Economy

IPMAN Accuses NNPC of Worsening Fuel Scarcity Through Supply Shortage

Published

2 months ago

February 7, 2023

Independent Petroleum Marketers Association of Nigeria (IPMAN) has blamed the Nigerian National Petroleum Company Limited (NNPCL) for the worsening crisis in the oil industry.

Contrary to NNPCL’s claim of having enough Premium Motor Spirit (PMS), popularly called petrol to make the country get out of the current fuel crisis rocking the nation, the oil marketers said the national petroleum company has been short-supplying depots and in turn starving retailers of the product.

According to the oil marketers, filling stations across the country still experience lack of product because their efforts to get fuel at depots proved abortive owing to very low supply.

NNPC had recently disclosed it had over one billion litres of PMS, enough to go around the nation’s retailing outlets in order to tackle the scarcity and hike in price of fuel.

The Group Chief Executive Officer of NNPC, Mele Kyari, had said that it had 831 million litres in marine cargo, loaded in shuttle vessels.

He said there is up to 738 million litres of fuel that are documented on the platform of the regulator of the industry, which is the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA), adding that the company had enough products to supply to tye country.

Also, the NMDPRA had recently noted that the NNPC had PMS sufficiency of over 1.6 billion litres as of January 26, 2023 both on land and marine.

But, faulting the claim of NNPC and NMDPRA on the availability of surplus PMS in the country, IPMAN National President, Debo Ahmed, said there has been supply shortage by the door PMS importer, stressing that fuel scarcity and crisis have worsened because of it.

Ahmed noted that the products are not available at filing stations because the oil marketers couldn’t get any from the depots.

He said in Lagos, Calabar, Port Harcourt and other cities that have depots have not been having the commodity because they didn’t get supply from NNPC.

According to him, a lot of trucks have been at depots including Pinnacle in Lagos without loading furl because the depots told them there is no fuel.

IPMAN President said it was not true that NNPC has the over one billion litres of petrol it claimed, saying such announcement was not new.

Assuming that petrol is available as claimed by NNPC, Ahmed said a good number of depots would have got fuel at the depots they had visited.

Before now, he said that the nation’s petroleum company would ask oil marketers to approach any depots for the product but currently, it has limited it to a few depots and efforts of getting this product from the scanty depots have failed.

For instance, he said there are many depots in Lagos where one can put products and marketers will access it without hassle, but it’s only one that is having petrol as the depot had exhausted its petrol.

Ahmed also said it’s only one depot that is operating in Port Harcourt, as against what was obtainable where NNPC would distribute products to multiple depots across the country for easy supply.

He urged the federal government through NNPC to ensure that it distributes the products it claimed is available to more depots in order for it to get to the retailers.

While lamenting that oil marketers had already pumped a lot of money in the system, Ahmed said there are no products.

Speaking in the same vein, the Deputy National President, IPMAN, Zarma Mustapha, said marketers had yet to feel an improvement in PMS supply because if it has improved, oil marketers would have been accessing the products easily.

He said he wasn’t doubting the volume and the stock NNPC have, but noted that marketers had been facing challenges getting the products at depots.

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Economy

China and Brazil Move Away from US Dollar in New Trade Deal

Published

3 days ago

March 30, 2023

Samed Olukoya

China and Brazil have struck a new trade deal that will allow them to trade in their own currencies, bypassing the need for the US dollar as an intermediary.

This agreement marks a significant move by China to reduce its reliance on the dollar and establishes the country as a formidable rival to the US in the global economy.

The deal was announced by the Brazilian government on Wednesday and will enable the two nations to conduct their financial transactions directly, using Chinese Yuan for Brazilian Real and vice versa.

Brazil’s biggest trading partner is China with bilateral trade worth a record USD 150.5 billion in 2022.

For Brazil, this deal represents a significant shift away from the traditional reliance on the US dollar as the world’s primary currency. According to the Brazilian Trade and Investment Promotion Agency, ApexBrasil, the agreement is expected to reduce costs and promote even greater bilateral trade.

The move away from the US dollar as an intermediary in international trade could have far-reaching implications for the global economy. Other countries may follow suit and start conducting their trade and financial transactions in their own currencies, potentially undermining the dollar’s position as the world’s primary currency.

This is not the first time that China has taken steps to reduce its dependence on the US dollar. In recent years, the country has been promoting the use of the yuan in international trade and investment, and has signed currency swap agreements with other countries to facilitate trade in their own currencies.

