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Dangote Refinery’s Real Benefit Lies in Capturing By-products Locally, Says Financial Expert

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Financial analyst and educator Kalu Aja has highlighted that the most significant advantage of the Dangote Refinery is its ability to capture by-products locally that were previously left abroad, which could increase Nigeria’s foreign exchange earnings.

 

In a post on his X handle on Wednesday, Aja described the Dangote Refinery as a major milestone for Nigeria, comparable only to the emergence of Nigeria Liquefied Natural Gas (NLNG). He noted that while the refinery would save the country transportation costs in dollars previously spent on bringing crude oil from abroad, other associated costs like insurance and interest remain.

 

Aja further explained that Nigerians should not expect a significant drop in the cost of Premium Motor Spirit (PMS) unless the government decides to subsidize crude oil and the dollar exchange rate.

 

Breaking down the process of refining PMS from crude oil, Aja mentioned that the costs of extracting crude oil, refining it, and marketing PMS are the same whether the refinery is in Lagos or abroad. However, the real savings come from transporting crude oil to Lagos instead of abroad, and the local capture of by-products, which can be exported to earn more foreign exchange.

 

“The real benefit Dangote Refinery brings is that those associated by-products that we left in ‘Malta’ will now be captured by Dangote locally. Thus, Nigeria will earn MORE by exporting those by-products, so net net, the Dangote Refinery earns Nigeria more FX,” Aja wrote.

 

He emphasized that while the refinery is a significant development, it will not drastically reduce the PMS bill unless there are government interventions in subsidies.

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Maiduguiri Flooding: Tinubu Directs NEMA to Provide Adequate Assistance to Borno Victims

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President Tinubu has voiced his concern regarding the flooding in Maiduguri and has committed to providing federal assistance.

In statement released by Bayo Onanuga, Special Adviser to the President on Information & Strategy, Tinubu, “President Bola Tinubu expresses deep concern about the flooding in parts of Maiduguri, the capital of Borno State.

“The worst flood in recent decades has displaced thousands of residents and affected facilities such as the Post office and the Maiduguri Teaching Hospital.

“President Tinubu extends his heartfelt condolences to the government and people of the State, especially to the families that have lost their means of livelihood due to the disaster triggered by the overflow of the Alau Dam.

“While relevant authorities are still assessing the damage wrought by the flood, the President calls for the immediate evacuation of people from affected areas.

“President Tinubu assures Governor Babagana Umara Zulum that the Federal Government is ready to collaborate to address the immediate humanitarian needs of the affected people.

“He orders the National Emergency Management Agency to assist the flood victims.”

The President remains committed to mobilising federal resources to support the state during this difficult time.

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2024 National Honours: Tinubu Approves Commencement of Selection Process

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The President of Nigeria, Bola Tinubu, has approved the commencement of 2024 National Honours Award to Nigerians and friends of Nigeria who have contributed to the development of the country.

The Minister of Special Duties and Intergovernmental Affairs, Zaphaniah Jisalo, disclosed this at a meeting with management staff of the ministry on Tuesday in Abuja.

Mr Jisalo said that the Federal Government would also honour Nigerians who have distinguished themselves in their various fields of endeavours.
The minister explained that the forms and processes leading to the award of national honours were free of charge, adding that people should desist from paying for national honuours.
“By this information, the public is to watch out for calls for nominations and present individuals who have distinguished themselves by uplifting the nation and its people.

“This is in accordance with the National Honours Award Act 2004. The Act took retrospective effect from 1963, “he said.

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Maiduguiri Flood: NEMA Moves To Evacuate Residents

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The National Emergency Management Agency has announced that they have initiated the evacuation of residents from Maiduguri’s impacted flooded communities and are actively working to provide food, shelter, and medical care.

In statement released by Zubaida Umar, Director General, National Emergency Management Agency,

He said,“In response to the unfortunate flooding situation in the Maiduguri metropolis of Borno State, which started last weekend and increased in the early hours of Monday, 9th September 2024, resulting from excess waters from the Alau Dam, we have begun the evacuation of residents of the affected communities and working on provision of food, shelter, and medical assistance.

“One of the spillways of Alau Dam collapsed, leading to a significant increase in water flow downstream and exacerbating the flooding in surrounding areas.

“The areas impacted by the incident include Shehuri, parts of the Government Residential Area (G.R.A.), Gambomi, Budum, Bulabulin, Adamkolo, Millionaires Quarters, Monday Market and Gwange.

“Borno State Government has opened up Bakassi Camp to accommodate those displaced by the flood. We are working, alongside the Borno State Emergency Management Agency, in providing humanitarian assistance to the distressed in the camp.”

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