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Consumers Groan in Lagos, Abuja as Fuel Scarcity Worsens

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Nigerian petrol station
  • Consumers Groan in Lagos, Abuja as Fuel Scarcity Worsens

The fuel supply situation in the country took a turn for the worse on Tuesday as queues of desperate motorists grew longer at many petrol stations selling Premium Motor Spirit, also known as petrol, in Lagos, Ogun, Kwara and other states of the federation, including the Federal Capital Territory.

Our correspondents gathered that many of the private depots in Apapa, Lagos, where many marketers get petroleum products from for distribution to other states, did not have PMS while those who had were doing “skeletal loading.”

Fuel queues, which started emerging in some parts of the country on Monday after more than a year of relief from scarcity of petroleum products in the country, were seen spilling onto some roads in Lagos and Ogun states on Tuesday and caused gridlock.

The PUNCH gathered that many depots in Apapa did not have petroleum products on Tuesday, while the few with products recorded low activities.

The ex-depot prices charged by the depots for PMS ranged from N139 to N143 per litre, compared to the official ex-depot price of N133.28.

Motorists and other consumers of petrol complained about the latest round of fuel scarcity, alleging that it might be a ploy to increase the pump price of the product.

They also wondered why the latest crisis was happening at a time Nigerians were preparing for the Christmas and New Year festivities.

Motorists spilled onto major roads like Ikorodu Road, Agege Motor Road, Lagos-Abeokuta Expressway and Lagos-Ibadan Expressway.

Some were seen fighting to get to the pumps, while fuel attendants and ‘area boys’ made brisk business from desperate motorists who wanted to jump the queues so as to be serve quickly. At a filling station in Ogba, the attendants who manned the gates collected N1,000 from each motorist before allowing them inside.

Last week, the Independent Petroleum Markers Association of Nigeria, Lagos State chapter, accused the Nigerian National Petroleum Corporation of under-supplying its members with petrol.

The association alleged that the NNPC was also frustrating its members by reneging on the bulk purchase agreement it signed with them to supply the product at N133.28 per litre.

The Executive Secretary, Depot and Petroleum Products Marketers Association, Mr. Olufemi Adewole, said the increase in price of crude oil had led a corresponding rise in the prices of refined products.

He said, “It is only the NNPC that is bringing products in; we also noticed a supply gap in what they brought in. It wasn’t enough at a particular time and the result is what we are seeing today.

“But they have also equally assured us that they have enough stock and that they are expecting vessels to come in; our members have paid for PFI (pro-forma invoices) for PMS. So, once the NNPC cargoes come in, we will receive the product and sell to Nigerians.”

Asked why marketers were not importing, Adewole said, “Landing cost of PMS today has increased. By the time we land the product based on the international crude oil prices, petrol should be selling for about N165-N170 per litre. But the government is saying we should sell at N145. So, if there is no subsidy, we have to depend on the NNPC to give us the product.”

A top official at one of the depots in Lagos, who spoke on condition of anonymity, said the supply dislocations would take days to disappear.

He said, “We are still doing skeletal loading; no depot wants to be out of stock completely because it is not good for business. As of today (Tuesday), there is no vessel dispending PMS from the Apapa jetty, except the one in Oando SPM.

“Marketers are still being owed 2016 subsidy claims. No sane marketer can put his money down now to import petrol. Nobody is talking about when the subsidy arrears would be paid; so everybody has to rely on the NNPC. Also, the landing cost of petrol has increased.”

In Calabar, the capital of Cross River State, major petrol stations sold PMS to customers at the pump price of N145 per litre.

Few filling stations, however, sold the product at the N150 per litre.

It was observed that majority of the independent petroleum outlets had stopped selling as of 5pm on Tuesday. A source said the outlets preferred selling the product to black market operators at night.

In Ilorin, the Kwara State capital, the fuel scarcity has yet to be felt in the metropolis as all the filling stations visited by one of our correspondents sold petroleum products to buyers at the government regulated prices.

There was panic-buying of petrol in Ado Ekiti as motorists were seeing rushing to filling stations to stock up the product.

As of 4pm on Tuesday, the situation was normal at filling stations along Bank Road in Ado Ekiti, including a franchise station of the Nigerian National Petroleum Corporation.

