Business

REVEALED: Nigerian Aviation Faces Fresh Fuel Crisis

Published

1 year ago

May 18, 2022

There are projections of a fresh fuel crisis, following the revelation of a shortage in supply to the Nigerian Aviation by the Nigerian National Petroleum Company Limited (NNPC).

This comes barely a week after the NNPC took charge of the aviation affairs to resolve the fuel crisis.

About three months ago, Investors King reported an increase in the aviation fuel price to N420 per litre as against the initial price of N400.

Investors King explained that the increment took effect without prior notice to the aviation companies, with ticket fares skyrocketing by about 63%.

Also, it was gathered that a lot of travelers had to opt for other options after they discovered that their usual ticket prices had doubled in price.

However, during a meeting with the House of Representatives last week, the NNPC and domestic airlines agreed that the national oil company would supply Jet-A1 to marketers nominated by airline operators for a three-month period at N480 per litre, pending when the carriers would be granted licenses to import the commodity.

Business Day reports that the product cost N598 per litre in Lagos, N642 in Kano, N640 in Kaduna, N627 in Abuja, N635 in Enugu and Anambra, and N628 in Port Harcourt as of Monday.

Also, airlines have already begun delaying flights and raising rates around the country as a result of the impact.

Air Peace, Dana, and United Nigeria Airlines’ economy one-way fares from Lagos to Abuja, Owerri, Port Harcourt, and Asaba have climbed to between N55,000 and N70,000.

Air Peace, Azman, and Max Air fares from Lagos to Abuja, Kano, and Kaduna have increased from N50,000 to almost N65,000.

AON’s spokesman, Obiora Okonkwo, said the country’s air transportation operations are being hampered by a continuous occurrence of fuel shortages, which could result in further flight rescheduling and cancellations.

However, he stated that the AON is collaborating with product marketers, the government, and other relevant stakeholders to ensure product availability and proper pricing throughout the country.

“The Airline Operators of Nigeria wish to alert the public of impending disruptions to scheduled flight operations of members of the association. This development is being forced on members by the growing scarcity of aviation fuel popular as Jet-Al.

“The scarcity is impacting negatively on the seamless conduct of air transport operations and would lead to flight rescheduling, and, or, cancellations.

“While pleading the understanding of the flying public in the face of this reality, we also promise to do all that is necessary, and within our powers, to restore normal flight schedules as soon as possible,” he said.

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Dangote Refinery Controversy: Safety, Quality, and Financial Woes Unveiled

Tension Between Aliko Dangote and NNPC Raises Concerns Over Nigeria’s Oil Industry

Published

6 hours ago

September 22, 2023

Investors King

The Dangote Refinery, an ambitious project by Africa’s wealthiest man, Aliko Dangote, has found itself engulfed in a whirlwind of controversy, pitting Dangote against the Nigerian National Petroleum Corporation (NNPC).

This recent dispute, marked by safety concerns, incomplete construction, and financial woes, has left many questioning the ethics, quality, and viability of Africa’s largest refinery.

Sources close to the situation reveal that Aliko Dangote is seeking the elusive license to commence operations, the final crucial step before production can begin at the refinery.

However, the NNPC, Nigeria’s regulatory body, has balked at granting the license due to legitimate safety concerns, chiefly stemming from the incomplete status of the facility.

Also, Dangote’s bid to purchase crude oil from the NNPC was met with a firm denial, citing the refinery’s incomplete status as a deterrent. This has sparked allegations that Dangote may be considering unconventional methods, such as sourcing Nigeria’s crude through trading houses, which could be viewed as circumventing established procedures.

Even if Dangote manages to secure the necessary crude oil, concerns regarding safety and product quality persist. Workers within the Dangote Group, as well as contractors and some NNPC officials, have voiced apprehensions about commencing refinery operations prematurely.

The current state of the refinery only allows for the initial phase of crude distillation, a process akin to operations found in illegal refineries within the Niger Delta region. The unfinished catalytic cracking unit further amplifies worries about the quality of refined products.

Amid these concerns, it appears that Dangote’s motivations may be driven by financial pressures. Reports suggest that the Dangote Group is grappling with substantial debt, potentially jeopardizing the company’s stability if it fails to secure additional funds for loan repayments by December. This financial strain could be the driving force behind Dangote’s eagerness to obtain the operating license, even without the refinery being fully ready.

Recalling events from earlier this year, the uncompleted refinery was hastily commissioned by former President Buhari. This move aimed to grant Dangote access to additional equity funding from the Nigerian Government and secure a crude oil allocation of 300,000 barrels per day. This allocation was intended to be sold to raise funds for creditors and aid in completing the refinery.

However, when the new administration of President Tinubu took office, it was discovered that the refinery was far from completion, raising suspicions that it was falsely commissioned to secure the crude allocation for export.

