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Petrol Price Hike Not on the Cards – Kachikwu



  • Petrol Price Hike Not on the Cards, Kachikwu Insists

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said the federal government is not about to increase the price of petrol in the country, at least not in the near future.

Kachikwu, instead, said the government would review some of the elements in the pricing template of the Petroleum Products Pricing Regulatory Agency (PPPRA), which are still within its control with operators in the downstream sector to ensure that the price remains in line with market fundamentals.

The minister made the statement shortly after he was honoured alongside former board chairmen and executive secretaries of PPPRA by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), PPPRA branch on Saturday night in Abuja.

He also stated that the recent meeting President Muhammadu Buhari had with traditional leaders and other stakeholders of the Niger Delta on militancy in the region, was the first step in government’s attempts to clear the existing trust deficit in its dialogue with the militants, ahead of its inclusive development plan for the oil-rich region.

While responding to a question on Nigerian National Petroleum Corporation’s (NNPC) recent defence of the fuel price hike at its retail outlets from N141 per litre to N145, though still within the approved price band, Kachikwu said: “First, I am not aware that the NNPC has increased its price. I need to look into that, it’s a bit of surprise for me, because there are processes in doing this.

“If they have done that, it means they are doing it wrongly. Let me find out what the facts are. Having said that, the reality is that what we did at the point where we did some liberalisation was to enable the market float the price.

“Obviously, as you look at foreign exchange differentiations and all that, it would impact the landing cost of petrol.”

“The worst thing you could do is to go back to the era where we basically were fixing prices. What we ought to be doing is watching prices, making sure that they are not taking advantage of the common man; making sure that the template is respected.

“One of the things I think we had hoped to do, which we should still do before we embark on any price increase is to work on those templates. There are still areas that are within government control.

“These are payments to the Ministry of Transport and the rest, payments to the Nigerian Ports Authority (NPA) that are foreign-currency denominated.

“We are working on the possibility of being able to shift that out so that you still can modulate the prices within where it is right now. But I would hold a conversation with the industry and see how it is going,” he stated.

He further explained that what was key was to ensure that fuel queues do not resurface and those that are investing in petroleum products marketing must be able to predict the “pricing methodologies, the pricing consequences and the actions to be able to justify their investments”.

He added: “At the end of the day, I think PPPRA is the agency that has the authority to say it is time the templates does justify some level of movement, otherwise you have a crisis of individual decisions on pricing.”

On the recent peace dialogue with the Niger Delta region and the sentiments raised against the recent demands put forward by its stakeholders to President Muhammadu Buhari, he said the government was being meticulous in its handling of the issues, adding that the president was committed to a lasting solution to the region’s challenges.

“The Niger Delta is not an easy terrain to deal with, both in physiography and in terms of its politics. Obviously, what has been happening over the last one year has been turbulent for the country, its resources and even the sustenance of the oil industry.

“What we did in terms of that meeting was to be able to bring them to see the president so that we can remove the level of trust deficit that had existed.

“The president is committed to finding solutions to these problems, but he is committed to finding lasting solutions, not one-off measures that would come to haunt us again afterwards.

“That is why he is taking his time to understand how these people operate,” said Kachikwu.

He stated that in addition to the dialogue, the government would be embarking on a series of actions, like the Maritime University, opening of business opportunities in the area, and clean-up of the environment.

“I do not think people should kick; you are never going to have a situation in this country where you are doing something and there won’t be criticism.

“But that should not discourage us. I think some of the efforts we are making are yielding results.

“The militancy is not as pronounced as it is today and I think the militants themselves are very reasonable, as they begin to see some unity, some coalition of their elders and their leaders, as well as their colleagues into unions to be able to find lasting solutions,” he added.

Kachikwu equally described the honour that PENGASSAN bestowed on him and past PPPRA officials like Chief Rasheed Gbadamosi, Ahmadu Alli, Dr. Oluwole Oluleye, Abiodun Ibikunle, Goddy Egbuji, Reginald Stanley and Farouk Ahmed, among others, as humbling.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

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World Bank Lauds Kogi’s 2020 Financial Statement



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The World Bank has heaped praise on the Government of Kogi State concerning the state’s audited financial statement for 2020. The financial institution was said to have described the financial report as a standard to look up to concerning transparency and accountability in the public sector.

In a statement which was dated November 21, 2021 it was said that the bank made the commendation in a letter which was sent to the Accountant General of the state.

As said in the statement, the letter which was taken by the Kogi State Accountant General on November 2025 was signed by Deborah Hannah Isser, the Task Team Leader of the States Fiscal Transparency, Accountability and Sustainability Programme (SFTAS), Nigeria Country Office, Western and Central African Region.

SFTAS is a $750 million programme which has been set up to reward states for meeting any or every one of the indicators which demonstrate improvements in fiscal transparency, sustainability and accountability.

