All posts by : AMAC Admin

The Association of Bureau De Change Operators of Nigeria (ABCON) said the Bureau De Change (BDC) operators were buying dollars at N980/$ at the open…

The Association of Bureau De Change Operators of Nigeria (ABCON) said the Bureau De Change (BDC) operators were buying dollars at N980/$ at the open market and selling at N1,020/$.

This was confirmed by the President of ABCON, Aminu Gwadebe, while featuring on a Channels Television programme, Business Incorporated, where he stated that the naira has appreciated faster than expected against the United States Dollar.

Gwadebe applauded the government and the Central Bank of Nigeria for its efforts so far, saying it’s the first time in the last 15 years that the exchange rate for the dollar in the parallel market is less than that at the official window.

He acknowledged that there is now calmness in the market as speculation which has been one of the major destabilisation factors is no longer there.

Gwadebe said: “Our quote rate we buy at N980 and we sell at N1,020 as at now.

‘’There is a lot of confidence, we have seen how the central bank treasury bills have been oversubscribed and we have seen how they have also corrected the flows of diaspora remittances. Now we are having a chunk of diaspora remittances coming in because of the so many policies of the central bank that tried to calibrate how the inflows should be coming in even though there is a lot of gaps that is not coming that is still externalised in the diaspora window.’’

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• ’RSA Transfer System revolutionising pension’

The National Pension Commission (PenCom) has called on Retirement Savings Account (RSAs) holders seeking to change their Pension Fund Administrators (PFAs) through the RSA Transfer System to base their decision on their performance.

Its Director-General, Mrs. Aisha Dahir-Umar, who made this call, said to enable RSAs take informed decisions, the commission has created a special section on the Commission’s website for that purpose.

Also, she said to facilitate RSA holders’ ability to make good choices on service delivery, the Commission expanded its minimum disclosure requirements by providing more statistics on pension industry performance.

Stating that the Commission’s website has adequate information of PFAs performance record, she said they have also developed the minimum information disclosure requirements to be adopted by PFAs to enhance the high-level of transparency required for the operation of the RSA Transfer System.

The PenCom boss said the essential advancement in the Contributory Pension Scheme (CPS) came with the introduction of the RSA Transfer.

She said: “This innovation allows RSA holders to move their accounts from one Pension Fund Administrator (PFA) to another using the Retirement Savings Account Transfer System (RTS) deployed by the National Pension Commission (PenCom). Section 13 of the Pension Reform Act 2014 (PRA 2024) allows RSA holders to transfer their accounts from one PFA to another not more than once a year. The commencement of the RSA transfers marks a significant achievement for PenCom in implementing the CPS.

“PenCom undertook the in-house development and consequent deployment of the Enhanced Contributor Registration System (ECRS) in June 2019, which made it possible to commence the RSA transfers.The ECRS enabled the unique identification of contributors registered on the Commission’s database, a critical requirement for smooth RSA transfers.The development of the RSA Transfer System (RTS) followed the ECRS. As the Application is tagged, the RTS is a unique and robust electronic platform that enables seamless RSA transfers. The Application is used for submitting, processing, and monitoring RSA transfer requests.”

RSA Transfer Process

The DG continued: “To initiate an RSA transfer, the RSA holder is not required to go to their Transferring PFA. Instead, the RSA holder should approach the PFA they intend to transfer to (Receiving PFA) and provide their RSA PIN, surname, telephone number and email address. The Receiving PFA will validate the biodata of the RSA holder requesting a transfer.

“Thereafter, the RSA holder’s fingerprint will be captured to authenticate their identity as the final step to conclude the transfer request. The Receiving PFA prints two copies of a confirmation slip, which the RSA holder should sign as proof that they initiated the transfer; finally, the PFA retains a copy of the confirmation slip while a copy is given to the RSA holder.

“RSA transfer requests received through the RTS are batched and processed at the end of every quarter, four times yearly (March, June, September, and December). However, only requests received  by the second month of a transfer quarter (February, May, August, and November) are processed within the quarter.

