Group Managing Director (GMD) of the Nigerian National Petroleum Corporation, Mele Kyari, has hinted about fuel subsidy regime coming to an end anytime from now.
Indeed, he said the firm could not continue to bear the burden of fuel subsidy, adding that the Premium Motor Spirit otherwise called petrol should be selling between N211 and N234 per litre at the filling station going by the current price of crude oil in the international market, refining cost, transportation with handling cost.
Kyari spoke at a ministerial briefing on Thursday at the Presidential Villa, Abuja, stressing that the NNPC could no longer bear the burden of subsidising petrol, adding that the true market price needed to be implemented.
“The price could have been anywhere between N211 and N234 to the litre. The meaning of this is that consumers are not paying for the full value of the PMS that we are consuming and therefore someone is paying that cost,” he said.
“As we speak today, the difference is being carried in the books of the NNPC and I can confirm to you that the NNPC may no longer be in a position to carry that burden.”
The Petroleum Products Pricing Regulatory Agency (PPPRA) had a couple of days ago released a template increasing petrol price to N212 per litre — but this was later pulled down after critical reactions from the public.
Although the government had come out to say it had no plan to increase petrol price this month, the NNPC GMD said the current subsidized price was unsustainable.
The FG, according to him, is working to deepen the auto-gas programme to serve as an alternative to petrol.
“That is why early last year if you recall, the full deregulation of the PMS market was announced and we have followed this through until we got to September when prices shifted to N145,” he said.
Kyari also said, “As we speak today, I will not say we are in a subsidy regime but we are in a situation where we are trying to exit this subsidy or underpriced sale of the PMS until we get in terms with the full value of the product in the market.
“Today, the PMS sells across our borders anywhere above N300 at any of our neighbours. And in some places, it is up to N500 and N550 to the litre.
“In some countries, the Nigerian fuel is their primary fuel. We are supplying almost everybody in the West African region; so it is very difficult to continue this because we have our own issues and that is why the eventual exit from this is completely inevitable.
“When that will happen, I do not know. But I know that engagements are going on. The government is very concerned about the natural impact of price increases on transportation and other consumer segments of our society and as soon as those engagements are taken to logical conclusion, I am sure that the market price of the PMS will be allowed to play at the right time.”
$1bn investment recorded in auto industry – Minister
The Federal Government has recorded more than one billion dollars’ worth of investments in the automotive industry. Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, said this in Abuja on Tuesday when he featured at the 20th edition of President Muhammadu Buhari’s administration scorecard series organsied by the Federal Ministry of Information and Culture.
“Over one billion dollars in investment has been recorded in the automotive sector and we are ready to move on to the next phase for the automotive industry,” the minister said.
He said the review of the National Automotive Industry Development Plan (NAIDP) was almost completed, adding that the plan was going through validation process.
Adebayo restated the ministry’s commitment toward enabling business environment to attract and retain investments.
According to him, the ministry and the Nigerian Investment Promotion Council (NIPC) are committed to attracting and protecting investments that genuinely benefit Nigeria and its citizens.
He said that the revised Bilateral Investment Treaty (BIT) would boost investment.
“Nigeria has successfully revised its model Bilateral Investment Treaty (BIT) to include a specific provision for investment facilitation, which institutionalizes the principle of assisting investors in completing their investments.
“We are proud to offer Nigeria’s first investment policy to the Federal Executive Council (FEC) for approval.
“This strategic statement, which will outline our priorities, aims, commitments, and expectations, is a turning point for the Federal Ministry of Industry, Trade, and Investment and Nigeria as an investment destination,” he said.
Adebayo, who said that Nigeria had Investment Promotion and Protection Agreements (IPPAs) with Singapore, Morocco, and Saudi Arabia to attract and retain investments, said the ministry was developing more.
“We have IPPAs with Singapore, Morocco, and Saudi Arabia to attract and retain investments. The president ratified both accords on Sept. 16, 2022 and we are developing more IPPAs,” he said.
Adebayo said the ministry also distributed 5,571 acceptance certificates worth N7.7 trillion to 2,665,800 firms.
“The acceptance certificates allow businesses claim tax reduction when computing Company Income Tax.
“We also issued more than 130 Production Day Certificates, a crucial Pioneer Status Incentive step,’’ the minister said.
To further accelerate industrialisation, Adebayo said that the ministry was expediting the establishment of Special Economic Zones (SEZs) across the country.
According to him, the special economic zones will increase infrastructure availability and provide fiscal incentives for value addition.
