Nation
NNPC Moves To Buy 20% Stake In Dangote Refinery With Bank Loans
The Nigerian National Petroleum Corporation (NNPC) has concluded plans to raise bank loans for the acquisition of 20 per cent shares in the $12billion Dangote Refinery.
Contrary to speculation that the shares would be acquired through the Federation Account, the Group Managing Director, NNPC, Mallam Mele Kyari, said negotiations were ongoing with the selected banks.
In an interview with Channels Television, yesterday, Kyari, said the bank loans would be backed by cash flows from the project.
He said the stake which might be worth as much as N19billion is still under valuation, while assuring that the investment would be viable, thus ensuring petrol products security for the country.
Specifically, he said, “The investment is sustainable and that is why the banks have come forward to lend to us, so that we can take equity in this. We are not putting anything at stake.
“The information in the public domain alluding that the investment is inappropriate is not correct. We are very proud that we did.
“This is good for our shareholders, which include 200million Nigerians, who would have also happily bought shares from this refinery.
“But have done so on their behalf. Ultimately, the value will come to the country.
“There’s no way you can watch a business of this magnitude, of this sensitive to run without an embodiment of the national oil company. No country does that.”
According to him, when the Refinery becomes operational with the NNPC owned refineries, the country will become a net exporter of petroleum products across the West African sub-region.
He also disclosed that having successfully awarded the complete rehabilitation of the Port Harcourt Refinery, the contracts for the Warri and Kaduna refineries would be awarded before the end of July, 2021.
Kyari, who acknowledged that the corporation has not managed the refineries well in the past, said when fully rehabilitated, the refineries would be managed by others in line with the agreement reached with banks funding the projects.
“We are not going to take any government money to overhaul these refineries. We are borrowing also on the back of the cash flows of these refineries.
“It means they can deliver commercially. Part of the requirements of the lenders is that we should not operate these refineries.
“We must have operations and maintenance contracts. Practically, these refineries will be run by the lenders”.
Already, the Dangote Fertilizer Limited, which is part of the project, has commenced commercial production of Urea.
Speaking at the commencement of production, June 5, 2021, President of the Dangote Group, Aliko Dangote, had told visitors that the plant, with a capacity to churn out three million metric tonnes per annum of urea, has been classified as the biggest project in the entire fertiliser industry in the world.
Specifically, he had informed the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, and other bankers that, “this Phase 1 of the project, which is estimated to cost $2.5billion, is to manufacture 3mmtpa of urea per annum.
“This capacity will later be expanded to produce multi grades of fertilisers to meet soil, crop, and climate-specific requirements for the African continent.”
According to Dangote, the fertiliser plant would make Nigeria the biggest urea exporting country in sub-Saharan Africa and the biggest producer of polypropylene and polyethylene.
Responding, Emefiele, had also, said, “Nigeria needs between 1million metric to 1.5million metric tonnes of Urea to meet the local demand.
“So, we have the potentials to export at least three to 4million metrics tonnes of Urea to different parts of the world.
“With this latest development, Nigeria has become one of the major producers of Urea in the world. This for me is a story, which no one would have believed would happen in Nigeria.
“Nigeria now ranks amongst the leading countries in the production of Urea in the world. This, for me, is a story that no one would have believed will happen in Nigeria.
“Dangote has committed that mechanical completion will be achieved by the end of this year and we are expecting that the refinery will be completed by the first quarter of next year.”
The Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Dr Chioma Ejikeme, has reiterated the commitment to service delivery for pensioners.
Ejikeme said this during the Customer Service Week in Abuja, yesterday.
He said that commission had a mandate to deliver good service delivery to the pensioners.
Ejikeme, who was represented by the Director Civil Service Pension Department, Mr Kabir Yusuf, said that the customer service week was important to operations of PTAD.
“Customer service is the support that you give to a customer, whether it is an existing customer or potential customer in the process of delivering or making enquires about a service.
“To be a good customer service representative you need to be knowledgeable, have good attitude and attribute especially to the senior citizens and have empathy,” he said.
Ejikeme said that all PTAD staff had most of the attributes of a good customer representative.
“We provide excellent customer service by going to verify our aged pensioners who cannot do it by themselves anywhere across the country.
“There is a dedicated team that was mandated to go round to confirm the aliveness of those who can not confirm their aliveness either because the are too old or have health issues,” the executive secretary said.
The National Coordinator, SERVICOM, Mrs Nnenna Akajemeli, said that the official theme of the 2024 customer service week was “ We Go Above and Beyond For Our Customers.”
She commended PTAD and the SERVICOM team for organising the 2024 customer service week.
“This is in line with the best practice of celebrating frontline workers and service takers.
“Customer service week is celebrated annually during the first full week in October.
It calls attention to the importance of people to boost morale team work and departmental collaboration in supporting pensioners.
“ It is a platform to reward employees for the significant work they do,” Akajemeli said.