“However, transfer requests received within the third month of a quarter are processed in the next quarter. After a successful RSA transfer, the RSA holder should advise their employer of the new PFA for subsequent remittance of their monthly pension contributions. The RSA holder should also contact their new PFA to ensure that the RSA balance transferred is accurate.”

RSA transfer outlook

“Activating the RSA transfer is expected to result in improved service delivery across the industry as PFAs engage in healthy competition by providing enhanced service offerings to benefit RSA holders.

“The RSA Transfer has inbuilt controls that ensure only a legitimate RSA holder can initiate and transfer their RSA. One of the ways the controls are achieved is by verifying the RSA holder’s live fingerprint on the National Identity Management Commission (NIMC) database. Furthermore, there are administrative sanctions for infractions by PFAs, while PenCom monitors the process to ensure compliance.

“Meanwhile, since the inception of the transfers, a significant number of RSA holders have transferred their RSAs from one PFA to another. For instance, in the last quarter of last year, a total of 21,498 RSA requests were submitted to PenCom by PFAs for RSA holders. Processed RSAs are transferred to their PFAs, along with their associated pension assets,” she added.

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The director general of the Budget Office of the Federation, Ben Akabueze, has said Nigeria is in dire need of foreign currency concessionary loans and investments to further stabilise the country’s exchange rate.

He stated this while speaking on behalf of the minister of Finance and coordinating minister of the economy, Wale Edun during the G24 press briefing at the ongoing International Monetary Fund/ World Bank spring meetings ongoing in Washington DC on Tuesday.

Akabueze, answering a question on the fiscal challenges of the country, particularly its burgeoning debt, said “the most important support that Nigeria requires at this time is investment and increased trade. So, while Official Development Assistance (ODA) is helpful at the end of the day, that’s not what’s going to sustainably address the scale of Nigeria’s problems.

“There are a lot of investment opportunities especially in areas like infrastructure. At the same time, of course, concessionary debt and support still remain important for the country, especially foreign currency-denominated for one it helps also with addressing the foreign currency supply situation that puts pressure on the exchange rate.

“You can see inflation is high and is being tackled, we see inflation beginning to basically peak and we can see a reversing trend towards the second half of this year. The exchange rates are stabilised now, we have seen basically the parallel and the foreign exchange market rates merge. I think that all of these are inspiring greater confidence in investors, whether it be portfolio investors, foreign direct investors, and even domestic investors as well.”

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The Dangote Refinery is owned by Dangote, Africa’s wealthiest man

In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from N1,200 to N1,000 per litre.
In a release from the Company, said “while rolling out the products, the refinery supplied at a substantially reduced price of N1,200 per litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600 per litre.

“This significant reduction in the price of diesel, at Dangote Petroleum Refinery, is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.”
Dangote oil refinery began supplying the Nigerian domestic market with petroleum products such as diesel and aviation jet fuel.

The chairman of Dangote Group, Aliko Dangote recently thanked President Bola Ahmed Tinubu for his support and encouragement, towards the actualisation of this project.

He was said to have also thanked the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerians for their support and belief in what he called the historic project.

“We thank President Bola Tinubu for his support and for making our dream come true. This production, as witnessed today, would not have been possible without his visionary leadership and prompt attention to details.

“This is a big day for Nigeria. We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. This is a game changer for our country,” Dangote said.

The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.

Dangote Petroleum Refinery, with the capacity to refine 650,000 barrels of crude oil per day, covers an area of approximately 2,635 hectares and is located in the Lekki Free Trade Zone in Lagos.

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The federal government has officially kicked off the disbursement of the N50,000 Presidential Conditional Grant Scheme, popularly known as the Trade Grants Scheme, to nano businesses across Nigeria.
Nano businesses, defined by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) as enterprises with one or two workers and an annual turnover of less than N3 million, are the primary beneficiaries of this initiative.

Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, announced this development yesterday in Abuja.