Pay customers with N100, N50, CBN orders commercial banks
The Central Bank Of Nigeria has directed all commercial banks to pay customers over the counter in N100, N50, N20, N10, and N5 notes, regardless of the amount withdrawn.
Bankers Committee issued the directives to all commercial banks in the country on Monday, and announced the discontinuation of old notes payment of N1000, N500 and N200 across the counters.
It also urged people to use their alternative channels for transactions, while those insisting on new naira notes were advised to use Automated Teller Machine (ATMs).
The directives came on Monday, following a meeting of the bankers committee in Lagos.
The CBN Governor, Godwin Emefiele, in a statement on Sunday extended the deadline for old naira notes from January 31 to February 10, 2023.
Emefiele also noted that he obtained permission from President Muhmammadu Buhari to effect the extension.
According to him, the extension, ‘a seven-day grace period’ was as a result of measures put in place to ease the scarcity.
The decision is coming after CBN had previously insisted that it would not extend the deadline.
Famous 4×4 Grenadier coming to Nigeria, courtesy Coscharis Motors
Coscharis Motors has announced its readiness to introduce the popular rugged off-road vehicle, Grenadier, to the Nigerian auto market.
This follows the naming of the auto company by INEOS Automotive as its official retail partner in Nigeria.
Nigeria is the sixth market in Sub-Sahara Africa to join the brand after South Africa, Kenya, Tanzania, Namibia and Botswana.
A statement on Monday by Abiona Babarinde, the auto firm’s General Manager, Marketing and Corporate Communications, said, “The first Grenadier demonstrator vehicles are expected to arrive in Nigeria in early 2023 with customer deliveries expected to commence within the first quarter.
“All after-sales servicing will be conducted at a dedicated workshop also located in Lagos.”
Commenting on this partnership, the President/CEO of Coscharis Group, Dr Cosmas Maduka, said, “We are proud that INEOS Automotive has appointed Coscharis Motors to represent its brand in Nigeria. “This milestone marks another step in the evolution of our company. With our history and experience of the Nigerian market, we know that the INEOS Grenadier is going to be a serious player in the off-road segment.
“We have no doubt that the Grenadier has what it takes to handle Africa’s tough terrain and that it is the perfect option to meet the specific demands of those who need a capable, refined, and reliable off-road vehicle in the region. We look forward to the first customer test drives and hearing public feedback, because this vehicle is definitely going to stir things up in Nigeria.”
The statement quoted Tim Abbott, INEOS Automotive’s Head of Region South Africa and Sub-Sahara Africa, as saying, “We are carefully selecting our partners across the SSA region, to find people who know their local market and customers, and also understand our brand.
“Coscharis Motors shares our belief that the INEOS Grenadier is the perfect vehicle not only for Nigeria, but for the continent. Our shared passion for off-roading, along with their excellent reputation in the automotive industry, makes it the perfect partnership for Grenadier in Nigeria.”
Coscharis says the Grenadier has been developed to be refined on the road and extraordinarily capable off-road.
“The Grenadier is powered by a choice of two straight-six, 3.0-litre BMW engines. Both the BMW B57 diesel and B58 petrol powertrains have a proven track record, regularly appearing in top ten world’s best engine lists since 2016. They have been used in everything from sports cars to SUVs.
“The two power units bring BMW’s sophistication and refinement to the Grenadier, but they have been enhanced by INEOS Automotive’s engineering team. As well as providing powerful acceleration on tarmac, they also deliver peak torque at low revs – sustaining it through the rev range – for optimal off-road performance,” it states.
It also notes that the carefully calibrated characteristics help the driver to confidently manage the vehicle’s momentum and grip without stressing the engine, ensuring full control when tackling tricky terrain.
It adds, “The refined turbo petrol engine produces 286PS (210kW) and 450Nm (332 lb ft) of torque, while the twin-turbo diesel generates 249PS (183kW) and 550Nm (406 lb ft), for even greater pulling power. Start/stop is built-in, increasing range and preserving air quality when the vehicle is stationary.
“While it is every inch a rugged 4X4, it ticks all the right boxes on the road, too. The chassis combines a five-link suspension setup with Brembo brakes and Bridgestone tyres, meaning the Grenadier is composed, well- mannered and fun to drive no matter what the terrain.”
The firm also reveals that by the end of this year, INEOS Automotive plans to have a network of more than 200 sales and service sites for the Grenadier spanning over 50 countries, including established dealer groups, 4X4 specialists and agricultural equipment dealers.
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