Business

NNPC petrol price without subsidy is N400/litre – Marketers

Published

3 years ago

November 28, 2022

The lowest price the Nigerian National Petroleum Company Limited can sell Premium Motor Spirit, popularly called petrol, to marketers, assuming there is no subsidy, is N400/litre, it has been learnt.

Oil marketers, who made the disclosure on Sunday, also gave other reasons for the continued scarcity of petrol, which had led to the lingering queues at filling stations nationwide.

They said PMS imports charges were becoming unbearable for the sole importer of the commodity – the Nigerian National Petroleum Company Limited, disclosing that the NNPC had been subtly pushing these charges to depot owners.

It was learnt that depot owners, on their part, were also passing the charges to filling stations, which in turn push it to final consumers of the product, a development that has led to the increase in the pump price of the commodity.

It was also gathered that the Federal Government had quietly allowed depot owners to raise the ex-depot price of petrol to about N185/litre, whereas the approved rate used to be N147/litre.

This came as the scarcity for petrol continued on Sunday. Many retail stations in Abuja were shut due to lack of products to sell. Residents had to resort to black marketers, who sold their products in jerry-cans.

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The same scenario played out in parts of Nasarawa and Niger states, as oil marketers explained that the rise in the dollar was also contributory to the PMS scarcity witnessed in Nigeria.

“The dollar is affecting PMS purchase, something you were buying for about $15/tonne when the dollar was about N440 to N450, but currently the dollar is about N750 to N800. Definitely the price of the product will increase,” a major marketer, who pleaded not to be named due to lack of authorisation, stated.

The official added, “You can buy a product, say $10/tonne from maybe Russia, it will get to Nigerian waters at that rate, but most of those mother vessels, as soon as they discharge into your own vessel, whatever rate you now pay will be international rates in dollar.

“The mother vessel has its limit, it has to be stationed at Atlas Cove. But the daughter vessel you are going to charge, which brings in the product, will be charged in dollars. They don’t take naira. So all these charges come in dollars.”

The source stated that these charges were currently hitting hard on the NNPC, as the oil company was finding it tough to bear the increased fuel imports’ rates.

“All vessels operate on international rates and it must be in forex. So as it is now, the rates are getting so high for NNPC to bear alone. Some of these charges have to be pushed to depots that are taking the products and they have to pass it on to consumers,” the oil marketer stated.

The source added, “The subsidised ex-depot rate for petrol from NNPC is about N147/litre, but tell me, which depot is selling at that rate today? I know somebody who said he bought from a depot at N182/litre. And he got it at this rate because he did bulk purchase, he bought about 20 trucks.

“And he bought it from one of the major marketing companies. So when you make a bulk purchase at N182/litre, then you can imagine what those who are buying one or two trucks will have to pay for the product.

“This means that there is hardly any depot you can go to now that you can get products for less than N185/litre. And by the time you buy at N185/litre at the depots, why won’t they sell at N200/litre and above?”

This development was confirmed by the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, who stated that NNPC was currently finding it tough to continue subsidising PMS.

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“The least that NNPC can sell petrol is over N400/litre to depots and not at N145/litre, but because of subsidy, which is becoming over-bearing on them, the oil firm has been struggling to subsidise,” he stated.

He added, “That is why you see the lapses. The government is looking for dollars to import this product and pay the contractors importing for NNPC, and it is also trying to subsidise PMS.”

Ukadike explained that the landing cost of PMS in Nigeria was about N450/litre, as he noted that subsidy on PMS was no longer sustainable.

“The government will not continue to be Father Christmas and cripple the economy. Subsidy must stop!” he stated.

Agencies keep mum

The Group General Manager, Group Public Affairs Division, NNPC, Garba-Deen Mohammad, did not respond to enquiries when contacted. In fact, the NNPC has remained mute on issues around fuel scarcity.

Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the regulator of the downstream oil sector, stayed mute when contacted.

The NMDPRA, just like NNPC, has also remained mute on this matter since last week. The agencies of the Federal Government have decided not to speak on the cost of PMS, amidst the scarcity of the product and attendant queues.

