Updated: Petrol price may drop to N300/litre - Local refiners – Newstrends
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Updated: Petrol price may drop to N300/litre – Local refiners

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Updated: Petrol price may drop to N300/litre – Local refiners

The pump price of petrol is expected to drop to N300/litre when massive refining of crude oil by the Dangote Petroleum Refinery and other indigenous producers begins soon.

Operators of modular refineries, who stated this however pointed out that this would be achieved with the Federal Government ensuring adequate provision of crude oil to local refiners.

They disclosed this on Sunday, noting that refineries abroad were ripping off the country.

The refiners spoke under the aegis of the Crude Oil Refinery Owners Association of Nigeria in an interview with The PUNCH.

They said what happened to the cost of diesel after Dangote started producing it would happen to petrol price when being produced massively in Nigeria.

It is a registered association of modular and conventional refinery companies in Nigeria.

“A lot of companies today benefit from the importation of petroleum products at the expense of Nigerians,” the Publicity Secretary of CORAN, Eche Idoko, stated.

A report by The PUNCH on Monday quoted Idoko in an interview as saying, “If we begin to produce PMS (petrol) today in large volumes, provided there is adequate crude oil supply, I can assure that we should be able to buy PMS at N300/litre as the pump price.

“Why make Nigerians buy it at almost N700/litre when you know that if you allow refineries work the price will come down? Is it because you want to satisfy the global refiners abroad that are making so much from us?”

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When told that there are arguments that it is not possible to have such a drop in price because crude oil, the raw material for PMS, is price in dollars, the CORAN official insisted that petrol price would crash once it is being produced massively by indigenous refiners.

He said, “We were selling diesel for N1,700 to N1,800/litre, but as soon as Dangote refinery started production he brought down the price to N1,200/litre. What other proofs do you need?

As I speak to you now there is every tendency that before December diesel price will drop further. The only reason reason why diesel is not doing below N1,000/litre is because of our exchange rate.

“If the exchange rate drops, diesel will drop below the N1,000/litre price. Now the exchange rate concern is because Dangote imports crude. If he is not importing, the exchange rate may not have so much effect, though he is still buying crude in dollars (in Nigeria) anyway.”

On May 18, 2024, The PUNCH reported that Africa’s richest man, Aliko Dangote, stated that following the laid-down plans of the Dangote refinery, Nigeria would no longer need to import petrol starting June this year.

Dangote had also stated that his refinery could meet West Africa’s petrol and diesel needs, as well as the continent’s aviation fuel demand. He spoke at the Africa CEO Forum Annual Summit in Kigali, expressing optimism about transforming Africa’s energy landscape.

“Right now, Nigeria has no cause to import anything apart from gasoline (petrol) and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre,” the billionaire had declared.

Also, Dangote had earlier in the year crashed the pump price of diesel to N1,200/litre when the commodity was selling at between N1,700 and N1,800/litre at the time.

He further dropped the price to below N1,000/litre, but could not sustain this price due to the rise in exchange rate. The refinery eventually returned the price to the initial rate of N1,200/litre.

Speaking on Sunday, the CORAN spokesperson stated that this was why the modular refiners had been calling for the sale of crude oil at the naira equivalent of the dollar rate.

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“We have told them (government) that even the dollars that you are asking us to use and buy this product, it is detrimental to the country. Strengthen the naira. We will buy at the international market rate, but at a naira equivalent.

“These are the issues and they know these things but we can’t explain why they really can’t take decisions to change these concerns.

“Get crude to local refineries, allow crude purchase in naira equivalent, make the environment business-friendly and watch locally produced petroleum product prices crash,” Idoko stated.

Nigeria currently has 25 licensed modular refineries. Five of them are operating and producing diesel, kerosene, black oil and naphtha. About 10 are under various stages of completion, while the others have received licences to establish.

Operators of modular refineries earlier stated that aside from the five that are in operation currently, the remaining plants are embattled due to the major challenge of crude oil unavailability, a development that has stalled funding from financiers.

“Only about five of our members have completed their refineries. The others are having a major challenge.

“This challenge is that the people who are supposed to finance them have not disbursed financing for construction because they want some level of guarantee.

