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Consumers Groan in Lagos, Abuja as Fuel Scarcity Worsens

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  • Consumers Groan in Lagos, Abuja as Fuel Scarcity Worsens

The fuel supply situation in the country took a turn for the worse on Tuesday as queues of desperate motorists grew longer at many petrol stations selling Premium Motor Spirit, also known as petrol, in Lagos, Ogun, Kwara and other states of the federation, including the Federal Capital Territory.

Our correspondents gathered that many of the private depots in Apapa, Lagos, where many marketers get petroleum products from for distribution to other states, did not have PMS while those who had were doing “skeletal loading.”

Fuel queues, which started emerging in some parts of the country on Monday after more than a year of relief from scarcity of petroleum products in the country, were seen spilling onto some roads in Lagos and Ogun states on Tuesday and caused gridlock.

The PUNCH gathered that many depots in Apapa did not have petroleum products on Tuesday, while the few with products recorded low activities.

The ex-depot prices charged by the depots for PMS ranged from N139 to N143 per litre, compared to the official ex-depot price of N133.28.

Motorists and other consumers of petrol complained about the latest round of fuel scarcity, alleging that it might be a ploy to increase the pump price of the product.

They also wondered why the latest crisis was happening at a time Nigerians were preparing for the Christmas and New Year festivities.

Motorists spilled onto major roads like Ikorodu Road, Agege Motor Road, Lagos-Abeokuta Expressway and Lagos-Ibadan Expressway.

Some were seen fighting to get to the pumps, while fuel attendants and ‘area boys’ made brisk business from desperate motorists who wanted to jump the queues so as to be serve quickly. At a filling station in Ogba, the attendants who manned the gates collected N1,000 from each motorist before allowing them inside.

Last week, the Independent Petroleum Markers Association of Nigeria, Lagos State chapter, accused the Nigerian National Petroleum Corporation of under-supplying its members with petrol.

The association alleged that the NNPC was also frustrating its members by reneging on the bulk purchase agreement it signed with them to supply the product at N133.28 per litre.

The Executive Secretary, Depot and Petroleum Products Marketers Association, Mr. Olufemi Adewole, said the increase in price of crude oil had led a corresponding rise in the prices of refined products.

He said, “It is only the NNPC that is bringing products in; we also noticed a supply gap in what they brought in. It wasn’t enough at a particular time and the result is what we are seeing today.

“But they have also equally assured us that they have enough stock and that they are expecting vessels to come in; our members have paid for PFI (pro-forma invoices) for PMS. So, once the NNPC cargoes come in, we will receive the product and sell to Nigerians.”

Asked why marketers were not importing, Adewole said, “Landing cost of PMS today has increased. By the time we land the product based on the international crude oil prices, petrol should be selling for about N165-N170 per litre. But the government is saying we should sell at N145. So, if there is no subsidy, we have to depend on the NNPC to give us the product.”

A top official at one of the depots in Lagos, who spoke on condition of anonymity, said the supply dislocations would take days to disappear.

He said, “We are still doing skeletal loading; no depot wants to be out of stock completely because it is not good for business. As of today (Tuesday), there is no vessel dispending PMS from the Apapa jetty, except the one in Oando SPM.

“Marketers are still being owed 2016 subsidy claims. No sane marketer can put his money down now to import petrol. Nobody is talking about when the subsidy arrears would be paid; so everybody has to rely on the NNPC. Also, the landing cost of petrol has increased.”

In Calabar, the capital of Cross River State, major petrol stations sold PMS to customers at the pump price of N145 per litre.

Few filling stations, however, sold the product at the N150 per litre.

It was observed that majority of the independent petroleum outlets had stopped selling as of 5pm on Tuesday. A source said the outlets preferred selling the product to black market operators at night.

In Ilorin, the Kwara State capital, the fuel scarcity has yet to be felt in the metropolis as all the filling stations visited by one of our correspondents sold petroleum products to buyers at the government regulated prices.

There was panic-buying of petrol in Ado Ekiti as motorists were seeing rushing to filling stations to stock up the product.

As of 4pm on Tuesday, the situation was normal at filling stations along Bank Road in Ado Ekiti, including a franchise station of the Nigerian National Petroleum Corporation.

Filling stations in Uyo operated normally as there were no queues within the metropolis. However, some stations dispensed petrol at N150 instead of N145 per litre.

