- 234Digest
- Posts
- Nigeria’s economic and cultural renaissance
Nigeria’s economic and cultural renaissance
From Dangote’s oil deal to Nigeria’s Silicon Valley ascent: A week of milestones
Samuel Okocha
May 20, 2024
Editor’s Note by Samuel Okocha: As Nigeria wakes up to a bustling Monday, we’re slicing through the economic noise to bring you a clear, concise, and impartial briefing. Our Sunday dispatch took a brief pause, but here we are, under the rising sun, ready to dive into the stories shaping Nigeria’s economic landscape.
Stay tuned for insights, updates, and a fresh perspective on the forces driving Nigeria’s fortunes. Whether it’s inflation hitting new highs or transformative refinery deals, we’ve got you covered. Let’s navigate this week together, one sentence at a time.
Not a subscriber yet? Sign up for free here and never miss an update.
Up first: Dangote Refinery’s pivotal oil supply deal with TotalEnergies
In a significant development for Nigeria’s oil industry, the Dangote Refinery has entered into a supply agreement with TotalEnergies, announced at the Africa CEO Forum in Kigali. This partnership is expected to have a transformative impact on Nigeria’s role as an oil producer, potentially ending the country’s reliance on imported fuel.
The refinery, which began production earlier this year, represents a $20 billion investment and is anticipated to process 650,000 barrels per day, making it the largest in Africa and Europe when at full capacity. The deal with TotalEnergies, one of the key crude producers in Nigeria, is seen as a strategic move to bolster the refinery’s capacity to meet domestic demand for refined petroleum products and create surplus for export.
Nigeria, despite being a major oil producer, has been importing more than 80% of its refined petroleum products due to inefficiencies in its existing refineries. The Dangote Refinery is expected to address this shortfall, significantly reducing the country’s import bill, which according to the Central Bank of Nigeria, could reach $30 billion annually by 2027 if the current reliance on imports continues.
The supply agreement is not only a beacon of hope for Nigeria’s economy, which has been under strain from rising inflation and a devaluing currency, but also a step towards economic growth and stability. By ensuring a consistent supply of petroleum products, the refinery could positively impact Nigeria’s trade balance and foreign exchange reserves.
Long stories short
The Nigerian naira weakened to 1,533.99 against the dollar, a two-month low, despite the central bank’s intervention. The market is now eyeing the upcoming rate decision for signs of monetary policy direction.
Nigeria’s inflation isn’t taking a break just yet, hitting a 28-year high at 33.69% in April. It’s a tough climb from March’s 33.20%, and it’s the 16th straight month where life’s getting costlier. Cuts on fuel and electricity subsidies, plus a double devaluation of the naira, are fueling the fire. The central bank has implemented its most substantial interest rate hike in nearly two decades, in an effort to rein in escalating price pressures.
Come October, Emirates will bridge Lagos and Dubai daily. The skies are opening up for Nigerian globetrotters.
Abuja’s about to get a transport facelift, thanks to Planet Projects’ N51 billion ($34. 2 million) deal. The future of commuting looks promising. The deal allows the company construct state-of-the-art bus terminals in Abuja, reflecting the government’s focus on improving the capital’s transport infrastructure.
President Tinubu’s gas plant inaugurations in Delta and Imo could fuel a 25% boost in Nigeria’s gas supply. Energy independence is on the horizon.
A Nigerian court has ruled that Binance executive Tigran Gambaryan can stand trial on behalf of the cryptocurrency exchange in a tax evasion case, with the company also facing money laundering allegations.
A federal property in San Francisco is set to morph into Nigeria Startup House. It’s Nigeria’s pitch to play big in the global tech game.
Nigeria’s cultural tapestry is going digital. The National Council for Arts and Culture just teamed up with Playhouse Communication, signing a MoU that’s all about preserving and spotlighting Nigeria’s rich cultural heritage online. It’s a move to weave the country’s vast cultural narratives into a digital blanket for the world to see and explore. The future of Nigeria’s traditions? It’s looking vibrant, virtual, and very much alive.
Quote of the day: “Nothing can be done except little by little.” - Charles Baudelaire
Photo of the day
A weekend in Abuja: tricycles and motorcycles, flanked by trees, carry the city’s stories, showing a slice of the capital’s everyday hustle. Photographer: Samuel Okocha/234Digest
Events to watch this week:
Agribusiness Fair & Expo (May 21-22): A fair agriculture entrepreneurs industry, exploring the oil palm sector and its value chain of opportunities, holding in Abuja.
Nigeria BuildExpo (May 21-23): The premier construction show in Nigeria, taking place in Lagos.
West Africa Water Expo (May 21-23): An international water and waste water exhibition, happening in Lagos.
As we sign off, let’s celebrate as Nigeria pushes towards a tech-savvy future and cherish the cultural tapestry that weaves our identity. Here’s to a week of innovation and insight.