Naira slumps as NNPC, oil marketers import 1.5m tonnes of petrol

The Nigerian National Petroleum Company Limited (NNPC) and other oil marketers imported 1.5 million metric tonnes of petrol and 414,018.764 metric tonnes of diesel between October 1 and November 11, 2024, according to a document reviewed by THISDAY.

During this period, the naira weakened further on the parallel market, dropping to N1,740/$ from the previous day’s N1,720/$. Similarly, the NAFEM official exchange rate showed a slight depreciation, closing at N1,652/$ compared to the earlier rate of N1,650/$.

The country’s inflation rate also spiked, with the Consumer Price Index (CPI) rising to 33.88% in October, up from 32.70% in September, according to the National Bureau of Statistics (NBS).

The oil importation data indicated the arrival of 13,500 metric tonnes of jet fuel alongside petrol and diesel imports during the 42-day period. The total value of these products was estimated at $1.9 billion or approximately N3 trillion. The breakdown revealed that 2 billion litres of petrol, 500 million litres of diesel, and 17 million litres of jet fuel were imported.

Speaking at an event in Lagos, NNPC’s Group Chief Executive Officer, Mele Kyari, highlighted the company’s commitment to reducing dependence on imported refined products. However, NNPC spokesperson Olufemi Soneye clarified that while the company prioritizes sourcing from local refineries, importation would continue based on economic factors.

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“Today, NNPC does not import any products; we are taking only from domestic refineries,” Kyari stated. Soneye, however, added: “The GCEO’s statement should not be construed to imply that NNPC is obligated to be the sole off-taker of any refinery or that we will no longer import fuel. While NNPC prioritises sourcing products from domestic refineries, this is contingent upon economic viability.”

The Dangote Refinery, which has advocated for sourcing locally refined products, faces challenges with pricing dynamics, making the transition complex. Aliko Dangote, the refinery’s President, recently disclosed that it holds over 500 million litres of fuel in reserves.

The NNPC’s importation data showed Lagos, Warri, Port Harcourt, and Calabar as key discharge points for refined products. For instance, in October, Lagos received 555,121.617 metric tonnes of petrol, while Warri, Port Harcourt, and Calabar received 281,100, 94,224.821, and 64,000 metric tonnes, respectively. Diesel imports followed a similar trend, with Lagos receiving the highest volume.

The inflation data released by the NBS attributed the rise in headline inflation to increased food and energy prices. Year-on-year inflation climbed to 33.88% in October from 27.33% the previous year, while food inflation soared to 39.16%.

Analysts at Cordros Research linked the persistent inflation to structural issues, including widespread flooding, conflict in the northern region, and rising input costs. “October’s food inflation significantly exceeded the five-year average, underscoring the intensity of price pressures,” the analysts noted.

Looking ahead, Cordros projected sustained inflationary pressures driven by naira volatility and festive demand, with food inflation expected to rise further in November.

Naira slumps as NNPC, oil marketers import 1.5m tonnes of petrol

CBN to penalise banks selling new naira notes to hawkers

The Central Bank of Nigeria says it will heavily penalise banks with empty ATMs and those selling ‘mint’ cash to naira hawkers.

Solaja Olayemi, CBN’s acting director for the currency operations department, said this in a memo to DMBs on Friday.

Mr Olayemi said that the CBN would engage in “mystery shopping” exercise and periodic “spot checks” on cash distribution and disbursement activities of DMBs to ascertain the source of such Naira notes.

He said that the initiatives were introduced to monitor and prevent practices that facilitate the flow of mint banknotes to hawkers of naira cash, thereby discouraging abuse of the naira.

He said that the initiatives would also ensure that DMBs support efficient and responsible cash disbursement to the public.

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“For the avoidance of doubt, it should be noted that DMBs, to whom cash seized from hawkers of cash is traced, will be penalised 10 per cent of the total value of cash withdrawn on the day the seized cash was withdrawn from the CBN.

“Every subsequent offence will be charged an incremental penalty of five per cent.

“DMBs found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution, including violations of the Clean Note Policy, will incur appropriate sanctions,” he said.

He urged DMBs to implement internal controls for responsible disbursement and accountability regarding mint banknote payouts at their outlets, as the yuletide season approached, with an anticipated increase in cash demand.

“To enhance public access to cash, we encourage banks to prioritise cash distribution through Automated Teller Machines (ATMs).

“During this season, the CBN, in collaboration with relevant law enforcement agencies, will intensify spot checks and mystery shopping activities to monitor and enforce responsible cash distribution and prevent naira abuse,” he said.

CBN to penalise banks selling new naira notes to hawkers

(NAN)

RT Briscoe appoints Femi Eguaikhide as Deputy Managing Director

The Board of RT Briscoe Plc has appointed Dr Olorunfemi Abidemi Eguaikhide, the Executive Director responsible for business operations to a new position of Deputy Managing Director.

The appointment, according to the management of the organisation, will take effect from January 1st, 2025.

Born on March 28, 1968, Eguakhide holds a Postgraduate Diploma in Business Administration and an MBA in Marketing Management from the Enugu State University of Science and Technology.

He is an Alumnus of the prestigious Lagos Business School of the Pan Atlantic University having attended the Advanced Management Programme (AMP) in 2016.

He is a full member of the Chartered Institute of Personnel Management of Nigeria (MCIPM); associate member of the Nigerian Institute for Training and Development (AITD); Fellow of the Institute of Credit Administration (FICA), Certified Digital Marketing Professional (CDMP) and Fellow of the Institute of Corporate Administration of Nigeria.

The core experience of the new Deputy Managing Director is in the areas of operations management, sales and marketing management, human resources and business leadership.

Dr. Eguaikhide previously worked with Genesis Group variously as deputy general manager in charge of Human Resources and IT; general manager HR & IT; general manager, operations and chief operations officer at the Bridge Healthcare Company in 2010.

He joined RT Briscoe as group head, human capital development in 2012 and was appointed to manage the Briscoe-Ford Business unit in 2014 as the general manager.

He was subsequently appointed as head of the Briscoe-Motors Business unit in 2017 and later as the group chief operating officer in September 2018.

He obtained his doctorate degree in December 2021 and was appointed a director of RT Briscoe with effect from September 1, 2019.

Reacting to his latest promotion, Mike Ochonma, Chairman of Nigeria Auto Journalists Association (NAJA), described the appointment as a square peg in a square hole.

He said it was as a well deserved elevation, coming at a time when businesses are going through very difficult times, adding that he has no doubt that Eguaikhide would bring his wealth of experience to bear on the role in the company.