Nigeria Approves $15.4 Billion Refinery, Railway Projects

05/8/21

https://www.bloomberg.com/news/articles/2021-08-05/nigeria-approves-15-4-billion-refinery-railway-projects


Nigeria’s government approved major transport and energy investments, including a stake in a giant private refinery, that are expected to cost $15.4 billion.

Ministers in the West African nation signed off Wednesday on the state-owned Nigerian National Petroleum Corp.’s proposed purchase of a
$2.76 billion 20% stake in a refinery being built by Aliko Dangote, Africa’s richest person, for $12 billion.

They also agreed to the rehabilitation of two other NNPC-controlled refineries and the construction of a 1,400-kilometer (870-mile) railway.

The decisions were taken at a meeting of the Federal Executive Council and disclosed at a briefing. Further details weren’t provided.

The investments could help boost output in the nation, which has underinvested in infrastructure and where economic growth has lagged behind the pace of population expansion every year since Muhammadu Buhari came to power in 2015, leading to a decline in average income per capita.

The NNPC said in June that the African Export-Import Bank is raising a $1 billion loan to help the firm buy shares in Dangote’s 650,000 barrel-a-day complex near Lagos, Nigeria’s commercial hub. It’s unclear how the company intends to fund the rest of the acquisition, although one option could be through the supply of crude.

The FEC also authorized the NNPC’s plans to spend $1.48 billion on repairing and upgrading its refineries in the cities of Warri in southern Nigeria and Kaduna in the north, Minister of State for Petroleum Resources Timipre Sylva said. The facilities, which aren’t operational, will be fully rehabilitated in 33 months, he said.

The NNPC has already started work on a $1.5 billion revamp of two refineries in the southeastern city of Port Harcourt.

The FEC gave its approval to a standard-gauge railway that will run from Lagos in the southwest of Nigeria to the city of Calabar in the southeast, said Information Minister Lai Mohammed. The contract, which is worth $11.2 billion, was awarded to state-owned China Civil Engineering Construction Corp. in 2014.

Transport Minister Rotimi Amaechi said in June that the government is in talks with Standard Chartered Plc about arranging financing for the so-called “Coastal Line.” Nigeria had initially expected Chinese lenders to back the project.

Buhari told Nigeria’s National Assembly in 2017 that the state-owned Export-Import Bank of China was soon going to approve a $3.5 billion loan to help start construction.

At least we are spending money on useful things unlike Jonathan and co. Hushpuppi regime.

The government seems so daft they keep spending billions of Dollars on obsolete refineries


The devil so blinded their eyes they cannot see that it's possible to build new refineries, They cannot see that the dead refineries they wasting billions of Dollars on were built by human beings

What manner of blind leaders are these?

kingsways:
The government seems so daft they keep spending billions of Dollars on obsolete refineries

Are you a refinery engineer? How do you know the refineries are ''obsolete''?

It is the corruption part that drags us back.

These projects are key to the growth of this country

God bless Nigeria. God bless President Muhammadu Buhari and all the Patriots behind these phenomenal and audacious projects. All the enemies of Nigeria will lose las las. They always lose.

rosinkkit:


Are you a refinery engineer? How do you know the refineries are ''obsolete''?

It's common sense, everyone knows Technology is changing very fast

You can't tell me refineries built 40yrs ago are not obsolete

kingsways:


It's common sense, everyone knows Technology is changing very fast

You can't tell me refineries built 40yrs ago are not obsolete

So you think all refineries built 40+ years ago around the world have all been demolished for being 'obsolete'?

Please, how old are you?

rosinkkit:


So you think all refineries built 40+ years ago around the world have all been demolished for being 'obsolete'?

Please, how old are you?

How much has been wasted on maintenance of the refineries in the last 10yrs and how much crude did refine same period?

They are not supposed to waste such money, they are supposed to sell the refineries

PDP Dundees cannot understand why Buhari is hell bent on building infrastructure. The only language they understand is share the money.

kingsways:
The government seems so daft they keep spending billions of Dollars on obsolete refineries


The devil so blinded their eyes they cannot see that it's possible to build new refineries, They cannot see that the dead refineries they wasting billions of Dollars on were built by human beings

What manner of blind leaders are these?

Keep quiet dummy, NNPC has been deregulated, those refineries will be publicly traded on the stock exchange, pay dividends to share holders like Aramco as competition with Dangote, the sector is reforming slowly, investors can now come in, no more subsidy, you pay free market price.

kingsways:


How much has been wasted on maintenance of the refineries in the last 10yrs and how much crude did refine same period?

They are not supposed to waste such money, they are supposed to sell the refineries

The refineries will work immediately NNPC deregulates the sector which they have done, be prepared for price increase, that has been the FG’s problem for years, they needed a law to back their removal of subsidy, now they have it.

kingsways:
The government seems so daft they keep spending billions of Dollars on obsolete refineries


The devil so blinded their eyes they cannot see that it's possible to build new refineries, They cannot see that the dead refineries they wasting billions of Dollars on were built by human beings

What manner of blind leaders are these?

those refineries were built by buhari now after so many years he is the same person that is upgrading them. No president ever thought of Nigerians the way buhari cares.
God bless buhari
God bless Nigeria

Welcome dev its good for our economy growth and dev. Nice one

Sirjamo:
PDP Dundees cannot understand why Buhari is hell bent on building infrastructure. The only language they understand is share the money.

Honestly. All these projects are just baffling them.

They didn't do up to one-fifth of this.

kingsways:
The government seems so daft they keep spending billions of Dollars on obsolete refineries


The devil so blinded their eyes they cannot see that it's possible to build new refineries, They cannot see that the dead refineries they wasting billions of Dollars on were built by human beings

What manner of blind leaders are these?

How much is being used to revamp the refinery? How much will it cost to build a brand new one? How long will it take to build a brand new one? What will happen to the old refinery if a new one is built? How many wise buyer will throw billions of dollars into a moribund refinery?

Perfectbeing:
How much is being used to revamp the refinery? How much will it cost to build a brand new one? How long will it take to build a brand new one? What will happen to the old refinery if a new one is built? How many wise buyer will throw billions of dollars into a moribund refinery?

Government has no business building refineries that is the jurisdiction of the private sector, The Free Market, The PIA has finally addressed that.

Buckeyemedia1:
Government has no business building refineries that is the jurisdiction of the private sector, The Free Market, The PIA has finally addressed that.

My comment was a reply to someone who said government should build new refinery. I'm asking him what then would happen to the old ones? There's no way private corporations would take over a dead refinery. The government would have to repair the old ones before selling it... Read well before quoting someone.