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No Reduction on Petrol Price, says PPPRA

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Nigerian petrol station
  • No Reduction on Petrol Price, Says PPPRA

Petroleum Products Pricing Regulatory Agency (PPPRA), has said there is no going back on the pump price of Premium Motor Spirit (PMS) also known as petrol, saying that under current realities, it should have been higher.

PPPRA’s defence follows recent allegations by the House of Representative, accusing the Agency of impoverishing Nigerians by making them incur unnecessary costs in its pricing template.

But the Agency said it cannot be held responsible for the prevailing pump prices for petroleum products, as it cannot on its own determine the pricing template.

Specifically, it noted that the Nigerian National Petroleum Corporation (NNPC); the Major Marketers Association of Nigeria (MOMAN); Nigerian Maritime Administration and Safety Agency (NIMASA); and Depot and Petroleum Marketers Association (DAPMA), and labour were all carried along in pegging the pump price of PMS at N145 per litre.

An Ad-hoc Committee of the House on the Review of Pump Price of Petrol, at a public hearing earlier in the week had called for the reversal of the current petrol price from N145 per litre to N70 a litre.

The Committee identified some extraneous costs in the petrol pricing template like the 84k port charge and the 30k administration charge, saying they were fraudulent.

It noted that the 84k was for services never provided by the Nigerian Ports Authority, NPA, while the 30k was already provided for in the budget of the PPPRA, adding that the administrative charge was even increased by 100 percent from 15k following the removal of subsidy in 2016.

But a top ranking PPPRA official, said in confidence that all the stakeholders came to the table to decide how much a litre of petrol should be sold.

“PPPRA should not take the blame alone. The whole stakeholders should be blamed for the current template. Whenever we review, the stakeholders and the government approve for execution. The template is only domiciled in PPPRA,” he added.

He argued that but for the Federal Government’s intervention, the price of petrol should have been higher than it is presently in view of the foreign exchange challenges.

According to him, petrol price was calculated at less than N300 to $1 whereas the exchange rate is almost N498 to $1, noting adding that marketers cannot even access dollars from the Central Bank of Nigeria (CBN).

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

Economy

PENGASSAN to Shut Down 200,000bpd Agip Oil

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Agip Oil Company

PENGASSAN to Shut Down 200,000bpd Agip Oil

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), an oil workers’ union, is threatening to shut down 200,000 barrels per day of crude oil production managed by Agip Oil Company Limited over what it described as unfair labour practices and intimidation of workers.

The Union, in a letter released on Wednesday, gave Agip Oil seven days to look into the concerns raised by the union or have its operations disrupted.

In the letter signed by Lumumba Okugbawa, General Secretary, the Union also accused Agip Oil of “subtle threat against our members and demobilisation of members access to the company facilities.”

PENGASSAN also urged Agip Oil to withdraw its “toxic memo’ and open discussion with the union branch leaders with a view to discuss and resolve the issues and strengthen industrial harmony.

However, as a law-abiding association, we view the insinuation by Agip management that the legitimate actions of the union was unlawful as laughable and a mockery of the relevant sections of the labour laws detailing on how industrial actions and disputes should follow.

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Economy

Gbajabiamila Says House of Reps Will Pass Petroleum Industry Bill in April

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Gbajabiamila Says House of Reps Will Pass Petroleum Industry Bill in April

Femi Gbajabiamila, the Speaker of the House of Representatives, on Wednesday, said the Reps will pass the Petroleum Industry Bill (PIB) into law in April 2021.

The speaker disclosed this during his opening remarks at the ongoing public hearing on the proposed legislation organised by the House Ad-hoc Committee on PIB.

He said “We intend to pass this bill by April. That is the commitment we have made. Some may consider it a tall order, but we will do it without compromising the thoroughness.

Gbajabiamila’s comment came two days after Ahmad Lawan, the Senate President, said the passage and assent to the Petroleum Industry Bill (PIB) will be done before the end of May.

Once passed into law, experts expect the bill to boost Nigeria’s economy, encourage competition and boost revenue.

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Economy

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

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Global debt

Egypt Leads Nigeria, South Africa in Foreign Direct Investment

The United Nations Trade Association has Nigeria recorded a total of $2.6 billion in Foreign Direct Investment (FDI) in 2020, below the $3.3 billion posted in the preceeding year.

South Africa, Africa’s most industrialised nation, reported $2.5 billion during the same year, slightly below Africa’s largest economy and 50 percent below the $4.6 billion attracted a year earlier.

The report also noted that Africa recorded a total of $38 billion FDI in the same year, representing a 18 percent decline from the $46 billion posted in the corresponding year of 2019.

However, Egypt led Nigeria and South Africa with $5.5 billion FDI, an increase of 38 percent from the preceeding year.

The report read in part, “FDI flows to Africa declined by 18% to an estimated $38 billion, from $46 billion in 2019. Greenfield project announcements, an indication of future FDI trends, fell 63% to $28 billion, from $77 billion in 2019. The pandemic’s negative impact on FDI was amplified by low prices of and low demand for commodities.

UNCTAD also noted that global foreign direct investment declined by 42 percent to an estimated $859 billion, down from $1.5 trillion in 2019.

The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. Flows to Europe dried up completely to -4 billion (including large negative flows in several countries). A sharp decrease was also recorded in the United States (-49%) to $134 billion.

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