Uzoka-Anite revealed that the disbursement process has already commenced, with several beneficiaries having received their grants. The phased disbursement strategy ensures that the distribution of funds is gradual and systematic.

Commenting on this development, chief executive officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said that the decision to make available this concessionary financing for manufacturers is a very good one because cost of funds at this time is extremely high as a result of the monetary policy tightening.

He also said that “right now interest rates are as high as 30 percent. So, at this point, the fund is being available at a much lower interest rate, possibly a single digit, and with a longer tenure. If it is like that, then that will be very beneficial to the manufacturers. We also need to know the conditions for giving out the loan.”

According to Yusuf, we have had instances in the past where the kind of collateral requirements are so difficult to meet. As such, many of the intended beneficiaries are not able to access the loan. Because of the very stringent collateral requirements.

“So, the government should make the facility more accessible to the entrepreneurs or the manufacturers.
A significant disbursement is scheduled for Friday, April 19, 2024, when a substantial number of validated applicants will receive their grants. However, the minister emphasised that not all applicants will receive their grants on this initial date, as the disbursement process is ongoing.

Meanwhile, the minister reassured all verified applicants that they would eventually receive their grants in subsequent phases and urged patience as the applications were diligently processed.

The Trade Grants Scheme announced as part of the Presidential Palliatives Programme in December 2023, aims to empower nano businesses across various sectors such as trading, food services, ICT, transportation, creative arts, and artisans.

The scheme targets specific demographics, including 70 percent women and youths, 10 percent people with disabilities, 5 percent senior citizens, and the remaining 15 percent distributed to other groups.

Each beneficiary will receive a non-repayable grant of N50,000 directly into their accounts. The programme is set to impact one million small businesses across the 774 local government areas and six council areas in the Federal Capital Territory (FCT)

To reach one million beneficiaries in every local government area and the FCT, Uzoka-Anite highlighted the potential of the programme to significantly uplift communities nationwide.

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Governor of the Central Bank of Nigeria, Olayemi Cardoso has restated the commitment of the apex bank to focus on its core mandate of delivering price stability to provide an enabling environment for economic development.

To achieve that, the CBN governor said the bank is committed to harnessing the power of digital technologies to enhance financial inclusion, boost productivity, and create an enabling environment for innovation and entrepreneurship to thrive for job and wealth creation. “The Bank has also deployed robust digital technologies in driving most of its processes towards achieving optimal performance,” Cardoso said yesterday when he hosted the participants of the Senior Executive Course (SEC) 46, 2024, from the National Institute for Policy and Strategic Studies (NIPSS), Kuru who were on a study visit to the CBN headquarters yesterday.

Nigeria’s digital landscape is evolving, presenting immense opportunities and complex challenges.
The study tour themed “Digital Economy, Youth Empowerment and Sustainable Job Creation in Nigeria: Issues, Challenges, and Opportunities,” was organised to provide insights into the Bank’s initiatives and strategies aimed at fostering a robust digital ecosystem.

Cardoso who was represented by his deputy governor, corporate services, Dr Bello Mohammed said the study of this nature is imperative in unveiling the huge potential of digitalization towards contributing to sustainable job creation and youth empowerment in Nigeria. He highlighted the intricate linkages between digital economy, youth empowerment, and sustainable job creation.

“This study tour presents a unique opportunity for us to engage in fruitful discourse and explore collaborative strategies to address the multifaceted benefits and challenges of digital economy, youth empowerment, and sustainable job creation in Nigeria,” he stated, adding: “We welcome your critical insights, thought-provoking questions, and valuable recommendations.

These will undoubtedly enrich our policy formulation processes.”
In reaction, the director-general of NIPSS Ayo Omotayo said the central bank can grow the nation’s economy by 12 percent. He however said the ability of the CBN is dependent on the policy selection priorities of the apex bank.

Professor Omotayo digital economy can be used to empower the Nigerian youths, adding that the nation has made progress in the use of digital instruments for the economy. “The more we empower the people, the more we provide access to inclusive growth for more Nigerians.

