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Dangote group set to supply Nigeria with foreign exchange

Nigeria’s first private refinery to become source of foreign exchange

Kathleen Ndongmo

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Dangote group is set to become another source of foreign exchange for Nigeria as soon as the company’s refinery, petrochemicals and fertiliser projects come on stream.

This potential reversal of roles was disclosed by Governor of the Central Bank of Nigeria (CBN) Mr. Godwin Emefiele, after he toured the ongoing Dangote Refinery, Petrochemicals, Fertiliser projects and Dangote deep-water jetty in Lagos over the weekend. 

The CBN governor premised his comment on the huge forex earnings expected to accrue from export of petrochemical and fertiliser products from Dangote refinery and fertilizer plants by the time the fertilizer plant begins operations in May this year, and the refinery in 2020

Nigeria’s economy is heavily dependent on its oil sector for foreign exchange. With huge potential  as the 12th largest oil-producing nation in the world, an estimated 37.2 billion barrels of crude oil deposits and seventh in the world in terms of gas reserves of about 187 trillion cubic feet, the country is the only member country of the Organisation of Petroleum Exporting Countries (OPEC) that depends on imported refined petroleum products

With four refineries, giving a combined capacity of 445,000 barrels per day (bpd) , many believe the country has no business relying solely on importation for her domestic consumption. 

Reports indicate that corruption has made it difficult to get these refineries working to full capacity. 

With Nigeria’s first private refinery coming on board soon, the Governor of Nigeria’s central bank is optimistic that the refinery and fertiliser projects will create thousands of jobs , check importation of fuel by the Federal Government and in turn save government huge forex currently being spent on fuel import.

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Uganda and Rwanda revisit trade talks

The meeting was aimed at boosting diplomatic relations between the two East African neighbours

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Uganda and Rwanda revisit trade talks

Officials from Uganda and Rwanda on Monday met in Kigali following a Memorandum of Understanding signed by the two countries in Angola in August.

The meeting was aimed at boosting diplomatic relations between the two East African neighbours.

The two sides were seen to be at loggerheads for some time earlier this year, culminating in the closure of their borders.

The August MoU included agreements on regional co-operation and security, setting the pace for the improvement of political and trade relations between Uganda and Rwanda.

The two leaders also agreed to “resume as soon as possible the cross-border activities between both countries, including the movement of persons and goods, for the development and improvement of the lives of their population”.

The Ugandan delegation is led by Foreign Affairs minister, Sam Kutesa while his counterpart in Rwanda spearheads the opposite delegation.

Angola and DR Congo played a key role in bringing the Ugandan and Rwandan sides to the negotiating table.

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Egypt resumes Nile Dam talks with Ethiopia, Sudan

Egyptian Foreign Minister, Sameh Shoukry has expressed unease in recent days over delays in negotiations

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Egypt resumes Nile Dam talks with Ethiopia, Sudan

Egypt says Ethiopia has “summarily rejected” its plan for key aspects of operating a giant dam. The country is building on the Nile, while dismissing Ethiopia’s own proposal as “unfair and inequitable”.

The comments, made in a note circulated to diplomats last week, show the gap between the two countries on a project seen as an existential threat by Egypt, which gets around 90% of its freshwater from the Nile. 

The note distributed by the Egyptian foreign ministry, a copy of which was seen by reporters, points to key differences over the annual flow of water that should be guaranteed to Egypt and how to manage flows during droughts. 

It comes as Egypt, Ethiopia and Sudan met on Sunday and Monday for their first talks over the hydroelectric dam in more than a year. A spokesperson at Ethiopia’s foreign ministry, Nebiat Getachew, said on Monday the meeting had so far produced no agreements or disagreements, and gave no immediate response to the Egyptian claims. 

Egyptian officials were not immediately available for comment, but after the talks, an Egyptian water ministry statement carried by local media said the meeting had been limited to procedural, rather than substantive issues. 

Egyptian Foreign Minister, Sameh Shoukry has expressed unease in recent days over delays in negotiations. 

The $4 billion Grand Ethiopian Renaissance Dam (GERD) was announced in 2011 and is designed to be the centrepiece of Ethiopia’s bid to become Africa’s biggest power exporter, generating more than 6,000 megawatts. 

In January, Ethiopia’s water and energy minister said that following construction delays, the dam would start production by the end of 2020 and be fully operational by 2022.

The dam promises economic benefits for Ethiopia and Sudan, but Egypt fears it will restrict already stretched supplies from the Nile, which it uses for drinking water, agriculture and industry.

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Tanzanian mining firms to pay royalty fees on mineral production

The Tanzania Mining Commission set a deadline of September 15 to enforce the directive

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Tanzanian mining firms to pay royalty fees on mineral production

Mining companies in Tanzania risk being denied transport permits to ferry their products if they have not adhered to section 18 of the country’s Mining Act of 2010 (and revised in 2017), which requires all producers pay royalty fees on the gross value of minerals produced.

The Tanzania Mining Commission set a deadline of September 15 to enforce the directive.

The issue came up when Tancoal Energy Ltd. claimed that the law was punitive and would make its products expensive. However, the permanent secretary in the Ministry of Minerals, Simon Msanjila, says that the royalty fees have been in effect since 2010 and other companies producing coal and other minerals were already applying it.

“Tancoal have been avoiding paying the fees all these years, despite expanding their coal exports portfolio to include clients outside the country,” said Prof Msanjila. He further added that “it’s about time they start paying as well.”

The law requires every authorised miner in Tanzania to pay royalty fees based on the gross value of their produce. The gross value is the market value of the minerals at the point of refining or sale.

Violation of the directive results in up to two years imprisonment, maximum Tsh10 million fine in the case of an individual, or Tsh50 million fine for a corporate.

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