NNPC, others get fresh order to end fuel scarcity in one week – Newstrends
Connect with us

Business

NNPC, others get fresh order to end fuel scarcity in one week

Published

on

The House of Representatives has directed the Nigerian National Petroleum Company (NNPC) Limited and other concerned regulatory agencies to end the fuel scarcity being experienced across the country in one week.

This came after the adoption of motion of urgent public importance by Sa’idu Musa Abdullahi (APC, Niger) at plenary on Tuesday.

Presenting the motion, he said in the last few months, Nigerians had been subjected to untold hardships caused by the lingering petrol scarcity, affecting economic activities and making the already trying times in the country more difficult.

He said the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) advanced several excuses to justify the fuel scarcity.

Abdullahi said, “Firstly, when the scarcity reared its ugly head at the peak of the rainy season in October this year, NMDPRA said the fuel scarcity in Abuja and other northern states was caused by rainfall which submerged the greater part of Lokoja including the highway leading to Abuja, a development that grounded all vehicular movements along that route.

“Soon after floods/rains receded in Lokoja and the petrol scarcity continued, the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the situation persisted because of the supply gap created by the blockade in Lokoja. IPMAN affirmed that there was enough product in the depots and that the lingering scarcity was only caused by the break in supply of the product.

“When the scarcity continued and all the excuses advanced by the stakeholders watered down, the National Operations Controller of IPMAN advanced another reason and argued that the scarcity is because of an unsteady supply of the products.

“Intelligence reports on current fuel scarcity gathered by our security agencies indicated that there is a deliberate plan by some oil marketers to derail the effort of the government in the distribution of fuel in the country by hoarding the petroleum products, thereby creating artificial scarcity all over the country.”

He said while some major marketers are currently selling fuel at government regulated price, some independent marketers sell at higher prices.

According to him, most of such independent filling stations are selling fuel at over N300 per litre.

He said, “It is observed with dismay that those who are gaining from this artificial fuel scarcity appear to be smiling home as a result of this ugly development and this has the potency to provoke innocent Nigerians against the government.

“The inability of the regulators of the petroleum sector to end this artificial scarcity of petroleum products forced the Department of State Security Services to issue an ultimatum to the NNPC, and oil marketers to end the artificial scarcity within 48-hours”.

The House therefore called on the NNPC Ltd to end the scarcity in the next one week to ease the suffering of Nigerians.

It also called on the Nigerian Midstream Downstream Petroleum Regulatory Commission to collaborate with the Nigeria Police Force and DSSS to ensure that fuel is sold at the regulated price in all retail outlets.

Business

My refinery will begin petrol supply next month, says Aliko Dangote

Published

on

President of Dangote Group, Aliko Dangote

My refinery will begin petrol supply next month, says Aliko Dangote

The Dangote refinery has said its plan to release premium motor spirit into the market this month will no longer be possible, sparking reactions from Nigerians.

The President of Dangote Group, Aliko Dangote told newsmen during a tour of the facility with Governor Babajide Sanwo-olu of Lagos State on Sunday that the petrol from the 650,000 barrels per day capacity refinery would be out in July.

Dangote said this was due to some minor challenges, stating that the product would be out by July 10 to 15.

“We had a bit of delay, but PMS will start coming out by 10 to 15 of July. But then we want to keep it in the tank to make sure that it settles. So by the third week of July, we’ll be able to come out to take it into the market,” Dangote had said.

Reacting to the update from Dangote, some Nigerians held different views on what could have been the reason for the recurrent postponement.

A Facebook user, Anthony Ihenyen, said it was not easy to have such a huge investment.

“You are trying, sir, and it will fly. We need more people like you to do more here in Nigeria, not abroad. Nobody is a saint.

On his part, Emmanuel Ose expressed concern, saying “Anything that will make an average Nigerian happy is always a problem to get in Nigeria”.

Another commenter, Adeola Orukotan, said, “When you know your refinery isn’t ready, why rush to declare it open? Now it’s over one year with story upon story.”

READ ALSO:

An X user, @ajagunsegun, stated, “Nigerians were told that the Dangote refinery was due for operation when it was commissioned by Buhari in May 2023, but up until now, we’re still waiting. Well, Dangote has the right to run his private business however he wishes. But what about the four Nigerian refineries? When President Tinubu came into power, he promised that the Port Harcourt refinery would begin operation by December last year, this is June 2024, and we’re still waiting. Sincerely, there’s no way you’ll reside in Nigeria without developing the tendency to lie. There are too many lies and government propaganda everywhere.

But Michael Chibuzo remarked that a refinery is not a “barbecue business.”

“It is complex. You have to pass a lot of tests and carry out many test runs. Commercial production is always the last stage of the entire process. Let’s be patient,” Chibuzo advised.