The President, Petroleum Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, told our correspondent that the crisis in the downstream oil sector would continue until the industry was deregulated.

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“We have said it times without number that this issue will continue to drag as long as there is subsidy on petrol, which from all indications is no more sustainable. So the best thing is to stop it,” he stated.

Meanwhile, Ukadike also stressed that the continued payment of subsidy on petrol was taking a toll on not just the resources of NNPC but also on the Federal Government.

He said, “It is becoming increasingly difficult for them (NNPC). In fact, it is taking a toll on the economy generally. And even the Federal Government cannot contain it.

“So the best way out is just to allow people to be able to adapt to the non-subsidy regime in order to relax the pressure on the dollar and the government can then invest in other sectors.

“All these issues, including the subsidy regime, contribute to the scarcity we see across the country. The naira is crashing against the dollar, there is less supply of products, NNPC and the government are battling to subsidise petrol, why won’t there be scarcity?”

Subsidy gulps N6.88tn

Last month, The PUNCH exclusively reported that the administration of Nigeria’s President, Major General Muhammadu Buhari (retd.), could spend not less than N10.976tn as subsidy petrol from when it came to power in 2015 till May 2023.

The report showed that already, the government had spent about N6.88tn in subsidising the commodity, according to data obtained from NNPC and the Nigeria Extractive Industries Transparency Initiative.

The President and his party, the All Progressives Congress had, however, kicked against the fuel subsidy scheme that was implemented by the previous administration of the Peoples Democratic Party, while campaigning in 2015.

NEITI had stated in a report submitted in September to the House of Representatives ad-hoc committee investigating the fuel subsidy regime from 2013 to 2022, that petrol was subsidised all through these years.

In October, the Minister of Finance, Budget and National Planning, Zainab Ahmed, told members of the House of Representatives that the Federal Government’s projection was to spend N6.72tn on subsidy in 2023.

She, however, said the second option of the government was to keep fuel subsidy till June 2023 and that in this option, fuel subsidy was projected to gulp N3.3tn.

A combination of all the above figures indicated that the Buhari regime could spend nothing less than N10.976tn on petrol subsidy from 2015 and June 2023.

IPMAN laments scarcity

Meanwhile, the National Controller, Operations, IPMAN, Mike Osatuyi, told The PUNCH on Sunday that its members still lacked the product, adding that few filling stations which had PMS were selling between N230 and N240 per litre.

“We don’t have products because we could not get to buy. There are currently no products at depots”, he said.

According to him, IPMAN currently has over 30, 000 members nationwide, and accounts for 70 per cent ownership of retail outlets in Nigeria.

“Our members are in the villages and outskirts. Go everywhere, you will see our stations”, Osatuyi added.

A Depots Association of Petroleum Products Marketers Association of Nigeria source who pleaded anonymity said its members had paid for products but were not getting any from NNPCL.

“We have people who have paid but were not given. But the NNPC would say it has stock. Where is the stock and why don’t we have products in our tanks?”

The Chairman, IPMAN, Lagos Satellite Depot, Ejigbo, Akin Akinrinade, had said members of the association ought to be getting supply from the Pipelines and Product Marketing Company.

He said members had made payments in excess of N1bn since October 2021.

He however said the products were yet to be delivered, forcing members to patronise private depots for products while at the same time, servicing loans borrowed from banks for their money with PPMC.

PUNCH

Business

MTN Nigeria Suspends Airtime Loan Service

Published

2 days ago

April 17, 2026

Trends Admin

MTN Nigeria Suspends Airtime Loan Service

MTN Nigeria Communications PLC has temporarily suspended its airtime and data credit service, Xtratime, following new regulatory requirements governing digital consumer lending services in Nigeria.

The company disclosed the development in a corporate filing to the Nigerian Exchange Limited (NGX) on Thursday, stating that the suspension was necessary to comply with the 2025 Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations issued by the Federal Competition and Consumer Protection Commission (FCCPC).

According to MTN, the Xtratime service—which allows prepaid subscribers to borrow airtime or data and repay on their next recharge—falls under the expanded scope of the new regulatory framework and now requires additional compliance and licensing processes before it can resume.

