Markets

Vehicle Import Policy: Port Authorities Claim Improved Traffic

Published

7 years ago

March 1, 2017

Vehicle Import Policy: Port Authorities Claim Improved Traffic

Two months after the Federal Government commenced implementation of its fiscal policy on importation of vehicles through land border, two vehicle terminals have claimed improvement in number of vehicles imported through their terminals. But they declined to give figures while expressing cautious optimism that things would be better from this month, indicating that the expected increase may have fallen behind target figures.

Government had on December 5 last year issued a circular directing that importation of used and new vehicles be restricted to the seaports, starting from January 1, 2017. However, cost, as a major challenge which led importers to route their vehicles through the neighbouring ports and drive them into Nigeria, remains unaddressed, raising uncertainty on the success of this new policy.

But speaking to our correspondent on the issue, the Public Relations Officer (PRO) of Tin Can Customs Command, Mr. Uche Ejiseme, stated: “There has been an increase in traffic but this winter season in Europe has made it not very high because some of the areas where these vessels ought to navigate through have been blocked because of the weather. This is the impediment but I’m confident that from the month of March we would begin to record large volumes of vessels coming in with vehicles and this implies that the revenue accruable for those imports would enhance our revenue base”

Though the management of PTML, the only terminal developed on green field basis solely for the import of vehicles in Nigeria pleaded caution in commenting on the turn of event as they said they were still watching the developments, the Command Public Relations Officer, PTML Customs Area Command, Mr. Steve Okonmah, noted that the effect of the restriction would become very visible by the end of February or early in March.

Volume of incoming vehicles

“I am happy to say that the volume of vehicles coming in is improving and it is expected to increase significantly by the end of February or at most early in March” he said. However, Vanguard learnt Federal Government may decide to soft-pedal on the policy as stakeholders’ protest on the issue may be receiving attention.

In response to a petition written by the National Council of Managing Directors of Licensed Customs Agents, (NCMDLCA) asking the government to extend the grace period for implementation of the policy, Mr. Ibrahim Abdul, an Assistant Director in the office of the Secretary to the Government of the Federation said that the authority was considering the extension.

In the letter with reference number ECD/P/251/T/111/232 and dated January 25, 2017, Abdul said the issue of extension has been forwarded to both the Federal Ministry of Finance and the Nigeria Customs Service. Part of the letter reads “I am directed to acknowledge the receipt of your letter dated January 12, 2017 in respect of the above subject and inform you that the issues raised therein have been forwarded to the Federal Ministry of Finance and the Nigeria Customs Service for consideration and necessary action”.

It will be recalled that the NCMDLCA, had written to the Presidency saying that the ban of vehicles through land borders was against international trade laws. In a petition, the Council said that the laws of the World Trade Organization, WTO, stipulates that trade regulations and amendments with regards to restriction and reversal of Fiscal Policy on Trade, must be subject to process of consultation by trading public and transparency in the timing, so as to accommodate the challenges that maybe associated with the directive/regulation.

The convention according to the Council also stipulates that each contracting party shall provide opportunities and an appropriate time period to traders and other interested parties to comment on the proposed introduction or amendment of laws and regulations of general application related to the movement, release, and restriction of transit goods.

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Samed Olukoya

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

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Crude Oil

Oil Prices Decline for Third Consecutive Day on Weaker Economic Data and Inventory Concerns

Published

23 hours ago

April 17, 2024

Samed Olukoya

Oil prices extended their decline for the third consecutive day on Wednesday as concerns over weaker economic data and increasing commercial inventories in the United States weighed on oil outlook.

Brent oil, against which Nigerian oil is priced, dropped by 51 cents to $89.51 per barrel, while U.S. West Texas Intermediate crude oil fell by 41 cents to $84.95 a barrel.

The softening of oil prices this week reflects the impact of economic headwinds on global demand, dampening the gains typically seen from geopolitical tensions.

Market observers are closely monitoring how Israel might respond to Iran’s recent attack, though analysts suggest that this event may not significantly affect Iran’s oil exports.

John Evans, an oil broker at PVM, remarked on the situation, noting that oil prices are readjusting after factoring in a “war premium” and facing setbacks in hopes for interest rate cuts.

The anticipation for interest rate cuts received a blow as top U.S. Federal Reserve officials, including Chair Jerome Powell, refrained from providing guidance on the timing of such cuts. This dashed investors’ expectations for significant reductions in borrowing costs this year.

Similarly, Britain’s slower-than-expected inflation rate in March hinted at a delay in the Bank of England’s rate cut, while inflation across the euro zone suggested a potential rate cut by the European Central Bank in June.