The shift away from the US dollar comes at a time of growing tensions between China and the US, with both countries engaged in a trade war and competing for global influence. As China seeks to establish itself as a major player in the global economy, this move is just one example of the country’s efforts to assert its economic power and challenge the dominance of the US.

Economy

Nigeria’s External Reserves Receive $1 Billion Boost from Oil Sales and Exports

Nigeria’s external reserves grew by $1.063 billion within 24 hours on March 28, 2023 to $36.668 billion in a move suspected to be inflow from the proceed of crude oil and exports.

Published

3 days ago

March 30, 2023

Samed Olukoya

United States Dollar - Investors King Ltd

Nigeria’s external reserves have received a significant boost of $1 billion from oil sales and exports, according to recent reports.

The increase resulted in a 0.11% appreciation in Naira value on Wednesday as the Naira to United States Dollar exchange rate moderated from N461.75 it closed on Tuesday to N451.24 at the Investors and Exporters (I&E) forex window.

However, despite the positive news, currency dealers maintained bids between N459.50 (low) and N462.13 (high) per dollar. At the parallel market, also known as the black market, the local currency traded at N744 per dollar on Wednesday.

Analysts at the FSDH research have predicted that the Nigerian Naira will continue to face pressure from high import costs and demand for foreign currency by businesses and individuals. However, they expect the Central Bank of Nigeria (CBN) to continue intervening in the FX market to contain the pace of depreciation.

Nigeria’s external reserves grew by $1.063 billion within 24 hours on March 28, 2023 to $36.668 billion in a move suspected to be inflow from the proceed of crude oil and exports.

The decline in external reserves from US$37.1 billion in January 2023 to US$36.1 billion on March 15, 2023, has been attributed to interventions in the FX markets and limited foreign exchange inflows. However, rising oil production in recent months raises the prospect of reserves accretion in the second half of 2023, according to analysts.

The scarcity of foreign currency in the official market coupled with a high exchange rate of N745/US$ in the parallel market continues to drive high input costs and imported inflation.

It remains to be seen how the country will navigate these challenges in the coming months.

Economy

Rivers State Customs Service Generates Over N54 Billion in Q1 2023

Published

5 days ago

March 28, 2023

Samed Olukoya

The Nigeria Customs Service, Area 2 Command in Onne, Rivers State realised N54.992 billion in revenue in the first (Q1) of 2023.

According to the Command Controller, Comptroller Baba Imam, this amount realised is part of the N336 billion revenue projected for 2023.

Imam revealed this information while addressing journalists in Onne, Eleme Local Government Area of Rivers State on Tuesday.

This represents an increase of N1.133 billion when compared to the amount generated in the first quarter of 2022.

Imam revealed that the command made several seizures, which he stated is a reflection of their commitment to facilitating only legitimate trade in accordance with extant laws.

The seizures included 24 containers carrying refined vegetable oil, two containers carrying 1,165 cartons of Analgin injection and fireworks, and one 20ft of machete that was detained on documentation grounds until an end-user certificate was provided.

The duty-paid value of the seized containers was N94,652,168.39 million, while the duty-paid value of the seized vegetable oil containers was N833,172,538.42.

Imam stated, “In revenue generation, the command was given a target of N336 billion as revenue target for 2023.

“As of today, the command has generated a total revenue of N54, 992,123, 687.15 billion which transits to 16.3 per cent of the target. When compared to the same period last year, the Command has an increase in revenue of N1,132, 925, 556.82bn.

“This figure was realized in spite of not having vessels berth in Onne Port for some time due to the election atmosphere. We look forward to a continuous rise in revenue generation in the coming months as we expect vessels to berth on our coastline within the next few weeks.”

Speaking further on the command’s anti-smuggling activities, he said within the past few weeks, there has been a lot of seizures.

“This is made visible with the display of a total number which comprises 26 seized containers and one detained container for violation or contraventions of various customs laws and breach of procedures as provided under the revised import prohibition guidelines Schedule 3 Article 4 of the Common External Tariff 2022-2026 as well as Section 46 paragraph (b), (d), (e), (f) and 169 of Customs and Excise Management.

“Twenty four containers laden with refined vegetable oil comprising a total of 24,860 gallons of 25 and 10 litres of La-Jonic vegetable oil. Also seized were other two containers laden with 1,165 cartons of Analgin injection and fireworks with other items.”