He said the institute is looking forward to information to build a better society that is digitally inclined, benefiting from the many gains a digital economy offers.

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The Director General of the National Institute for Policy and Strategic Studies (NIPPS), Prof. Ayo Omotayo, said the Nigerian economic growth rate can average 12…

Professor Ayo Omotayo

The Director General of the National Institute for Policy and Strategic Studies (NIPPS), Prof. Ayo Omotayo, said the Nigerian economic growth rate can average 12 per cent annually for 5 years with a push from the Central Bank of Nigeria (CBN).

Prof. Omotayo who stated this in Abuja when he led members of Group Six, Senior Executive Course 46, 2024, on a study tour of the apex bank, Tuesday, explained that with CBN deploying digital tools as drivers, the economy can outperform its current Gross Domestic Product, GDP, growth rate.

The Federal Government in the 2024 budget projected GDP growth at 3.76 percent.

He noted that with growth in the use of digital services to run economies across the globe, the institute believes that the CBN “because of its own regulatory role, has a lot of importance in the matter of the digital economy.

He said: “We are asking ourselves how many things can be moved digitally. The more our activities that can be put in digital format, the more of the opportunity to provide more access to a whole lot of 120 million active Nigerians.

“We at NIPPS believe that we can have 12 percent growth in our economy, year in year out for the next five years if we are serious about it and if it is going to work, the CBN is critical in ensuring that it works. A whole lot of what is going to happen in Nigeria in the next five years depend on how successful CBN drives everything.”

Speaking earlier, the CBN Governor, Olayemi Cardoso observed that with over 100 million people economically active in Nigeria, the digital landscape in the country was evolving rapidly presenting immense opportunities and challenges.

Cardoso, who was represented by the Deputy Governor, Corporate Services, Dr. Bala Bello noted that as a “forward-thinking central bank, we are committed to harnessing the power of digital technologies to enhance financial inclusion, boost productivity, and create an enabling environment for innovation and entrepreneurship to thrive. The bank has also deployed robust digital technologies in driving most of its processes towards achieving optimal performance”.

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The CEO of Rainoil Limited, Gabriel Ogbechie, has claimed that the federal government resumed the payment of the controversial fuel subsidy following the devaluation of…

Subsidy regime

The CEO of Rainoil Limited, Gabriel Ogbechie, has claimed that the federal government resumed the payment of the controversial fuel subsidy following the devaluation of the Naira in the foreign exchange market.

Ogbechie made this statement on Tuesday during the Stanbic IBTC Energy and Infrastructure Breakfast Session held in Lagos.

He pointed out that with Nigeria’s daily fuel usage at 40 million liters and the foreign exchange rate at N1,300, the government’s subsidy per liter of fuel falls between N400 and N500, culminating in a monthly total of approximately N600 billion.

He said; “When Mr. President came in May last year, one of the things he said was that Subsidy is gone. And  truly, the subsidy was gone, because immediately the price of fuel moved from 200 to 500 per liter. At that point truly, subsidy was gone.

“During that period, Dollar was exchanging for N460, but a few weeks later, the government devalued the exchange rate. And Dollar moved to about N750. At that point, subsidy was beginning to come back.

“The moment the two markets officially closed, officially the market went to about N1,300. At that point, that conversation was out of the window. Subsidy was fully back on petrol. If you want to know where petrol should be, just look at where diesel is. Diesel is about N1,300 and petrol is still selling for N600.

Furthermore, he said that NNPC being the only petrol importer in the country implies that there is an ongoing subsidy, as prices had to be fixed.

Earlier yesterday, the former governor of Kaduna State, Nasir El Rufai, said the federal government is spending more on petrol subsidy than before.

In addition, the Special Adviser to the President on Energy, Mrs. Olu Veŕheijen, said that the Federal Government reserves the right to pay fuel subsidy intermittently to cushion hardship in the country.

“The subsidy was removed on May 29. However, the government has the prerogative to maintain price stability to address social unrest. They reserve the right to intervene.

