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146% Rise in Kerosene Price Increased Cost of Cooking Gas– NBS




The latest data from the Nigerian Bureau of Statistics (NBS) says the retail price of kerosene increased by 146 percent influencing the rise in cooking gas price.

Investors King reports that the NBS data containing November statistics indicates that the average retail price of household kerosene rose from N441 per litre in November, 2021 to N1,083 per litre in November, 2022 amounting to 146 percent increase.

This is as it hinted that the large increase affected the price of cooking gas which rose by 39 percent in the most recent data

“The average retail price for refilling a 12.5kg cylinder of Liquefied Petroleum Gas increased by 1.3 percent on a month-on-month basis from N10,050 in October 2022 to N10,180 in November 2022. On a year-on-year basis, it rose by 39 per cent from N7308.06 in November 2021,” says the data.

The average retail price of cooking kerosene per litre was recorded to be 4 percent higher on a month-on-month basis in November 2022 compared to N1,041 per litre sold in October.

The data on the retail price per gallon on a year-on-year basis indicates a 133 percent increase from N1,544 recorded in November, 2021. The average retail price per gallon paid by consumers in November 2022 was N3,594, an increase of 2 percent from N3,517 in October 2022.

The breakdown of statistics for each state price of kerosene showed that in November 2022, Akwa Ibom had the highest average price with N1,417 per litre, second highest was Cross River with N1,367 followed by Abuja with N1,307.

Meanwhile, the states with the lowest prices are; Borno, Rivers and Nasarawa with their average costs at N876, N910 and N913 per litre respectively.  

Also, analysis by zone revealed that the South-East recorded the highest average price per litre, with N1,209, followed by the South-West with N1,163, while the North-East recorded the lowest with N959 average price per litre.

For cooking gas, the NBS stated that the South-West zone had the highest average retail price for refilling a 12.5kg cylinder with N10,561, followed by the South-South with N10,495, while the North-East had the lowest price with N9,600. Prices, however, have risen to N11,000 per 12.5kg at private marketers’ outlets.

The statistics for December will be issued by the NBS before the end of the month.

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Nigeria’s Natural Gas Production Declines Despite N250bn Intervention Fund



Gas Plant

Despite the injection of a N250 billion intervention fund into the gas sector, Nigeria witnessed a downturn in natural gas production last year, raising concerns about the effectiveness of the financial stimulus.

The Energy Institute, in collaboration with KPMG, unveiled an industry report revealing a notable drop of 4 billion cubic feet meters in Nigeria’s natural gas production between 2021 and 2022.

While Nigeria’s gas production demonstrated consistent growth from 39 billion cubic feet meters in 2012 to 49 billion cubic feet meters in 2020, the trajectory abruptly shifted to a decline, reaching 45 billion cubic meters in 2021 and further slipping to 40 billion cubic meters last year.

The Federal Government’s intervention included a N250 billion fund, facilitated through the Central Bank of Nigeria, with N130 billion earmarked for 15 selected companies for the construction of Compressed Natural Gas (CNG) conversion centers.

This initiative, part of the National Gas Expansion Program (NGEP), aimed to promote CNG as the preferred fuel for transportation and Liquefied Petroleum Gas (LPG) for domestic cooking, captive power, and small industrial complexes.

The 15 recipient companies, including prominent names like Dangote Oil Refinery, Nipco Gas Ltd, and Greenville Liquefied Natural Gas Company, received a combined N130 billion.

However, despite this financial injection, the natural gas production figures tell a different story.

Chinedu Okoronkwo, President of the Independent Petroleum Marketers Association of Nigeria, expressed dissatisfaction with the exclusion of his members from the loan, stating that inclusion would have accelerated the conversion of over one million vehicles to CNG models.

The Senate Committee on Gas, chaired by Jarigbe Agom Jarigbe, has summoned the 15 companies to provide progress reports on the projects funded by the intervention.

As Nigeria aims for substantial investment in the gas value chain, these revelations raise questions about the efficacy and impact of financial interventions in the country’s critical sectors.

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Experts Urge Swift Government Action on Nigeria’s Untapped N3 Trillion Logistics Sector



GIG Logistics- Investors King

Experts at the Courier and Logistics Management Institute conference in Lagos have emphasized the critical importance of the overlooked logistics, courier, and transport sector in Nigeria, valued at over N3 trillion.

During the event themed “Logistics Solutions and National Infrastructure Development,” the CLMI Executive Chairman, Prof. Simon Emeje, highlighted the urgent need for the federal government to prioritize this sector, which remains relatively untapped on a global scale.

Emeje underscored the sector’s significance, stating, “Any country that does not pay attention to logistics, courier, and the transport sector cannot survive.

The government must not ignore this sector because it is the bedrock of any economy.”

The logistics, courier, transport, and management industry boasts an average asset worth over N3 trillion, offering substantial potential for job creation.

Emeje emphasized that commerce is crippled without effective logistics, illustrating the importance of the sector in facilitating trade, enhancing the supply chain, creating jobs, and propelling economic growth.

Despite its undeniable importance, the Nigerian logistics sector faces hindrances such as infrastructural deficits and weak government policies, preventing it from reaching its full potential.

Emeje called for immediate attention to address these challenges and unlock the sector’s capacity to create millions of employment opportunities for Nigerian youth.

Former Minister of Communications, Barr. Adebayo Shittu, urged the institute to draft a comprehensive proposal for government adoption, offering assistance in facilitating engagement.

Both Shittu and Prof. Emeje called on the Federal Government to establish a dedicated ministry to foster an enabling environment for Courier and Logistics Management, drawing parallels to the recognition given to the entertainment industry.

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President Tinubu Seeks Senate Approval for $8.6 Billion and €100 Million Borrowing Plan



Bola Tinubu

President Bola Tinubu’s administration has formally requested the approval of the Nigerian Senate for a borrowing plan totaling $8.6 billion and €100 million.

The request was presented to the Senate through a letter read during the plenary by the Senate President, GodsWill Akpabio.

According to the letter, the proposed funds are integral to the federal government’s 2022-2024 external borrowing plan, previously sanctioned by the administration of former President Muhammadu Buhari.

Tinubu clarified that the projects earmarked for funding through this loan cut across diverse sectors, emphasizing their selection based on rigorous economic evaluations and their anticipated contributions to national development.

The letter highlighted, “The projects and programs in the borrowing plan were selected based on economic evaluations as well as the expected contribution to the socio-economic development of the country, including employment generation, and skills acquisition.”

The specified sectors earmarked for development include infrastructure, agriculture, health, water supply, roads, security, and employment generation, along with financial management reforms.

The borrowing plan’s comprehensive approach aims to address critical needs and propel the nation’s progress.

President Tinubu emphasized the urgency of the Senate’s approval, stating, “Given the nature of these facilities, and the need to return the country to normalcy, it has become necessary for the Senate to consider and approve the 2022-2024 external abridged borrowing plan to enable the government to deliver its responsibility to Nigerians.”

This appeal follows previous successful requests, including the National Assembly’s approval of an over $800 million loan for the National Social Safety Network Programme in August.

Also, the assembly greenlighted the 2022 Supplementary Appropriations Act of N819 million to provide palliatives to Nigerians, mitigating the impact of fuel subsidy removal.

As the deliberations unfold, the Senate’s decision on this substantial borrowing plan will play a pivotal role in shaping Nigeria’s economic trajectory.

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