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Tinubu: Backing Dangote Refinery Was a Strategic Move

May 14, 2026 by admin

President Bola Tinubu has justified his administration’s backing of the Dangote Refinery, warning that Nigeria might have plunged into a serious crisis amid ongoing global tensions without a functioning local refinery. The remarks were made on Thursday on the sidelines of the 13th Africa CEO Forum in Rwanda. Tinubu said the country’s large population and dependence on petroleum products made it imperative to support domestic refining initiatives such as the Dangote refinery. “Today, with the crisis around the whole world. particularly around conflict, Nigeria wouldn’t be able to survive, over 200 million people, without a refinery,” he said. He added that supporting the refinery was a strategic decision aimed at strengthening Nigeria’s energy security and reducing dependence on imported fuel. “A risk-taker like the Dangote Refinery must be encouraged by the government in power. What I did was support him, give him free trade for his own licence, and support him in his efforts to source the crude that is necessary. Today, he is the exporter of both the PMS, aviation fuel,” he added. The remarks come amid heightened tensions in the Middle East, where ongoing conflicts and security threats around major oil-producing and shipping routes have continued to raise concerns over global crude supply and fuel prices. The instability has contributed to volatility in the international energy market, with several countries reviewing energy security measures and seeking to reduce dependence on imported refined petroleum products. The Dangote refinery, owned by billionaire businessman Aliko Dangote, began fuel production amid efforts by the Federal Government to end decades of dependence on imported refined products. The facility has been projected to significantly reduce pressure on foreign exchange demand and strengthen Nigeria’s energy independence.

Zenith Bank Appoints Okwudili as Executive Director

March 24, 2026 by admin

Zenith Bank Plc has announced the appointment of Mr. Kennedy Okwudili as an Executive Director of the bank, effective May 1, 2026. The bank made this known in a corporate disclosure through the Nigerian Exchange Ltd on Tuesday. It noted that the appointment aligned with its tradition and succession strategy of grooming leaders from within its system. The bank said the development would further strengthen its executive management team. Mr. Okwudili holds a Bachelor of Science (Hons) in Accounting from the University of Maiduguri, obtained in 1998 with a Second Class Upper Division. He also earned a Master of Business Administration from Ahmadu Bello University in 2008 and a Master of Science in Accounting from Veritas University, Abuja, in 2021. According to the bank, Okwudili has over 25 years of banking experience spanning credit, marketing, treasury, compliance, and operations. Okwudili is a Fellow of the Institute of Chartered Accountants of Nigeria and the Chartered Institute of Bankers of Nigeria. He is also an Associate of the Chartered Institute of Taxation of Nigeria. NAN

JP Morgan Eyes Opening Full Business Branch In Nigeria

April 2, 2025 by admin

American Bank, JP Morgan, is planning to transform its representative office in Lagos into a fully-fledged business branch. According to a report on Africa Intelligence, the move is in line with its Chief Executive Officer, Jamie Dimon’s strategy to strengthen its presence in Africa. From its Lagos office, JP Morgan provides clients with products and services from across our Asset & Wealth Management and Commercial & Investment Bank lines of business. Last year, JP Morgan opened representative offices in Kenya and Côte d’Ivoire as part of an effort to expand in East and West Africa. During his trip to Nigeria last October, Dimon said that he had plans to expand into Africa after the 2008 financial crash, but that he had been prevented from doing so by the US government. “They said banks were risky and didn’t want to add any risks. They were wrong,” he said. Back in 2018, JPMorgan also tried to secure licences to offer banking services in Ghana and Kenya, without success. Regarding the latest development, Africa Intelligence said that JP Morgan managed in Nigeria by Dapo Olagunju will apply to the Central Bank of Nigeria for a merchant banking licence in the coming months. If successful, this new US-Nigeria entity will be able to offer FX-denominated loans to large companies in addition to its advisory and asset management activities. During Dimon’s visit, he met the CBN Governor, Olayemi Cardoso and attended the 30th anniversary of the Nigerian Economic Summit Group, where he shared insight on global markets, financial innovation, and what it takes to drive sustainable economic growth in Nigeria and beyond. He also visited South Africa, where JP Morgan has a subsidiary and Kenya. Before the trip, Dimon stressed that he wanted to strengthen the bank’s presence in Africa by adding a country or two every couple of years or so. Punch

