Business
Fuel scarcity looms as depot price rises by N9/litre
Fuel crisis may return as private depots have increased the price of Premium Motor Spirit or petrol to N157 per litre, from N148/litre.
Vanguard reports the development has discouraged many marketers, especially the members of Independent Petroleum Marketers Association of Nigeria (IPMAN), who lift 90 per cent of their petrol from the depots, belonging to Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN members.
In a telephone interview with Vanguard, the National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mike Osatuyi, who confirmed the development, said: “We are aware of the development because our members procure about 90 per cent of supplies from DAPPMAN members. We are currently reluctant to lift for now. But very soon, we would be compelled to sell at higher price because we have to recover the costs.”
According to him, their reluctance is based on the fact that the government would not allow them to sell in excess of the regulated above the regulated band of between N162-N165 per litre.
It also reports that the hike in the price of petrol is attributed to high exchange rate, currently hovering at N570 per dollar in the black market.
Under the current arrangement, the Nigerian national Petroleum Corporation, NNPC, remains the sole importer of the product into the nation, thus enhancing or enabling the government to subsidise the product.
But the private depot owners, who spoke with Vanguard, said that they take the delivery of the product from the NNPC at the high seas and incur the additional cost of utilising vessels to take the product to their depots.
According to them, the payment of the vessels is done in dollars, which they source at the cost of N570 per dollar, thus bearing additional cost that cannot be recovered at the current regulated price of the product.
The Executive Secretary, Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, Olufemi Adewole, could not be reached for comments last night.
But a source involved in the business, said, “Certainly, it has become difficult or impossible to sell petrol at the regulated price, especially now that we’re incurring cost in dollars.”
However, the development dated back to 2018, when the former Chief of Staff to the President, Abba Kyari, had sent a letter informing the Minister of Transport about approval of President Muhammadu Buhari to stop making the charges in the United States dollars.
In the letter dated January 17, 2018 and sighted by Vanguard, which copies were also sent to the Central Bank of Nigeria, CBN and the Nigerian National Petroleum Corporation, NNPC, Kyari had stated: “Kindly note that the President has approved that Nigerian Ports Authority and Nigerian Maritime Administration and Safety Agency, NIMASA charges, relating to import of petroleum products, currently paid in US dollars under the PPPRA pricing Templates should henceforth be paid in naira.”
However, the instruction was not implemented, thus retaining the ongoing practice of basing charges in dollars.
Group General Manager, Group Public Affairs Division, NNPC, Malam Garba Deen Muhammad, said:, “We have sufficient product that can last over 30 days. If they are panicking due to the change that followed the reforms, it is unnecessary.”
Vanguard
Railway
Lagos Rail Mass Transit part of FG free train ride – NRC
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
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
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).
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.
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
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