Business
More marketers approach banks for loans to import fuel
More marketers approach banks for loans to import fuel
Banks are set to increase funding of petrol importation to the N3.5 trillion as more marketers move to import the product amidst push for exclusivity of local production and supply led by Dangote Refinery.
Financial Vanguard learnt that banks are now receiving more loan requests for funding petroleum products imports with the head of oil and gas in a tier-1 bank saying about N250 billion single request came to his desk last week, the third in the last one month.
He estimated the banking industry funding of petrol imports to be around N3.5 trillion before end of this year.
He stated: “We have started seeing a lot of petroleum marketers coming up with loan requests for importation of products, which we didn’t have before now not even when the President declared that subsidy is gone.
“We have also done our due diligence on the market and discovered that deregulation is gaining traction across the private and public sectors.
“Before now we do not entertain lending to petrol marketers due to issues around pump price regulations because many banks had burnt their fingers in the recent years over oil and gas related loans that failed.”
Petrol costlier than actual market price, NLC alleges
Meanwhile the Nigeria Labour Congress, NLC, has alleged that the pump price of petrol is higher than market price, accusing marketers of ripping off Nigerians.
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NLC in a communiqué at the of its National Executive Council, NEC, in Port Harcourt Rivers State, by its President, Joe Ajaero, noted with “increasing dismay the shenanigans around the appropriate pricing of petrol, (Premium Motor Spirit, PMS) in Nigeria.”
NLC observed that there may be a gangup against Nigerians by fat cats in the industry as the current price of the product is significantly higher than the real market price. Padding of costs and abnormal margins seems to be the order of the day considering the revelations from the ongoing controversy between Marketers and Dangote group. It is entirely possible that Nigerian workers and masses are being ripped off by those who control the levers of Economic power in Nigeria which explains why the domestic public refineries may not immediately be allowed to come on stream.
“How can one explain the situation where marketers are still eager to import petrol with all the taxes such are import charges, fright charges, Nigerian Port Authority, NPA, Nigerian Nigerian Maritime Administration and Safety Agency, NIMASA, among others, despite a local source of refined petroleum products speaks volume.
“NLC demands appropriate pricing of petrol and calls for the Public domestic refineries in PH, Warri and Kaduna to quickly come back on stream to break-up the monopolistic stranglehold the big players have on the industry.”
At $72 per barrel of oil, imported petrol should be cheaper in Nigeria — Experts
Supporting NLC’s position, experts and other stakeholders, weekend, said at the current price of $72 per barrel of crude oil, the price of Premium Motor Spirit, PMS, also known as petrol, should be cheaper in Nigeria.
They said the current price of N1, 025 per litre (Lagos) was taken when crude oil, a major feedstock stood at more than $80 per barrel in the global market September 2024.
Since then, they said the price of crude has been volatile before dropping to the current $72 per barrel, without reflecting in the domestic price of petrol.
In different interviews with Vanguard, the experts noted that deregulation as currently practiced should enable the market to respond seamlessly to changes, including crude oil, the major raw material.
On his part, a Port Harcourt-based energy analyst, Dr. Bala Zakki, said: “The irresponsible petroleum products price dynamics in Nigeria is never obtainable in any Organisation of Petroleum Exporting Countries, OPEC member nations and the reason is very simple and straightforward.
“OPEC member nations have their functional state-owned refineries. No responsible government will or should abdicate its responsibilities of providing goods & service to the private sector.
“Globally, private sector operators are known to be shylocks, exploitative and profit maximizers.”
More marketers approach banks for loans to import fuel
Vanguard
Business
Bitcoin races above $100,000 mark on Trump appointment
Bitcoin races above $100,000 mark on Trump appointment
Bitcoin surged above $100,000 for the first time on Thursday, a milestone hailed even by sceptics as a coming-of-age for digital assets as investors bet on a friendly US administration to cement the place of cryptocurrencies in financial markets.
Reuters reports the new price came on Donald Trump’s decision to pick a crypto fan to head the US securities regulator, reinforcing optimism the new President will push through measures to deregulate the sector.
According to the report, the total value of the cryptocurrency market has almost doubled over the year so far to hit a record over $3.8 trillion, going by data provider CoinGecko.
The cryptocurrency soared through the mark, having enjoyed a blistering rally since the November 5 election of Trump, who pledged on the campaign trail to make the United States the “bitcoin and cryptocurrency capital of the world”.
The digital unit has raced over 50 per cent since Trump’s victory — and around 140 per cent since the turn of the year.