Fuel Importers Face N75bn Monthly Loss After Dangote Price Cut

February 28, 2025 by admin

Importers of Premium Motor Spirit (petrol) may lose an average of N2.5bn daily and N75bn monthly following the latest PMS price reduction announced by the Dangote Petroleum Refinery. Findings by The Punch revealed that the average landing cost of petrol as released by industry players is over N100 higher than the new ex-depot price of petrol at the Dangote refinery. The Dangote refinery announced a reduction in the ex-depot (gantry) price of petrol by N65, from N890 to N825 per litre, effective from Wednesday, February 27. This was the second price reduction in the new year, and the third one in a space of two months. It disclosed that Nigerians will now buy at new prices from its partners nationwide, including MRS, Heyden, and Ardova. “Nigerians will be able to purchase the high-quality Dangote petrol at the following prices in all our partners’ retail outlets. For MRS Holdings stations, it will sell for N860 per litre in Lagos, N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East, respectively. “The same product will also be available at the following prices in Ardova Petroleum and Heyden stations: N865 per litre in Lagos, N875 per litre in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East,” the company said. The PUNCH reports that the new Dangote price came to marketers at a huge cost as they may be forced to sell petrol far below their costs. According to the Major Energies Marketers Association of Nigeria, the landing cost of petrol as of last week was N927 per litre. This is N102 above the N825 ex-depot price of PMS at the Dangote refinery. Recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority said Nigeria’s daily PMS consumption was around 50 million litres per day. The NMDPRA said more than half of the 50 million litres are being sourced from foreign countries because local refineries cannot supply up to 50 per cent of it. “Following Mr President’s withdrawal of subsidy, the announcement of May 29, 2023, we immediately saw a steep decline in consumption. And between then and as we speak, we have continued to do plus or minus 50 million litres a day. Of these 50 million litres averaging for each day, less than 50 per cent of that is contributed by domestic refineries. And so the shortfall by the PIA is sourced by way of imports. “For clarity, what I am saying is that the contribution of local refineries towards sufficiency is less than 50 per cent,” the Chief Executive of the NMDPRA, Farouq Ahmed, declared. From the regulator’s claims, it could be deduced that importers and depot owners import about 25 million litres of PMS per day. Assuming the 25 million litres of PMS arrive in Nigeria at N927 per litre, this will amount to approximately N23.18bn. With this new price, the Dangote refinery would have sold the same quantity of PMS at N20.63bn, leaving a difference of N2.5bn daily. Fuel importers, who spoke with our correspondent after Dangote announced the price cut, said dealers might be compelled to sell below their cost prices as consumers would only buy from where petrol is cheaper. According to some of them, the Dangote refinery is gradually making importation less attractive with how it has dropped the prices of petrol and diesel lately. The importers said they have been managing to sell the imported products with little or no margin due to the need to compete with others in the market. “Some of us who have imported PMS are feeling the heat of Dangote’s decision to slash prices. Though it is a good thing to reduce petrol price, it is taking a toll on our business. That’s the simple truth,” a dealer who spoke to our correspondent in confidence due to the nature of the matter, stated. Another retailer noted that the Dangote refinery is reducing prices to discourage fuel importation, saying many will have to stop bringing in petroleum products from other countries. “Dangote understands the competition in the business and this latest reduction will further discourage fuel imports. There will be losses as we may have to drop our prices too. At the end of the day, some of us will source our products locally. I will just advise Dangote to create a level playing field for all,” the retailer stated. In a situation where the dealers are compelled by the current reality to sell PMS at N825 to marketers and retail outlet owners, they will lose an average of N2.5bn per day. This will amount to N76.5bn in a month and N918bn if this continues in a year. The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed that importers may incur losses as a result of the new price reduction. Ukadike maintained that the price reduction would affect importers, stressing that Dangote was maximising the advantages of deregulation. “Dangote may ‘kill’ fuel importers by this continued lowering of prices. All those importers who have challenged Dangote that they want to import cheaper fuel, as they’re just nearing the sea shore, Dangote will reduce the price and they will run into trouble,” Ukadike stated in his personal opinion. Marketers lament The National Vice President of IPMAN, Hammed Fashola, said that although the marketers are happy with the new prices, the cut affects their business. According to him, both importers and filling stations with old stocks will count losses following the price reduction. “As independent marketers, we are happy that the Dangote refinery has brought down the price again. It is good for us. It is good for the business. It reduces financial burden. At least we have enough room to play now. But it comes with a cost. The sudden price changes come with a cost. “Some of us just bought products, either from MRS or other sources, and all of a sudden, the price … Read more

