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NNPC Insists on December Deadline to End Petrol Import

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  • NNPC Insists on December Deadline to End Petrol Import

The Nigerian National Petroleum Corporation (NNPC) has indicated it will meet up with the December 2019 deadline proposed by the federal government to end the importation of refined petrol into Nigeria.

The development is expected to pave way for the refineries in Port Harcourt, Warri and Kaduna, to produce most of the petrol consumed in the domestic economy.

In 2018, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, had disclosed Nigeria would exit importation of petrol and totally depend on its own refined petrol.

The minister had then stated that a steering committee headed by him and others had been constituted to fine-tune the process.

But in a September 2018 operations and financial report of the NNPC obtained recently in Abuja, the corporation explained it would abide by the deadline, and was making progress on the plan.

“NNPC is intensifying efforts towards the rehabilitation of the refineries to meet December, 2019 target of ending fuel importation,” the report stated about plan to meet the target.

Nigeria’s expenditure on petrol importation has continued to grow with the Group Managing Director of NNPC, Dr. Maikanti Baru, recently disclosing that the total amount of under-recovery – a term now used by the corporation to describe the financial amount of subsidy the federal government absorbs for keeping the pump price of petrol at N145 per litre, was N25 per litre.

This figure when calculated against the three billion litres of petrol the corporation recently imported suggested Nigeria may have recorded about N75 billion under-recovery in this regards.

Furthermore, if calculated on the basis of 60 days which the NNPC said the three billion litres would last Nigeria, and which amounted to 50 million litres consumption per day, then the corporation may be recording an under-recovery of N1.250 billion daily to keep petrol pump price at government regulated price of N145 per litre.

Meanwhile, the NNPC report also indicated that within the period under consideration, up to 628,000 barrels of oil was lost to shutdown of pipeline and export terminals.

It explained: “The Trans Escravos Pipeline (TEP) was shut down for seven days from 3rd to 10th August 2018 due to observed leaks at the Otumara axis with production loss of 30,000 barrels per day (bpd).

“Also the Otumara flow station was shut down for 10 days from 18th – 27th August 2018 for maintenance works with production shut-in of 34,000bpd.

“The TRP (Brass Creek / Trans Ramos Pipeline) was shut down since 24th April 2018 due to leaks in a creek crossing in the Odimodi area with the loss of approximately 35,000bpd of production into Forcados Terminal. The line remains shut all through the month of August and to date.”

It further stated: “OYO Terminal: Due (to) technical issues with the only producing well, this terminal was shut down in the whole of August from 16th August 2018 and to date. The production shut-in was 5,000bpd.

“The Agbami, Brass and Qua Iboe terminals were all shut down for one day each in August 2018 for maintenance, plant trip and power issues respectively leading to production cut of 23,000bpd, 10,000bpd and 45,000bpd respectively.”

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.

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Nigeria Appoints Four Global Banks To Oversee Eurobonds Issuance

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Nigeria on Wednesday appointed four global lenders, JPMorgan, Citigroup, Standard Chartered and Goldman Sachs as book-runners for its forthcoming Eurobond issue, according to the Debt Management Office (DMO).

The debt office also appointed Chapel Hill Denham as Nigerian bookrunner and FSDH Merchant Bank as a financial adviser.

It said in a statement that the Transaction Advisers emerged from an Open Competitive Bidding Process as outlined in the Public Procurement Act, 2007 (as amended).

According to the debt office, 38 institutions jostled for the transaction advisers but chose to select eight after “rigorous evaluation to ascertain the technical capacities of the responders to execute the Transaction.”

The Eurobonds are aimed at raising the external borrowing portion of the N5.6 trillion deficits in the 2021 budget put at N2.34 trillion.

“Whilst the government expects a successful outing, it will be mindful of costs and risks in terms of tenor and pricing in determining the amount of Eurobonds to issue,” the DMO said.

The DMO said proceeds from the bond sale will be used to fund various projects in the budget with the resultant inflow of foreign exchange into the country which will boost Nigeria’s dollar reserves and support the naira.

