Markets

Ogun Govt Begins Sale Of ₦40,000 Rice, vows to Take Subsidized Foods to LGAs

Published

5 days ago

October 11, 2024

The Ogun State government under the leadership of Dapo Abiodun has commenced the sale of 50kg bags of rice for 40,000 Naira in the state.

Investors King reported that the subsidized rice program is part of the strategies by President Bola Tinubu’s government to address the economic hardship in the country.

Governor Dapo Abiodun, during the launching ceremony of the initiative held at the Arcade ground, Abeokuta, the Ogun State capital, revealed plans by his administration to extend the subsidized food initiative to the twenty local government areas of the state.

He noted that the subsidized food initiative would not be limited to rice only, other items including garri, rice, and beans would be available for purchase at significantly reduced prices.

The governor said, “We will soon be implementing our own version of this scheme from each local government, meaning we will implement this across the twenty local government areas of the state to deepen the reach into our grassroots.

“We will be selling food items like garri, rice, and beans at heavily subsidized prices.”

“The distribution will include various groups such as federal and state civil servants, private sector organizations, craftsmen, trade unions, NGOs, student groups, market vendors, community development groups, and religious and traditional groups,” he added.

He reassured the state’s citizens that the Head of Service’s office, the Ministry of Agriculture, and the NSA’s office had created a comprehensive plan to ensure the fair distribution of the product throughout the state’s 20 local government areas.

The governor emphasized the need for accountability, noting that cash payments would not be accepted.

However, he revealed that payments would be made via Point of Sales (PoS) machines.

Abiodun warned against double registration, adding that beneficiaries’ NIN will be verified after a physical screening at the point of sale.

According to the governor, the launch of the subsidized rice sale in Abeokuta for Ogun Central Senatorial District, Ilaro for Ogun West Senatorial District, and Ijebu-Ode for Ogun East Senatorial District will commence immediately.

“To ensure accountability, there will be no cash payments; payment will be made through Point of Sales (PoS) machines, and beneficiaries will undergo physical verification at the point of sale.

“No double registration will be allowed; NIN will be verified to ensure that we prevent any sharp practices.

“This distribution will be carried out transparently and fairly, ensuring that these palliatives reach those we have targeted,” he said.

Governor Abiodun concluded by describing the initiative as a sign of President Tinubu’s dedication to addressing the problem of rising food prices and cushioning the effect of the fuel subsidy removal.

On October 2, the Federal Government announced that Lagos, Kano, and Borno will be the next states that will benefit from its subsidized rice program.

According to a director at the Federal Ministry of Agriculture and Food Security, plans are already underway to roll out the food subsidy program in these states.

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Crude Oil

Israel’s Decision Not To Attack Iran’s Oil Facilities Weaken Oil Prices

Published

58 mins ago

October 16, 2024

Iyanuoluwa Martins

A decision by Israel not to strike Iran’s nuclear and oil sites triggered losses in the international crude oil market with Brent crude oil shedding $3.21, or 4.14 percent to $74.25 a barrel.

US West Texas Intermediate crude oil also lost $3.25, or 4.4 percent to close at $70.58 a barrel.

Mr Benjamin Netanyahu, Prime Minister of Israel told the US that Israel was willing to strike Iranian military targets and not nuclear or oil targets.

Last week, US President Joe Biden warned that an all-out war could break out if Israel under the leadership of Netanyahu does not limit its possible attack to Iran’s military units.

Sources familiar with the situation have said Israel has agreed to contain retaliation and leave out Iranian oil and nuclear facilities.

Other sources have said Israel’s strong man, Mr Netanyahu had said he favours attacks on the Islamic Republic’s military infrastructure in return for Iran’s October 1st ballistic missile attack on Israel.

Global oil demand will rise by 860,000 barrels per day this year, down 40,000 barrels per day (bpd) from the previous forecast, the International Energy Agency (IEA) said on Tuesday.

For 2025, it sees an expansion of 1 million bpd, about 50,000 bpd higher than expected last month.
China has for years driven global rises in oil consumption.

The Paris-based agency now expects Chinese demand to grow by 150,000 bpd in 2024, down 30,000 bpd from the previous forecast. Consumption dropped by 500,000 bpd in August compared to the same period last year.

Investors King reported that OPEC also reduced its forecast for 2024 global demand growth on Monday, but it is still projecting a much stronger expansion of 1.93 million bpd driven in part by a bigger contribution from China.

Market analysts also noted that OPEC and its allies, known as OPEC+, may change production plans for late this year. This may boost prices.

Commodities

Cooking Gas Prices Surge Amidst Import Reliance, NIPCO CEO Calls for Local Refinery Support

Published

18 hours ago

October 15, 2024

Yetunde Olugbenga

Just like the surge in fuel pump prices, the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has increased.