“A guarantee that if they finish the refinery, they are going to get feedstock, which, of course, is crude oil,” Idoko had explained.

Oil marketers also believe that the cost of petrol should be lower than its current price once its production begins in Nigeria.

They welcomed the comment of Dangote that his refinery should start pumping out petrol this month, and expressed hope that the cost would be less than the price which the Nigerian National Petroleum Company Limited currently sells.

“We expect a reduced price for locally produced PMS, as I’ve earlier told you,” the National President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, stated.

Maigandi, while speaking from Saudi Arabia with our correspondent on Sunday, also stated no date has been communicated to marketers on when Dangote would release petrol to the market. Officials of Dangote refinery have remained mute on this.

“It is a welcome development if the refinery can start releasing PMS this month because as marketers we are currently set to start buying the product from the plant,” Maigandi stated.

The IPMAN president earlier stated that marketers were discussing with the managers of the plant, but not specifically on petrol pricing.

“We have been discussing, but not about the price of petrol yet, rather on other matters such as the registration of members for the purchase of petrol and diesel from the refinery.

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“It is true that we have started buying diesel from them, but you have to register with the company first. So a general registration is ongoing,” he said.

Maigandi, however, stated that though marketers had yet to receive the projected price for petrol from the plant, dealers would want to see a PMS price of about N500/litre from the Dangote refinery.

“We are looking at having it (PMS) at any price below the NNPC rate. The price which NNPC sells petrol is N565.50/litre, so we are expecting something below that price, maybe around N500/litre,” Maigandi stated.

The oil dealers also joined in the call for the provision of crude oil to local refiners, stressing that this would impact positively on the prices of refined petroleum products.

“Of course, it is important for crude to be made available to local refineries because this will surely affect petroleum products’ prices positively,” the IPMAN president stated.

Updated: Petrol price may drop to N300/litre – Local refiners

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N25.7 billion fraud: Supreme court upholds Francis Atuche’s conviction

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Francis Atuche

N25.7 billion fraud: Supreme court upholds Francis Atuche’s conviction

In a landmark judgment, the Supreme Court of Nigeria has upheld the conviction of Francis Atuche, former Managing Director of Bank PHB Plc, for his role in a N25.7 billion fraud scheme.

Atuche’s legal battle, which began in 2011, has finally come to an end with the Supreme Court’s unanimous decision to affirm his conviction.

The court found him guilty of conspiracy to commit felony and stealing, and sentenced him to six years in prison.

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The Economic and Financial Crimes Commission (EFCC) had arraigned Atuche, his wife Elizabeth, and Ugo Anyanwu on a 27-count charge in 2011.

While Elizabeth was acquitted due to insufficient evidence, Atuche and Anyanwu were found guilty and sentenced to prison.

The Supreme Court’s decision sets a precedent for the nation’s justice system, emphasizing the importance of credible evidence in criminal cases.

N25.7 billion fraud: Supreme court upholds Francis Atuche’s conviction

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Tenure of FCT council chairmen will expire in 2026 – INEC

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INEC Chairman, Prof. Mahmood Yakubu

Tenure of FCT council chairmen will expire in 2026 – INEC

The Independent National Electoral Commission (INEC) has clarified that the council chairmen and councillors in the Federal Capital Territory would remain in office till 2026.

The Chairman of the Commission, Prof. Mahmood Yakubu, made the clarification at a meeting with the Inter Party Advisory Council (IPAC) on Friday in Abuja, following the agitation for the conduct of fresh elections in the FCT.

According to the INEC Chairman, the tenure of office of the elected officers begins on the date of taking the oath of office, not the date of conduct of the election.

He explained that the National Assembly has since repealed and re-enacted the Electoral Act 2010 (as amended) which provided for a three-year tenure for Chairmen and Councillors, as the Electoral Act 2022.

“In particular, in the exercise of its powers as the law-making body for the FCT, the National Assembly extended the tenure of the Area Councils from three to four years, thereby aligning it with executive and legislative elections nationwide.

“This is one of the important provisions of the Electoral Act 2022. The Act came into force on Friday 25th February 2022, two weeks after the last Area Council elections in the FCT.