In the regulatory notice signed by Company Secretary Uto Ukpanah, MTN said:
“MTN Nigeria Communications PLC hereby notifies the Nigerian Exchange Limited and the investing public that the company has temporarily suspended its airtime and data credit advance service (‘Xtratime’).”

The telecom operator added that the suspension is tied to ongoing implementation of the FCCPC’s updated rules, which introduce stricter compliance, registration, and licensing obligations for all providers of digital or non-traditional credit services.

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MTN stressed that despite the suspension, customers can still purchase airtime and data through other available channels, including banking platforms, USSD services, and mobile apps, assuring that the decision is not expected to significantly affect earnings.

“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” the company said, adding that updates would be provided in its Q1 2026 financial report.

The development highlights the widening reach of Nigeria’s consumer credit regulations, which now extend beyond banks and fintech loan apps to include telecommunications companies offering airtime advances.

The FCCPC had earlier introduced a framework for digital lending in 2022 but strengthened enforcement with the 2025 regulations, requiring all operators in the sector to register and obtain approval before continuing operations.

Under the new rules, companies offering short-term digital credit services must meet stricter standards on consumer protection, transparency, data governance, and ethical debt recovery practices. The commission has reportedly set an April 2026 deadline for full compliance by existing operators.

Industry analysts say the move reflects a broader effort by regulators to bring order to Nigeria’s fast-growing digital credit ecosystem, where airtime loans have become a key financial support tool for millions of low-income mobile users.

For now, MTN has not announced a timeline for restoring the Xtratime service, stating only that it will resume once full regulatory compliance is achieved.

MTN Nigeria Suspends Airtime Loan Service

Business

Dangote Named Only Nigerian on TIME100 2026 Global Influence Ranking

Published

3 days ago

April 16, 2026

Trends Admin

Africa’s richest businessman, Aliko Dangote

Alhaji Aliko Dangote, the CEO of Dangote Group

Dangote Named Only Nigerian on TIME100 2026 Global Influence Ranking

Nigerian business magnate Aliko Dangote has been named among the TIME100 Most Influential People in the World for 2026, as TIME Magazine released its latest list recognising individuals shaping global politics, business, technology, and culture.

Dangote, Africa’s richest man and founder of the Dangote Group, is the only Nigerian featured in the 2026 edition. He appears in the Titans category, recognised for his decades-long push to industrialise Africa through investments in cement, sugar, fertiliser, and the landmark Dangote Refinery—one of the largest single-train refineries in the world.

This marks Dangote’s second appearance on the TIME100 list, following his first inclusion in 2014, further cementing his status as one of Africa’s most globally recognised industrialists.

A key highlight of this year’s recognition is the tribute written by fellow Nigerian billionaire Tony Elumelu, who praised Dangote’s entrepreneurial journey and continental impact. Elumelu described him as “indefatigable, resilient, and foresighted,” and lauded him as “one of the greatest African entrepreneurs of our time.”

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He added that Dangote’s work demonstrates that Africans can create large-scale value “with our own resources, on our continent,” reinforcing the philosophy of economic self-reliance that has shaped both businessmen’s careers.

Interestingly, the gesture reflects a role reversal from previous years, as Dangote once wrote Elumelu’s TIME100 tribute when the UBA chairman appeared on the list in 2020.

The 2026 TIME100 list, now in its 23rd edition, features global figures across multiple categories, including Titans, Leaders, Innovators, Icons, Artists, and Pioneers. High-profile names this year include U.S. President Donald Trump, Chinese President Xi Jinping, and major technology leaders such as Google CEO Sundar Pichai and YouTube CEO Neal Mohan.

Other political figures featured include Israeli Prime Minister Benjamin Netanyahu and Canadian Prime Minister Mark Carney, alongside global leaders in health, finance, and multilateral institutions.