Access Bank Champions Accelerated Action For Africa’s Sustainable Future

February 5, 2025 by admin

LAGOS – Access Bank PLC has reinforced its leadership in sustainable finance and climate action as the Gold Sponsor of the Nigeria Climate Change Forum (NCCF) in Abuja, which brought together Africa’s most influential policymakers, global investors, and sustainability pioneers to drive urgent action towards a net-zero future for the continent. At the NCCF, Dr. Gregory Jobome, Executive Director of Risk Management at Access Bank, delivered a compelling presentation on “The Role of Innovation and Technology in Africa’s Net-Zero Transition.” He emphasised the urgency for Africa to leapfrog traditional development models by leveraging cutting-edge technology and sustainable finance to accelerate the transition to clean energy. Dr. Jobome also highlighted Africa’s heightened vulnerability to climate change, particularly in scenarios where global temperatures exceed 1.5°C. He called for urgent, transformative action to mitigate risks and ensure climate resilience. During a high-level panel discussion, the Access Bank Group Head of Enterprise Risk Management provided insights on unlocking financing for renewable energy projects in Nigeria. The session showcased the Bank’s leadership in pioneering sustainable financing solutions, including green bonds, blended finance, and public-private partnerships (PPPs), outlining a roadmap for Africa’s energy transition. Access Bank: Financing a Green Future for Africa Access Bank continues to lead the charge in financing Africa’s low-carbon transition through groundbreaking initiatives: •Africa’s First Corporate Certified Green Bond – Investing in climate-resilient projects, setting a precedent in green finance for the region. •Securing Climate Finance – Attracting global capital to accelerate renewable energy, low-carbon transportation, and climate adaptation initiatives. •Driving Renewable Energy Investments – Financing solar farms, wind energy projects, and energy-efficient infrastructure to propel Africa’s clean energy revolution. •Leading the Decarbonisation Movement – Deploying solar-powered ATMs, championing paperless banking, and implementing waste recycling programmes to reduce institutional emissions. Pioneering Innovation for Africa’s Green Economy Recognising the critical role of innovation in sustainability, Access Bank is driving transformative financial and technological solutions to enhance Africa’s climate resilience: •Smart, Low-Carbon Infrastructure – Financing sustainable buildings, energy-efficient systems, and green supply chains to foster urban sustainability. •Circular Economy Innovations – Scaling investments in waste-to-energy technologies, biodegradable packaging, and sustainable manufacturing to promote a circular economy in Africa. A Unified Call for Accelerated Climate Action As Africa’s leading sustainability-driven financial institution, Access Bank is spearheading collective efforts toward a net-zero future. Through strategic collaborations with governments, international financiers, and industry innovators via the Sustainable Finance Accelerator Program, the Bank is mobilizing large-scale investments to drive Africa’s green transition. “Africa is experiencing a wave of innovation and technological advancement, much of it in collaboration with global partners. However, we are still at an early stage. To create meaningful opportunities for the continent’s rapidly growing youth population—who are eager to engage in the green economy—we must scale up efforts. Financial institutions have a pivotal role to play in this transformation,” said Dr. Jobome. Additionally, the Minister of Women Affairs, Hajia Imaan Sulaiman-Ibrahim, underscored the crucial role of women in driving Africa’s net-zero agenda. She noted that women are disproportionately affected by climate change and called for increased public-private partnerships to empower women in climate action. The NCCF served as a crucial platform for key stakeholders to engage in insightful discussions and shape actionable strategies for Africa’s sustainable future. Access Bank remains committed to driving impactful, long-term solutions that will ensure a resilient and thriving continent for generations to come. •About Access Bank PLC Access Bank PLC, a wholly-owned subsidiary of Access Holdings PLC, is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets spanning 3 continents, 24 countries and over 60 million customers. The Bank employs over 28,000 people in its operations in Africa and Europe, with representative offices in China, Lebanon, India, and the UAE. Access Bank’s parent company, Access Holdings Plc, has been listed on the Nigerian Stock Exchange since 1998. The Bank is a diversified financial institution which combines a strong retail customer franchise and digital platform with deep corporate banking expertise, proven risk management and capital management capabilities. The Bank services its various markets through three key business segments: Corporate and Investment Banking, Commercial Banking, and Retail Banking. The Bank has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last 18 years, becoming one of the continent’s largest retail banks. As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations. The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible, and socially relevant, helping customers to access more and achieve their dreams.

