The Federal Executive Council (FEC), has approved the acquisition of a 20% minority stake worth $2.76 billion by the federal government in Dangote Refinery, in its recent meeting presided over by Vice President Yemi Osinbajo at the presidential villa, Abuja on Wednesday.
The information which was disclosed by Minister of Information and Culture, Lal Mohammed, alongside Minister of State for Petroleum Resources, Timipre Sylva; Minister of State for Education, Chukwuemeka Nwajiuba and the Minister of Power, Sale Mamman, also covers funds approved for the implementation of the Lagos-Calabar coastal standard gauge railway project, and the rehabilitation of Warri and Kaduna refineries.
Speaking on the memo presented to FEC by the Minister of Transportation, Rotimi Amaechi, who was absent at the briefing, Lai Mohammed explained the approvals for rail projects.
He said “The first one actually has to do with the Kano-Jibia rail and then the other one has to do with the Port Harcourt-Maiduguri route.
“Actually, what was approved there today was funding to ensure that work starts immediately on those two routes.
“Another memo that was approved today was the ratification of the President’s approval for the award of the contract for the Lagos-Calabar coastal standard gauge rail.
“You’ll remember that this is a very old project, which we inherited. Under the former administration, approval was given, but nothing was done, but today, the council has given the approval to commence the Lagos-Calabar coastal route.
“This particular route is very important because, after the Lagos-Kano route, this Lagos-Calabar coastal route actually will link all the coastal cities in the country.
“The proposed route alignment is to go from Lagos to Shagamu, Shagamu to Ijebu-Ode, Ijebu-Ode to Ore, Ore to Benin City, Benin to Sapele, Sapele to Warri, Warri to Yenagoa, Yenagoa to Port Harcourt, Port Harcourt to Aba, Aba to Uyo, Uyo to Calabar, Calabar to Akamkpa to Ikom, to Obudu Ranch, with a branch line from Benin City to Asaba, Onitsha Bridge and then Port Harcourt to Onne Deep Seaport.
“This particular project is very important, especially for our coastal economy.
“The cost of the project is $11,174,769,721.74 and we have six years for the completion of this project.”
On the acquisition of a minority stake in the Dangote Refinery,and the rehabilitation of Warri and Kaduna refineries, Minister of State for Petroleum Resources, Timipre Sylva, said, “Council approved the award of contracts for the rehabilitation of Warri and Kaduna refineries to Messers Saipem SPA and Saipem Contracting Limited at the combined total sum of $1.484 billion, $897,678,800 Warri refineries and $586,902,256 for Kaduna refineries.
“The Executive Council also approved the acquisition of 20% minority stakes by the NNPC in Dangote Petroleum and petrochemical refinery in the sum of $2.76 billion.
“The completion of the rehabilitation of Warri and Kaduna refineries is going to be in three phases. The first phase will be completed within 21 months, in 23 months phase two will be completed and in 33 months, the full rehabilitation will be completed.”