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Fuel Scarcity Persists in Abuja Despite FG’s Order

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petrol
  • Fuel Scarcity Persists in Abuja Despite FG’s Order

The queues for Premium Motor Spirit, popularly called petrol, persisted on Sunday in Abuja and some states despite the order by the Federal Government to the Minister of State for Petroleum Resources, Ibe Kachikwu, to end the scarcity.

The Federal Executive Council, at its meeting last Wednesday, directed the minister to ensure that the fuel scarcity being witnessed across the country did not extend beyond last Saturday.

But right in front of the corporate headquarters of the Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation in Abuja were queues of motorists struggling to buy petrol from the two filling stations, Conoil and Total, facing the FMPR and the NNPC.

Our correspondent also observed that many filling stations, particularly those operated by independent petroleum marketers, did not dispense petrol, while the few that sold the PMS had queues.

After the FEC meeting on Wednesday presided over by Vice-President Yemi Osinbajo at the Presidential Villa, Abuja, the Minister of Information and Culture, Lai Mohammed, made the government’s position on the fresh fuel scarcity known to journalists.

He had said, “The council gave him (Kachikwu) a matching order that this fuel scarcity should not last beyond this weekend and they are going to work very hard to ensure that it is curtailed. He (Kachikwu) assured the council that there was actually no cause for alarm.”

The NNPC on several occasions had stated that it had enough petroleum products to keep the country wet for the end-of-year movements and other uses.

Kachikwu announced on Thursday that supply issues prompted the scarcity, but assured Nigerians that the matter would be resolved as soon as possible.

Despite the many assurances from the ministry and the NNPC, the scarcity persisted on Saturday and Sunday in Abuja and neighbouring states as some petrol stations on the Abuja-Keffi road in Nasarawa State sold the PMS for as high as N200 per litre.

However, officials at both the FMPR and the NNPC insisted that the two organisations were working hard to clear the queues.

Meanwhile, two civil-society organisations, the Campaign for Democracy and the Centre for Anti-Corruption and Open Leadership, have called on the Federal Government to find a lasting solution to the biting fuel scarcity.

The CD President, Usman Abdul, said, “The government needs to sit and address this problem holistically. What we are seeing as citizens of this country is beyond our imagination. The issue of this scarcity is the handiwork of a few elements in the system who want to benefit from our misery.”

Also, the CACOL Director, Debo Adeniran, said, “This scarcity is more like a self-serving venture for some private marketers. It is unfair. If fuel is available for them to lift and supply is unimpeded, why do we have this scarcity?”

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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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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