“If the government feels that it cannot continue to allow prices to fluctuate due to high inflation and exchange rates, the government reserves the right to intervene intermittently and that does not negate the fact that subsidy has been removed,” she said.

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Wed, 17 Apr 2024

Private jet operators have been given 72 hours to submit relevant documents for re-evaluation by the Nigeria Civil Aviation Authority (NCAA). This followed the high…

This followed the high prevalence of illegal operations by private jet owners holding a permit for non-commercial flights (PNCF).

The permit forbids the owners from using their aircraft for hire and reward.

Our correspondent reports that there are over 100 private jets in Nigeria with a few of them holding PNCF.

But over time, some operators have been operating commercial flights without the necessary approval and against the spirit and letter of their permit.

The implication, according to the authorities, is the loss of revenue in addition to exposing the passengers to risk since the aircraft does not possess comprehensive insurance in the event of an accident or incident.

Yesterday, the NCAA suspended the permits of three private jet owners for violating the terms of their permits and using their jets for commercial purposes.

The suspension came after about a month of surveillance at major airports in the country by the regulatory authority acting on the marching order of the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo.

Though the affected operators were not disclosed, it was learnt that the operators were caught red-handed using their aircraft for hire and reward.

Acting director general, Capt. Chris Najomo, said: “In line with our zero tolerance for violation of regulations, the authority has suspended the PNCF of these operators. To further sanitise the general aviation sector, I have directed a re-evaluation of all holders of PNCF to be carried out on or before the 19th of April, 2024 to ascertain compliance with regulatory requirements.

“All PNCF holders will be required to submit relevant documents to the authority within the next 72 hours.

“This riot act is also directed at existing Air Operator Certificate (AOC) holders, who utilise aircraft listed on their PNCF for commercial charter operations.

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Malam Mele Kyari

Wed, 17 Apr 2024

The Port Harcourt Refining Company Limited (PHRC) is yet to commence operation despite assurances by authorities that it will come on stream about two weeks…

The Port Harcourt Refining Company Limited (PHRC) is yet to commence operation despite assurances by authorities that it will come on stream about two weeks ago.

Citizens have been made to believe that the coming on board of the Port Harcourt refinery, which had been moribund for decades, and subsequently others in Warri and Kaduna, will ease energy crisis in the country and ultimately halt importation.

Stakeholders believe that with pumping oil for domestic consumption from the government-owned refineries, and additional support from the Dangote refinery, Nigeria and its people stand to gain more in terms of forex inflow, which had been grossly depleted by importation.

Recall that the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari had on March 28, told the Senate that the Port Harcourt refinery will begin to deliver refined petroleum products in two weeks, just as he assured Nigerians that the rehabilitation of the refineries would be completed on schedule.

It is now over two weeks since the deadline elapsed.

Kyari also disclosed that the Warri refinery was almost ready too, while the refinery in Kaduna would be completed and ready to go into production in December this year.

He said that the rehabilitation of the Port Harcourt refinery had been completed, having passed its “completion mechanical procedure.”

He had said: “The Mechanical Completion means that you are done with your rehabilitation work, now you are to test if this completion is okay.”

Contacted Tuesday, the NNPL Chief Corporate Communications Officer, Olufemi Soneye said regulatory and compliance tests were the only reason keeping the Port Harcourt refinery from commencing full operations.

He said: “The Port Harcourt refinery has received crude oil, and it has been stocked in the facility. All crude lines are currently active. Regulatory and compliance tests are underway as we speak, and once they are completed, the refinery will commence operations. This adherence to best practices is recognised worldwide.”

Shell Petroleum Development Company of Nigeria Limited (SPDC) had on February 12, announced on its website that it had completed the supply of over 475,000 barrels of crude oil to the Port Harcourt refinery from the Bonny Oil and Gas Terminal, a joint venture asset operated by SPDC.