However, the unit’s advance — it hit a record of $103,800.44 before easing to just below $103,000 in the afternoon — had stalled in recent weeks, sitting just below $100,000 as traders awaited new catalysts to buy in.
That came with news that Trump settling for a major crypto proponent Paul Atkins to take over as chair of the Securities and Exchange Commission.
Atkins, an SEC commissioner from 2002 to 2008, founded risk consultancy firm Patomak Global Partners in 2009, whose clients include companies in the banking, trading and cryptocurrency industries.
An announcement from the Trump transition team noted that Atkins had been co-chairman of the Digital Chamber of Commerce, which promotes the use of digital assets, since 2017.
“Paul is a proven leader for common sense regulations,” Trump said in a statement that emphasised Atkins’ commitment to “robust, innovative” capital markets.
Trump stated, “He also recognises that digital assets and other innovations are crucial to Making America Greater than Ever Before.”
Business
Shell Nigeria: We awarded $1.98bn contracts to indigenous firms
Shell Nigeria: We awarded $1.98bn contracts to indigenous firms
Shell Companies in Nigeria said they awarded contracts worth $1.98 billion to indigenous companies in 2023 as part of steps taken to enhance local content in the Nigerian oil and gas industry.
The contracts, awarded by the Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas (SNG), indicated a three percent increase from $1.92 billion, recorded in 2022.
SNEPCo’s Managing Director, Ron Adams, disclosed this at the 13th edition of the Practical Nigerian Content forum in Yenagoa, Bayelsa State, which had the theme, “Deepening the Next Frontier for Nigerian Content Implementation.”
Adams, who was represented by Business Opportunity Manager for SNEPCo’s Bonga South-West Aparo Project Olaposi Fadahunsi informed participants that several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.
He said: “Shell companies execute a large proportion of their activities through contracts with third parties, and Nigeria-registered companies have been key beneficiaries of this policy aimed at powering Nigeria’s progress.”
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According to him, Shell companies also implemented projects under the Human Capital Development Fund, including the Niger Delta University learning centre and digital library project and the Federal University of Technology Information Technology Hub. Both projects were inaugurated this year, in collaboration with SPDC Joint Venture partners – Nigeria National Petroleum Company Limited (NNPC), TotalEnergies and Nigeria Agip Oil Company Limited (NAOC).
On his part, Heineken Lokpobiri, Minister of State for Petroleum Resources (oil), said Nigeria will continue to produce fossil fuels despite pressure the pressure on African nations, due to energy transition.
He said: “All the nations that say we should stop the production of fossil fuel, we will never stop the production in Nigeria; no country in the world will stop it.”
Meanwhile, the Nigerian National Petroleum Company Limited, NNPCL, said it has deepened its operations through strategic restructuring of critical operational units with the aim to increase oil production and sustain indigenous capacity.
Business
Complete meter upgrade latest Jan 1, 2025, NERC tells DisCos
Complete meter upgrade latest Jan 1, 2025, NERC tells DisCos
THE Nigerian Electricity Regulatory Commission, NERC, has extended the deadline for meter upgrades from distribution companies, DisCos, to their customers on January 1, 2025, after which they risk sanction.
Recall that the regulatory agency had given November 24 as the deadline for this process but the DisCos failed to meet a certain percentage of the target population for the scheme.
The metering programme is set to be upgraded from Unistar to Standard Transfer Specifications, STS, meters by the DisCos for all their customers.
Vanguard learned that there are no official figures of the percentage of Nigerians that had complied with the directive, out of the 6.1 million metered customers from the 13.3 million registered electricity customers in the Nigerian Electricity Supply Industry, NESI.
NERC, on its X handle, gave the ultimatum during the fourth guarter of 2024 NESI stakeholders meeting.
The regulatory body vowed to impose penalties on any defaulting DisCos
It said in a statement: “NERC has directed DISCOs to rapidly conclude the migration of STS-Meters for all their customers to prevent disruption of service.
“During the Q4 NESI stakeholders meeting, the commission warned that daily penalties would be imposed for each meter not migrated effective from 1st January 2025.”
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The commission placed the responsibility of the DisCos to replace all obsolete/faulty meters within their franchise, insisting that DisCos are neither allowed to charge customers for the replacement of these meters nor transfer customers to estimated billing.
Recall also that the Executive Vice Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission, FCCPC, Mr Tunji Bello, had a few weeks ago, warned the distribution companies to cease all activities related to the planned replacement of Unistar meters.
Complete meter upgrade latest Jan 1, 2025, NERC tells DisCos
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