The situation in Niger State was similar as motorists bought petrol at the rate of N145 per litre in almost all the filling stations in Minna except the NNPC mega stations that sold it for N143.

Officials of the Department of Petroleum Resources stormed some filling stations in Abeokuta, Ogun State capital on Tuesday to check hoarding of petrol.

The DPR officials led by the Operations Controller, Abeokuta Field Office, Muinat Bello-Zagi, inspected the facilities at the filling stations, especially the storage tanks, to measure the products stored there.

In Abuja and Nasarawa State, motorists waited in queues for many hours to buy petrol.

Along the Kubwa-Zuba Expressway in Abuja, many motorists formed queues in front of the NNPC mega station and the Nipco filling station located on the road, while many others were sighted at some stations around Madalla and Suleja in Niger State.

Queues were also observed in front of the few petrol stations that dispensed petrol along the Abuja-Keffi road in Nasarawa State.

Despite the development, the Nigerian National Petroleum Corporation described the situation as panic buying, insisting that it had enough product to keep the country wet.

The Group Managing Director, Maikanti Baru, stated that the situation was due to panic buying, adding that the corporation was doing everything within its reach to address the matter.

He was quoted in a statement issued on Tuesday by the corporation’s spokesperson, Ndu Ughamadu, as saying, “For the umpteenth time, I wish to call on all Nigerians to stop panic buying. We have said times without number that the NNPC has sufficient products to cater for the needs of all consumers.”

Filling stations in Akure, Ondo State capital, and some other towns had long queues of vehicles as the petrol scarcity that had hit the state since Monday worsened on Tuesday.

It was observed that some filling stations were shut down while those that opened had long queues of vehicles.

Worried by the development, the Senate on Tuesday summoned the NNPC GMD to appear before its Committee on Petroleum Resources (Downstream) on Thursday over the rising scarcity of PMS across the country.

Baru failed to appear before the committee on Tuesday, leading to the rescheduling of the meeting during which he would be expected to explain the reasons for the scarcity.

The Chairman of committee, Senator Kabiru Marafa, while briefing journalists in Abuja, said plans had also been concluded to commence nationwide inspection of filling stations over the looming fuel crisis.

Marafa stated the Senate would not allow some unpatriotic persons to cause Nigerians any hardships, especially during the Yuletide, stressing that though the lawmakers had adjourned plenary to conduct budget defence sessions for Ministries, Departments and Agencies of the government, members of the committee would embark on the oversight visits to the filling stations.

He said members of the committee would be regrouped into sub-committees to make it possible for them to visit all the states.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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APM Terminals in Talks with Government for Terminal Upgrade in Apapa

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APM Terminals is engaging in discussions with the government for a significant upgrade at its Apapa terminal.

Keith Svendsen, the Chief Executive Officer of APM Terminals, disclosed the company’s ambitious plans aimed at accommodating vessels with deep drafts and large ship-to-shore cranes.

The upgrade is part of APM Terminals’ long-term vision to bolster import and export opportunities in the country, create employment, and diversify local opportunities.

Svendsen emphasized the importance of fortifying existing port infrastructure, especially in Lagos, to manage increasing trade volumes effectively.

“While greenfield terminals like Lekki and later on Badagry would support economic growth in the long run, the more urgent requirement is in our view to upgrade the existing port infrastructure,” Svendsen commented.

The proposed upgrades seek to facilitate smoother operations, providing seamless connectivity through road, rail, and barge networks to mainline shipping.

Svendsen highlighted the unique position of the Apapa port in offering access to international markets for Nigerian importers and exporters, leveraging not only road but also rail and waterways, utilizing barges.

APM Terminals has been a pivotal player in Nigeria’s maritime sector for close to two decades. The company’s commitment to the nation’s economic growth is underscored by its proposed investment of over $500 million, subject to a long-term partnership with the government.

The Apapa terminal is a vital gateway for trade, handling a significant portion of Nigeria’s container traffic.

Furthermore, APM Terminals’ operations in Lagos and Onne collectively manage about half of the containers in Nigeria, demonstrating their pivotal role in the country’s logistics landscape.

The proposed upgrades signify APM Terminals’ dedication to supporting Nigeria’s economic reforms and attracting international investments.

The company has already invested over $600 million since its inception in Nigeria in 2006, directly employing approximately 2,500 Nigerians and indirectly contributing to employment for about 65,000 individuals.