Meanwhile, concerns about U.S. crude inventories persist, with a Reuters poll indicating a rise of about 1.4 million barrels last week. Official data from the Energy Information Administration is awaited, scheduled for release on Wednesday.

Adding to the mix, Tengizchevroil announced plans for maintenance at one of six production trains at the Tengiz oilfield in Kazakhstan in May, further influencing market sentiment.

As the oil market navigates through a landscape of economic indicators and geopolitical events, investors remain vigilant for cues that could dictate future price movements.

Commodities

Dangote Refinery Cuts Diesel Price to ₦1,000 Amid Economic Boost

Published

1 day ago

April 17, 2024

Samed Olukoya

Dangote Petroleum Refinery has reduced the price of diesel from ₦1200 to ₦1,000 per litre.

This price adjustment is in response to the demand of oil marketers, who last week clamoured for a lower price.

Just three weeks ago, the refinery had already made waves by lowering the price of diesel to ₦1,200 per litre, a 30% reduction from the previous market price of around ₦1,600 per litre.

Now, with the latest reduction to ₦1,000 per litre, Dangote Refinery is demonstrating its commitment to providing accessible and affordable fuel to consumers across the country.

This move is expected to have far-reaching implications for Nigeria’s economy, particularly in tackling high inflation rates and promoting economic stability.

Aliko Dangote, Africa’s richest man and the owner of the refinery, expressed confidence that the reduction in diesel prices would contribute to a drop in inflation, offering hope for improved economic conditions.

Dangote stated that the Nigerian people have demonstrated patience amidst economic challenges, and he believes that this reduction in diesel prices is a step in the right direction.

He pointed out the aggressive devaluation of the naira, which has significantly impacted the country’s economy, and sees the price reduction as a positive development that will benefit Nigerians.

With this latest move, Dangote Refinery is not only reshaping the fuel market but also reaffirming its commitment to driving positive change and progress in Nigeria.

The reduction in diesel prices is expected to provide relief to consumers, businesses, and various sectors of the economy, paving the way for a brighter and more prosperous future.

Crude Oil

IEA Cuts 2024 Oil Demand Growth Forecast by 100,000 Barrels per Day

Published

2 days ago

April 16, 2024

Samed Olukoya

The International Energy Agency (IEA) has reduced its forecast for global oil demand growth in 2024 by 100,000 barrels per day (bpd).

The agency cited a sluggish start to the year in developed economies as a key factor contributing to the downward revision.

According to the latest Oil Market Report released by the IEA, global oil consumption has continued to experience a slowdown in growth momentum with first-quarter growth estimated at 1.6 million bpd.

This figure falls short of the IEA’s previous forecast by 120,000 bpd, indicating a more sluggish demand recovery than anticipated.

With much of the post-Covid rebound already realized, the IEA now projects global oil demand to grow by 1.2 million bpd in 2024.

Furthermore, growth is expected to decelerate further to 1.1 million bpd in the following year, reflecting ongoing challenges in the market.

This revision comes just a month after the IEA had raised its outlook for 2024 oil demand growth by 110,000 bpd from its February report.

At that time, the agency had expected demand growth to reach 1.3 million bpd for 2024, indicating a more optimistic outlook compared to the current revision.

The IEA’s latest demand growth estimates diverge significantly from those of the Organization of the Petroleum Exporting Countries (OPEC). While the IEA projects modest growth, OPEC maintains its forecast of robust global oil demand growth of 2.2 million bpd for 2024, consistent with its previous assessment.

However, uncertainties loom over the global oil market, particularly due to geopolitical tensions and supply disruptions.

The IEA has highlighted the impact of drone attacks from Ukraine on Russian refineries, which could potentially disrupt fuel markets globally.

Up to 600,000 bpd of Russia’s refinery capacity could be offline in the second quarter due to these attacks, according to the IEA’s assessment.

Furthermore, unplanned outages in Europe and tepid Chinese activity have contributed to a lowered forecast of global refinery throughputs for 2024.

The IEA now anticipates refinery throughputs to rise by 1 million bpd to 83.3 million bpd, reflecting the challenges facing the refining sector.

The situation has raised concerns among policymakers, with the United States expressing worries over the impact of Ukrainian drone strikes on Russian oil refineries.

There are fears that these attacks could lead to retaliatory measures from Russia and result in higher international oil prices.

As the global oil market navigates through these challenges, stakeholders will closely monitor developments and adjust their strategies accordingly to adapt to the evolving landscape.