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Petrol Scarcity: Reps to Intervene

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petrol scarcity Nigeria

The scarcity of petrol continued on Sunday in many cities across the country, as hundreds of motorists thronged the few filling stations that dispensed the product.

This is coming as the Department of Petroleum Resources announced that it had constituted special intelligence monitoring teams nationwide to ensure prompt delivery of the product to designated filling stations.

The House of Representatives Committee on Petroleum Resources (Downstream), however, said it could not intervene until its resumption from break on April 12.

The queues at filling stations in Lagos and other parts of the country grew longer despite the petrol cargos that the Nigerian National Petroleum Corporation claimed were discharged on Friday.

For instance, many stations on the Ketu-Ikorodu road in Lagos did not sell the product on Sunday, while the few selling were besieged by desperate motorists.

Some filling stations in Lagos and Ogun states sold a litre of petrol for between N100 and N140, which was above the approved prices of N65 and N65.50 for independent/major marketers and the NNPC stations, respectively.

Many motorists and other consumers had to resort to the black market, where the product was being sold for as much as N200 per litre in some places.

The scarcity and the hike in prices resulted in astronomical rise in fares charged by commercial transport operators.

In Abuja, Nasarawa and Kaduna, petrol queues were noticed at many filling stations. For instance, the queues formed in front of the largest NNPC mega station on the Kubwa-Zuba Expressway on Sunday were massive and stretched several kilometres.

Major filling stations such  as Total, Conoil, Nipco, and Forte Oil that dispensed petrol had long queues, as motorists spent several hours waiting to be served.

But some filling stations in remote locations in Abuja dispensed the product at rates far higher than the official pump prices.

For instance, one petrol station along Byazhim Road in Kubwa, a popular satellite town in Abuja, sold the product at N150 per litre. And it was gathered that the outlet had been dispensing the commodity for that price since Friday.

Another petrol station in Apo, Abuja, also dispensed petrol at N140 per litre, but it still had long queues of motorists and other petrol seekers.

The DPR explained the functions of the newly constituted intelligence monitoring teams in a statement from its Abuja zonal office. It said, “The teams would enforce the government approved price regime and ensure the right quantity and quality of products is dispensed.

“Consequently, the department hereby directs all depots with petroleum products to truck out to designated filling stations as programmed while all filling stations in strategic locations shall continue to operate 24 hours during the Easter holidays.”

The DPR stated that the N2m sanction against depots selling products above the regulated price and the N100,000 fine per dispensing pump for filling stations found to be selling above approved rates were still in force.

It said, “Any marketer found to be hoarding will have the products dispensed free to the public and diversion of products will attract a penalty of N200/litre. In addition, the operating licences of offenders will be suspended for a minimum of three months or may be revoked outright, depending on the magnitude of the offence.”

The National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr. Mike Osatuyi, told one of our correspondents that the supply to members of the association had not improved, adding that marketers should be given access to foreign exchange to import fuel.

He said, “Give genuine marketers who know the job and who have the facilities foreign exchange, and the country will be wet with products. They said they want to operate a monopoly and it has failed. It is very unfortunate that we are experiencing this again.”

The NNPC said on Friday that a cargo containing 42 million litres of petrol had completely discharged as of 4pm, adding that two more cargos with a total of 44 million litres were discharging, while another cargo containing 44 million litres had berthed and waiting to discharge.

Meanwhile, the House of Representatives Committee on Petroleum Resources (Downstream) said that there was little it could do to arrest the biting fuel scarcity in the country.

The Chairman of the committee, Mr. Joseph Akinlaja, told The PUNCH that members were already out of Abuja and would reconvene on April 12.

“We are on break till April 12. We cannot attend to that matter until the House resumes. Everybody is away now. It is when we resume that we can begin to see what can be done,” he said.

The fuel situation worsened following last Wednesday’s comment by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, that he was not a magician and could not do anything overnight to halt the scarcity.

He said the scarcity was likely to linger up until May, a comment that frightened Nigerians and led to panic-buying of petrol with the attendant extended queues at filling stations.

 

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

China and Brazil Move Away from US Dollar in New Trade Deal

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China and Brazil have struck a new trade deal that will allow them to trade in their own currencies, bypassing the need for the US dollar as an intermediary.

This agreement marks a significant move by China to reduce its reliance on the dollar and establishes the country as a formidable rival to the US in the global economy.

The deal was announced by the Brazilian government on Wednesday and will enable the two nations to conduct their financial transactions directly, using Chinese Yuan for Brazilian Real and vice versa.

Brazil’s biggest trading partner is China with bilateral trade worth a record USD 150.5 billion in 2022.

For Brazil, this deal represents a significant shift away from the traditional reliance on the US dollar as the world’s primary currency. According to the Brazilian Trade and Investment Promotion Agency, ApexBrasil, the agreement is expected to reduce costs and promote even greater bilateral trade.