“At APM Terminals, we believe strongly in the prospects for the Nigerian economy and the long-term opportunities that the current economic reforms and invitation for international investments will generate,” Svendsen affirmed.

As talks between APM Terminals and the government progress, stakeholders are optimistic about the positive impact of the proposed terminal upgrades on Nigeria’s maritime sector and overall economic development.

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Uber Rolls Out Flex Pay Feature: Daily Earnings for Nigerian Drivers

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Uber has rolled out a feature in Nigeria that promises to revolutionize the way drivers receive their earnings.

Dubbed “Flex Pay,” this innovative initiative allows Uber drivers across the country to access their earnings daily, a significant departure from the previous weekly payment system.

The announcement came during a recent media briefing led by Tope Akinwumi, Uber Nigeria’s country manager.

Akinwumi expressed the company’s commitment to supporting its drivers by introducing Flex Pay, which aims to help drivers meet their financial obligations more promptly and efficiently.

With Flex Pay, drivers now have the flexibility to access their earnings directly through their mobile wallets on a daily basis.

This move is poised to bring about a host of benefits for drivers, offering them greater financial stability and control over their finances.

In addition to the introduction of Flex Pay, Uber also unveiled a set of new features designed to enhance the driver experience on the platform.

One such feature is the ability for drivers to see upfront details about a trip request, including the destination and expected fare.

This added transparency empowers drivers to make more informed decisions about which trips to accept, ultimately improving their overall experience on the platform.

Speaking about the new features, Akinwumi emphasized Uber’s commitment to prioritizing the needs and feedback of its driver-partners.

He highlighted the company’s ongoing efforts to innovate and develop solutions that enhance the driver experience and ensure their satisfaction with the platform.

“We are constantly listening to feedback from our driver-partners and striving to provide them with the tools and support they need to succeed,” said Akinwumi.

“The introduction of Flex Pay and other new features is a testament to our commitment to empowering our driver-partners and enhancing their experience on the Uber platform.”

The implementation of Flex Pay marks a significant milestone for Uber in Nigeria, demonstrating the company’s dedication to driving positive change and innovation in the ride-hailing industry.

As drivers begin to benefit from daily earnings and increased transparency, Uber is poised to strengthen its position as a leading provider of flexible earning opportunities in the country.

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Exxon Mobil’s $1.28 Billion Asset Sale to Seplat Energy Set for Approval, Ending Two-Year Wait

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After a prolonged two-year wait, Exxon Mobil’s anticipated $1.28 billion asset sale to Seplat Energy is poised for approval by Nigeria’s oil regulator.

The deal, which has been in limbo since 2022, could finally see the light of day following recent communication from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Gbenga Komolafe, the chief of NUPRC, revealed to Reuters on Thursday that the regulatory body is on the verge of giving its consent to the transaction.

Komolafe disclosed that Exxon Mobil and Seplat Energy are scheduled to attend a pivotal meeting on Friday, during which they will discuss the final steps towards approval.

He expressed optimism, stating, “Subject to the outcome of the meeting, consent… could be given in less than two weeks from the date of the meeting.”

According to Komolafe, NUPRC will present the companies with two mutually exclusive options, the acceptance of which would pave the way for the deal’s approval.

While he didn’t delve into specifics, he emphasized that Nigerian law mandates provisions for decommissioning, host community development, and environmental remediation.

“We don’t want our nation to carry unwarranted financial burdens arising from the operations of the assets over time by the divesting entities,” Komolafe asserted, underscoring the importance of responsible asset management.

The $1.28 billion sale holds immense significance for Nigeria’s oil industry, which has faced challenges stemming from underinvestment and security concerns in recent years.

With oil majors like Shell and TotalEnergies divesting from onshore shallow water operations due to security issues, regulatory approval of the Exxon-Seplat deal could inject much-needed capital into the sector.

Analysts view the impending approval as a potential catalyst for improved oil output in Nigeria. Moreover, it could serve as a positive signal to investors, paving the way for similar deals in the future.

The regulatory clearance of Shell’s asset sale to Renaissance in January has further bolstered expectations regarding the viability of such transactions.

As Nigeria looks to revitalize its oil sector and attract investment, the imminent approval of Exxon Mobil’s asset sale to Seplat Energy marks a significant milestone, bringing an end to a prolonged period of uncertainty and setting the stage for renewed growth and stability in the country’s vital energy industry.

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