Country Chair, Shell Companies in Nigeria and Managing Director, SPDC Dr Osagie Okunbor, said, “With this supply restart, the refining capacity of in-country is expected to come back to life and make petroleum products readily available while reducing Nigeria’s dependence on imported refined products.”

Speaking on the resumed crude supply, the terminal’s Installation Manager, Odita Nnajiofor, said the success of the crude supply restart is indeed a significant step in the nation’s renewed efforts to utilise key infrastructure to assure the steady supply of products from the refining company to the Nigerian market.

According to Nnajiofor, “Before implementing the supplies of the product to the refining company, the project teams first assured the integrity of the supply pipelines and the terminal’s export pumps which had been shut down for an extended period.” These actions, he explained, resulted in the successful and safe completion of the refinery supply with no harm to people and environment.

Missed deadline characterize previous restart date

The Port Harcourt refinery shut down in March 2019 for the first phase of repair works after the government secured the service of Italy’s Maire Tecnimont to handle the scoping of the refinery complex, with oil major Eni appointed technical adviser.

In 2021, NNPC Limited said repairs had started after FEC approved $1.5 billion for the project.

The government said funding for the repairs will be from many components including NNPC, Internally Generated Revenue (IGR), budgetary provisions and Afreximbank.

The then Minister of State for petroleum, Timipre Sylva had said that the first phase was initially scheduled to be rounded up in 18 months (December 2022) from the point of the agreement, taking the refinery to 90 per cent production capacity with the second and third phases completed within 24 months and 44 months respectively.

However, that time line was reviewed by the previous administration, with the first phase of the refinery expected to start operation by March 2023, following 24 months of project execution in Area 5 of the complex.

The government also disclosed that Phase 2 of the rehabilitation project will restore the Port Harcourt refineries to a processing capacity of 135,000 bpd (90%), delivering a total processing capacity of 189,000 bpd by December 2023 following 33 months of project execution in Areas 1 & 2 of the complex.

In Phase 3 of the project, the entire refinery allied infrastructure will be restored and upgraded, most notably the fluid catalytic cracking unit and other ancillary operations.

Support infrastructure such as storage tanks and product assessment laboratories will be fully restored by December 2024.

In a major step towards resuming operations five years after the plant was shut, NNPC Ltd in December 2023 said it will complete test runs at the Port Harcourt refinery at the end of the year.

Also, Kyari said that the second phase of repair works of the Port-Harcourt refinery will be completed by the fourth quarter of 2024.

Why restart will excite Nigerians

Over the years, the refinery has performed below optimal levels despite the huge resources set apart for its rehabilitation.

This has resulted in importation of petroleum products for domestic use for many years to cover for the gap in the refinery’s output, costing the nation dear in terms of lost revenue.

The removal of subsidy by the government on May 29th 2023, saw prices soar through the roof, compounding the cost-of-living crisis for the average Nigeria as energy prices had a severe pass-through effect to other sectors, forcing inflation to touch 40 per cent in March 2024. 

The dilemma for Nigeria is that neither an increase nor a decrease in international crude price portends any good news as the current dollar crises will translate to high landing cost or low revenue accretion for the country.

The news that the mechanical completion of the refinery will see the plant begin by processing 60,000 barrels per day, leading to operating at the full capacity of 210,000 barrels per day later this year is seen as a major achievement in the bid to cut energy cost.

An economist, Prof. Segun Ajibola said Turn Around Maintenance (TAM) takes time, with the cost competing at times with what it would take to build a new one entirely.

He said: “The gap is that the TAM has been left unattended for years now. But if the refineries could stick to the anticipated completion dates with refining activities commencing, it will lessen the pains of consumers.

“The challenge has been continued importation of refined products, which costs are annexed to the ruling foreign exchange rate. There is no short cut as solutions to the current disequilibrium in the local oil industry, which has compounded the inflationary pressure in the domestic economy.”

In a move aimed at boosting efficiency and productivity, the NNPCL is seeking to transfer the operations of the Port Harcourt refinery to private entities.

This was disclosed in an expression of interest notice issued by the NNPCL on its website in January.

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