Lack of licence, foreign exchange, others hinder fuel importation – Newstrends
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Lack of licence, foreign exchange, others hinder fuel importation

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2 years ago

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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.

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I’m honoured, excited over World Bank’s appointment – Dangote

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8 hours ago

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April 25, 2025

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Africa’s richest man and Chief Executive Officer of Dangote Group, Aliko Dangote

I’m honoured, excited over World Bank’s appointment – Dangote

President and CEO of Dangote Group, Aliko Dangote, has expressed gratitude following his appointment to the World Bank’s Private Sector Investment Lab, a global initiative aimed at accelerating private investment and job creation in emerging economies.

In a statement confirming the development, Dangote described the appointment as both an honour and a reflection of his long-standing commitment to economic development through private enterprise.

“I am both honoured and excited to accept my appointment to the World Bank’s Private Sector Investment Lab, dedicated to advancing investment and employment in emerging economies,” Dangote said.

“This opportunity aligns with my long-standing commitment to sustainable development and unlocking the potential of developing economies.”

He referenced the successes of the so-called Asian Tigers, economies that experienced rapid growth through strategic investment, as a source of inspiration for advancing similar outcomes in other parts of the world.

The World Bank announced Dangote’s inclusion on Wednesday as part of a broader expansion of the Lab, which enters a new phase focused on scaling up solutions that attract private capital and generate employment in developing countries.

Other newly appointed members include Bill Anderson, CEO of Bayer AG; Sunil Bharti Mittal, Chairman of Bharti Enterprises; and Mark Hoplamazian, President and CEO of Hyatt Hotels Corporation.

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World Bank Group President Ajay Banga noted that the expanded membership underscores the institution’s focus on integrating private-sector leadership into its strategy for global job creation.

“With the expanded membership, we are mainstreaming this work across our operations and tying it directly to the jobs agenda that is driving our strategy,” Banga said.

“This isn’t about altruism—it’s about helping the private sector see a path to investments that will deliver returns, and lift people and economies alike. It’s central to our mandate.”

The lab, which was co-chaired in 2023 by Canadian Prime Minister Mark Carney, previously sought to mobilise £1 trillion in sustainable investment, particularly targeting energy transition projects in emerging markets.

Over the past 18 months, the lab has convened leaders from global financial institutions to identify and address key barriers to private sector investment in low-income economies. Its findings have now been consolidated into five core focus areas, including regulatory and policy certainty, which are being embedded across World Bank operations.

Dangote Group, founded by Aliko Dangote, is the largest conglomerate in West Africa and one of the most prominent on the African continent. With investments spanning cement, fertiliser, salt, sugar, and oil, the group employs over 30,000 people and is Nigeria’s largest private-sector employer and taxpayer.

The company’s flagship project—the $20 billion Dangote Petroleum Refinery & Petrochemicals—is the largest single private investment in Africa.

Dangote also leads the Aliko Dangote Foundation, the largest private philanthropic organisation in sub-Saharan Africa. The foundation primarily supports child nutrition and also funds health, education, economic empowerment, and disaster relief efforts.

I’m honoured, excited over World Bank’s appointment – Dangote

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Aviation

Air Peace suspends flights nationwide over NiMet strike

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2 days ago

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April 24, 2025

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Air Peace suspends flights nationwide over NiMet strike

 

Air Peace has suspended all its flight operations across the country due to the ongoing strike by the Nigerian Meteorological Agency (NiMet).

The airline said in a statement on Wednesday that it was also suspending operations due to the unavailability of QNH (hazardous weather) reports required for safe landings.

“Due to the ongoing NiMet strike and the unavailability of QNH (hazardous weather) reports required for safe landings, Air Peace has suspended all flight operations nationwide until the strike is over,” Air Peace said.

“Your safety is our top priority. We appreciate your understanding and will share updates as the situation unfolds.”

The airline had earlier announced that the NiMet strike could lead to flight delays and cancellations across its network.

Air Peace added that it was monitoring the situation and working with relevant stakeholders to minimise the impact on customers’ travel plans.

Employees of NiMet commenced a nationwide indefinite strike over welfare issues on Wednesday.

Some of the issues raised involve “NiMet’s refusal to negotiate or implement agreed financial allowances and unresolved entitlements,” including wage awards, peculiar allowances, and outstanding payments from the 2019 minimum wage.

They also accused the management of the agency of withholding important documents, ignoring requests for inclusion of omitted staff in past payments, and neglecting key training programmes in favour of executive retreats.

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Nigeria’s gas production increases by 15.6% to 227,931.65 mscf

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3 days ago

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April 23, 2025

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Nigeria’s gas production increases by 15.6% to 227,931.65 mscf

 

Nigeria’s gas output has increased 15,6 percent month-on-month, MoM, to 227,931.65 million standard cubic feet, mscf, in March 2025.

But on year-on-year, YoY basis, the nation’s gas output recorded a marginal increase to 227,931.65 mscf in March 2025, from 198,353.62 mscf, recorded in the corresponding period of 2024.

Data obtained from the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Gas Production Status reports indicated that of the total of 227,931.65 mscf produced in March 2025, 119,552.75 mscf was associated while 108,378.90 mscf was non-associated gas.

Associated gas is extracted in the process of producing crude oil while non-associated gas is produced without crude oil after much investment, exploration and development.

 

The Ministry of Petroleum Resources (Gas), which is directly involved in the development of policies, targeted at increasing investment in the sector said efforts have been made to increase investment and production of gas in Nigeria.

Similarly, in its recent report obtained by Vanguard, the Nigerian LNG Limited stated: “We are fully committed to expanding our operations with the NLNG Train 7 Project, which will boost our production capacity by 35%, increasing from 22 Million Tonnes Per Annum (mtpa) to 30 mtpa. This project underscores our role as a key player in the global LNG market and positions Nigeria as a top-tier supplier of LNG, leveraging its vast proven gas reserves of 202 trillion cubic feet (the 9th largest globally).

Vanguard

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