“By the time the elected Chairmen and Councillors were sworn in four months later on 14th June 2022, they took their oath of allegiance and oath of office on the basis of the new electoral Act (i.e. the Electoral Act 2022) which provides for a four-year tenure. Consequently, their tenure therefore expires in June 2026,” Yakubu said.

He further explained that in the case of the FCT, Section 108(1) of the Electoral Act 2022 under which the current Chairmen and Councillors were sworn-in on 14th June 2022, is clear and therefore unambiguous.

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“(1) An Area Council shall stand dissolved at the expiration of 4 years commencing from the date – (a) when the Chairman took the oath of office; or (b) when the legislative arm of the Council was inaugurated whichever is earlier”.

Yakubu noted that there are several judicial authorities, including the judgement of the Supreme Court, that tenure begins from the date of oath of office and not the date of election.

“You may also wish to note that when the Electoral Act 2022 was signed into law two weeks after the Commission conducted the last Area Council elections in the FCT, the incumbent holders (Chairmen and Councillors) challenged us that we conducted the election too early, claiming that the new Electoral Act extended their tenure from three to four years.

“We reminded them that they took their oath of office under the old law before the coming into force of the new Electoral Act. Therefore, their tenure will expire in June 2022.”

“I wish to reassure you that we are aware of our responsibilities under the law. Section 28(1) of the Electoral Act 2022 requires the Commission to release the Timetable and Schedule of Activities 360 days (i.e. One year) before the date fixed for the election. It cannot be released two years ahead of the elections.

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“As you are all aware, the Area Council election in the FCT conducted by INEC remains a model for Local Government elections in the country. There is stability of tenure for Chairmen and Councillors.

“There has never been a caretaker committee in any Area Council in the FCT. Democratic elections are conducted on a regular basis. There is plurality of electoral outcomes as no single political party has ever won elections in all the 68 Constituencies (six Area Council Chairmen and 62 Councillors).

“We will continue to uphold the sanctity of tenure and improve the credibility of these elections.”

The INEC Chairman appealed to all persons with the ambition to contest for the positions of Chairmen and Councillors in the FCT to be guided by the provisions of the law and judicial pronouncements on the issue of tenure.

He also appealed to political parties to enlighten their members accordingly, adding that at the appropriate time, the Commission will release the Timetable and Schedule of Activities for the election.

Tenure of FCT council chairmen will expire in 2026 – INEC

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Some private jets used for money laundering, drug trafficking – Keyamo

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Some private jets used for money laundering, drug trafficking – Keyamo

Minister of Aviation and Aerospace Development, Festus Keyamo, has accused some private jet owners of using their aircraft for money laundering and drug trafficking.

Keyamo said this on Thursday during the inauguration of a ministerial task force committee on illegal private chartered operations and related matters in Abuja.

The minister said he had set a five-point agenda that would guide him and his team in discharging the mandate of President Bola Ahmed Tinubu when he assumed office.

He said the five-point agenda encapsulates safety, infrastructure, support for local operators, human capacity development and revenue generation.

Accordingly, he said the ministry has identified issues within the aviation industry “that we must tackle headlong”.

“It has come to my attention, through a series of disturbing reports, that the practice of illegal charter operations is thriving within the aviation industry, thereby undermining the efforts of the Nigerian Civil Aviation Authority and other regulatory bodies,” he said.

“These illicit activities have not only resulted in significant financial losses to the Federal Government but have also raised security and safety concerns as the operations of private aircraft owners have remained largely unchecked and unregulated.”

This, Keyamo said, has also resulted in using private aircraft for other illegal activities.

“Last week, the National Security Adviser wrote to us, alerting us to the spike in money laundering, drug trafficking and other illegal activities through the use of private aircraft in the country,” the minister said.

“It appears that Private Non-Commercial Flight (PNCF) operators have become increasingly emboldened, continuing their illegal operations with the assistance of Air Operator Certificate (AOC) holders who collect tolls and list these illegal charters under their AOCs.

“We have received alarming reports that some crew members have not attended mandatory simulator trainings for nearly three years and are flying with fraudulently-obtained renewed licences.

“Many of these individuals are operating planes registered under PNCF but are conducting illegal charter operations with impunity.”

To combat the illegal operators, the minister announced the immediate composition of a ministerial task force on illegal private charter operations and related matters.

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