The Managing Director/Chief Executive Officer of the Nigerian Independent Petroleum Company (NIPCO) Plc, Suresh Kumar, has urged the Federal Government to encourage Dangote Refinery and other domestic refineries to produce LPG to help lower the soaring price of cooking gas.

According to experts, the increase in cooking gas prices was due to insufficient local production.

Meanwhile, at the recently concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024, held in Lagos, Kumar revealed that over 60 percent of the cooking gas consumed in Nigeria is imported, which is a major factor behind the price hike.

Kumar acknowledged that support for local refineries would boost cooking gas production and reduce LPG importation.

“There is hope that reliance on imported LPG will decrease, which will positively influence domestic prices. Greater local production will make LPG more affordable since it reduces exposure to foreign exchange fluctuations and international pricing dynamics,” he stated.

Kumar further noted that the Federal Government should provide financial aid by investing in local refineries to accelerate LPG production, meet public demand with adequate supply, and reduce costs.

“We must work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders to end gas flaring in the country. Substantial investments are needed to capture and process flared gas to increase domestic supply beyond the current 1.5 million MT to at least 5 million MT annually,” he reiterated.

As of the time of this report, Investors King gathered that in the Osogbo area of Osun State, the price has risen from N1,400 to N1,500. In Ilorin, Kwara State, it is currently being sold for N1,500.

Meanwhile, in Lagos State, the current price is N1,400, compared to the previous price of N1,300.

Petrol

NNPCL’s Release of N15 Billion Worth of Products Vindicates CNPP’s Allegation of Economic Sabotage

Published

19 hours ago

October 15, 2024

Samed Olukoya

The Conference Of Nigeria Political Parties (CNPP) has reacted to the recent release of N15 billion worth of products to independent oil marketers by the Nigerian National Petroleum Company Limited (NNPCL).

In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, on Tuesday, the CNPP noted that it sees this move, facilitated by the Director General of the Department of State Services (DSS), Adeola Ajayi, as “a validation of CNPP’s allegations of economic sabotage against NNPCL.”

Economic Sabotage Confirmed

The statement added that “the CNPP has long argued that NNPCL’s practices have been harmful to the Nigerian economy. The recent authorization by NNPCL, allowing oil marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) to lift Premium Motor Spirit (PMS) at a reduced price, substantiates the CNPP’s claims of economic sabotage against the federal government-owned oil company.”

Commitment to Regulatory Compliance

As the umbrella body of all registered political parties and associations in Nigeria, the CNPP expressed concern over NNPCL’s ongoing violations of the Petroleum Industry Act (PIA). The CNPP emphasized the need for the Nigerian Midstream and Downstream Petroleum Regulatory Authority to issue import and off-taker licenses to oil dealers, enabling them to import fuel directly or purchase from local refineries like the Dangote Refinery. “This move is expected to eliminate NNPCL’s undue regulatory and competitive roles.”

Call for Deregulation or Transparent Subsidy Regime

The CNPP has called on the Federal Government “to either fully deregulate the oil sector, allowing marketers to freely buy and sell petroleum products, or to implement a transparent petrol subsidy regime free from corrupt practices to maintain control over PMS pump prices.

DSS Intervention and IPMAN’s Role

“The DSS’s intervention came after IPMAN threatened to halt operations nationwide due to the high costs of loading petroleum products from NNPCL facilities. IPMAN revealed that the cost of petrol from the Dangote Petroleum Refinery to NNPCL was approximately N898 per litre, while NNPCL was selling it at significantly higher prices in various locations.

“This discrepancy is seen as a deliberate attempt by NNPCL to undermine President Bola Ahmed Tinubu’s Renewed Hope Agenda by exacerbating economic hardship and turning citizens against the government.”

Demand for Accountability

The CNPP questioned why it took threats from IPMAN, which controls over 70 percent of filling stations nationwide, and DSS intervention before NNPCL complied with the law and stopped fixing petrol pump prices. The CNPP accused NNPCL’s leadership of attempting to maintain control over the oil industry post-commercialization due to endemic corruption.

CNPP’s Continued Vigilance

“The CNPP has pledged to continue monitoring the activities of NNPCL, given the company’s significant impact on the economy and the livelihood of ordinary citizens. The CNPP will continue advocate for transparency and accountability in the oil and gas sector as it has done over the years.

“Recall that in December 2022, the DSS had previously taken proactive measures to prevent potential unrest during the Yuletide season by issuing a 48-hour ultimatum to NNPCL, IPMAN, and other stakeholders to resolve the then ongoing fuel crisis, which has remained an issue to date as NNPCL has continued operate in very secretive manner.”