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Ministry Official Alleges Neglect of Calabar Port

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From a money spinner, the Calabar Port is turning into a revenue loser following its littering with wrecks and an abandoned rig worth millions of dollars.

Activities were low. Two “critical” wrecks and the abandoned Delta Queen Rig were seen there.

A senior official of the Ministry of Finance (FMoF), who pleaded not to be named, said the Federal Government and the Nigerian Ports Authority (NPA) should put the port into good use to revamp the economy.

The port, he alleged, has become an avenue for siphoning public fund.

He urgedPresident Muhammadu Buhari to direct the Minister of Transport, Mr Rotimi Amaechi, and the NPA to transform the port because of its importance to the nation.

The official said the port used to ba a money spinner. He told The Nation that between 2008 and last year, NPA generated $117,178,000 and over N2.2 billion from the port.

The breakdown of the amount generated in dollars and naira as exclusively obtained by The Nation is as follows: $26,529,000 and N203,438,000 in 2008.

Between 2009 and 2011, it was $37,522,000 and N898,737,000. In 2012 and 2013, it made $26,946,000 and N581,109,000. Between 2014 and last year, the port realised $26,197,000 and N540,942,000.

The official said: “It is sad that the multi-billion dollar investment at the port was rendered useless by the past management of the NPA.

“The amount generated between 2008 and last year by the agency showed that if the NPA is compelled to pay adequate attention to the port, more revenue would accrue to the government.

“If the several billions of naira collected by the NPA were judiciously invested in dredging the port, the channel will not remain shallow and difficult for big vessels to approach.

“It is sad that up till today, its channel remains shallow, and investors at the port have continued to count their losses,” the official said.

He accused some top past NPA officials of only interested in awarding contracts for dredging and re-dredging of the port without corresponding development of its infrastructure.

He alleged that poor work was done on the dredging of the channel.

The government, the official, lost a lot of revenue through the frequent dredging of the port.

But investigation revealed that the port has a comparative distance advantage to the Northeast than any port in the country.

While the distance between Cross River and Taraba states is 711km and the transit time is nine hours, 58 minutes; the distance from Port/Harcourt, Warri and Lagos to Taraba is 773km, 901km and 1,160km, and it takes 10 hours, 49 minutes; 12 hours, 4 minutes and 14 hours 24 minutes from each of the states to Taraba.

Findings also revealed that the distance from Cross River to Gombe state is 983km and the transit time is 13hrs,58mins; the distance from Port/Harcourt, Warri and Lagos to Gombe is 1,060km, 1,034km and 1,240km respectively, and it takes 14hrs, 15mins; 14hrs, 40mins and 16hrs 39mins from each of the states to Gombe.

Also, the distance from Calabar to Bauchi is 910km and the transit time 13 hours, 14 minutes. Whereas the distance from Port Harcourt, Warri and Lagos to Bauchi is 965km, 939km and 1,145km, and it takes 13 hours, 10 minutes; 13 hours, 36 minutes and 15 hours 34 minutes from each of the states to Bauchi.

Investigation further showed that the distance between Calabar and Adamawa is 865km with 11 hours, 57 minutes transit time. But the distance from Port Harcourt, Warri and Lagos to Adamawa is 927km, 1,055km and 1,314km, and it takes 12 hours, 49 minutes; 14 hours, 4 minutes and 16 hours 23 minutes from the states to Adamawa.

The story is the same from Calabar to Borno and Yobe states.

“There is no gain saying that Calabar Port is very strategic to the economic development of Nigeria particularly the Northcentral, Southsouth and Southeast regions of the country.

“Besides, when functional, it will increase the volume of vessel traffic and cargo throughput in the port, decongest Lagos ports and reduce cost of doing business for Calabar-based businessmen who spend additional transport cost to take delivery of their consignments in Lagos and Onne ports.

“The port is strategically located for imports and exports for distribution to other ports along the West/Central and Southern African coastline. The location of Calabar Free Trade Zone (CFTZ) in close proximity with the port speaks volumes for itself,” the official said.

He identified erosion, the length and the dredging of the 84km channel, the wrecks, the abandoned rig, insufficient tugs and pilot cutters, the deplorable Calabar/Itu/Aba road and the low height limitation of the Ikom bridge as the port’s major challenges, which should be fixed by the government to turn it to profit.

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

No Plan to Increase Fuel Price; Says FG

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NNPC - Investors King

The Federal Government has stated that it has no plan to increase fuel price during the yuletide period.

This assurance is coming amid the nationwide fuel scarcity which has pushed the price of petrol above N250 in many retail stations.

