministry the next day, Friday 26th of April, 2024.

 

Typically, the day witnessed both empowerment and spiritual relief. Essential items were made available at ridiculously affordable prices, scholarships were provided for indigent brilliant students while the servant of God spoke into people’s life for transformative power of faith, healing and breakthrough.

 

Speaking on the essence of giving, Primate Ayodele averred that the Lord provides us with one incredibly encouraging reason to excel in the grace of generous giving: to prove our love for others. This, he said, he has satisfactorily done establishing his ministry in his place of birth, thus physically empowering his people and bringing them closer to salvation.

 

-Folorunsho Hamsat is a Lagos based journalist

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