Bank Workers Blames CBN Of Worsening Cash Shortage.

December 12, 2024 by admin

The Association of Senior Staff of Banks, Insurance, and Financial Institutions has attributed the worsening cash shortage across the country to the Central Bank of Nigeria’s inability to meet the cash demands of commercial banks. Speaking with The PUNCH, ASSBIFI President, Olusoji Oluwole, highlighted the dire impact of the scarcity, particularly as the festive season approaches, with increased demand for cash for shopping and business transactions. “In terms of (the cash) scarcity, this is something that has not ended since the redesign of the naira,” Oluwole said. Oluwole explained that banks have only two primary sources of cash – the CBN and retailers. “Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands, and retailers often sell cash for profit, making it harder for banks to access funds,” he explained. He noted that the apex bank has failed to meet the cash demands of banks, while retailers profit by selling cash instead of depositing it back into the banking system. “But, of course, it is beginning to become more pronounced now that we’re heading towards the Christmas celebrations, where a lot of people are going to need money to carry out their shopping and other businesses. “Banks are not in a position to force retailers to bring the cash to banks,” he added, describing how this dynamic exacerbates the scarcity of cash in Automated Teller Machines and across bank counters. Citing statistics, Oluwole stated that banks collectively require at least N20m daily to operate, with ATMs needing approximately N8m each and N4m over the counters. He stressed the importance of CBN providing clear statistics on cash circulation to improve distribution efficiency. “For us, we are not interested in trading games like we were doing last year but looking for solutions. The solution, one, is for CBN to have clear statistics, so that they understand where they are, how they are circulating, and where they are circulating to,” he said. Oluwole also advocated for a shift towards less dependency on cash, emphasising that a cashless economy is cheaper, safer, and more efficient for the economy. “An economy that operates in a cashless manner does better than a cash-dependent economy. It is a proven thing all over the world,” he stated. In addition, the ASSBIFI President called for security agencies to crack down on illegal currency trading. “You cannot be selling cash. You cannot sell your currency to people for a profit at discounted rates. It is not done anywhere,” Oluwole emphasised. He urged authorities to investigate reports of point-of-sale operators buying cash from fuel stations and supermarkets. Oluwole concluded by reiterating that no bank deliberately withholds cash from its customers. “No bank wants to starve its customers of cash. It does not make sense for any bank to hold on to cash, but you can only give what you have,” he said. “As the cash crisis persists, stakeholders are urging the CBN to act swiftly to address these concerns and alleviate the strain on both banks and the public,” Oluwole stated. Also, the National Coordinator of the Human Rights Writers Association of Nigeria, Emmanuel Onwubiko, in a statement criticised the CBN and its Governor, Olayemi Cardoso, for their mishandling of monetary policy, holding them responsible for the resulting widespread hardship. He further highlighted how cash scarcity has left millions, especially in rural areas, unable to conduct transactions, pushing small businesses, artisans, and daily wage earners deeper into poverty. “Nationwide, long bank and ATM queues have become the norm, with depositors unable to access their funds despite sufficient balances,” he added. Onwubiko argued that the crisis reflects not just poor monetary policy but also deeper systemic issues within Nigeria’s economy. He urged President Bola Tinubu to intervene swiftly to stabilise the banking system and avert economic collapse. The group also called on the National Assembly to summon the CBN Governor for accountability and oversight. Punch

