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Petrol Scarcity Persists, New Vessels Arrive Apapa

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  • Petrol Scarcity Persists, New Vessels Arrive Apapa

As motorists and other users of Premium Motor Spirit (petrol) struggled to get the product at filling stations in Lagos, Ogun, Kaduna and Nasarawa states as well as the Federal Capital Territory on Monday, it was gathered that new vessels conveying the product arrived Apapa in Lagos.

Many filling stations were shut in the states, while the few stations that had the product recorded long queues of desperate motorists that stretched for kilometres and spilled onto the roads, thereby distorting the flow of traffic.

Some of the stations that dispensed the product on Monday sold it above the official pump price of N145 per litre.

The queues persisted on Monday right in front of the Abuja headquarters of the NNPC, as well as in other locations within the FCT.

In Nasarawa, Niger and Kaduna states, the queues persisted, although the situation improved slightly in some locations in Abuja and neighbouring states on Monday.

Motorists lamented that they had to spend hours in queues for petrol, while some petrol seekers with jerry cans were seen complaining that they had to part with extra money to get the product.

Our correspondents gathered some of the private depots in Apapa, where many marketers get petroleum products from for distribution to other states, did not have petrol to load.

Long queues of desperate motorists and other users of the PMS returned to many filling stations in Lagos and Ogun states on Saturday and Sunday after a brief relief from the severe scarcity of the product that rocked the country from December to early this month.

The Executive Secretary, Depot and Petroleum Products Marketers Association, Mr. Olufemi Adewole, said, “We have not been given what we want and we are still depending on the Nigerian National Petroleum Corporation to give us the product.

“We have made contact with both the PPMC and the NNPC through the managing director of the PPMC and chief operating officer/group executive director, NNPC Downstream. Both have noted our complaint that we are not getting enough and they promised to work on it to ensure that it is addressed this week.”

A top official of a Lagos-based oil marketing company told one of our correspondents on condition of anonymity that the supply situation got a bit better on Monday, adding that his organisation’s depot loaded massively to boost supply.

He stated tjat two vessels had arrived Apapa and one of them started discharging on Sunday, with Aiteo and Nipco receiving petrol from it.

“There is another vessel with not less than 25 million metric tonnes of petrol and is ready to start discharging. I met the vessel this morning; so it must have arrived over the weekend,” he added.

The Group General Manager, Group Public Affairs Division, NNPC, Mr. Ndu Ughamadu, insisted on Monday that the supply and distribution would normalise soon, adding that more trucks were being loaded.

“Once you have disruption in supply, it will take some hours to normalise. MOMAN members are cooperating. We have new vessels discharging the product,” he stated.

On Sunday, the NNPC said a technical hitch in ships berthing and discharging at the weekend, which had been rectified, was responsible for the disruption in supply.

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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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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