The indicators, which are nine in number were a byproduct of the former Fiscal Sustainability Plan of the federal government where States would be rewarded for meeting up to 22 targets.

The World Bank had previously backed the federal government to give incentives to the states in order to properly execute the 22-point Fiscal Sustainability Plan, which has now gone under a revamp as the nine Disbursement Linked Indicators under SFTAS.

Some of the criteria on which judgement will be based on are: improvement in financial reporting and budget reliability, improved cash management, increased openness, citizen participation in the budget process, reduced revenue leakages through the execution of State Treasury Single Account (TSA), a strengthened Internally Generated Revenue (IGR) collection, biometric registration and Bank Verification Number (BVN) used to reduce payroll fraud.

The World Bank commended the Kogi State government for preparing its audited financial statements in line with the basis of the International Public Sector Accounting Standards.

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Nigeria’s Rigid Forex Policy Discouraging Investors, Fueling Inflation – World Bank



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The World Bank has blamed the Central Bank of Nigeria’s rigid forex policy for the drop in Nigeria’s capital importation and rising inflation rate.

The bank disclosed in its November report, Nigeria Development Update.

Explaining modalities for its position, the World Bank stated that there had been constant pressure on the Nigerian Naira with the current forex policy, forcing the central bank to consistently increase its nominal official exchange rate in an effort to ease some of the pressure.

This, it blamed on the rigid foreign exchange management system of the Central Bank of Nigeria, saying the system has also been responsible for the rising inflation rate in Nigeria.

The report read in part, “The government’s exchange rate management policies continue to discourage investment and fuel inflation. Exchange rate stability is a key CBN policy objective, and to preserve its external reserves the CBN continues to manage FX demand and limit the supply of FX to the market.

“Pressure on the naira remains intense, and while the CBN has raised the nominal official exchange rate three times since the start of the pandemic (by 15 per cent in March 2020, five per cent in August 2020, and seven per cent in May 2021), FX management remains too rigid to respond to external shocks. Meanwhile, exchange-rate management has emerged as one of the key drivers of inflation.”

The World Bank further stated that the central bank foreign exchange system needs to be more flexible to withstand external shocks, especially given Nigeria’s mono-product nature. It added that the NAFEX rate does not reflect the true market rate but the central bank managed rate.

It read in part, “While the CBN supplied an average of $2.5bn to the Investors and Exporters forex window in the months just prior to the COVID-19 crisis, it only supplied an average of $0.5bn in the months thereafter.

“The NAFEX rate, which is now the guiding exchange rate for the economy, continues to be managed and is not fully reflective of market conditions. The parallel market premium over the NAFEX rate reached 29 per cent in August 2021 after the CBN cut off its weekly supply of $20,000 per bureau de change. The CBN has intermittently supplied forex to BDCs since 2005, providing ample opportunities for currency round-tripping.”

The institution however advised that Nigeria adopt a more predictable, transparent and flexible foreign exchange management system in order to attract and sustain private investment flows.

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Nigeria’s Non-oil Revenue Now N1.15 Trillion – Minister of Finance



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Mrs. Zainab Ahmed, the Minister of Finance, Budget and National Planning, has said that Nigeria’s non-oil revenue is now N1.15 trillion, representing 15.7 percent above the country’s target. This, she claimed, was a result of the federal government’s efforts at diversifying the nation’s economy.

Mrs. Ahmed disclosed this at the Institute of Directors (IoD) 2021 Annual Directors Conference which was held on Wednesday in Abuja.

According to the News Agency of Nigeria (NAN) the event with the theme: “Creating the Future: Deepening the Corporate Governance Practice through Multi-Sectoral and Multi-Generational Collaborations,” was meant to discuss economic development.

Mrs Ahmed added that the recent development was in line with President’s commitment to further diversifying the Nigerian economy which is heavily dependent on oil. She observed that Nigeria was showing resilience in recovery from recession from coronavirus (COVID-19) pandemic which intensely affected global economies.

The minister said the federal government alongside the private sector had implemented a wide range of monetary measures to stimulate economic recovery, growth and development, job creation and improved standards of living.

She also explained that the government was doing everything to improve and diversify Nigeria’s revenue generation.

Nigeria was quickly able to exit recession and is on her way to path of sustainable growth and we are intensifying efforts to grow and diversify our revenue sources to grow revenue from the current 8 per cent.”

“Our non-oil revenues have grown to N1.15 trillion, representing 15.7 per cent above set target. We are working on the 2021 finance bill and it’s nearing completion. Also, the recent approval of the medium-term national development plan is an important milestone of Buhari’s commitment to delivering sustainable growth and we require strong support and monitoring during implementation,” she said.

Mrs Ahmed reinforced the government’s decision to do something about infrastructure and reduce the cost of production for businesses in the country.

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