Connect with us

Business

Reps to Probe Petroleum Products’ Diversion by Marketers

Published

on

exports
  • Reps to Probe Petroleum Products’ Diversion by Marketers

The Chairman, House of Representatives Committee on Petroleum, Downstream, Joseph Akinlaja, has said that legislators will investigate the allegations of petroleum products’ diversion by oil marketers.

According to a statement issued by the Nigerian National Petroleum Corporation on Thursday in Abuja, Akinlaja stated this when he visited the NNPC, adding that the House of Representatives would come up with workable solutions to the current fuel scarcity in the country.

This is coming as the Group Managing Director, NNPC, Maikanti Baru, commended the support of critical stakeholders like the House of Representatives, adding that the corporation would partner relevant organisations to address the fuel supply concerns.

Baru noted that the corporation had commenced the automation of loading pumps in all its depots nationwide, noting that it was also increasing the volume of products distribution to the market and would not relent until the problem was over.

He condemned the action of some persons involved in products’ diversion, and noted that in October this year, there was an incident of 145 million litres of petrol being diverted in which the depot owner claimed to have loaded the product on a day that there was no loading schedule.

The Chief Operating Officer, Ventures, NNPC, Babatunde Adeniran, stated that products’ diversion was a major challenge that must be fought by all and sundry, lamenting a situation where eight trucks were sent to Bauchi State and none of them delivered products at the location.

He said the situation required the support of all stakeholders, adding that there was a need to check some excesses within the country and at the nation’s borders.

Meanwhile, the NNPC denied reports that some ‘ghost’ companies lifted 62.2 million barrels of crude from it.

It said, “The attention of the NNPC has been drawn to a story in a national weekly alleging that the following companies, AMG Petroenergy Limited, Brittania-U, Cassiva Energy, Hyde Energy, Masters Energy, Bono Energy Limited and Sahara are ghost companies and have lifted a total of about 67.2 million barrels of Nigerian crude oil valued at about $3.5bn between January and October 2017 from the NNPC.

“Contrary to the assertions, the NNPC duly entered into the 2017/2018 crude oil term contracts with the companies in their appropriate registered corporate names. Furthermore, the companies collectively lifted a total of 8.8 million barrels of crude oil valued at $436.35m as of 30th of October 2017, contrary to the claim that 67.2 million barrels were lifted.”

It said all crude oil lifting transactions were backed by irrevocable letters of credit issued by investment grade banks and, therefore, all payments were pre-secured.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Business

Businesses Groan as Price of Diesel Rises to N250 Per Litre

Published

on

Petrol Importation

Businesses Groan as Price of Diesel Rises to N250 Per Litre

Businesses have started feeling the negative impact of the rising price of Automotive Gas Oil, known as diesel.

A single litre now goes for N250 in some parts of Lagos, with businesses taking a beating on the back of rising energy costs.

Our correspondent observed that some filling stations in Lagos had increased the price of the product to N250 per litre, while many others sold it at between N220-N245.

Northwest Petroleum along the Oshodi-Apapa road increased the pump price of diesel to N250 per litre; AP (Ardova Plc), along Airport road, Ikeja, N248; and Oando, along Acme Road, N240.

The National Bureau of Statistics, in its AGO price report on Tuesday, said the average price paid by consumers for diesel increased by 0.22 per cent to N224.86 per litre in January 2021 from to N224.37 in December 2020.

It said states with the highest average price of diesel were Adamawa (N268.33), Zamfara (N262.78) and Kebbi (N257.50).

“States with the lowest average price of diesel were Osun (N194.60), Anambra (N195.83) and Enugu (N198.24),” the NBS added.

Crude oil price accounts for a large chunk of the final cost of petroleum products, and the deregulation of the downstream oil sector by the Federal Government means that the pump prices of the products will reflect changes in the international oil market.

The international oil benchmark, Brent crude, has risen by more than 25 per cent this year from the $51.22 per barrel at which it closed last year. It rose to $65.25 per barrel as of 6:30pm Nigerian time on Tuesday.

