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NNPC Extends Crude-for-product Swaps Until June 2019

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NNPC
  • NNPC Extends Crude-for-product Swaps Until June 2019

The Nigerian National Petroleum Corporation has extended its crude-for-product swap contracts, the country’s main avenue to meet the bulk of its fuel needs, until June 2019, Reuters quoted sources familiar with the matter as saying.

The contracts allow companies, including international trading houses and indigenous firms, to lift crude oil in return for the delivery and supply of petroleum products under the direct sale of crude oil and direct purchase of petroleum products model.

Despite having a refining capacity of about 445,000 barrels per day, the nation’s refineries have been underperforming for years, making the country almost wholly dependent on imports to meet its domestic petrol and diesel needs.

The nation’s petrol consumption is roughly 40 million litres per day in the nation of almost 200 million people.

The country became increasingly reliant on the NNPC for fuel imports via swaps after a currency devaluation and recession in the last few years, which priced independent importers out of the spot market.

The NNPC’s swap contracts currently account for about 70 per cent of the country’s imports, while 30 per cent is done through the spot market, one of the sources added.

The swap contracts, known as Direct Sale Direct Purchase, came into effect in July last year and were due to end after one year. They were already extended once earlier this year to December.

The NNPC paired up foreign trading firms with local partners to do the swaps.

The corporation was said to be separately in advanced discussions with some of the swap contract holders to invest in rehabilitating its refineries.

Two consortiums were picked earlier this year but ironing out the financing of the projects has been slow, sources said.

According the report, the list of the 10 DSDP groupings comprise Trafigura and AA Rano; Petrocam and Rainoil/Falcon; Crest Mocoh and Heyden; Cepsa and Oando; Sahara and SIR; Mercuria and Matrix/Rahmaniya; Socar and Hyde; Litasco and MRS; Vitol and Varo, and Total and Total.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Business

FG Says Nigeria’s Rice Production Rises by 1.2mmt in Three years

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FG Interventions Boost Rice Production by 1.2mmt in Three Years

The Federal Government has said the nation’s rice production increased by 1.2 million metric tonnes within three years due to its interventions in the rice value chain.

This was disclosed by Mustapha Shehuri, Minister of State for Agriculture and Rural Development, in Omor and Umerum at Ayamelum Local Government, Anambra State while assessing the Federal Government rice farms/mills project there.

He added that the federal government is working on revitalising its rice farm in Anambra to boost rice production, increase new jobs and improve the standard of the people in the state and Nigeria at large.

The minister was quoted as saying, “The present administration has provided various interventions to promote investment in the rice sector.

“As a result of these interventions, the country has increased its production from 4.8 million metric tonnes of milled rice in 2015 to over six million metric tonnes by 2019 with huge reduction in the nation’s deficit.

He added that President Muhammadu Buhari administration is pursuing and implementing programmes to achieve self-sufficiency in rice production because of its strategic importance as a major staple food crop.

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Economy

Lagos State Declares N89bn Surplus in 2019 After BudgIT False Report

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Lagos

Lagos State Economically and Financial Stable, Declared N89bn Surplus in 2019

Lagos State, Nigeria’s commercial capital, has declared an impressive N89 billion surplus for the year ended 2019.

This was disclosed in the state’s 2019 Audited Financial Statements.

The report was released following BudgIT, a public sector-focused financial information house, recent report titled ‘Ability of States to Meet Monthly Recurrent Expenditure and Loan Repayment Obligations, 2019’, that claimed the state was among states that can not meet monthly recurrent expenditure and loan repayment obligations.

A report, BudgIT later withdrew and apologised for misleading the public as several factors were not taken into consideration during the report. It added that Lagos was financially buoyant, and the only state with such financial capacity to function without federal allocations.

On Monday, Dr Rabiu Olowo, Lagos State Commissioner for Finance, in a statement to media houses, said the state was economically and financially buoyant.

In the statement titled ‘Lagos financially, economically stable’ said the commissioner said the state is presently doing 103 percent of the budget targets despite COVID-19, this he said is well above 2019 figures.

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Economy

Buhari to Inaugurate Nigeria’s First Standard Gauge Train in Itakpe-Warri Today

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Light Rail

Nigeria’s First Standard Gauge Train to Be Inaugurated Today

President Muhammadu Buhari will be in Itapke-Warri today, September 29, 2020 to inaugurate Nigeria’s first standard gauge train, the Itakpe-Ajaokuta-Warri rail line.

Fidet Okhiria, the Managing Director, Nigerian Railway Corporation disclosed this on Sunday.

Okhiria explained that President Buhari will conduct the inauguration virtually and not be physically present at the event.

He, however, said Mr. Rotimi Amaechi, the Minister of Transportation, would lead other members of the Federal Executive Council as well as other government functionaries to the event.

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