The move away from the US dollar as an intermediary in international trade could have far-reaching implications for the global economy. Other countries may follow suit and start conducting their trade and financial transactions in their own currencies, potentially undermining the dollar’s position as the world’s primary currency.

This is not the first time that China has taken steps to reduce its dependence on the US dollar. In recent years, the country has been promoting the use of the yuan in international trade and investment, and has signed currency swap agreements with other countries to facilitate trade in their own currencies.

The shift away from the US dollar comes at a time of growing tensions between China and the US, with both countries engaged in a trade war and competing for global influence. As China seeks to establish itself as a major player in the global economy, this move is just one example of the country’s efforts to assert its economic power and challenge the dominance of the US.

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Economy

Nigeria’s External Reserves Receive $1 Billion Boost from Oil Sales and Exports

Nigeria’s external reserves grew by $1.063 billion within 24 hours on March 28, 2023 to $36.668 billion in a move suspected to be inflow from the proceed of crude oil and exports.

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United States Dollar - Investors King Ltd

Nigeria’s external reserves have received a significant boost of $1 billion from oil sales and exports, according to recent reports.

The increase resulted in a 0.11% appreciation in Naira value on Wednesday as the Naira to United States Dollar exchange rate moderated from N461.75 it closed on Tuesday to N451.24 at the Investors and Exporters (I&E) forex window.

However, despite the positive news, currency dealers maintained bids between N459.50 (low) and N462.13 (high) per dollar. At the parallel market, also known as the black market, the local currency traded at N744 per dollar on Wednesday.

Analysts at the FSDH research have predicted that the Nigerian Naira will continue to face pressure from high import costs and demand for foreign currency by businesses and individuals. However, they expect the Central Bank of Nigeria (CBN) to continue intervening in the FX market to contain the pace of depreciation.

Nigeria’s external reserves grew by $1.063 billion within 24 hours on March 28, 2023 to $36.668 billion in a move suspected to be inflow from the proceed of crude oil and exports.

The decline in external reserves from US$37.1 billion in January 2023 to US$36.1 billion on March 15, 2023, has been attributed to interventions in the FX markets and limited foreign exchange inflows. However, rising oil production in recent months raises the prospect of reserves accretion in the second half of 2023, according to analysts.

The scarcity of foreign currency in the official market coupled with a high exchange rate of N745/US$ in the parallel market continues to drive high input costs and imported inflation.

It remains to be seen how the country will navigate these challenges in the coming months.

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Economy

Rivers State Customs Service Generates Over N54 Billion in Q1 2023

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Nigeria Customs Service

The Nigeria Customs Service, Area 2 Command in Onne, Rivers State realised N54.992 billion in revenue in the first (Q1) of 2023. 

According to the Command Controller, Comptroller Baba Imam, this amount realised is part of the N336 billion revenue projected for 2023.

Imam revealed this information while addressing journalists in Onne, Eleme Local Government Area of Rivers State on Tuesday.

This represents an increase of N1.133 billion when compared to the amount generated in the first quarter of 2022.

Imam revealed that the command made several seizures, which he stated is a reflection of their commitment to facilitating only legitimate trade in accordance with extant laws.

The seizures included 24 containers carrying refined vegetable oil, two containers carrying 1,165 cartons of Analgin injection and fireworks, and one 20ft of machete that was detained on documentation grounds until an end-user certificate was provided.

The duty-paid value of the seized containers was N94,652,168.39 million, while the duty-paid value of the seized vegetable oil containers was N833,172,538.42.

Imam stated, “In revenue generation, the command was given a target of N336 billion as revenue target for 2023.

“As of today, the command has generated a total revenue of N54, 992,123, 687.15 billion which transits to 16.3 per cent of the target. When compared to the same period last year, the Command has an increase in revenue of N1,132, 925, 556.82bn.

“This figure was realized in spite of not having vessels berth in Onne Port for some time due to the election atmosphere. We look forward to a continuous rise in revenue generation in the coming months as we expect vessels to berth on our coastline within the next few weeks.”

Speaking further on the command’s anti-smuggling activities, he said within the past few weeks, there has been a lot of seizures.

“This is made visible with the display of a total number which comprises 26 seized containers and one detained container for violation or contraventions of various customs laws and breach of procedures as provided under the revised import prohibition guidelines Schedule 3 Article 4 of the Common External Tariff 2022-2026 as well as Section 46 paragraph (b), (d), (e), (f) and 169 of Customs and Excise Management.

“Twenty four containers laden with refined vegetable oil comprising a total of 24,860 gallons of 25 and 10 litres of La-Jonic vegetable oil. Also seized were other two containers laden with 1,165 cartons of Analgin injection and fireworks with other items.”

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