Economy

Baru visits Aso Rock as fuel queues persist

Published

6 years ago

December 12, 2017

Baru visits Aso Rock as fuel queues persist

The Group Managing Director, Nigerian National Petroleum Corporation, Dr. Makanti Baru, on Monday visited the Presidential Villa, Abuja.

The visit came at a time the fuel scarcity being witnessed across the country had persisted.

It was not clear as of the time of filing this report who Baru met during his visit as he was only sighted while leaving the premises.

At the time of his visit, President Muhammadu Buhari had left the country for Paris, France where he is scheduled to attend the One Planet Summit.

It was not clear if the NNPC boss met with Vice-President Yemi Osinbajo or the Chief of Staff to the President, Abba Kyari.

The Federal Executive Council presided over by Osinbajo last week ordered the Minister of State for Petroleum Resources, Dr. Ibe Kachickwu, and Baru to end the scarcity before last weekend.

The Minister of Information and Culture, Alhaji Lai Mohammed, had disclosed this to State House correspondents after the meeting.

Meanwhile, fuel queues have built up in Calabar, the capital of Cross River State as independent marketers have shut down filing stations over shortage of petrol.

This came just as a militant was killed by operatives of the Nigerian Army in the Calabar-South axis of the metropolis over suspected case of bunkering.

One of our correspondents, who went round the metropolis on Monday, observed that most independent marketers’ retailing outlets were closed because they had no fuel.

It was learnt the product was not available at the NNPC depot, while one of the major marketers reportedly sold the product at N143 ex-depot price to independent marketers.

An independent marketer, Ephraim Aba, blamed the situation on the alleged deceit by the NNPC that the product was available.

He said, “Most of our depots with the product are not selling at the N133.28 ex-depot price. As of today, the North-West, one of the biggest depots in Calabar, sold the product at N143 and by the time it gets to the station, it should have risen to N147. How much do you expect us to sell?”

Long queues of vehicles were also noticed at petrol stations in Makurdi, the Benue State capital as fuel scarcity persisted on Monday.

One of our correspondents who monitored the situation in Makurdi reported that the queues were visible in the NNPC mega station on Makurdi-Otukpo Federal Highway, Rain Oil filling station along High Level and Bolex, among others within the capital city.

Many motorists who could not bear the long queues at the fuel stations resorted to buying fuel from black marketeers who had to pay between N300 and N350 per litre.

The Benue State Commandant, Nigeria Security and Civil Defence Corps, Mr. Shuayb Jubril, said he had deployed his men to all petrol stations to ensure that marketers did not hoard the product, warning that anyone found selling fuel to black marketeers would be arrested and prosecuted.

Meanwhile, it was learnt that the amphibious team of the Nigerian Army on Sunday night gunned down two suspected militants engaged in illegal oil bunkering in the Jebbs axis of Calabar-South.

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Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, 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 Q3 Foreign Trade Skyrockets: Crude Oil Revenue Surges by 83.23% to N8.54tn

Published

9 hours ago

December 5, 2023

Investors King

Nigeria’s foreign trade expanded by 53.16% year-on-year to N18.80 trillion in the third quarter (Q3) of 2023.

The surge was primarily propelled by an impressive 83.23% spike in crude oil revenue to N8.54 trillion, a substantial increase from N4.66 trillion recorded in the same quarter of the previous year.

This was reported by the National Bureau of Statistics (NBS) in its ‘Foreign Trade in Goods Statistics (Q3 2023)’ that highlighted the nation’s trade balance and economic outlook.

The report noted that total exports rose by 60.78% to N10.35 trillion.

Mr. Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission, emphasized the importance of viability in retaining exploration leases.

He said, “Based on PIA (Petroleum Industry Act), the commission is focused on delivering value for the nation so only firms that are technically and financially viable will keep their leases.”

The report outlined the dominance of crude oil in exports, constituting 82.50% of total exports, while non-crude oil products contributed N677.57 billion or 6.55% of total exports. The positive trade balance stood at N1.89 trillion.

The top five export destinations for Nigeria included Spain, India, The Netherlands, Indonesia, and France, collectively accounting for 45.98% of total export value.