Reps To Investigate Alleged N8.4 Trillion Withheld By NNPCL.

November 28, 2024 by admin

The House of Representatives on Wednesday asked its Committees on Finance, Petroleum (Upstream and Downstream) to investigate reports from the Revenue Mobilisation Allocation and Fiscal Responsibility Commission “alleging that the NNPC (now Nigerian National Petroleum Company Limited) withheld N8.48tn as claimed subsidies for petrol.” The House further stated that “the investigation will address the NEITI report stating that NNPC (now NNPCL) failed to remit $2bn (N3.6tn) in taxes to the Federal Government.” The committees were further directed to verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of petrol by the NNPC between 2020 and 2023. This is as the House approved the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper ahead of next week’s presentation of the 2025 Appropriation Bill to the National Assembly by President Bola Tinubu. MTEF is a multi-year plan for public expenditure that sets targets for budget expenditure and fiscal policy. They are designed to ensure these objectives are respected throughout the budget process. FSP on the other hand, is a document that outlines a country’s fiscal policy and medium-term macro-fiscal framework. It’s a key component of the annual budget process and the Medium-Term Budget Framework. Recall that President Tinubu on Tuesday, November 19, 2024, transmitted the MTEF/FSP to the National Assembly for consideration, following the approval of the Federal Executive Council. The Tinubu-led government set the oil benchmark for 2025 at $75 per barrel with oil production projected at 2.06 million barrels per day. The government also pegged exchange rate parameters at N1,400 per dollar and a projected Gross Domestic Product growth rate of 6.4 per cent per annum. Dissolving into the Committee of Supply to consider the report of the Committees on Finance and National Planning and Economic Development; presiding officer and Deputy Speaker, Benjamin Kalu had expected the usual ‘carried’ chorus from members when he commenced the clause-by-clause considerations of the 15 recommendations but the Minority Leader of the House, Kingsley Chinda changed the tone of the exercise. Oil benchmark controversy Speaking on the $75 oil benchmark controversy, Chinda argued in favour of retaining the 2024 stipulation, arguing that in the first quarter of the year, the country surpassed it. He said, “Because of the importance and sensitivity of MTEF, I will advise that we consider it thoroughly before we pass. This is one of the most important bills this parliament will ever pass. They recommend a $75, $76.2, and $75.3 benchmark per barrel of crude for 2025, 2026, and 2027 respectively. “We are aware that for 2024, what we recommended was $77.96, which is the current budget. Today, it is about $85 per barrel. That is, in the first quarter of 2024, we achieved $85 and it increased further. If we are recommending $75 for next year which is one month away against the $77 we recommended for this year, I will advise that we retain the minimum we adopted for this year. “Rather than increasing, we are reducing, I am not unaware of the issue of moving to gas-propelled vehicles, leaving fossil fuel. I am aware that the world is moving that way and reliance on crude may be a bit reduced but going for $75 might be a bit too low,” he said. Allaying these fears, the Chairman, House Committee on Finance, Abiodun Faleke, described the $75 per barrel benchmark as “responsible.” He said, “Crude oil prices at the international market are not controlled by any country. In 2024, we were lucky unfortunately that there were crises in some oil-producing countries and this shot up the prices. In 2025, there is likely to be more stability. If you shoot out too much, it means you are bloating your expectations. Today, the price has crashed to $74. I think our benchmark is reasonable.” This position was supported by the member representing Ifo/Ewekoro Federal Constituency, Ogun State, Mr Ibrahim Isiaka. He said, “If we pass this MTEF today and there is a need for amendment, this House can sit and do the necessary review. There was a time when crude sold for $120 per barrel and there was a time it sold for $20. Let us see this as a working document that is subject to review.” At the end of the debate, the $75 benchmark was adopted and passed. Oil production Another contentious clause was the significant increase in domestic crude oil production from 1.78mbdp in 2024 to 2.06, 2.10, and 2.35mbpd for 2025, 2026, and 2027 respectively. Again, Chinda who represents Obio/Akpor Federal Constituency of Rivers State was on hand to question the rationale for projecting a 2.06mbdp in 2025. “We are making projections for domestic crude oil production from 1.78mbpd in 2024 to 2.06, 2.10 and 2.35mbdp for 2025, 2026 and 2027. If you look particularly at the social media, they will tell you that we are producing about 2mbp but the truth is, we are not, Although, there is an improvement, but as of yesterday, the volume was 1.05mbpd. “These are the things that will help us in proper planning so that the government does not have to always come to the National Assembly for borrowing which also exposes us further to criticisms by Nigerians. “We must be critical about how we set our benchmark. Our target has always been to produce 2mbpd. OPEC quartile for us is 1.8mbpd. Putting this ambitious target of 2.06 and 2.35, we might not really achieve it. If we don’t achieve it, we know we will be tightening our belts. We are already projecting that we will sell 2.06 barrels and if we sell lower than that, we will get lesser funds. Let us reduce our target rate to 2m barrels per day, which has always been our target,” Chinda said. Justifying the recommendation of the Committee, Faleke stressed that “As of today, the production is close to 2m barrels. It is getting better. Operators of NUPRC gave us the details. If you put a lower projection, you are indirectly telling the operators not to … Read more

