NNPC (The Nigerian National Petroleum CORPORATION) is set to actualize an agenda to acquire 20 percent of the Dangote Refinery. The body intends to borrow the sum of $ 3.8 billion dollars from financial institutions to make funds for purchase.
Mallam Mele Kyari, the Managing Director of the the NNPC Group said on an interview on Tuesday that the funds will be borrowed from financial institutions
He said some financial institutions had already agreed to fund the acquisition, while the debts would be paid back from the NNPC’s earnings from dividends and profits accruing from its investment in the fuel plants.
The 650,000 barrels per day refinery, located in Lagos State, which Kyari said had been tentatively valued at about $19 billion, is expected to come on stream in 2022 and will produce 50 million litres of petrol per day.
Source: Read more on the story here https://www.arise.tv/nnpc-to-borrow-3-8bn-to-acquire-dangote-refinery-shares/
Nigeria as a country is still very dependent on oil for sustenance and profit. When the demand for the natural resources dropped drastically in the international market, the country was placed in an uncertain state. However, there are still conglomerates that thrive on sales of the resource. Over the last eight years, the Dangote Refinery
has been an explosive venture. With the NNPC showing avid interest in the acquisition of shares in the Dangote Refinery, consumers can only wonder what this means for them.
• increase in Pump Price
With the continuous rise in fuel prices over the last few months, this could mean yet another increase in pump price. The NNPC is set to borrow funds from financial institutions to be able to reach the requirement to acquire shares in the refinary.
Kyari, in two separate interviews with two television stations, which THISDAY monitored in Abuja, stated that all the borrowing institutions, including Afrexim Bank, are comfortable with the deal, adding that the federal government will not invest a dime in the deal.
A reason for this expectancy is the common knowledge that most financial institutions attach an interest to the loans they offer. To be able to meet up with payback requirements, there might be a need to increase pump price.
While we are uncertain about the final outcome of fuel prices for the next coming months, it will be best to prepare for increased pump price.
Higher Dependence on renewable energy sources
Renewable energy has over the last few years has proved to be an excellent alternative power source for numerous homes and companies around the globe. Not only is it set to save many from the extra expenses, it is also allowing for job creation across the globe.
While some Nigerians have embraced solar and off grid electricity ,the further hike in pump price would mean many more Nigerian homes opting for solar as the means of power. This would mean a greener and less polluted environment. Solar energy has advanced sporadically over the last decade and has proven to be a reliable and durable solution to the energy inadequacies within the country that makes citizens so reliant on generator sets and petrol
Choose solar, change your power story. Call 08089982052 to start.