₦airaland Forum

The Nigerian National Petroleum Company (NNPC) Limited has announced that subsidiary, the NNPC Gas Marketing Limited (NGML), has successfully executed a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.

This was disclosed in a statement signed by the Chief Corporate Communications Officer of the NNPLC, Olufemi Soneye, on Wednesday.

He said the agreement, signed by the Managing Director, NGML, Barr. Justin Ezeala and the President/CEO of the Dangote Group, Aliko Dangote on Tuesday at the Corporate Head Office of Dangote in Falomo, Lagos State, outlines the supply of natural gas for power generation and feedstock at the Dangote Refinery, in Ibeju-Lekki, Lagos State.

This major milestone, according to Soneye, is in line with President Bola Ahmed Tinubu’s policy of utilizing Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.

He added that the development, which sees a huge investment of this nature penned with zero capital expenditure (CAPEX) outlay, has been described by many as unprecedented in the history of NGML or any gas Local Distribution Company (LDC) in the country.

Under the terms of the agreement, NGML will supply 100 million standard cubic feet per day (MMSCF/D), 50MMSCF/D being firm supply and the rest 50MMSCF/D, interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.

According to the NNPCL, the collaboration is a significant step toward ensuring the operational success of the Dangote Refinery and enhancing Nigeria’s domestic gas utilization.

“The agreement represents a milestone for both NNPC Ltd. and Dangote Refinery, aligning with their shared commitment to boosting local production and providing vital products for the benefit of all Nigerians.

“It is also a further proof of NGML’s unwavering commitment to business excellence and fulfilling NNPC Ltd.’s core mandate of ensuring Nigeria’s energy security through the execution of strategic gas projects across the country,”the statement added.

https://www.channelstv.com/2024/11/14/nnpcl-seals-10-year-gas-supply-deal-with-dangote-refinery/

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The Federal Executive Council (FEC) has given approval to fresh external borrowing of $2.2b, made up of $1.7b and SUKUK financing of $500 million.

This approval is to strengthen the country’s finances and enhance economic reforms.

The Minister of Finance and Cordinating Minister of the Economy, Wale Edun made this known on Thursday after the Executive Council meeting on Thursday, presided over by President Bola Tinubu at the Council Chamber, State House.

Edun, who stated that he submitted two memos, disclosed that the external borrowing approval when finally given by the National Assembly will grant Nigeria access to the international capital market for some combination of the Euro bond and SUKUK financing.

“The first one was to complete the borrowing programme of the Federal Government in terms of the external borrowing with the approval of the $2.2 billion financing program made up of access to the international capital market for some combination of the Euro bond offer and the Sukuk bond offer.

“A Euro bond of about $1.7 billion and Sukuk financing of another $500 million the actual makeup of the financing which will be done as soon as the National Assembly has considered”, he said.

He added that Nigeria had showcased the resilience of its financial markets, capacity and increased complexity through domestic issuance of dollar bonds which according to him attracted Nigerian investors.

Edun stressed that for Nigeria being able to access the international capital market is an indication of the nation’s acceptance and support for President Bola Tinubu macro-economic programmes.

He added that the approval was part of the Nigerian 2024 Appropriation Act has amended.

“So it is on the basis and the strength of the progress to date that we do have a window to access the international capital market for up to $2.2 billion in financing, that is part of the Nigerian 2024 Appropriation Act, as amended,” he said.

Edun also disclosed that Council has approved a N250 billion real estate investment fund aimed at providing affordable, long-term mortgages to Nigerians.

He said the Fund is designed to address the country’s critical 22 million-unit housing gap while creating jobs and boosting private sector investment in the housing sector.

The new initiative, known as the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund, will offer low-cost mortgages to individuals seeking to own homes, with interest rates targeted at single-digit or low double-digit figures.

Edun explained that the fund’s unique structure will make it possible for Nigerians to access mortgages with interest rates ranging between 11% to 12%, a significant reduction from the current market rates that often exceed 30%.

The loans will have longer repayment tenures, potentially spanning 20 years or more, to make homeownership more accessible.

“This fund is the foundation for the revival of long-term mortgage financing in Nigeria,” Edun said.

“It will help bridge the huge housing deficit while fostering job creation and spurring growth in the broader economy. The initiative is designed not only to meet the housing needs of Nigerians but also to encourage private sector participation in the housing construction industry,” he said.

The N250 billion fund will be anchored on a blend of government seed funding and private sector investments.

The government will contribute N150 billion, sourced from low-interest loans available to the government at a rate of 1%, with terms extending up to 40 years.

This government-backed funding will be mixed with market-based investments from long-term savers such as pension funds and life insurance companies.

By combining these two sources of capital, the fund will be able to offer mortgages with affordable pricing.

“The goal is to create a financing model that lowers the cost of homeownership for Nigerians,” Edun explained.

“We aim to attract long-term investors, including pension funds and insurance companies, who will provide additional capital at market-based rates. This, combined with the government’s low-cost funding, will allow us to offer mortgages at a fraction of the current interest rates,” he further said.

The initiative is part of President Tinubu’s broader economic plan to stimulate growth and revitalize the Nigerian economy through strategic investments in key sectors.

According to Edun, the fund will not only provide affordable housing but will also have significant multiplier effects across the economy.

The construction industry is expected to benefit from the influx of new investments, which will, in turn, create thousands of jobs and stimulate economic activity.

“The real estate sector has vast potential to drive economic development. This fund will be a catalyst for private sector involvement, which will lead to job creation, enhanced infrastructure, and the overall revitalization of the housing market,” Edun stated.

The MOFI Real Estate Investment Fund is designed to attract institutional investors and long-term savers, who will benefit from market-based returns.

Edun emphasized that the government’s role in this venture would be to provide the seed funding, which would then be blended with the investments from the private sector to ensure that the mortgages offered remain affordable for Nigerians.

“This is a promise kept by President Bola Ahmed Tinubu’s administration to make homeownership more accessible for ordinary Nigerians,” Edun said.

“It will bring relief to millions who have long struggled with exorbitant mortgage rates and short repayment terms. With this new initiative, the prospect of owning a home is no longer a distant dream for many Nigerians,” the minister added.

The launch of the N250 billion real estate fund is expected to stimulate significant growth in the housing sector, reduce the housing deficit, and contribute to broader economic stability.

As the fund is rolled out, more details will be made available to the public, with the prospectus now approved by the FEC and ready for distribution.

Edun highlighted the far-reaching economic benefits of the initiative saying: “This is not just about building homes; it is about building a sustainable future for Nigeria, with long-term growth, job creation, and a better standard of living for millions of Nigerians.”

https://thenationonlineng.net/fec-approves-2-2b-new-borrowing-plan/

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