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Dangote refinery: Crude supply crisis threatens oil investments, operators warn FG

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The recent developments in Nigeria’s oil sector, particularly surrounding the Dangote Petroleum Refinery and the broader issues of domestic crude oil supply, have raised significant concerns among industry stakeholders and observers.

  1. Accusations and Denials: The Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, accused International Oil Companies (IOCs) of deliberately frustrating the Dangote refinery’s efforts to source local crude oil. He alleged that IOCs were inflating prices or claiming unavailability, forcing the refinery to import crude at higher costs from distant countries like the United States. These actions, according to Edwin, hinder the refinery’s viability and perpetuate Nigeria’s dependence on imported refined products.
  2. Response from Government and Regulators: The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) refuted claims of issuing licenses for importing substandard fuel into Nigeria, countering allegations made by Dangote refinery officials. The government emphasized that steps were being taken to ensure compliance with regulations and quality standards in the importation of refined products.
  3. Industry Impact: The Lagos Chamber of Commerce and Industry (LCCI) highlighted the potential damage to investor confidence due to these disputes. They stressed the importance of resolving issues around crude oil pricing, supply contracts, and logistics costs promptly to maintain a favorable investment climate in the oil and gas sector. The chamber called for transparency and fair dealings among all parties involved, urging the government to play a regulatory role effectively.
  4. Investment Concerns: Stakeholders, including modular refinery operators and industrialists, expressed concerns over the implications of ongoing supply disputes on Nigeria’s oil sector investment attractiveness. They emphasized the need for regulatory clarity and fair practices to sustain investor trust and support local refining capacity.
  5. Path Forward: The LCCI advocated for continued dialogue and negotiation among stakeholders to resolve these critical issues. They emphasized the role of effective regulation and adherence to international best practices in fostering a competitive and sustainable oil and gas sector in Nigeria.

In summary, the domestic crude oil supply crisis and related accusations underscore significant challenges facing Nigeria’s oil industry. Resolving these issues requires collaborative efforts among government regulators, IOCs, refineries, and other stakeholders to ensure fair practices, regulatory compliance, and sustainable investment in the sector.

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Lagos Airport Perimeter Fencing Materials Shouldn’t Be Purchase from Outside Nigeria – MAN

The Director- General maintained that the appeal became necessary as Nigerian manufacturers, regrettably, lost out in similar situations in the past.

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The Manufacturers Association of Nigeria (MAN) says the Federal Government should ensure that the fencing materials for the Lagos Airport should not be procure from outside Nigeria.

The association made the appeal to the government on Monday, through its Director-General, Segun Ajayi-Kadir.Ajayi-Kadir noted that the Lagos Airport fencing project presents a clear chance for the government to demonstrate that the Nigeria First Policy is not just an aspiration, but an intentional policy of government that will be matched with unfettered implementation.

MAN, he said , therefore calls on the Federal Government to urgently intervene by ensuring that the fencing materials for the Lagos Airport are sourced from competent Nigerian manufacturers.

“This is not a call to influence the award of the contract, but a patriotic appeal to align procurement decisions with national interest for the collective benefit of our economy and the well-being of the people,” he said.

The manufacturers emphasized that it has become a matter of national interest for the project’s contractor to ensure strict adherence to the Executive Orders 003, 005 and the imperatives of the President Bola Ahmed Tinubu’s Nigeria First Policy.

” In particular, we strongly maintain that, in considering the procurement of Clear Vu fencing, indigenous manufacturers should be given priority consideration and it should NOT be purchased from outside Nigeria.

“While we acknowledge the competence of the foreign manufacturer, MAN emphasizes that Nigerian companies have the proven capacity and technical expertise to produce fencing materials of equal — if not superior — quality that meet international standards.

“The Director- General maintained that the appeal became necessary as Nigerian manufacturers, regrettably, lost out in similar situations in the past.

In this particular instance, despite MAN’s advocacy, fencing materials for an airport project were imported from South Africa.

That decision discouraged local industries and contradicted the government’s stated local content policies.

We strongly believe that this administration has the opportunity to correct past errors. “

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MTN Group says it’s under US investigation

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South African mobile operator MTN Group said Monday it was under US investigation over its activities in Iran and Afghanistan, at a time of icy ties between Washington and Pretoria.

Africa’s biggest telecoms company is already facing court challenges in South Africa by Turkey’s Turkcell, which accuses it of winning the Iranian market through corruption.

In 2006, MTN was chosen over Turkcell to become the 49 percent minority shareholder in Iranian government-controlled mobile phone carrier Irancell.

MTN had been made aware of a US Department of Justice (DoJ) grand jury investigation relating to its former subsidiary in Afghanistan and Irancell, the company said in a statement.

“MTN is cooperating with the DoJ and voluntarily responding to requests for information,” said the statement accompanying the group’s financial results.

Grand juries typically decide whether or not to formally lay charges in a case and take it to trial.

The South African multinational is also facing a court case in the United States from US veterans wounded in Iraq and Afghanistan, as well as relatives of soldiers killed in action, the statement said.

“The plaintiffs’ complaints allege that MTN supported anti-American militias in Iraq and Afghanistan .

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UBA Secures N5bn BoI MSME fund for disbursement to key sectors

The facility provides a maximum loan amount of N5 million per obligor, with a three-month moratorium on principal repayments, ensuring businesses have ample time to stabilise before they begin to service the loans.

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•GMD/CEO UBA), Oliver Alawuba.

United Bank for Africa (UBA) Plc, has secured a N5 billion loan facility from the Bank of Industry (BOI), to boost key sectors of the economy and support the growth of sustainable and viable businesses in the country, especially the micro, small, and medium enterprises (MSMEs) owned by women.

The facility disbursed through the Federal Government’s MSME Fund, is designed to stimulate key sectors of the economy, while offering affordable financing to support businesses, with a primary focus on Green Energy, Education, Healthcare, and Women-Owned Enterprises.

UBA’s Group Managing Director/CEO, Oliver Alawuba, who spoke about the facility emphasised the bank’s commitment to fostering economic growth by empowering MSMEs, which he described as the “livewire of any developing economy.

He said, “At UBA, we recognize the pivotal role MSMEs play in driving economic development, and how they make up a sizeable portion of what drives our economic growth.

It is in this vein that we have decided not to rest on our oars by facilitating initiatives dedicated to empowering businesses with the financial support they need to thrive.”

Alawuba maintained that, “by offering loans at a competitive 9% interest rate with a three-year tenor, we are removing the traditional barriers that hinder SME growth in Nigeria and Africa. And by this, our message to business owners is simple: Don’t let this once-in-a lifetime-opportunity elude you.

”The facility provides a maximum loan amount of N5 million per obligor, with a three-month moratorium on principal repayments, ensuring businesses have ample time to stabilise before they begin to service the loans.

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