Filling stations in Uyo operated normally as there were no queues within the metropolis. However, some stations dispensed petrol at N150 instead of N145 per litre.

The situation in Niger State was similar as motorists bought petrol at the rate of N145 per litre in almost all the filling stations in Minna except the NNPC mega stations that sold it for N143.

Officials of the Department of Petroleum Resources stormed some filling stations in Abeokuta, Ogun State capital on Tuesday to check hoarding of petrol.

The DPR officials led by the Operations Controller, Abeokuta Field Office, Muinat Bello-Zagi, inspected the facilities at the filling stations, especially the storage tanks, to measure the products stored there.

In Abuja and Nasarawa State, motorists waited in queues for many hours to buy petrol.

Along the Kubwa-Zuba Expressway in Abuja, many motorists formed queues in front of the NNPC mega station and the Nipco filling station located on the road, while many others were sighted at some stations around Madalla and Suleja in Niger State.

Queues were also observed in front of the few petrol stations that dispensed petrol along the Abuja-Keffi road in Nasarawa State.

Despite the development, the Nigerian National Petroleum Corporation described the situation as panic buying, insisting that it had enough product to keep the country wet.

The Group Managing Director, Maikanti Baru, stated that the situation was due to panic buying, adding that the corporation was doing everything within its reach to address the matter.

He was quoted in a statement issued on Tuesday by the corporation’s spokesperson, Ndu Ughamadu, as saying, “For the umpteenth time, I wish to call on all Nigerians to stop panic buying. We have said times without number that the NNPC has sufficient products to cater for the needs of all consumers.”

Filling stations in Akure, Ondo State capital, and some other towns had long queues of vehicles as the petrol scarcity that had hit the state since Monday worsened on Tuesday.

It was observed that some filling stations were shut down while those that opened had long queues of vehicles.

Worried by the development, the Senate on Tuesday summoned the NNPC GMD to appear before its Committee on Petroleum Resources (Downstream) on Thursday over the rising scarcity of PMS across the country.

Baru failed to appear before the committee on Tuesday, leading to the rescheduling of the meeting during which he would be expected to explain the reasons for the scarcity.

The Chairman of committee, Senator Kabiru Marafa, while briefing journalists in Abuja, said plans had also been concluded to commence nationwide inspection of filling stations over the looming fuel crisis.

Marafa stated the Senate would not allow some unpatriotic persons to cause Nigerians any hardships, especially during the Yuletide, stressing that though the lawmakers had adjourned plenary to conduct budget defence sessions for Ministries, Departments and Agencies of the government, members of the committee would embark on the oversight visits to the filling stations.

He said members of the committee would be regrouped into sub-committees to make it possible for them to visit all the states.

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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Axxela Limited Raises N16.4bn in Oversubscribed Bond Issuance

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Bonds- Investors King

Axxela Limited, a leading sub-Saharan African gas and power company, has successfully completed its N15 billion Series 1 Bond Issuance.

The company raised N16.4 billion due to oversubscription and investor confidence in the company’s financial strength and strategic direction.

Bolaji Osunsanya, Axxela’s Chief Executive Officer, expressed his satisfaction with the outcome, highlighting the bond’s oversubscription of 109%.

Despite challenging economic conditions marked by rising interest rates and limited market liquidity, Axxela’s bond offering attracted strong interest from a diverse group of investors, including pension fund administrators, asset managers, and high-net-worth individuals.

Osunsanya explained that the proceeds from the bond issuance would play a crucial role in funding the company’s long-term capital expenditures, managing its weighted average cost of capital, and diversifying its funding sources.

The funds will support the completion of ongoing gas pipeline projects across Nigeria, aligning with the company’s commitment to enhancing energy infrastructure and contributing to the country’s energy transition agenda.

Stanbic IBTC Capital, serving as the lead issuing house alongside seven joint issuing houses, played a pivotal role in facilitating the transaction, with Stanbic IBTC Bank acting as the transaction bank.

The successful bond issuance reflects Axxela’s strategic positioning as a key player in the region’s energy sector and its ability to leverage strong investor confidence to drive growth and innovation in the industry.

As Axxela continues to expand its presence and strengthen its operations, the oversubscribed bond issuance serves as a testament to the company’s resilience and its commitment to delivering value to shareholders and stakeholders alike.

