Business

Lack of licence, foreign exchange, others hinder fuel importation

Published

1 year ago

June 26, 2023

Barely a month after deregulation, operators in the downstream sector have not been able to import petrol into Nigeria, due mainly to a lack of license and foreign exchange.

A report by Vanguard stated that many oil marketers that applied for licence are still waiting for the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, to release it.

It also showed that the six companies, including Eterna, which got the license have not started importing the product into the country.

The checks further indicated that despite the floatation of foreign exchange rates by the Central Bank of Nigeria, CBN, many oil companies still find it difficult to go into business.

A visit to many private depots in Apapa, Lagos, showed that the oil marketers are not contemplating importation in the coming weeks because of uncertainties currently staring oil marketers in the face.

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This means the Nigerian National Petroleum Company Limited is the only entity still importing fuel into the country.

The national president, Independent Petroleum Marketers Association of Nigeria, IPMAN, Elder Chinedu Okoronkwo, could not be reached for comments, yesterday.

But in an interview with Vanguard, yesterday, the national operations controller of IPMAN, Mike Osatuyi, who noted said the oil marketers have not yet commenced the importation, said: “The cost of importing petrol has tripled because of subsidy withdrawal.

‘’We now need more funds to put into the business than before. Remember the exchange rate of the naira has also increased from over N400/ a dollar to over N700/per a dollar.

“This means that a lot of funds are needed than before. it is not easy for a single company to bring out that level of money. So, we are discussing with the banks.

‘’It will take some time to conclude the various discussions before securing funds for the importation. The price of petrol may be high at the initial period, but it would drop later as many oil marketers begin to import the product.”

Ex-depot price rises to N505 per litre

Already, he said the ex-depot price of the product has increased from over N400 per litre to N505 over the weekend, thus forcing the independent marketers that lift the product from private depots to sell at different prices, ranging from N510 -N530, depending on location, to recover cost.

It takes time to get license —Applicant

A chief executive officer, who pleaded anonymity, said: “We have applied for license to import. We are waiting on the regulator. We also need huge foreign exchange at a competitive rate because it cost billions of naira to bring a mother vessel into the country. This has to be done in an environment of certainty.

“We cannot dabble into fuel importation at this time. Adequate caution is required from everyone, including the banks that will provide the funds, to ensure that such investment could be recovered at least with minimal profit.

‘’It is a business that one can easily get his or her fingers burnt. We are currently watching the investment landscape and will import at the right time.”

The Authority Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Farouk Ahmed, did not respond when Vanguard reached out yesterday

Meanwhile, transporters, including Uber, have increased their fares by more than 100 per cent on all routes.
For instance, it now costs over N2,000 for commuters to move from Ikorodu to Mile 2 in Lagos, a distance that used to be below N1,000.

It also cost more than N1,500 to travel from Marina to Ajah, a distant that used to be less than N1,000.

Related Topics:fuel importation IPMAN NMDPRA

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Railway

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

Published

21 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

22 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.