Business

Nigeria and Africa get nuclear technology boost from Rosatom

Published

4 months ago

August 30, 2024

Nigeria and Africa get nuclear technology boost from Rosatom

Russia, through its state nuclear corporation Rosatom, is expanding its strategic engagement with Nigeria and Africa in the field of nuclear technology.

Rosatom’s involvement in Africa, and specifically in Nigeria, reflects a strategic partnership aimed at addressing the continent’s growing energy needs and fostering technological advancement. As Russia continues to deepen its engagement, it is crucial to explore the positive contributions and tangible benefits of these collaborations.

In recent years, Rosatom has significantly expanded its presence in Africa. While being present through its regional office in South Africa for over 10 years, in 2024 alone, the Russian state nuclear corporation signed memorandums of understanding (MoUs) with several African countries, including the Republic of Congo, Mali, Guinea, Burkina Faso, and Rwanda, with agreements with Burundi made the previous year.

These agreements cover a broad spectrum of cooperation, including the use of nuclear power in civil applications, development of nuclear infrastructure, personnel training, the advancement of floating power units, and public outreach on nuclear energy, among others. The memorandums aim to assist these nations in developing their nuclear energy capabilities, ensuring safe and sustainable energy solutions.

In addition to these agreements, Rosatom is actively involved in uranium mining projects across Africa. In Tanzania, Rosatom has partnered with the government to explore and develop uranium resources, which will contribute to local energy needs and global uranium supply.

In Namibia, Rosatom is engaged in several significant projects, including the exploration and potential development of uranium deposits. Notably, Rosatom’s uranium exploration initiative in Namibia focuses on the promising Wings project, located in the Omaheke region, approximately 300 kilometers from Windhoek.

This project, which has captured considerable attention at expos, is anticipated to create approximately 600 new jobs in the Omaheke region and an additional 4,000 jobs in related industries across Namibia.

With an estimated $500 million investment and an anticipated $3.5 billion in additional tax revenue, the Wings project is poised to become the cornerstone of Namibia’s mining future.

Rosatom’s expertise on the continent is further demonstrated through its involvement in constructing the El Dabaa nuclear power plant (NPP) in Egypt. This project, Egypt’s first nuclear plant, features four VVER-1200 reactors and is set to significantly enhance Egypt’s energy capacity.

Rosatom’s relationship with Nigeria exemplifies its strategic partnership approach. Since 2017, Nigeria and Rosatom have been working together on various projects, including the development of a nuclear power plant.

Nigerian officials participate in events organised by Rosatom. For instance, they took part in international nuclear forum Atomexpo in 2022 and 2024 where they once again confirmed their interest in the cooperation on the large-scale NPP project in Nigeria. Discussions are also ongoing about the potential deployment of a floating Small Modular Reactor (SMR) NPP.

Floating NPPs offer several advantages that make them particularly suitable for diverse applications. These reactors can be relocated as needed, providing flexibility in energy deployment. Their construction time is notably reduced since they are built in factories and then floated to their operational sites, streamlining the development process.

Additionally, floating NPPs are equipped with advanced safety systems that can be monitored and maintained remotely, ensuring high levels of safety and operational efficiency.

These smaller plants, already tested in Russia, offer a flexible and secure energy solution. Floating Power Units (FPUs) are particularly advantageous for coastal nations as they can be positioned offshore, minimizing land use impact and local community disturbances. They provide a reliable source of electricity directly to the grid, reducing the need for extensive and costly transmission infrastructure. Offshore locations also mitigate risks associated with traditional nuclear plants, such as cooling challenges and land-based safety concerns.

Adopting nuclear power through innovative solutions like FPUs would not only ensure a stable energy supply but also position Nigeria as a leader in modern energy technology, potentially attracting international investments and partnerships.

Unlike other companies that promise future floating nuclear power plants, Rosatom has been operating its floating power plant, the Akademik Lomonosov, since late 2019. This project showcases Rosatom’s technical expertise and dedication to sustainable energy solutions. The knowledge gained from this project has laid a strong foundation for future advancements in floating nuclear power technology.