Investors King learnt that fuel is being held for N250 per litre in Abuja and several other cities across the country while black marketers are charging between N400 and N450 per litre.

The scarcity and the high price of fuel are however becoming unbearable for many Nigerians, especially those who have reasons to embark on business travel for the December festivals.

According to the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu, most of the association members, who owned the bulk of the filling stations across the country, were now subjected to purchasing PMS at about N220/litre, which was why many outlets currently dispensed at about N250/litre and above.

He noted that the cost of the commodity has been on the rise due to its unavailability and other concerns in the sector. 

He added that the price of fuel could be sold from N350/litre to N400/litre before the end of the year. 

Meanwhile, a number of senior officials at the NNPC had stated that the subsidy was becoming too burdensome on the national oil company, as this was another reason for the scarcity of PMS.

According to a source who is familiar with the development as reported by Punch News, “How can we continue to import 60 million litres of petrol daily and keep subsidising it, while millions of litres are either diverted or cannot be accounted for? The burden is too much, as you rightly captured in that story”. 

Investors King understands that NNPC is the sole importer of petroleum into the country and it pays billions of naira every month to subsidise the product to N147 per litre. 

Reuters News reported that in August 2022, NNPC paid more than $1 billion as fuel subsidy while the federal government earmarked N3.6 trillion as fuel subsidy in the 2023 budget proposal. 

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Fuel Scarcity: NNPC Declares 2billion Liters in Stock, Blames Scarcity on Road Construction

NNPC Claimed it as 2 billion litres of fuel despite scarcity

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Petrol - Investors King

The Nigerian National Petroleum Company (NNPC) has blamed the recent fuel scarcity on road construction around Apapa, noting that the corporation has about 2 billion litres of fuel in stock. 

According to a statement issued by NNPC Executive Vice President, Downstream, Mr Adeyemi Adetunji, the Nigeria National Petroleum Company has about 2 billion litres of fuel which can last the country conveniently for more than 30 days. 

The Executive Vice President further blamed the queues on the road construction around Apapa axis which has slowed down the movement of oil trucks to several parts of the country. 

“The recent queues in Lagos are largely due to ongoing road infrastructure projects around Apapa and access road challenges in Lagos” he said. 

He however noted that more filling stations should have Premium Motor Spirit (PMS) otherwise known as petrol with the ease in gridlock along the apapa axis. 

“The gridlock is easing out and NNPC Ltd has programmed vessels and trucks to unconstrained depots and massive load outs from depots to states are closely monitored,” he said.

Investors King gathered that several states including Abuja have been impacted by the supply chain difficulty caused by the construction around Apapa. 

The scarcity of fuel has therefore led to the hike in price. In most places across the country, fuel is sold as high as N250 per litre. Several fuel stations are already taking advantage of the situation coupled with the increase in the movement of people and goods owing to the December festivals.

Speaking further, Adeyemi noted that the situation will soon be back to normalcy as NNPC is taking measures to address the situation. 

“We want to reassure Nigerians that NNPC has sufficient products and we significantly increased product loading in selected depots and extended hours at strategic stations to ensure sufficiency nationwide.

“We are also working with industry stakeholders to ensure normalcy is returned as soon as possible,” he concluded. 

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Economy

Global Growth to Drop Below 2% in 2023, Says Citi

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GDP Growth- Investors King

Citigroup on Wednesday forecast global growth to slow to below 2% next year, echoing similar projections by major financial institutions such as Goldman Sachs, Barclays, and J.P. Morgan.

Strategists at the brokerage cited continued challenges from the COVID-19 pandemic and the Russia-Ukraine war — which skyrocketed inflation to decades-high levels and triggered aggressive policy tightening — as reasons behind the outlook.

“We see global performance as likely (being) plagued by ‘rolling’ country-level recessions through the year ahead,” said Citi strategists, led by Nathan Sheets.

While the Wall-Street investment bank expects the U.S. economy to grow 1.9% this year, it is seen more than halving to 0.7% in 2023.

It expects year-on-year U.S. inflation at 4.8% next year, with the U.S. Federal Reserve’s terminal rate seen between 5.25% and 5.5%.

Among other geographies, Citi sees the UK and euro area falling into recession by the end of this year, as both economies face the heat of energy constraints on supply and demand front, along with tighter monetary and fiscal policies.

For 2023, Citi projects UK and euro area to contract 1.5% and 0.4%, respectively.

In China, the brokerage expects the government to soften its zero-COVID policy, which is seen driving a 5.6% growth in gross domestic product next year.

Emerging markets, meanwhile, are seen growing 3.7%, with India’s 5.7% growth — slower than this year’s 6.7% prediction — seen leading among major economies.

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