Energy

After Starting Operations, a Nigerian Refinery Makes Profits, Pays FG N450 Million as Dividend

Updated Friday, May 03, 2024 at 6:57 AM by Pascal Oparada

The Nigerian Content Development and Monitoring Board (NCDMB) has received a dividend of N450 million from the Waltersmith modular refinery
The NCDMB invested about $10 million in the refinery in 2018 to deepen investment in the Nigerian oil and gas sector
The Board also disclosed that it would receive additional dividends after its Annual General Meeting (AGM) later this year

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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian Content Development and Monitoring Board (NCDMB) has disclosed that it has received an interim dividend of N450 million out of the N1.5 billion declared by Waltersmith Refinery and Petrochemical Company Limited.

The NCDMD invested about $10 million in 2018 to acquire a 30% stake in the 5,000 barrels per daily modular refinery project in Ibigwe, Imo State, to support the Nigerian government’s policy on modular refinery, stimulate investment and create jobs.

Refinery proposes N4.5 billion as dividend

The Minister of Petroleum Resources (Oil), Heineken Lokpobiri, recently accused the Board under former Executive Secretary Simbi Wabote's leadership of making bad investments of about $500 million.

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Lokpobiri, however, said that the Waltersmith refinery is the only viable investment made by the Board under Wabote’s leadership.

The Executive Secretary of the NCDMD, Felix Ogbe, confirmed that about N4.5 billion dividend had been proposed for 2023 pending the final approval at its next annual general meeting.

Punch reports that the company reported a total profit after tax of N23.6 billion in 2023.

Ogbe hinted that the NCDMD would receive another 30% of the outstanding N3 billion dividend after the AGM later in the year.

The NCDB boss added that the receipt of the interim dividend payment was proof of the strong performance and profitability of the modular refinery.

NCDMB invests in refineries to spur growth

Ogbe said:

“The NCDMB is proud to be a part of this success and looks forward to continued collaboration with the company in the future.”

He stated that the company was scaling the refinery capacity from 5,000 to 10,000, saying the expansion was at the 44% completion stage and would be inaugurated next year.

According to him, the Waltersmith project was designed to improve the industrialisation of the Nigerian oil and gas sector and other linked sectors and deepen Nigerian participation in the industry.

Punch reports that Ogbe said that the Board received a cheque of $1 million from Nedogas Development Company Limited as part of the ROI on one of its strategic investments in the NCDMB.

Nigerian refinery finally begins operation

Legit.ng reported earlier that Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has praised WalterSmith Modular Refinery for meeting energy needs in the country.