Rosatom’s optimised floating nuclear power plants offer mobility, enabling strategic power generation along coastlines and near major ports, with the flexibility to scale up as needed. This innovation allows for efficient power distribution from the nearest port to the end user, reducing transmission losses and enhancing the reliability of electricity supply to industrialised and densely populated regions.

Rosatom’s commitment to nurturing future nuclear professionals is evidenced by initiatives like Atoms Empowering Africa. Since its inception in 2015, this program has been a driving force in empowering young individuals across Africa to explore the field of nuclear energy. The competition encourages African youth to present the benefits of nuclear energy, fostering scientific curiosity and paving the way for a sustainable energy future on the continent.

In the latest round of the Atoms Empowering Africa competition, twenty talented young individuals from South Africa, Nigeria, Kenya, Uganda, Egypt, and Sudan were selected as winners. These winners had the unique opportunity to delve into the latest advancements in nuclear technology while experiencing the rich cultural heritage of Russia.

Their itinerary included a visit Moscow, Saint Petersburg and the town of Obninsk, the birthplace of the nuclear industry and Russia’s premier nuclear technology hub, which celebrated the 70th anniversary of the world’s first nuclear power plant.

Munachimso Oguine, a young participant from Nigeria, expressed the impact of the program: “We toured the Rosatom Technical Academy and received a first-hand tour of Russia’s first Nuclear Power Plant (NPP). It was truly a privilege to witness the behind-the-scenes operation of an NPP and to see the amount of effort channeled into operational safety and security at the NPPs. But more than that, it was a lovely drive through the beautiful city of Moscow.”

“This trip has been nothing short of exciting, fascinating and eye-opening. I’m especially grateful for the warm and wonderful welcome we received from the Rosatom team. They’re amazing! I can’t wait to learn and explore more of Moscow with them,” Munachimso Oguine added.

Young Nigerians also benefit from educational opportunities in Russia, particularly at Tomsk Polytechnic University (TPU), a key partner of Rosatom.

TPU offers comprehensive programs in nuclear energy and nuclear medicine, which are crucial for building a skilled workforce for Nigeria’s nuclear sector. TPU’s international programs play a pivotal role in preparing students from Africa, including Nigeria, for careers in nuclear energy, safety, and medicine.

Many Nigerian students studying at TPU or having graduated from its programs are expected to contribute significantly to advancing Nigeria’s nuclear ambitions.

While there are valid concerns and complexities associated with nuclear energy development, Rosatom’s contributions to Africa, and particularly Nigeria, are substantial and impactful. From advancing nuclear infrastructure and promoting educational exchange to enhancing safety and technology,

Rosatom’s efforts reflect a deep commitment to supporting Africa’s energy and technological needs. A balanced view that acknowledges these contributions is crucial for a comprehensive understanding of Rosatom’s role in the region.

Business

Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

Published

10 hours ago

December 19, 2024

Sahara Weekly

Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

In a bid to ease financial burdens during the holiday season, Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) to N899.50 per litre. This follows a previous price cut to N970 per litre on November 24. The move is aimed at reducing transportation costs for Nigerians as they prepare for festive celebrations.

Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, disclosed the development in a statement, highlighting additional benefits for consumers. Beyond the price reduction, the refinery is introducing a special credit offer. For every litre of PMS purchased on a cash basis, consumers can buy an additional litre on credit, supported by a bank guarantee from Access Bank, First Bank, or Zenith Bank.

“To help reduce transport expenses this holiday season, we’re offering PMS at N899.50 per litre and providing a credit option for additional purchases. This is part of our commitment to making high-quality petroleum products accessible to Nigerians,” Chiejina said.

The refinery also reaffirmed its commitment to providing premium-quality, environmentally-friendly fuel, while ending Nigeria’s dependence on substandard imported products.

With a capacity of 650,000 barrels per day, the Dangote Refinery is the largest single-train refinery in the world, capable of meeting Nigeria’s entire refined petroleum product demand and generating surplus for export. As the festive season approaches, the company expressed gratitude to Nigerians for their support and pledged continued efforts to ease their economic burdens.

