Business

IPMAN commences petrol lifting from Dangote Refinery

Published

2 weeks ago

December 9, 2024

IPMAN commences petrol lifting from Dangote Refinery

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has begun lifting Premium Motor Spirit (PMS), popularly known as petrol, from the Dangote Petroleum Refinery.

This development follows an agreement reached between IPMAN and the refinery in November.

The Dangote Petroleum Refinery, situated in the Lekki Free Trade Zone, Lagos, has supplied millions of liters of petrol to independent marketers since the lifting began.

Chinedu Ukadike, IPMAN’s National Publicity Secretary, confirmed the development in an interview, noting that the process started in late November.

Ukadike disclosed that prior to this, IPMAN members had been loading petrol through MRS Oil as part of interim arrangements while finalizing the terms of the agreement with the refinery.

“There is a pre-arrangement we had. Our experts are putting things together for our documentation. Dangote refinery made some products available to us in MRS and we started the loading gradually (in November). We are buying Dangote products through MRS,” Ukadike said.

Asked if this is not like buying through a middleman, he refuted the claim, saying, “This is not the issue of a middleman. We have to start with something first to bridge that gap.”

He stated that it is important to note that independent marketers have started buying PMS directly from the $20bn refinery.

Ukadike maintained that the decision by the Dangote refinery to reduce PMS price from N990 per litre to N970 had increased the demand for PMS in the local market.

He added that the deal between IPMAN and Dangote influenced the drop in prices of petroleum products especially as it eliminated middlemen and profiteering.

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“The most important thing is that IPMAN members have started buying directly from Dangote. We’ve been uploading products stored in the tank and meant for commuters.

“The reduction in the price of Dangote PMS has also increased demand. We are also anticipating that the price decrease will strengthen the economy.

“IPMAN’s direct purchase agreement with Dangote influenced the dwindling price of petrol because it has eradicated the issue of middlemen and profiteering of petroleum products. So the era of middlemen has gone. You can access Dangote as quickly as possible once you pay your money,” he noted.

After several days of battling the crude supply crisis, the Dangote refinery commenced the sale of petrol on September 15, 2024, selling to only the Nigerian National Petroleum Company Limited, which served as a middleman between the refinery and the marketers.

However, the supply chain was not as effective as planned, prompting independent marketers to demand direct transactions with the $20bn refinery.

Consequently, the Federal Government said that the NNPC should no longer be the sole off-taker of Dangote fuel, allowing willing buyers to seek direct purchase from the 650,000 barrels per day capacity refinery.

“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the Minister of Finance, Wale Edun, who is also the chairman of the naira-for-crude committee, said in a statement in October.

Barely a month after, IPMAN National President, Abubakar Maigandi, announced that the association had signed a deal with Dangote.

“After meeting with Aliko Dangote and his management team in Lagos, we are pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets,” Maigandi told newsmen in Abuja last month.

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Recall that IPMAN has insisted that it would not patronise the newly refurbished Port Harcourt refinery if it sells its PMS at N1,030/litre.

The association’s spokesman, Ukadike, said, “If the Port Harcourt refinery’s PMs price is truly N1,030, it is unacceptable to us independent marketers. We will not buy from them. We will buy where it is cheap.”

Ukadike, however, expressed hope that NNPC would review the price.

N3.32tn petrol imported

In a report by the National Bureau of Statistics, PMS worth N3.32tn was imported into Nigeria in the third quarter of 2024.

The NBS report stated that diesel worth N1.33tn was brought into the country during the same period.

In return, the country exported crude oil valued at N13.40tn and liquefied natural gas of more than N2.10tn, between July and September.

“The most exported commodities included crude oil, liquefied natural gas, other petroleum gases in a gaseous state, floating or submersible drilling or production platforms,” the NBS said.

It stated further that Nigeria’s export trade continued to be dominated by crude oil exports.

“In the third quarter of 2024, crude oil export was valued at N13.40tn, representing 65.44 per cent of total exports while the value of non-crude oil exports stood at N7.08tn, accounting for 34.56 per cent of total exports; of which non-oil products contributed N2.5tn or 12.21 per cent of total exports,” the NBS disclosed.

IPMAN commences petrol lifting from Dangote Refinery

Related Topics:Dangote refinery Featured IPMAN petrol

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Lagos Rail Mass Transit part of FG free train ride – NRC

Published

11 hours ago

December 21, 2024

Trends Admin

Lagos Rail Mass Transit part of FG free train ride – NRC

The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.

The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).

This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.

While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.

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Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.

“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.

Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.

He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.

Lagos Rail Mass Transit part of FG free train ride – NRC

Business

NNPC denies claim of Port Harcourt refinery shutdown

Published

12 hours ago

December 21, 2024

Trends Admin

Port Harcourt refinery

NNPC denies claim of Port Harcourt refinery shutdown

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.

The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.

Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.

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The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.

“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”

He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”

NNPC denies claim of Port Harcourt refinery shutdown

Business

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

2 days ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.