On the import side, China, Belgium, India, Malta, and the United States were the major sources, comprising 57.18% of total imports, valued at N4.84 trillion.

While these promising trade figures indicate a robust economic performance, challenges in the oil sector persist, with the country’s crude oil production below the 2023 target.

The government’s commitment to increasing production aims to boost revenue and fund strategic national projects, as highlighted by Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri.

The surge in exports, possibly linked to the recent naira devaluation, underscores the intricate relationship between economic policies and trade dynamics, shaping Nigeria’s economic trajectory.

Economy

Federal Government to Earn Over $500 Million in INTELS Deal

Published

2 days ago

December 4, 2023

Investors King

The Nigerian Ports Authority (NPA) has unveiled an agreement with INTELS Nigeria Limited that is set to bring substantial financial gains to the federal government.

The comprehensive deal, negotiated over weeks, not only resolves a contentious pilotage contract but also promises to bolster Nigeria’s coffers by over $500 million.

The accord encompasses a multifaceted approach to financial benefits, including an interest waiver of $193,317,556 and a significant reduction in the interest rate on outstanding debt.

The debt, originally at a six-month London Interbank Offer Rate (LIBOR) + 6.5%, has been revised to a more favorable six months Secured Overnight Financing Rate (SOFR) + 3%.

Such financial restructuring is anticipated to save the government a staggering $326.8 million over the next 15 years.

NPA, in a detailed breakdown, elucidated that the agreement further involves spreading the debt repayment over 15 years, with the initial two years being interest-free.

Additionally, there is a commendable reduction in the commission percentage, dropping from 28% to 24.5%, a move that aligns with the government’s commitment to optimizing financial resources.

The Minister of Marine and Blue Economy, Adegboyega Oyetola, received accolades for his tireless efforts in steering the negotiations to a successful conclusion. NPA expressed gratitude for his commitment to putting Nigeria first, emphasizing the critical role played by the minister in resolving the long-standing INTELS dispute.

Former Vice President Atiku Abubakar, however, denied benefiting from the reinstatement of INTELS contracts.

He clarified that his divestment from the company remains unchanged, emphasizing that he cannot be a beneficiary of the restored pilotage monitoring business.

NPA’s move to ensure a resolution with INTELS is not only seen as a financial triumph but also as a strategic step towards fostering economic stability.

The agreement is poised to have a positive ripple effect on revenue generation and underscores the government’s commitment to diplomatic and economically viable solutions.

Economy

Nigeria’s Refinery Output Plummets by 92% in a Decade

Published

2 days ago

December 4, 2023

Investors King

Nigeria’s local refineries recorded a 92% decline in output over the past decade, according to the Statistical Review of the World Energy 2023 report.

The data unveils a drastic drop in refining capacity, plummeting from 92,000 barrels per day (bpd) in 2012 to a mere 6,000 bpd in 2022.

This disconcerting revelation is echoed in the Organisation of the Petroleum Exporting Countries’ (OPEC) Annual Statistical Bulletin 2023, which underscores an 81% reduction in Nigeria’s crude oil refining capacity, falling from 33,000 bpd in 2018 to 6,000 bpd in 2022.

Despite owning four government-owned refineries, located in Port Harcourt, Warri, and Kaduna, with a collective capacity of around 4.45 million bpd, Nigeria continues to heavily rely on importing refined petroleum products.

This dependency raises questions about the nation’s resilience and self-sufficiency in the energy sector.

Minister of State for Petroleum, Heineken Lokpobiri, had previously announced plans for the Port Harcourt refinery to commence operations by the end of the current year, with the Warri and Kaduna refineries expected to follow suit in early 2024.

This revelation comes amid rising concerns over Nigeria’s continued reliance on importing refined petroleum products, even with substantial investments in refinery infrastructure.

The decline in local refining exacerbates the challenge, leading to soaring petrol prices and a strain on the nation’s economic landscape.

Industry experts stress the urgency of revitalizing local refineries, emphasizing that dependence on imports is neither sustainable nor conducive to the country’s economic well-being.

As Nigeria grapples with the complexities of its energy dynamics, the impending revival of local refineries stands out as a crucial solution to navigate these challenging times.