She said that the objective of the customer service week was to celebrate the hard work and dedication of employee who strived to create positive customer experiences.
She said that it was time to show customers that the organisation valued their experience and feedback, through comment cards, dedicated hotline, among others.
Akajemeli said that it raised awareness internally and externally about the importance of good customer service in building customer loyalty and satisfaction.
She said that the benefit was to increase motivation, show appreciation, encourage friendly competition, boost employee retention, create a positive workplace and increase productivity.
The Head, Surveillance Department at the National Pension Commission (PenCom), Mr Abdulrahman Saleem, said that good service delivery was the key success of every establishment.
Salem said that PTAD operated with standard, considering the success it had achieved so far.
Saleem said that pensioners required the best service attitude and behavior.
“ I give kudos to PTAD for its efforts and encourage it to do more.
“Therefore I urge PTAD staff to keep up the standard and continue to give good service to the pensioners,” he said.
The Chief of the Air Staff (CAS), Air Marshal Hasan Abubakar, has honoured Flying Officer David Sangokoya for winning the 2023/2024 Royal Air Force College Cranwell International Cadet Sword of Honour.
Abubakar honoured the officer during the presentation of cheques to 13 beneficiaries of the Nigerian Air Force (NAF) Group Personal Accident Insurance Policy (GPAIP) in Abuja, yesterday.
He described the achievement as ground-breaking as it was the first time an African cadet had won the prestigious award since the Academy’s creation over 100 years ago.
According to him, the feat underscores the excellence that exists within NAF, and proof that NAF officers and cadets can stand shoulder to shoulder with the best in the world.
“To our awardee, you have set a new standard, not just for your peers, but for every cadet and officer that will come after you.
“This accomplishment is a powerful reminder that no goal is out of reach when one is armed with dedication, discipline and an unwavering commitment to excellence.
“Your journey as an officer has begun with this prestigious accolade, but the true measure of your success will be seen in how you serve, lead and contribute to the mission of NAF and the defence of our great nation.
“As we celebrate this historic occasion, we extend our deepest gratitude to the United Kingdom Government for its unwavering support in providing world-class training opportunities to our personnel.
“This has enabled our officers and men to gain invaluable skills and knowledge, strengthening not only our bilateral ties but also our collective ability to address global security challenges,” he said.
The CAS said that the NAF looked forward to continuing the fruitful partnership for the mutual benefit of Nigeria and UK countries.
He expressed gratitude and unflinching loyalty to President Bola Tinubu for his commitment to the welfare and training of members of the Armed Forces of Nigeria, and NAF in particular.
“I must also take a moment to extend my heartfelt appreciation to the leadership of the Nigerian Defence Academy and the instructors who helped to mould and prepare this cadet for the global stage.
“Their dedication and commitment to developing top-notch officers is evident in this ground-breaking achievement.
“You have not only trained a leader but have given the Nigerian Air Force a legacy we will all cherish,” he said.
National Health Insurance Authority (NHIA) has advocated private sector involvement to strengthen Nigeria’s healthcare system.
The Director-General of the authority, Dr Kelechi Ohiri, made the call at a high-level policy dialogue on sustainable health system reforms in Nigeria in Abuja, yesterday.
The Tide’s source reports that the dialogue was organised by the Healthcare Federation of Nigeria (HFN), a coalition of private sector stakeholders, to address the multifaceted challenges plaguing the country’s healthcare system.
The dialogue has “Private Sector Support for SWAP (Sector Wide Approach) in Healthcare” as its theme.
Represented by Dr Yakubu Agada-Amade, the NHIA Director of Standards and Quality Assurance, Ohiri explained the crucial role of private sector collaboration in strengthening Nigeria’s healthcare system
He highlighted the “One Plan” under the SWAp framework, which seeks to unify health sector efforts, ensuring efficient resource use, effective governance and expanded healthcare access.
He also stressed the importance of overcoming barriers that historically hindered the implementation of healthcare interventions in Nigeria, such as inadequate financing, weak governance systems, and bureaucratic bottlenecks.
He added that “the dialogue explored innovative approaches, including digital health innovations and financing mechanisms to accelerate the implementation of the National Health Act and mandatory health insurance coverage.
“With enrollment in health insurance growing by 14 per cent over the past year, NHIA can push for greater inclusivity, particularly targeting the informal sector through flexible payment systems and partnerships with telecommunications companies.”
He called for stronger synergy between public and private health actors to ensure universal access to quality healthcare and sustainable reforms in line with the Nigeria Health Sector Renewal Investment Initiative (NHSRII).
Panelists from the Association of Nigerian Private Medical Practitioners (ANPMP), Healthcare Providers Association of Nigeria (HCPAN) and Health and Managed Care Association of Nigeria (HMCAN) echoed the sentiments, underscoring the private sector’s role in expanding insurance coverage and improving healthcare delivery.
They commended NHIA’s efforts toward driving reforms to achieve Universal Health Coverage (UHC) through the Sector-Wide Approach (SWAp).