Diesel is mostly used by businesses to power their generators amid a lack of reliable power supply from the national grid.

The President, Association of Small Business Owners of Nigeria, Mr Femi Egbesola, lamented that the recent increase in the price of diesel was taking a heavy toll on businesses, especially Small and Medium Enterprises.

“The cost of diesel and raw material is giving us a nightmare. The price of diesel has been skyrocketing in a way that creates fear in particularly manufacturers,” he told our correspondent on Tuesday.

According to him, it is difficult for businesses to factor all the increase in diesel price in their final product prices.

Egbesola said, “That is why a lot of companies are downsizing and are making sure that they only produce products that they are so sure will sell in the market.

“Many companies have reduced their product lines significantly just to be able to cope. And that is not good for us because by the time this goes on, unemployment will increase. I believe government should be able to do something about this.”

He said although the downstream petroleum sector had been deregulated, there should be checks and balances.

Egbesola said many small businesses’ savings had been eroded already because ‘we keep spending our savings to make sure we don’t close shop’.

He said, “If things continue this way, there is no way we are not going to close shop. We are still struggling with the recent increase in electricity tariff.

“Many small businesses still depend so much on diesel generators because there is no alternative power supply. It is only the big players that have the facilities to use gas. And we cannot use solar installation because it is very expensive.”

Nigeria, Africa’s largest oil producer, relies largely on importation for petrol and other refined products as its refineries have remained in a state of disrepair for many years.

Continue Reading

Appointments

United Capital Appoints Latunji Head, Marketing/Corporate Communications

Published

on

United-capital

United Capital Appoints Latunji Head, Marketing/Corporate Communications

United Capital Plc has been appointed, Tolu Latunji as its Head, Marketing & Corporate Communications.

In the new role, he is expected to drive a strategic communications, marketing and brand management programme for the investment banking group.

Latunji is a communication and marketing expert with 12 years’ experience in products development, marketing, brand & franchise building, effective management and communication of strategic objectives whilst ensuring adequate visibility for both organisation and product/service offerings through product, content and brand initiatives.

“With a 360 degree knowledge of communications and marketing, which includes but not limited to – brand management and initiatives, corporate affairs, internal and external affairs, product and brand marketing, event management and experiential marketing, cluster/segment marketing, Tolu has served at various capacities on government constituted sub-committees on financial inclusion,” a statement explained.

Prior to joining United Capital Plc, he was the Managing Partner of Ten & Square Media Co., a bespoke creative ideation and brand/crisis management firm, based in Lagos, Dakar and London.

Latunji was recently the Strategic Communications lead at FMDQ Securities Exchange, Nigeria’s first integrated financial market infrastructure (FMI), where he had the responsibility of effectively positioning the group, together with its subsidiaries, as the most sophisticated and technologically driven securities exchange in Africa.

Prior to that, he worked in Guaranty Trust Bank for nine years with roles in brand management & monitoring, events and experiential marketing, products and content marketing and user experience.

He led the marketing team to the successful development and launch of various retail, SME and corporate products. He was also instrumental in curating and developing the bank’s social footprints. Outside the corporate environment, Tolu engages in various humanitarian activities with food banks and empowerment programmes. He holds a B.Sc. Economics from University of Lagos.

Continue Reading

Business

Firm to Train 100 Nigerians in Solar Installation

Published

on

300MW Solar energy

Firm to Train 100 Nigerians in Solar Installation

A learning institute, GreCo Academy is seeking to train 100 Nigerians on solar installation in Nigeria.

The trainees are expected to undergo a 90- day intensive vocational training after which successful candidates will be rewarded with a three-month paid internship with a renowned Renewable Energy Company in Nigeria, according to a statement by the firm.

The training will consist of 80 days virtual engagement and 10 days physical engagement.

This initiative, according to the firm is aimed at giving the trained candidates hands-on practical experience in their journey to becoming professional solar installers in the country.

Continue Reading

Trending