Report – Naira May Fall To N1,993 Per Dollar

November 12, 2024 by admin

The naira is forecasted to depreciate to N1,993 against the United States dollar by 2028, posing a significant challenge to Nigeria’s pharmaceutical industry, particularly in importing essential medical devices, a new report by BMI, a Fitch Solutions subsidiary, has revealed. In the report titled “Weak Naira and Structural Challenges to Constrain Nigeria’s Medical Devices Market Growth”, BMI projected that despite an anticipated rebound in the economy, Nigeria’s medical devices sector will face operational and demand challenges in the near term. The report noted that Nigeria relies on imports for over 95 per cent of its medical devices, making it vulnerable to fluctuations in exchange rates. “Continued weakness of the naira will increase medical device import costs and erode consumer purchasing power. Similar to other markets in sub-Saharan Africa, Nigeria heavily relies on medical device imports, with reliance of over 95 per cent. “We expect that the naira will end 2028 at N1,993/$ from N306/$ in 2018. As the naira weakens, the cost of importing medical devices will continually increase, eroding both the health system and patient purchasing power especially to invest in essential medical technologies given underfunding of the public health sector. “This would particularly affect high-cost demand for devices such as diagnostics, orthopaedics and dental products. On the export front, a weaker naira will enhance the competitiveness of locally manufactured medical devices, fostering growth in the sector,” the report stated. While a weaker naira could enhance the competitiveness of locally manufactured medical devices, BMI highlighted persistent barriers to local production. These include a scarcity of skilled labour, limited access to modern technology, and inadequate infrastructure, which continue to undermine manufacturing efforts despite government incentives. The administration of President Bola Tinubu has implemented measures aimed at easing these pressures. In June 2024, an executive order was issued to reduce medical service costs by eliminating tariffs, excise duties, and Value Added Tax on specific machinery, equipment, and raw materials, with the goal of lowering local production costs. However, BMI observed that the medical devices market would continue to face significant challenges in the short term. The report forecasted that Nigeria’s medical devices market could grow to a value of N171.1bn (£344.7m) by 2028, supported by a large population, an increasing focus on universal health coverage, and the double burden of chronic and communicable diseases. Nigeria’s economy is expected to recover in 2025, with a growth rate of 3.0 per cent predicted for 2024, compared to 2.9 per cent recorded in 2023. However, persistent issues such as high inflation, tighter monetary policies, and weak foreign direct investment could weigh on the growth of the medical devices sector. The PUNCH further observed that the naira traded at N1,681.42 per dollar on Monday, November 11, 2024, reflecting a marginal decline of 0.15 per cent from Friday’s closing rate of N1,678.87, as recorded on November 8, 2024. FX turnover on the official market dropped significantly by 66.41 per cent, from $1.4bn on Friday to $471.5m on Monday, indicating lower market activity. During the period under review, the naira reached a high of N1,695 and a low of N1,631. Punch