Nigeria had planned a Eurobond issue early last year after its sixth sale in 2018 where it raised $2.86 billion. But it decided to defer the 2020 sale due to the turmoil caused by the COVID-19 pandemic.

The National Assembly last month approved the external borrowing of about $6.2 billion through the issuance of a Eurobond.

The government has said it wanted to moderate debt servicing costs by accessing relatively cheaper funds abroad, as global interest rates fall below 2020 levels while local rates rise.

Nigeria emerged from its second recession since 2016 in the fourth quarter of last year, but growth is fragile.

The government expects a 2021 budget deficit of N5.6 trillion to be financed largely from foreign and local borrowings in equal proportion.

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Appointments

Nestle Nigeria Plc Appoints Two New Directors

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Nestle Nigeria Plc has appointed Mrs Adebisi Lamikanra and Mr Ibukun-Okun Ipinmoye as non-executive director and executive director respectively.

According to a statement signed by the Company Secretary, Bode Ayeku, Lamikanra, whose appointment was approved by the board, has over 30 years of professional experience providing advisory and consulting services to various public and private sector entities within and outside Nigeria.

The statement said before her appointment, Lamikanra was the head of the advisory practice of KPMG Nigeria consisting of management consulting, deal advisory, technology advisory and risk consulting business units. She had also led the financial services sector across Africa.

Lamikanra has a degree in economics and is a fellow of the Institute of Chartered Accountants of Nigeria. She attended various leadership programs over the years at Instead, Lagos Business School, Harvard Business School, Kellogg and many others.

She is currently the co-chair of Women Corporate Directors in Nigeria and the thematic leader for the non-banking sector for the Nigerian Economic Summit Group. She is a promoter of an NGO which focuses on providing employability training to Nigerian graduates.

On his part, the statement said Ipinmoye was currently the factory manager at, Agbara factory. He is a certified professional coach and a fellow of the Institute of Management Consultants.

He had joined Nestle Nigeria as a graduate trainee in 1993 and was appointed in 2016 to be the factory manager, Flowergate Factory, where he effectively built and sustained a high-performing culture at the factory.

He holds an M.Sc degree in biochemistry from the University of Ilorin and an M.Sc degree in management from Commonwealth Open University, United Kingdom.

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Brands

FrieslandCampina Re-Launches Olympic, Coast Milk Brands

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FrieslandCampina WAMCO, Nigeria’s foremost dairy company and makers of Peak and Three Crowns milk, has re-launched Olympic, Coast, and Nunu milk brands into the Nigerian market through the ‘Word twist’ campaign.

The new ‘Word twist’ campaign requires consumers to compose meaningful sentences with Coast, Olympic, and Nunu for a chance to win fantastic prizes.

For example, “You can now Coast to natural goodness like the fastest man alive cruises to Olympic medals with one Nunu milk a day in your meal.”

Omolara Banjoko, marketing manager, FrieslandCampina disclosed that the campaign became necessary following FrieslandCampina WAMCO’s acquisition of PZ Nutricima and its brands; Olympic, Coast, and Nunu.

“These brands have an existing portfolio across different formats with varied strengths in the different regions of the country. Hence, with this campaign, we plan to strengthen the perception of the brands leveraging FrieslandCampina WAMCO’s strong heritage” Banjoko said.

She further explained that FrieslandCampina is committed to bringing affordable and readily available quality dairy products to Nigerians and with the acquisition, it will be able to meet the growing demands of its consumers.

“Coast Milk promises natural goodness and therefore it is a perfect match that will work well with consumers who wish to stick to natural-made products.

“Adults have a myriad of responsibilities to attend to daily and with Olympic milk, they are assured of getting the right nutrients that will cater to their energy needs and active lifestyle,” she said.

“Nunu offers nutrient-rich milk that can conveniently be used by consumers and businesses looking to upgrade their everyday meal and intermediate products. Olympic, Nunu, and Coast milk are back like they never left and we encourage people to look out for the brands in their neighborhood” Banjoko added.

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