Analysts say Dangote’s inclusion carries strong symbolic significance for Africa, particularly at a time of economic restructuring and renewed calls for industrialisation and self-sufficiency across the continent. His multi-billion-dollar refinery project, in particular, is seen as a strategic asset aimed at reducing Nigeria’s reliance on imported refined petroleum products, boosting local production, and creating thousands of jobs.

The recognition also reinforces Dangote’s global reputation as a leading figure in African entrepreneurship, with his business empire spanning critical sectors of the economy and influencing industrial policy conversations across the region.

The TIME100 announcement precedes the annual TIME100 Summit scheduled for April 22 in New York, where selected honourees are expected to participate in discussions on global leadership and innovation.

The full list and tributes are available via TIME Magazine’s official platforms.

Dangote Named Only Nigerian on TIME100 2026 Global Influence Ranking

Business

Experts Reject World Bank Fuel Import Advice, Warn of Economic Setback for Nigeria

Published

5 days ago

April 14, 2026

Trends Admin

Experts Reject World Bank Fuel Import Advice, Warn of Economic Setback for Nigeria

Energy experts have strongly criticised recent recommendations attributed to the World Bank urging Nigeria to deepen fuel importation and further liberalise its downstream petroleum sector, warning that the proposal is economically risky, poorly timed, and inconsistent with Nigeria’s petroleum law.

The criticism comes amid growing debate over the findings of the World Bank’s latest Nigeria Development Update, which some stakeholders say suggests a return to higher fuel import dependence as part of broader market reforms aimed at stabilising prices and improving efficiency.

However, energy economist Prof. Ken Ife faulted the recommendation, arguing that it contradicts Nigeria’s long-term goal of energy self-sufficiency and undermines ongoing investments in domestic refining capacity.

“You cannot advise a country struggling to achieve economic self-reliance to return to fuel importation,” Ife said, warning that such a policy shift would reverse gains made under the Petroleum Industry framework.

He stressed that the proposal runs counter to the provisions of the Petroleum Industry Act, particularly the Domestic Crude Supply Obligation, which prioritises crude allocation to local refineries to support domestic production.

According to him, abandoning this structure would weaken Nigeria’s refining ambitions, increase exposure to global oil shocks, and worsen pressure on foreign exchange reserves.

“We are building capacity that could exceed domestic demand. Reversing course now would discourage investors and destabilise the downstream sector,” he added.

Ife further questioned the empirical basis of the recommendation, describing it as inconsistent with the broader analytical strength of the World Bank report.

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Other energy analysts echoed similar concerns, arguing that Nigeria is already at a critical stage of expanding domestic refining, including private-sector-led investments that are expected to reduce dependence on imported petrol in the coming years.

Energy analyst Kelvin Emmanuel also criticised the proposal, insisting that it is disconnected from current global pricing realities and supply chain risks.

He argued that landing imported petrol in Nigeria is already significantly expensive when freight, insurance, and exchange rate factors are considered, making large-scale import reliance economically unsustainable.

Emmanuel further noted that rising crude oil prices—driven partly by geopolitical tensions in the Middle East—have pushed global energy markets into volatility, reinforcing the need for domestic refining resilience rather than import dependence.

He also disputed claims that imported fuel could be cheaper than locally refined products, arguing that such assumptions ignore structural cost realities in the global supply chain.

On inflation and fuel pricing, Emmanuel maintained that Nigeria’s challenges are linked more to policy implementation gaps than production shortages, particularly in crude allocation to local refineries as outlined in the Petroleum Industry Act.

“If domestic supply obligations are properly enforced, price stability will improve and market volatility will reduce,” he said.

He also criticised proposals suggesting that Nigeria should expand social safety nets through borrowing, arguing that such measures could worsen fiscal pressure and contradict responsible debt management principles.

While acknowledging that social protection is important, he insisted that funding should prioritise grants or targeted revenue sources rather than additional debt obligations.

The debate highlights growing tension between international policy advice and Nigeria’s domestic energy strategy at a time when the country is attempting to stabilise fuel supply, reduce import dependence, and strengthen local refining capacity.

Industry observers say the outcome of this policy direction could significantly shape Nigeria’s downstream petroleum sector, foreign exchange stability, and long-term energy security.