Sell Petrol To Us At Dangote Price Or Return Our Money – IPMAN Tells NNPC

October 10, 2024 by admin

The National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Shettima, has urged the Nigerian National Petroleum Company Limited (NNPC) to sell Premium Motor Spirit (PMS), commonly known as petrol, to its marketers at the same rates offered by Dangote Petroleum Refinery. Shettima, while speaking Thursday on Channels Television, also demanded a refund of the funds owed to the oil marketers, which have been held by NNPC for the past three months. He stressed the financial strain that the prolonged delay in refunds had placed on petroleum marketers, urging the NNPC to take immediate action. “Our major challenge now is that already, we have an outstanding debt by the NNPC and the company collected product through Dangote refinery at a lower rate — not up to N900. “Presently, our money has been with them (NNPC) for almost three months. “But with the recent changes, we have requested that they sell to us at Dangote price or return our money. That’s the current situation and is the reason for the scarcity. We started negotiation yesterday,” he said. According to him, the national oil company has directed the IPMAN members “to buy the product from them at the rate of N1,010 in Lagos, N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri”. Expressing displeasure at the NNPC’s stance that marketers should buy petrol directly from the Dangote refinery, Shettima said: “We have a problem with that because already, we buy products from them. “So when they made this increment, they told us to add money and buy above what Dangote is selling products to them. “That is the reason we told them to return our monies to our banks so that we can go directly to Dangote refinery and buy, if that’s the case.” “The NNPC does not sell on credit and we buy products ahead of loading. Anytime they have products, they will call us to collect our products.”

