Dangote says refinery has 500 million litres of petrol in storage, can meet Nigeria's demand

Nigeria's Dangote oil refinery has a stockpile of 500 million litres of petrol, its billionaire founder said, countering claims by marketers who asserted they needed to supplement Dangote's supplies with imports to meet fuel shortages.

Nigeria's President, Bola Tinubu, had summoned oil regulators, the head of the state-owned NNPC, the finance minister, and Aliko Dangote to a meeting in Abuja on Tuesday.

The purpose was to review a policy requiring NNPC to sell crude oil to the Dangote refinery in local naira currency in an effort to ease foreign exchange pressure and help the mega refinery secure enough crude to meet its 650,000-barrel-per-day capacity.

Following the meeting, Dangote clarified that his business is not involved in retailing petrol and he should not be blamed for fuel shortages in Africa's top oil producing country.

He also said that keeping fuel in storage tanks is costing him money.

"I expect the NNPC and marketers to stop importing. They should come and collect; we have everything they need," said Dangote.

Two weeks ago, local fuel traders began increasing imports, claiming that the Dangote refinery was unable to meet domestic demand, exacerbating fuel shortages.

The Dangote Oil Refinery in Lagos began processing petrol in September, initially setting out to supply 25 million litres per day. The goal is to gradually increase production to 35 million litres daily, which Dangote believes will be sufficient to meet local demand.

At an oil conference in Lagos on Monday, however, the sector regulator said Nigeria’s daily petrol demand is between 45 and 50 million litres.

In a statement issued by a government spokesperson, President Tinubu urged stakeholders to focus on supplying enough petrol for local consumption to reduce dependence on imports.

He also directed them to use Afreximbank, the financial adviser for the naira crude sale scheme, as the settlement bank for naira pricing of crude and refined products.

Dangote previously had to buy crude on the international market, but it filed a complaint saying oil majors were blocking its access to locally produced oil by selling it above market price or claiming it was unavailable, forcing the refinery to rely on expensive imports.

Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the plan to sell crude in naira would remain in place, and the government would not intervene in determining the exchange rate for the oil sector.

Nigeria aims to end the importation of petroleum products once the Dangote Refinery reaches full operational capacity.

By Isaac Anyaogu, Reuters

Related story: Video - Nigeria ends state oil firm's role as Dangote refinery's sole buyer

Video - Nigeria ends state oil firm's role as Dangote refinery's sole buyer

Nigeria's Minister of Finance says the new arrangement which allows independent marketers to also purchase products directly from the refinery will encourage a wider supply chain for products across the nation. However, energy experts say the government will need to revitalize more refineries that have been dysfunctional for years.

CGTN

Video - Building collapse in Nigeria's capital leaves at least 7 dead

A building collapsed in a suburban area of Nigeria’s capital over the weekend, killing at least seven people, police said Monday.

The building, located in the Sabon-Lugbe area of Abuja, had already been partly demolished and its structure was further compromised by scavengers looking for scrap metal, the Abuja police said.

Abuja police spokesperson Josephine Adeh said five people were rescued from the rubble on Sunday.

Building collapses are becoming increasingly common in Nigeria, with more than a dozen such incidents recorded in the last two years. Authorities often blame such disasters on failures to enforce building safety regulations and on poor maintenance.

Nigeria, Africa’s most populous country, has recorded 22 building collapses between January and July this year, according to the Council for the Regulation of Engineering in Nigeria.

In July, a two-story school collapsed in north-central Nigeria, killing 22 students. The Saints Academy college in Plateau state’s Busa Buji community collapsed shortly after students, many of whom were 15 years old or younger, arrived for classes. 

By Dyepkazah Shibayan, AP

Nigeria signs funding deal with IFC to boost naira currency financing

The central bank of Nigeria has signed an agreement with the International Finance Corp to expand local currency financing for Nigerian businesses and cut foreign exchange risks, the agencies said in a statement on Monday.

The IFC, a World Bank Group member, aims to "significantly scale up" its financing in Nigeria, targeting over $1 billion in the coming years, the statement said.

The partnership will enable IFC to manage currency risks and increase its investments in Nigeria's naira currency across agriculture, housing, infrastructure, energy, small and medium-sized enterprises, and the creative industry.

"Many of these sectors require local currency financing, and IFC's partnership with the (central bank) is a key tool in expanding access," the statement said.

By Elisha Bala, Reuters

Google among investors putting $110 million into Nigeria's Moniepoint

Nigeria based fintech Moniepoint has raised $110 million in new funding from investors including Google to scale up digital payments and banking solutions across Africa, the company said on Tuesday.

Moniepoint started operations in 2015 providing infrastructure and payment solutions for banks and financial institutions but has grown to also offer personal banking services.

The latest funding round was supported by existing investors London-based Development Partners International and private equity firm Lightrock. Google's Africa Investment Fund and Verod Capital came in as new investors.

Sources close to the transaction said the new funding valued Moniepoint above $1 billion, giving it "unicorn" status - a term for tech firms with a valuation of a billion dollars or more.

The new capital would be used to speed up Moniepoint's growth across Africa and build an integrated platform for businesses.

"This platform will include services such as digital payments, banking, foreign exchange (FX), credit, and business management tools, making it a one-stop shop for business solutions," Moniepoint said.

Nigeria is the fastest growing fintech market in Africa, driven by its more than 200 million people, many who still lack access to financial services like banking.

Moniepoint started offering personal banking services in August last year.

The fintech says it processes over 800 million transactions, with a monthly value of more than $17 billion.

By MacDonald Dzirutwe, Reuters