@Selomsarl stated, “Thank you for the update, Mr. Dangote. We appreciate your commitment to ensuring the quality of the petrol before releasing it into the market. Your dedication to producing high-quality products is commendable. Questions, sir: How will the new refinery’s production affect the current fuel scarcity in the country? Will the petrol produced by the refinery be subsidised, or will it be sold at the current market price? How will the distribution of the petrol be handled to ensure it reaches all states and regions equally?”

In all of these, a netizen, Stanley Omoyemi, submitted, “We are waiting patiently.”

The PUNCH recalls that Dangote, last month, disclosed that it would begin the sale of PMS in June, saying his refinery would end the importation of petrol into Nigeria.

Speaking at the recent Africa CEO Forum Annual Summit in Kigali, Rwanda, Dangote expressed optimism about transforming Africa’s energy landscape.

“Right now, Nigeria has no cause to import anything apart from gasoline 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,” he declared

“We have enough gasoline to give to at least the entire West Africa, diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico.

“We have started producing jet fuel, we are producing diesel, and by next month, we’ll be producing gasoline. What that will do, it will be able to take most African crude,” Dangote told the panel.

The words of Dangote appeared to have come as a soothing balm to marketers and Nigerians who are hopeful that the Dangote would crash the price of petrol from around N700 to N500 or below.

My refinery will begin petrol supply next month, says Aliko Dangote

Continue Reading

Business

Naira appreciates further to N1,473/$ at official market

Published

on

Naira-dollar

Naira appreciates further to N1,473/$ at official market

The Naira on Tuesday further appreciated at the official market trading at N1,473.66 to the dollar. Data from the official trading platform of the FMDQ Exchange showed that the Naira gained N9.96.

This represents a 0.67 per cent gain when compared to the previous trading date on Monday when it traded at N1,483.62 to the dollar.

READ ALSO:

However, the volume of currency traded increased to $385.91 million on Tuesday up from $161.69 million recorded on Monday.

Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Nigerian currency traded between N1,495 and N1,415 against the dollar.

Naira appreciates further to N1,473/$ at official market

(NAN)

Continue Reading

Business

Guinness owners to leave Nigeria, sells shares amid crippling economic policies

Published

on

Guinness Nigeria

Guinness owners to leave Nigeria, sells shares amid crippling economic policies

Leading brewery brand, Guinness, says it will exit the Nigerian market as turbulent business climate and crippling economic policies of President Bola Tinubu-led administration continue to wreak havoc.

The company, which has been operating in Nigeria since 1950, will now sell off its controlling shares to Singaporean conglomerate Tolaram ahead of its departure from the West Africa nation next year.

The company’s imminent departure may not be unconnected to the staggering N61.9 billion loss after tax recorded between July 2023 and March 2024,

Recall that Tinubu had floated the naira in an effort to unify the currency’s value on the official and parallel foreign exchange markets.

The decision, however, proved catastrophic for many multinational companies, including Guinness Nigeria, as they suffer monumental financial setbacks engendered by revenue decimation.

Guinness Nigeria N61.7 billion loss after tax in Q3 represented a 1,000 per cent decrease from the N5.9 billion profit generated in the same period last year.

The huge loss worsened by the naira’s continued plummeting may have compelled Diageo, Guinness’ parent company, to sell its 58.02 per cent majority stake to the Singaporean group.

READ ALSO:

“Under the terms of an agreement signed today, 11 June 2024, Tolaram will acquire Diageo’s 58.02% shareholding in Guinness Nigeria royalty agreements for the continued production of the Guinness brand and its locally manufactured Diageo ready-to-drink and mainstream spirits brands,” the company said in a statement Tuesday.

Guinness Nigeria Plc, a public limited liability company quoted on the Nigerian Stock Exchange, was incorporated on April 29, 1950, as a trading company importing Guinness Stout from Dublin.

The Guinness brand has operated in Nigeria since 1950, but with Tolaram’s controlling stake acquisition expected to conclude by 2025, the global brewery brand will have spent 75 years in Nigeria.

In the statement, Guinness said the firm would leave Nigeria next year and hand over to a third-party venture.

“The transaction is expected to be completed during fiscal 2025, subject to obtaining the requisite regulatory approvals in Nigeria,” said the statement signed by Abidemi Ademola, Guinness’s legal director.

Diageo, however, stated that the sale of its Nigerian brand would not in any way affect its ownership of the Guinness global brand.

Diageo “will retain ownership of the Guinness brand, which will be licensed to Guinness Nigeria for the long term.”

Diageo now joins the long list of other multinational companies, like GlaxoSmithKline and Microsoft, that have left Nigeria in the last one to two years, citing the tough and unfavourable economic climate as making business unprofitable.

Some of Diageo’s popular brands in Nigeria include Smirnoff Ice, Smirnoff Vodka, Orijin Bitters, Malta Guinness, Gordons Orange Sunset, and Dubic Malt.

Guinness owners to leave Nigeria, sells shares amid crippling economic policies

Continue Reading

Trending