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Railway Concession Issues Delay Petrol Distribution by Train

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rail project- Investorsking
  • Railway Concession Issues Delay Petrol Distribution by Train

The Federal Government’s decision to concession the country’s rail system is delaying the plan to resume the distribution of petroleum products through the railway, the Petroleum Equalisation Fund announced on Tuesday.

PEF’s Executive Secretary, Ahmed Bobboi, said the resumption of petroleum products’ distribution by rail had been put on hold pending when issues surrounding the concession agreement of the country’s rail system were resolved.

He told journalists at a workshop in Abuja that moves by the agency to introduce railway petrol equalisation in Nigeria to enhance the distribution of petroleum products through the rail lines would not go on as planned until the government concluded its railway concession programme.

Bobboi said, “We planned to introduce railway equalisation last year, but certain developments delayed it and one of them was the planned concession of the railways by the government. At a point, General Electric showed interest and obviously, we want to wait and see who will manage the railway system between the government and the private sector.”

The PEF boss also stated that a new Information Technology system called sensor monitoring had been set up by the agency to monitor and determine the volume of petrol consumed in Nigeria daily.

He said the technology would also check the diversion of petrol, adding that such products were often diverted by dubious petroleum products marketers.

Bobboi further noted that to incentivise the adoption and use of Liquefied Petroleum Gas, popularly known as cooking gas, the agency had decided to introduce an equalisation scheme for the product.

He said, “We have introduced some few policies recently and these include the sensor monitoring project which is going on now. This is major in the sense that it does not just stop at serving the PEF but also agencies like the National Bureau of Statistics which require information we provide on petroleum products landing in this country and the refineries.

“This is key because up till today, it is difficult to determine how much we consume in this country in terms of PMS (Premium Motor Spirit). Different agencies give you different figures and I think it is not neat, but by introducing this sensor monitoring project, we believe it will serve the purpose of answering all these questions.”

Bobboi added, “Censor monitoring was approved by the Federal Executive Council in August 2018 and it is supposed to run for three years. Work has already started and before the end of this year, we will begin to see some of the landmarks.”

On the LPG and railway equalisation, he said, “Railway equalisation and LPG penetration: These are crucial to the existence of PEF because we think that by equalising gas in the country, we will help the government in its policy of trying to reduce desert encroachment. It is not only the government of Nigeria that is doing this but also the United Nations, which is promoting clean environment.”

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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Nigeria’s Paper Import Bill Hits $3 Billion Annually, Reveals FAE Limited MD

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Funlayo Okeowo, the Managing Director of FAE Limited, a prominent paper manufacturing firm, has disclosed that Nigeria’s annual expenditure on paper imports stands at $3 billion.

Okeowo made this revelation during a recent press conference held in Lagos to commemorate the company’s 50th anniversary.

Addressing reporters, Okeowo explained the crucial role of manufacturing in driving economic growth and underscored the challenges faced by the sector, particularly concerning operational costs.

She highlighted that a significant portion of manufacturers’ profits, up to 80%, is being consumed by diesel expenses, making it increasingly difficult for businesses to remain profitable.

Expressing concern over the financial strain faced by manufacturers, Okeowo called upon the government to take decisive action to alleviate the burdens faced by the industry.

She emphasized the need for policies and interventions aimed at reducing operational costs and fostering a conducive environment for manufacturing growth.

In addition to addressing the pressing issues surrounding manufacturing, Okeowo also unveiled plans for the establishment of ‘World Envelopes Day,’ an initiative aimed at raising awareness about the significance of envelopes in various aspects of human communication and expression.

The initiative, set to be celebrated annually on April 16th, reflects FAE Limited’s commitment to promoting the cultural and practical importance of envelopes in society.

As part of the company’s anniversary celebrations, FAE Limited will host a special roundtable event featuring key stakeholders from diverse sectors to discuss the past, present, and future of the paper manufacturing industry in Nigeria.

This event is expected to provide valuable insights and recommendations for driving

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Economist Intelligence Unit Warns Indigenous Oil Companies of Investment Gap

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Oil

The Economist Intelligence Unit (EIU) has issued a cautionary note to indigenous oil companies eyeing the acquisition of assets from divesting international oil companies, warning them of potential investment challenges.

In its latest Country Report on Nigeria, the EIU underscored that local companies may not match the financial prowess of multinational firms, historically significant players in Nigeria’s oil industry.

Citing concerns over Nigeria’s business environment, characterized by corruption, insecurity, and infrastructure deficits, the EIU projected a possible net withdrawal of foreign direct investment (FDI) in 2024, following a similar trend observed in the previous year.

The report pointed to multinational corporations scaling back or exiting Nigeria altogether, exacerbating the economic landscape’s challenges.

Foreign oil companies, including Shell, ExxonMobil, Equinor, and TotalEnergies, have announced plans to divest their onshore oil assets, signaling a shift toward offshore operations.

This trend aligns with the broader industry shift and poses significant implications for indigenous players.

While government officials like the Minister of State for Petroleum, Heineken Lokpobiri, view these divestments as opportunities for local capacity development, concerns remain over indigenous firms’ ability to fill the investment void left by departing multinationals.

The EIU emphasized the positive potential for local participation in the sector’s indigenization, but cautioned that indigenous companies might struggle to match outgoing multinationals’ investment capabilities.

This warning underscores the imperative for strategic planning and support mechanisms to ensure indigenous firms can navigate the evolving landscape and contribute meaningfully to Nigeria’s oil industry sustainability.

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Heirs Technology Appoints Obong Idiong as Chief Executive Officer (CEO)

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Obong-Idiong

Heirs Technology, the latest subsidiary of investment powerhouse Heirs Holdings, has announced the appointment of Obong Idiong as its Chief Executive Officer (CEO).

This move marks a significant step in the company’s mission to spearhead Africa’s digital transformation through innovative and locally tailored solutions.

Idiong, who previously served as the Managing Director/CEO at Africa Prudential Plc, brings a wealth of experience and a visionary approach to his new role.

During his tenure at Africa Prudential Plc, he led the digital transformation of its registrar services, positioning the company as a technology-driven organization.

His track record of success and expertise in the technology sector make him well-suited to lead Heirs Technology into a new era of growth and innovation.

In his statement following the appointment, Idiong expressed pride in bringing Heirs Holdings’ core values and business approach to the tech sector.

He highlighted the company’s commitment to excellence, execution, and enterprise, aiming to bridge the gap in the technology ecosystem by delivering local relevance to a global market and offering cutting-edge solutions to enhance competitiveness.

Also, Dr. Fumbi Chima has been appointed as the Chair of Heirs Technology. With her extensive experience in technology leadership roles across global organizations, including Adidas, Fox Network Group, and Walmart, Chima brings a wealth of knowledge and insights to her new role.

She expressed enthusiasm for the opportunity to unlock Africa’s potential through Heirs Technology, confident that the company will make a meaningful impact on the continent’s digital landscape.

Heirs Technology’s strategic appointments underscore its commitment to driving Africa’s digital agenda forward and positioning the continent as a leader in technology innovation and entrepreneurship.

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