The ongoing standoff between Aliko Dangote and the NNPC illuminates broader issues surrounding safety, quality, and financial stability plaguing the Dangote Refinery project.

Business

National Council of Managing Directors of Licensed Customs Agents Protests Central Bank’s New Price Verification System

Published

2 days ago

September 21, 2023

Samed Olukoya

Members of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) have expressed their strong opposition to the recently introduced price verification system at Nigeria’s ports by the Central Bank of Nigeria (CBN).

They argue that this new system is in violation of the Customs and Excise Management (Amendment) Act 20 of 2003 and the Nigeria Customs Service Act of 2023, which govern the valuation of imports.

In a letter dated Wednesday and signed by Mr. Lucky Amiwero, the founder of NCMDLCA, addressed to several key government officials, including the President, the Secretary to the Government of the Federation, the Chairman of the Senate Committee on Customs and Excise, the Chairman of the House Committee on Finance, the acting Governor of the CBN, the Ministry of Justice, and the Attorney General of the Federation, among others, the group urged President Bola Tinubu to disregard the circular issued by the apex bank regarding the introduction of the price verification system.

NCMDLCA went on to explain that the process of valuing goods in Nigeria is explicitly outlined in the Customs and Excise Management Act 20 of 2003 and the Nigeria Customs Service Act 35 of 2023.

These laws grant authority over the treatment, processes, procedures, and determination of the valuation of imported goods based on the transaction value method.

The letter further stated, “We hereby bring to the attention of the Federal Government of Nigeria that the Central Bank circular TED/FEM/PUB/FPC/001/008 of 17th August 2023, Go-Live of the Central Bank of Nigeria Verification System Portal, contravenes the following laws of valuation of imported goods: Customs and Excise Management (Amendment) Act 20 of 2003 and Nigeria Customs Service Act 2023.”

Amiwero also said that the Customs and Excise Management Act (CEMA) is the sole legal framework for determining the value of imported goods.

He argued that the additional requirement of price verification by the CBN duplicates the functions of the Customs and would create bottlenecks and conflicts when determining the value of imported goods.

According to Amiwero, the valuation process is clearly defined in the existing laws governing the valuation of imported goods.

He expressed concerns that the implementation of the CBN’s price verification system, if allowed to proceed, would result in redundancy and cumbersome procedures within the import and export system, especially for individuals not well-versed in valuation and import-export procedures.

This protest by the National Council of Managing Directors of Licensed Customs Agents sheds light on the growing concerns surrounding the Central Bank’s new price verification system and its potential impact on the country’s import and export processes.

The issue is likely to spark further discussions and debates among relevant stakeholders and government authorities.

Company News

Dangote Industries Limited Reaffirms Commitment to Bolstering Employment Opportunities for Nigerians

Dangote Industries Limited has underscored its unwavering dedication to fostering employment opportunities and advancing the cause of decent work for the Nigerian populace.

Published

3 days ago

September 19, 2023

Investors King

Dangote Industries Limited has reiterated its steadfast investment in critical sectors of the nation’s economy to facilitate job creation and stimulate the growth of meaningful employment.

Speaking during the induction ceremony of a new cohort of graduate trainees, Mr. Aliko Dangote, the President of Dangote Group, highlighted the company’s transformative journey from a commodity trading entity to a manufacturing powerhouse.

This evolution is a testament to their unwavering mission to contribute significantly to Nigeria’s industrial development, consequently positioning the nation prominently in the African industrial landscape.

“The core mission of our group is to improve the lives of the people by addressing their fundamental needs. This noble objective can only be achieved through the production of essential goods that cater to the needs of our people. This is why we have made massive investments across various sectors of the economy,” stated Mr. Dangote.

Mr. Dangote further emphasized the pivotal role that manufacturing plays in meeting the needs of the populace and its potent ability to combat poverty by creating job opportunities.

He commended the ongoing graduate trainee program as a tangible manifestation of their commitment to employment generation, recognizing its positive impact on the lives of countless individuals.

In a strategic move aimed at fulfilling their goal of job creation and addressing the basic needs of the Nigerian people, Mr. Dangote revealed that his Group has expanded its business portfolio with three significant investments valued at over $20 billion.

These investments encompass the refinery, petrochemical, and fertilizer sectors, with the potential to not only bolster the nation’s economy but also reinvigorate Nigeria’s foreign exchange reserves.

Also, these initiatives are anticipated to generate approximately $16 billion in foreign exchange earnings and offer an impressive aggregate of 250,000 jobs, thereby contributing to the reduction of youth unemployment in the country.

Dangote Industries Limited remains unwavering in its commitment to making substantial contributions to Nigeria’s industrial landscape, and its dedication to providing employment opportunities that uplift the lives of Nigerians is undeniably resolute.

The Group’s continuous investments in critical sectors reflect a steadfast commitment to shaping a brighter future for both the nation and its people.