Petrol To Cost N991.21/Litre As NNPC Quits Off-Taker Role

October 9, 2024 by admin

Nigerians will soon face an increase in petrol prices due to the Nigerian National Petroleum Company Limited (NNPC Ltd) decision to terminate its exclusive purchase agreement with Dangote Refinery, PREMIUM TIMES has learnt. According to a Premium Motor Spirit (PMS) data pricing framework across eight Nigerian cities, obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the price of petrol at retail outlets nationwide is set to rise to at least N991.21/litre from the current N897/litre. A data review indicates that in Abuja, the nation’s capital city, petrol may sell as high as N1,029.01 in retail outlets. The price of petrol in Lagos may rise to N991.21 per litre, N1,040.31 in Kano, and N1,007.35 in Calabar. The product would sell for an average of N1,045.72 per litre in fuel stations in Sokoto, N1,059.39 in Maiduguri, N999.27 in Ibadan, and N1,022.63 in Enugu. Earlier on Monday, this newspaper exclusively reported that the Nigerian National Petroleum Company Limited (NNPC Ltd) is ending its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery. Dangote Refinery This means the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery. This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) document, obtained from sources at the agency, provides insight into the subsidy payment differentials paid by NNPC in major Nigerian cities and what Nigerians may pay at the pump in the absence of the subsidy arrangement. The NMDPRA is the agency responsible for regulating midstream and downstream petroleum operations in Nigeria, including technical, operational, and commercial activities. Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) The Premium Motor Spirit (PMS) data pricing framework, based on ten trading days weighted averages from 23 September to 4 October 2024, showed that the NNPC was paying an average estimated differential of N134.5 per litre in the eight cities. Following NNPC’s decision to quit its sole off-taker role with Dangote Refinery, indicative pump prices are expected to become effective at fuel stations nationwide, as subsidy payment will no longer be in place. Although the expected price hike is not static and won’t be dictated by government agencies, the NMDPRA data provides insights into possible pump prices. Details of post-subsidy indicative pump prices In all the cities the document referred to, the average NAFEM FX rate used to calculate the pump price was N1,604.89/USD. In Lagos State, the indicative pump price is N991.21, while the actual NNPC pump price is N855 per litre. This indicates that NNPC pays about N136.21 as its estimated differential price. In Abuja, the indicative pump price is N1,029.01 while the actual pump price is N897 per litre, meaning that the NNPC pays about N132.01 as an estimated differential. For Kano, the indicative pump price is N1,040.31 per litre, while the actual pump price is N904, indicating an estimated differential price of N136.31. In Calabar, the indicative pump price is N1,007.35; the actual pump price is N885 per litre, and the estimated differential price is N122.35. In Sokoto, the indicative pump price is N1,045.72 per litre, while the actual pump price is N904, indicating an estimated differential of N141.72. In Maiduguri, the indicative pump price is N1,059.39, while the actual pump price is N924, indicating an estimated differential of N135.39. In Ibadan, the indicative pump price is N999.27 per litre while the actual pump price is N865, and the estimated differential price is N134.27. Enugu’s indicative pump price is N1,022.63, the actual pump price is N885 per litre, and the estimated differential price is N137.63. While the FX rate remains constant in the cities, this newspaper observed price differences in the domestic pump prices in each city based on their distance to Lagos, the nation’s economic hub where the Dangote Refinery is located. Sources told PREMIUM TIMES on Monday that the pump price may even be higher than estimated, depending on crude oil prices and prevailing foreign exchange rates. The NNPC had claimed in September that it was buying petrol from Dangote Refinery at N898.78 per litre and selling to marketers at N765.99 per litre, shouldering a subsidy of almost N133 per litre. The NNPC lifted about 103 million litres of petrol from Dangote Refinery between September 15 and 30. During the period under review, the refinery loaded 2,207 of the 3,621 trucks sent to it. Records seen by PREMIUM TIMES show that the vehicles conveyed just 102,973,025 litres of the planned 400,000,000 litres of petrol earmarked to be lifted from the refinery at 25 million litres per day, translating to a 26 per cent performance. Background On 15 September, the NNPC began loading petrol from the Dangote Refinery. On 26 September, the House of Representatives called on the federal government to mandate the NNPC Ltd and Dangote Refinery to allow independent marketers to lift petrol directly from the refinery. The lower chamber also urged Dangote Refinery’s management to build, acquire, or partner to establish tank farms or depots across the country’s geopolitical zones to ease the public’s access to petroleum products. This call followed a motion of urgent public importance moved on Thursday by Oboku Oforji (PDP, Bayelsa). Moving the motion, Mr Oforji explained that excluding independent marketers threatened competition in the sector. He noted that competition is essential for reducing costs, adding that some marketers may import products to survive. “NNPCL and the major marketers being the exclusive off-takers spells monopoly, which is tantamount to greed. This is the same NNPC Ltd that has failed to manage our crude and refineries for decades,” the lawmaker said. Those familiar with the matter told PREMIUM TIMES that NNPC is now set to withdraw as the sole off-taker to allow other marketers to directly purchase petrol from Dangote Refinery at the prevailing … Read more