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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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Dry Cleaners Set to Tap into $165 Billion Global Cleaning Industry

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The Fabric Professionals and Dry Cleaners Association of Nigeria (FPDA) is gearing up to host the “Clean Show Africa 2024” conference.

This conference aims to expose over 25,000 dry cleaners to the vast opportunities present in the global cleaning and hygiene industry, valued at a staggering $165 billion.

Scheduled to take place on May 28–29, 2024, in Lagos, the event is themed “Positioning Africa’s fabric and hygiene industry for excellence.”

It comes at a crucial time when Nigeria’s dry cleaning industry is experiencing steady growth, with projections indicating a 6.4% annual increase over the next decade.

According to Enibikun Adebayo, Chairman of FPDA, Nigeria’s dry cleaning industry was valued at $8.4 million in 2019.

However, this figure is expected to rise significantly, presenting a ripe opportunity for stakeholders to tap into.

Adebayo emphasized the importance of collaboration within the industry to fully leverage its potential.

“A year ago, we launched FPDA of Nigeria. We are also using the platform to educate our members to be better professionals,” stated Adebayo, highlighting the association’s commitment to enhancing professionalism and standards within the sector.

The conference will shine a spotlight on women in the dry cleaning business, recognizing their pivotal role in driving the industry forward. Reports have shown that dry cleaning businesses are often better managed by women, and the event aims to provide them with the necessary support and resources to thrive.

Ruth Okunnuga, Managing Director of Wasche Paint Nigeria, expressed the need to revolutionize Nigeria’s dry cleaning and laundry industry, emphasizing the lack of proper structure and investment.

She stressed the importance of data collection for effective planning and growth within the sector.

Joseph Oru, Managing Director of Zenith Exhibition, highlighted the conference’s objective of engaging the Federal Government to establish training institutions for dry cleaners. Such institutions would play a crucial role in equipping professionals with the skills and knowledge needed to meet global standards.

As Nigeria’s dry cleaning industry prepares to tap into the vast opportunities offered by the global cleaning market, the Clean Show Africa 2024 conference stands as a pivotal platform for collaboration, innovation, and growth within the sector.

With a focus on excellence and professionalism, stakeholders aim to position Nigeria as a key player in the dynamic and lucrative cleaning and hygiene industry.

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Nigeria-Taiwan Commerce Falls to $500m in 2023

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The Chief of Mission to the Taiwanese Government in Nigeria, Andy Liu, has said that the trade relations between Nigeria and Taiwan drop to $500 million in 2023 from $1 billion in 2021.

Liu made these comments during the 2024 Taiwan Business Forum held in Lagos.

According to Liu, Nigeria’s status as a net exporter of agricultural products, particularly sesame seeds has historically fueled the trade between the two nations.

However, the peak in trade experienced in 2021, buoyed by increased demand for Nigerian agricultural goods, notably declined in subsequent years.

“The highest peak of trade reached about $1 billion in 2021. It was the peak of COVID-19, with Nigerians enjoying surplus trading with Taiwan. We imported more of Nigeria’s agricultural products, such as sesame, aside from oil-related products. In 2021, we had a huge demand for agricultural products for our food processing industries,” Liu stated.

However, the trade dynamics shifted in the following years, leading to a significant decline in trade volume.

Liu attributed this decline to a normalization of demand following the peak in 2021, resulting in a reduction in trade value to $500 million by 2023.

Despite this decrease, Liu remained optimistic about the future trajectory of trade relations between the two countries.

“We might see some level of increase in the near future,” Liu enthused, highlighting Nigeria’s continued significance as a destination for Taiwanese businesses.

In addition to discussing trade volume, Liu addressed the issue of counterfeiting and piracy, which has affected Taiwanese products globally.

He said the Taiwanese government is working to combat this challenge by showcasing the quality of Taiwanese products and providing after-sale services.

“We have been having our delegates visit the world to prove that we are victims of piracy, but we are going to use the platform to show that we have good and quality products to let the world know who the true providers of these quality goods are,” Liu affirmed.

The President of Globe Industries Corporation, David Hwang, echoed concerns about counterfeit products, attributing the decline in profit margins to the influx of counterfeit goods from China.

Hwang emphasized the need for partnerships to address this issue and foster mutually beneficial trade relations.

Responding to the developments, the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Sola Obadimu, commended the Taiwanese focus on African businesses and the quality of their products.

He pledged NACCIMA’s continued collaboration with Taiwanese companies to drive business growth for both nations.

As Nigeria and Taiwan navigate the challenges posed by fluctuating trade volumes and counterfeit goods, stakeholders remain committed to fostering resilient and mutually beneficial economic ties.

The 2024 Taiwan Business Forum served as a platform for dialogue and collaboration, laying the groundwork for future cooperation between the two nations.

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Nigeria Advances Plans for Regional Maritime Development Bank

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Nigeria is making significant strides in bolstering its maritime sector with the advancement of plans for the establishment of a Regional Maritime Development Bank (RMDB).

This initiative, spearheaded by the Federal Government, is poised to inject vitality into the region’s maritime industry and stimulate economic growth across West and Central Africa.

The Director of the Maritime Safety and Security Department in the Ministry of Marine and Blue Economy, Babatunde Bombata, revealed the latest developments during a stakeholders meeting in Lagos organized by the ministry.

He said the RMDB would play a pivotal role in fostering robust maritime infrastructure, facilitating vessel acquisition, and promoting human capacity development, among other strategic objectives.

With an envisaged capital base of $1 billion, RMDB is set to become a pivotal financial institution in the region.

Nigeria, which will host the bank’s headquarters, is slated to have the highest share of 12 percent among the member states of the Maritime Organization of West and Central Africa (MOWCA).

This underscores Nigeria’s commitment to driving maritime excellence and fostering regional cooperation.

The bank’s establishment reflects a collaborative effort between the public and private sectors, with MOWCA states holding a 51 percent shareholding and institutional investors owning the remaining 49 percent.

This hybrid model ensures a balanced governance structure that prioritizes the interests of all stakeholders while fostering transparency and accountability.

In addition to providing vital funding for port infrastructure, vessel acquisition, and human capacity development, the RMDB will serve as a catalyst for indigenous shipowners, enabling them to access financing at favorable terms.

By empowering local stakeholders, the bank aims to stimulate economic activity, create employment opportunities, and enhance the competitiveness of the region’s maritime sector on the global stage.

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