Business
Withdrawal of petrol with methanol cause of scarcity
As long queues surfaced across Lagos and Abuja yesterday over sudden fuel scarcity, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has blamed the situation on the withdrawal of petrol discovered to have contained methanol above Nigeria’s specification.
According to a statement by the agency yesterday, the affected petrol was isolated and withdrawn from the market, including the loaded trucks in transit.
Methanol is a regular additive in petrol and usually blended in an acceptable quantity.
NMDPRA explained that the source supplier has been identified and appropriate actions would be taken.
The agency said its technical team, in conjunction with the Nigerian National Petroleum Corporation (NNPC) Ltd and other industry stakeholders, would “monitor and ensure that quality petroleum products are adequately supplied and distributed nationwide.”
It revealed that the NNPC Ltd and all oil marketing companies had been directed to sustain sufficient distribution of petrol in all retail outlets nationwide.
The NMDPRA said NNPC had intensified efforts at increasing the supply of petrol into the market “in order to bridge any unforeseen supply gap.”
Meanwhile, the Independent Petroleum Marketers Association of Nigeria, (IPMAN) has warned motorists against panic buying, saying petroleum products will be available from today.
Its Vice President, Abubakar Maigandi, stated this yesterday as a guest on Arise TV news programme, Newsday. He said: “The government and the NNPC is (sic) on it. “There is no way we can sell those contaminated because it will affect motorists. But…car owners should stop panic-buying. By God’s grace, today or tomorrow, the product will be available nationwide.”
He gave assurance that Nigerian National Petroleum Corporation (NNPC) wasworking seriously to see that they get the correct product so that the marketers wouldcontinue loading.
READ ALSO:
- South’s governors resolute on power shift, says Akeredolu
- Don’t Remove Labour From Exclusive List, NLC Warns FG
- Trader remanded for allegedly defiling neighbour’s 10-year-old daughter
“Already, we told all our marketers to stand by the various depots that they are loading. Immediately when we start receiving the uncontaminated products, the products will be available in most of our filling stations nationwide,” he said.
Maigandi did not mention who was to be held responsible for the contaminated petroleum products in circulation. He, however, said “IPMAN buys its product through NNPC and private depots. In every business sometimes, “there must an issue and this has been already understanding (sic) without many damages,” he said.
Also IPMAN National Operations Controller, Mr. Mike Osatuyi, disclosed that the contaminated product is being mopped-up, a development that has caused disruption in the distribution chain.
‘‘The impact is quickly felt in Lagos because of its huge demand and consumption of petrol. Any disruption in the distribution chain is almost an immediate reaction unlike what obtains in other parts of the country.
“The NNPC is doing its best at this critical time and we believe the effort will yield a positive action soon. I implore Nigerians to be patient and not engage in any form of panic buying,’’ he said.
Other marketers who spoke to Daily Sun in confidence for fear of being sanctioned by the regulator confirmed that there was indeed off-spec petrol in circulation.
The off-spec or contaminated petrol according to the marketers is petrol laden with graded water and already in the tanks of some major oil marketers which included; Ardova, MRS and Total with independent marketers such as NIPCO also involved.
They explained that since NNPC is the sole importer of petrol, they should be held liable and made to explain to Nigerians what happened.
However, a reliable source in one of the agencies told Daily Sun that the contaminated petrol came in with some quantity of methanol and ethanol and that when tested, the result came out as being fit for use but when exposed to oxygen, it starts to react. The source added that the exposure to oxygen builds up sludge in the petrol, thus causing damage to car engines.
‘‘I can confirm to you that we have received reports that this contaminated fuel has caused damage to vehicle engines. That is not in doubt.
She explained that both NNPC and the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) are both aware of this development and are taken steps to ensure that the situation is arrested.
The marketer further told Daily Sun that the volume of the contaminated fuel which made is way into the country is about 200 million litres.
He said the NNPC has given assurance that it would evacuate the contaminated fuel in the tanks of the affected depots while ensuring that they do not suffer any financial loss, they would be reimbursed for the bad product.