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Company News

Dangote Refinery Continues Price Slashing: Diesel Now at ₦940/Litre, Aviation Fuel at ₦980/Litre

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Dangote Refinery

Dangote Petroleum Refinery has once again sent ripples through Nigeria’s fuel market by further reducing the prices of diesel and aviation fuel.

In a bid to alleviate economic hardships faced by Nigerians, the refinery has lowered the price of diesel to ₦940 per litre and aviation fuel to ₦980 per litre.

This latest move comes on the heels of the refinery’s recent price reduction to ₦1,000 per litre for diesel, which was celebrated across the country.

The decision to slash prices further underscores Dangote Refinery’s commitment to providing affordable fuel to consumers.

Anthony Chiejina, the Head of Communication at Dangote Petroleum Refinery, announced the development.

He revealed that the new prices are part of a strategic partnership with MRS Oil and Gas stations to ensure accessibility and affordability of fuel across all major locations, including Lagos and Maiduguri.

The refinery’s management expressed optimism that the price reduction would significantly ease the financial burden on consumers, particularly amid rising inflation and energy costs.

They also hinted at extending the partnership to other major oil marketers to ensure uniform pricing and prevent retail buyers from purchasing fuel at exorbitant prices.

This marks the third major reduction in diesel prices in less than three weeks, signaling Dangote Refinery’s proactive approach to addressing economic challenges.

The move has garnered praise from various quarters, with Nigerian President Bola Tinubu commending the refinery for its efforts to support the economy.

Industry experts, including Ajayi Kadiri, the Director General of the Manufacturers Association of Nigeria, lauded the refinery’s initiative, highlighting its potential to stimulate economic activities across critical sectors such as industrial operations, transportation, logistics, and agriculture.

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First Bank of Nigeria Appoints Olusegun Alebiosu as Acting CEO Following Resignation of Dr. Adesola Adeduntan

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Olusegun Alebiosu

First Bank of Nigeria Limited, a subsidiary of FBN Holdings PLC, has announced the appointment of Mr. Olusegun Alebiosu as its Acting Chief Executive Officer (CEO).

This decision comes in the wake of the resignation of Dr. Adesola Adeduntan, who has led the bank for the past nine years.

The appointment, which takes immediate effect, is subject to the approval of the Central Bank of Nigeria (CBN), reflecting the bank’s commitment to regulatory compliance and governance standards.

Mr. Alebiosu, a seasoned banking professional with over three decades of experience, is well-prepared to take on the responsibilities of leading First Bank Nigeria during this transition period.

Having served as the Executive Director and Chief Risk Officer, he played a pivotal role in the transformation and growth of the institution over the past eight years.

His extensive experience spans various aspects of the banking and financial services industry, including credit risk management, financial planning, corporate and commercial banking, and project financing.

Before joining First Bank Nigeria in 2016, Mr. Alebiosu held key positions in renowned financial institutions such as Coronation Merchant Bank Limited and the African Development Bank Group.

Expressing gratitude for Dr. Adeduntan’s exemplary leadership, the Board of Directors acknowledged his significant contributions to the bank’s growth and success during his tenure.

Dr. Adeduntan’s departure marks the end of an era characterized by remarkable achievements and milestones for First Bank Nigeria.

As Acting CEO, Mr. Alebiosu is poised to build upon the bank’s legacy and steer it towards continued growth and profitability. With a strong focus on strategic objectives, he aims to uphold First Bank Nigeria’s reputation as a leading financial institution in Nigeria and beyond.

In his new role, Mr. Alebiosu will work closely with the Board of Directors and management team to ensure seamless operations and uphold the bank’s commitment to delivering exceptional services to its customers.

As the banking industry undergoes rapid transformation and evolving regulatory landscape, First Bank Nigeria remains committed to maintaining its position as a trusted financial partner for individuals and businesses across the country.

With Mr. Alebiosu at the helm, the bank looks forward to a new chapter of innovation, resilience, and sustainable growth.

The appointment of Mr. Olusegun Alebiosu underscores First Bank Nigeria’s commitment to continuity and stability amidst leadership changes, signaling confidence in his ability to lead the bank through its next phase of growth and development.

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