Connect with us

Business

Fuel scarcity looms as depot price rises by N9/litre

Published

on

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

 

 

 

Business

Agric budgets hit N874.83bn, food imports gulp N7.81tn

Published

on

The Federal Government budgeted about N874.83bn for the Federal Ministry of Agriculture and Rural Development from 2016 to 2021, whereas the imports of agricultural goods into Nigeria during same period were estimated at N7.81tn, checks by our correspondent showed.

It was gathered that the highest imports of agricultural goods into the country during the period under review were recorded in 2021, as products valued at N2.74tn were imported last year.

On the other hand, the least imports within the same duration were reported in 2016. Nigeria’s agricultural goods imports in 2016 were estimated at N656.4bn.

Operators in the agric business space frowned at the development, outlining a plethora of reasons for the massive imports when compared to what was budgeted and often not fully released to the agric ministry during the review period.

Data from the 2016 to 2021 budgets for the ministry indicated that the government budgeted about N874.83bn for the ministry to drive the country’s agricultural sector during the six-year period.

Whereas data analysed by our correspondent from 24 different quarterly reports obtained from the National Bureau of Statistics on ‘Foreign Trade in Goods Statistics’ with respect to the total imports of agricultural goods into Nigeria showed that N7.81tn was spent on food imports.

READ ALSO:

An analysis of the budgets for the agriculture ministry showed that in 2016, the ministry got a budget of N46.17bn for capital projects and N29.63bn for recurrent expenditures, making it a total of N75.8bn for that year.

Its budget for capital projects in 2017 was N103.79bn, while both the combined capital (N118.98bn) and recurrent (N53.81bn) budgets for the ministry in 2018 was N172.79bn.

In 2019, the FMARD’s capital and recurrent budgets were N107.21bn and N57.68bn respectively, translating into a total of N164.89bn.

Its 2020 capital budget was N124.4bn with a recurrent budget of N58.69bn, making it a total of N183.1bn.

The ministry’s 2021 capital budget was N110.24bn. It got N69.22bn for recurrent expenses, bringing its total budget for last year to N174.46bn.

Meanwhile data from the Foreign Trade in Goods Statistics of the NBS on total imports of agricultural goods imported into the country last year was N2.74tn.

Figures from the bureau’s quarterly reports showed that in the fourth, third, second and first quarters of 2021, the agricultural goods imports were N667.16bn, N789.1bn, N652.08bn and N630.2bn respectively.

Food or agricultural imports in 2020 gulped N1.713tn, as the country spent N532.4bn, N503.4bn, N415.6bn and N261.4bn importing agricultural goods in Q4, Q3, Q2 and Q1 respectively in 2022.

A total of N959.48bn was spent on agro-commodities’ imports in 2019, with N233.3bn spent in Q4, N239.9bn in Q3, N249.95bn in Q2 and N236.33bn in Q1.

For 2018, agricultural goods imports consumed N851.7bn. The amounts spent on imports in the fourth, third, second and first quarters were N218.8bn, N224.3bn, N224.5bn and N184.4bn respectively.

The NBS put the total amount of agricultural goods imported into Nigeria in 2017 at N886.7bn. It stated this in its fourth quarter report for 2017.

The Q4 2017 report also revealed the total amount of agricultural goods that were imported into the country in the preceding year of 2016 was put at N656.4bn.

It was observed in the various quarterly reports that the major agricultural goods imported into Nigeria included Durum wheat, crude palm oil, palm olein, among others.

Operators in the sector decried the huge imports of agricultural products into Nigeria, attributing this to the myriad of challenges in the sector.

The National President, All Farmers Association of Nigeria, Kabir Ibrahim, told our correspondent that the drop in exports and huge imports were due to reduced productivity in Nigeria.

He said the lack of agro-inputs and insecurity were also major constraints confronting industry and its operators in Nigeria.

He said, “Our productivity has gone down now, which means that the quantity available to export has gone down and as such we have to rely on imports to meet local demand. This is worrisome to not just farmers but to every genuine stakeholder in the agricultural industry in this country.”

Punch

Continue Reading

Business

Regulatory Commission Dares Buhari, Rejects Sale Of ExxonMobil’s Assets

Published

on

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rejected President Muhammadu Buhari’s assent to the acquisition of ExxonMobil’s assets by Seplat Energy.

A statement from the presidency on Monday noted that the Minister of Petroleum, President Buhari had granted assent to the deal in which Seplat will acquire a 40 per cent stake of ExxonMobil oil assets around Akwa Ibom.

The statement cited the Petroleum Industry Act (PIA) 2021, as an incentive to drive Foreign Direct Investment and raise oil production from the assets.

However, in a response to media enquiries on the latest development about the transaction, the Commission Chief Executive, NUPRC, Engr. Gbenga Komolafe, in a statement, Monday night, clarified that the Commission in line with the provisions of the PIA 2021 is the sole regulator in dealing with such matters in the Nigerian upstream sector.

READ ALSO:

“As it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard.

“As such the Commission further affirms that the status quo remains. The Commission is committed to ensuring predictable and conducive regulatory environment at all times in the Nigerian upstream sector,” the NUPRC noted.

Daily Trust learnt that NNPC now NNPC Ltd had been in a tussle with ExxonMobil over the transaction insisting that it has the first right of refusal, being in a joint venture with Mobil.

The Akwa Ibom government had also scolded the international oil company for proceeding on the assets lay off without recourse to the state hosting them.

Continue Reading

Business

JUST IN: Air Peace Suspends Flights To South Africa Over Aviation Fuel, Visa Delay

Published

on

Air Peace

Citing the increasing cost of aviation fuel and scarcity as well as the delay in the issuance of visa to intending passengers, Air Peace has suspended its flights to South Africa.

The suspension, which takes effects from August 22, is for a period of 60 days, the Airline said in a notice.

Daily Trust reports that domestic airlines had been forced to adjust their schedules over the recurring scarcity of Jet fuel as well as the skyrocketing price of the product.

But added to this, according to Air Peace, was delay by the South African authorities to issue visa to prospective passengers which was said to be affecting the load factor on Air Peace’s flight to Johannesburg.

Air Peace in the notice expressed optimism that the issues which warranted the suspension would have been addressed before October.

READ ALSO:

It said, “We hereby inform the flying public that effective from August 22, 2022, our Johannesburg flight operations will be suspended till October 8, 2022.

“This development is regretted but has become inevitable due to the delayed issuance of South African visas to travellers, worsening forex crunch and the increasing cost of aviation fuel as well as its scarcity.

“However, having informed the South African High Commission in Lagos of the effects of the difficulty in getting SA visas by Nigerians, which consequence is the abysmally low passenger loads on our flights to and from Johannesburg, we believe that the situation will have improved within the next 60 days. Hence, our willingness to resume operations on the October 8, 2022.

“Passengers whose flights are affected have the option of rescheduling to fly before August 22, 2022 or from October 9, 2022. Passengers can also request a refund…

“We apologise for the inconveniences caused and will keep the public updated while we hope the situation improves.”

Daily Trust

Continue Reading

Trending