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Economy

FG Spends N173.2 Billion to Ensure Uniformity of Petrol Price

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Petrol - Investors King

In order to ensure Nigerians purchase Premium Motor Spirit (PMS), popularly known as petrol, at a uniform price across the country, the Federal Government spent N173.2billion for the equalisation of over 11.6 billion litres of petrol between 2019 and 2022.

This was disclosed in the data obtained from the Federal Ministry of Petroleum Resources on Tuesday.

This information was contained in data gotten from the Federal Ministry of Petroleum Resources on Tuesday.

However, checks by Investors King revealed that the nation still confronts disparity in the sales of petrol by marketers in the country.

It was gathered that the Federal Government had thought the disbursement of the huge fund would bring about fuel price uniformity.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority is charged with tye duty of ensuring that price uniformity of petroleum products is achieved, hence, the reimbursement of marketers for trucking products to filling stations anywhere in the country.

A document obtained from the FMPR in Abuja, on the scorecard of the ministry since 2019, revealed that over N173.2bn had been disbursed to equalise the cost of petrol nationwide.

Despite the hundreds of billions spent on PMS price equalisation, the cost of the commodity has hardly been equal in various states, outside Lagos and Abuja, Investors King has learnt.

While PMS price goes between N179 and N180/litre in Lagos and Abuja, the cost of the commodity in many independent retail outlets in other states is usually higher than N250/litre.

Analysts have said that this wouldn’t be the first time the nation would be experiencing price disparity in the oil sector as the trend has been for years in all 36 states and FCT.

Speaking on how government has been trying to nip in the bud, smuggling of petrol across Nigerian borders, the Minister of State for Petroleum Resources, Chief Timipre Sylva, noted in the document that a total of 255,659 truck-outs were equalised during the review period, adding that, “11,622,926,494 litres (of PMS was) equalised. N173,200,284,779 (approx.) equalisation paid. 1,277 supplying vessels tracked. 25,525,688,042 litres of total PMS discharged.”

Sylva further stated that 66.7 million litres of PMS were the average daily sufficiency during the period, saying that the total truck-out volume was 24,346,614,589 litres.

According to him, the target of the FMPR was to ensure energy sufficiency in power and petroleum products, as well as reduction in the volume of smuggled PMS through improved technology.

Sylva disclosed that the key challenges to achieving these targets were market infractions, defaulting marketers, delay in submission of out-turn forms by marketers, arrival/discharge quantity variation, and sharp practices by operators.

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Economy

Federal Government Halts Cooking Gas Export to Lower Local Prices

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cooking gas cylinder

In a bid to stabilize domestic prices and meet rising demand for cooking gas within Nigeria, the Federal Government has announced a temporary halt on the exportation of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.

This decision follows a significant surge in the cost of cooking gas, which has placed a strain on consumers across the country.

According to reports, the halt in LPG export aims to increase the availability of the commodity within Nigeria’s borders, thereby reducing its local price.

The move is part of broader efforts to address the challenges faced by consumers grappling with the high cost of living.

In recent years, the demand for cooking gas has steadily increased in Nigeria, driven by urbanization, population growth, and a shift towards cleaner energy sources.

However, despite being a major producer of LPG, Nigeria has struggled to meet its domestic demand due to insufficient local production and distribution infrastructure.

Data from the Nigerian Midstream Downstream Petroleum Regulatory Authority reveals that while the total consumption of cooking gas in Nigeria has been on the rise, the country has relied heavily on imports to bridge the supply gap.

The recent decision by the government underscores its commitment to prioritizing the domestic market and ensuring that Nigerians have access to affordable cooking gas.

Consumers have been grappling with escalating prices, with reports indicating a significant increase in the cost of refilling a 12.5kg cylinder of cooking gas in major cities like Abuja, Lagos, and Kano.

The decision to halt LPG exports signals a proactive measure by the government to mitigate the adverse effects of rising prices and alleviate the financial burden on households across the nation.

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Economy

Manufacturing Sector Records 7.70% Quarter-on-Quarter Growth in Q4 2023

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In the fourth quarter of 2023, Nigeria’s manufacturing sector grew by 7.70% year-on-year, according to the National Bureau of Statistics (NBS).

The surge in growth reflects a significant uptick from the preceding quarter and underscores the resilience of the manufacturing industry amid economic challenges.

This growth trajectory indicates positive momentum and signals potential opportunities for economic recovery and development.

The manufacturing sector, comprising thirteen key activities ranging from oil refining to motor vehicles and assembly, demonstrated notable dynamism across various subsectors.

This growth surge is attributed to increased production, enhanced operational efficiencies, and strategic investments across the manufacturing value chain.

Despite facing headwinds such as supply chain disruptions and regulatory uncertainties, the sector’s robust performance underscores its pivotal role in driving economic diversification, job creation, and industrialization efforts in Nigeria.

Moving forward, sustaining this growth momentum will require continued policy support, investment in infrastructure, and efforts to address key bottlenecks hindering the sector’s expansion.

By fostering an enabling business environment and promoting innovation and technology adoption, Nigeria’s manufacturing sector can further catalyze inclusive economic growth and contribute significantly to the nation’s development agenda.

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Economy

Nigeria’s GDP Grows by 3.46% in Q4 2023, Driven by Services

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Nigeria’s Gross Domestic Product (GDP) grew by 3.46% in the fourth quarter (Q4) of 2023 on the back of robust performance of the services sector, according to data released by the National Bureau of Statistics (NBS).

The GDP expansion though slightly lower than the 3.52% recorded in the same period of 2022, reflects a positive trajectory for the Nigerian economy amid ongoing challenges.

The growth rate surpassed the 2.54% recorded in the preceding quarter, indicating a rebound in economic activity.

The services sector emerged as the key driver of growth expanding by 3.98% and contributing 56.55% to the overall GDP.

This sector’s resilience underscores its pivotal role in Nigeria’s economic landscape, encompassing diverse industries such as telecommunications, finance, and real estate.

Also, the agriculture sector experienced growth, expanding by 2.10% compared to the same period in 2022.

Meanwhile, the industry sector recorded a notable improvement, growing by 3.86%, a stark contrast to the -0.94% contraction observed in the fourth quarter of 2022.

On an annual basis, Nigeria’s GDP expanded by 2.74% in 2023 compared to 3.10% in the previous year, reflecting sustained but moderated growth.

The positive trajectory in GDP growth reflects resilience in the face of various economic challenges.

However, sustaining and accelerating growth will require continued efforts to address structural bottlenecks, foster investment, and promote inclusive economic policies across sectors.

Nigeria’s Oil Sector Growth

During the fourth quarter of 2023, Nigeria’s oil sector posted a real growth rate of 12.11% year-on-year, signifying a significant improvement from previous periods.

This was driven by the surge in average daily oil production to 1.55 million barrels per day (mbpd), a positive shift in the sector’s performance.

Despite challenges such as global market fluctuations and production constraints, the oil sector contributed 4.70% to the nation’s total real GDP in Q4 2023.

Nigeria’s Non-Oil Sector

Nigeria’s non-oil sector sustained growth momentum, posting a 3.07% real growth rate in Q4 2023.

This growth was primarily attributed to key industries including finance, telecommunications, agriculture, manufacturing, and construction.

Accounting for 95.30% of the nation’s GDP in the same quarter, the non-oil sector continues to drive economic diversification efforts and reduce dependence on oil revenues.

Despite facing challenges, such as infrastructure deficits and regulatory bottlenecks, the sector’s resilience underscores its pivotal role in fostering sustainable economic development and inclusive growth agendas.

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