Business

Setting the Record Straight: Clarifying NNPCL’s Role in the Dangote Refinery Investment

Published

1 day ago

December 18, 2024

Sahara Weekly

General Buratai Urges Dangote Not To Succumb To Marketers Blackmail, Reveals Why

Setting the Record Straight: Clarifying NNPCL’s Role in the Dangote Refinery Investment

We have received numerous inquiries from the media and concerned stakeholders seeking clarification regarding a recent report attributed to the Nigerian National Petroleum Company Limited (NNPCL). The report suggested that NNPCL’s decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote Refinery during liquidity challenges.

We wish to categorically state that this narrative is a misrepresentation of the facts. The $1 billion referenced constitutes just about 5% of the total investment in building the Dangote Refinery.

Our partnership with NNPCL was established based on their strategic importance as the largest offtaker of Nigerian crude and, at the time, the sole supplier of gasoline into Nigeria. As part of this agreement, a 20% stake in the refinery was valued at $2.76 billion. Of this amount, NNPCL agreed to pay $1 billion upfront, while the remaining balance was structured to be recovered over five years through crude oil supply deductions and dividends.

If we had been facing liquidity challenges, such generous credit terms would not have been feasible. At the time of the agreement in 2021, the refinery was still in its pre-commissioning phase. Any claims suggesting financial struggles are inconsistent with the structure and nature of this agreement.

Regrettably, NNPCL was unable to meet its commitment to supply the agreed 300,000 barrels per day of crude oil due to pre-existing financial commitments tied to their crude cargoes. Given this, we extended a 12-month period for NNPCL to pay cash for the balance of their equity. However, they were unable to meet the deadline, which expired on June 30, 2024. Consequently, NNPCL’s equity stake in the refinery was adjusted to 7.24%.

It is therefore inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges. Their $1 billion investment secured a 7.24% ownership stake in the Dangote Refinery, a strategic partnership beneficial to their interests.

NNPCL remains a valued partner, and we urge all stakeholders to adhere to the facts and provide accurate information to ensure proper media representation for the benefit of all stakeholders and the public.

Anthony Chiejina
Group Chief Branding and Communications Officer
18th December, 2024

Business

MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

Published

2 days ago

December 18, 2024

Sahara Weekly

MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

MTN Nigeria, the nation’s largest telecom company, pays over N200 billion in Value Added Tax (VAT) monthly, making it the single biggest contributor to the country’s VAT revenue, according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.

Speaking at Channels Television’s Town Hall on Tax Reforms, Oyedele highlighted significant disparities in the current VAT allocation system, revealing that all VAT paid by MTN is credited solely to Lagos State, where the company’s headquarters is located, despite the fact that services generating this revenue are consumed nationwide.

“MTN is the largest contributor to VAT in Nigeria,” Oyedele stated. “They pay over N200bn every month, and the gap between them and the second-largest contributor is massive. However, all this VAT is currently allocated to Lagos, even as calls are made across states like Kano, the FCT, Ekiti, Edo, and Kebbi.”

As part of the ongoing tax reform efforts, the committee has proposed a new framework to ensure equitable distribution of VAT revenues based on consumption rather than the corporate headquarters’ location.

Under the proposed redistribution model, Lagos State, which now retains the full N200bn from MTN, would see its share reduced to around 20 per cent. The remaining revenue would be distributed more fairly among other states where the services are consumed.

“This adjustment ensures states where VAT is generated get their fair share,” Oyedele explained. “While Lagos State’s share decreases slightly, every other state stands to gain under the new system.”

The tax reform bill, designed to address inefficiencies and promote fairness in Nigeria’s fiscal policies, has sparked debate among stakeholders. Critics have accused the committee of advancing policies that may negatively impact certain regions.

Oyedele, however, dismissed these claims, arguing that the current system is flawed and in need of urgent correction. “If something is being done wrongly, how can Lagos State or anyone oppose reforms aimed at fixing it?” he questioned.

The proposed reforms, which include provisions for revenue redistribution and efficiency improvements, are seen as pivotal to ensuring fairness and sustainability in Nigeria’s tax system.