‘‘For now, we are not loading out trucks until this issue is addressed in the interest of the consumers. This may take up till next week before it gets resolved. The result of fuel shortage is what has now translated to queues in some filling stations. But the truth is that, not all depots/fuel marketers are affected.
Meanwhile, Some petroleum marketers say fuel scarcity will persist in Lagos and other parts of the country until depots are restocked with adequate and quality products.
READ ALSO:
- 2023 presidency: Osinbajo urged to drop ambition, back Tinubu
- CJN tackles Malami for indicting judiciary on transparency
- Four Teenage Girls Caught with Human Heads in Lagos
- MURIC to Osinbajo: Why you can’t be president in 2023
The marketers who spoke to the News Agency of Nigeria (NAN) on the condition of anonymity equally blamed the current scarcity on the supply of a wrong specification of petrol in some parts of the country.
They noted that the directive to withdraw the product from the market even after distribution to many filling stations across Lagos and other areas created a supply shortfall, thereby, leading to panic buying.
“As we speak, the Nigerian National Petroleum Company Ltd is working to ensure that this disruption to the supply chain is addressed as soon as possible.
“However, there is the challenge of logistics and how to compensate those who were supplied with the adulterated products.
“The NNPC is working with marketers on this and once the depots are restocked, tankers will start loading and supply will improve across the country.
“Until we are able to achieve this, queues will remain at the petrol stations because of the panic already created,’’ one of the top marketers told NAN.
An independent petroleum marketer (name withheld) said there had been complaints from some motorists on the fuel quality which made his station to stop selling for now.
Sun
Railway
Lagos Rail Mass Transit part of FG free train ride – NRC
Lagos Rail Mass Transit part of FG free train ride – NRC
The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.
The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).
This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.
While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.
READ ALSO:
- Nigeria denies alleged plot to destabilise Niger Republic
- Navy arrests 19 Nigerians attempting to reach Europe by hiding on ship
- Troops arrest four Ambazonian rebels in Taraba
Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.
“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.
Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.
He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.
Lagos Rail Mass Transit part of FG free train ride – NRC
Business
NNPC denies claim of Port Harcourt refinery shutdown
NNPC denies claim of Port Harcourt refinery shutdown
The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.
The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.
Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.
READ ALSO:
- Like Ibadan, stampede claim 10 lives for Abuja Catholic church, 17 in Anambra
- Marketers react after NNPCL slashes petrol price to N899 per litre
- Electricity: We installed 184,507 meters, issued 50 licences in Q3, says FG
The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.
“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”
He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
NNPC denies claim of Port Harcourt refinery shutdown
Business
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.
The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.
The arrangement will be in effect from December 19, 2024, to January 30, 2025.
Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.
Transactions to occur at the prevailing NFEM rate
The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.
READ ALSO:
- Badenoch’s negative portrayal of Nigeria Police unfair-PCRC
- Bitcoin price crashes to $95,000 as market continues to react to Federal rate cuts
- Bauchi high court dismisses blasphemy, cybercrime charges against Rhoda Jatau
All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.
The circular read in part:
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).
This window will be open between December 19, 2024 to January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”
These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.
This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
-
Railway14 hours ago
Lagos Rail Mass Transit part of FG free train ride – NRC
-
metro2 days ago
Court stops customs from seizing imported rice in open market
-
metro3 days ago
FG transfers electricity market regulatory oversight in Lagos to LASERC
-
metro2 days ago
Ibadan stampede: Tinubu orders probe as death toll hits 40
-
metro2 days ago
Afe Babalola: Court grants Dele Farotimi bail, barred from media interviews
-
News2 days ago
Adebayo Ogunlesi, 2 other Nigerians make Forbes 50 wealthiest Black Americans list 2024
-
metro15 hours ago
NIMC warns against extortion, reaffirms free NIN enrollment
-
metro1 day ago
Ibadan stampede: Ooni reacts after arrest of ex-wife