Connect with us

Business

FG Raises Fuel Supply To Avert Price Hike

Published

on

The Federal Government, through its Nigerian National Petroleum Company Limited, has increased the supply of Premium Motor Spirit, popularly called petrol, to independent oil marketers, in a bid to avert a further hike in the pump price of the commodity.

Oil marketers confirmed on Friday that the national oil company listened to their demands for an increase in the volumes of PMS released to independent filling stations, so as to curb the widening disparity in the cost of petrol.

They told our correspondent that the move by NNPCL had now improved the availability of products in retail outlets operated by independent marketers, adding that the national oil firm also promised to sustain this.

READ ALSO: Fuel Subsidy Now Above N400bn Monthly – NNPCL

On Wednesday, it was reported that oil marketers warned that there could be an imminent hike in fuel price due to the poor supply of the commodity by NNPCL.

They cautioned that the disparity in the pump price of petrol would further widen due to the incomplete delivery of products to many filling stations.

According to the report, dealers under the aegis of the Independent Petroleum Marketers Association of Nigeria, said there was a lopsided pattern in the distribution of PMS lately, stressing that this would cause scarcity and worsen the price disparity in retail outlets.

“Here in Port Harcourt, for instance, we have Oando and NNPC Retail, and they have products in some private depots. Master Energy and Liquid Bulk also have products, but there is no volume for independent marketers,” the National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, had stated.

READ ALSO: 2023: I’ll Remove Fuel Subsidy If Elected President – Tinubu

He added, “Independent marketers have no volume in all these depots and we have over 3,400 tickets lying and waiting at the NNPC Retail account.

“This new system is now making independent marketers beg for petroleum products from NNPC Retail. The lopsided distribution pattern will continue to cause scarcity and price disparity in retail outlets.”

But when asked on Friday whether the NNPCL had listened to the demands of oil marketers, in order to avert the imminent price hike, Ukadike replied in the affirmative.

He said, “The NNPCL supplied 13 million litres and informed us about it. This is to cushion the effect of the poor supply in the affected areas. They also promised that they will ensure that marketers are given products back-to-back.”

The IPMAN official assured PMS consumers that with the sustenance of adequate supply by NNPCL, the cost of petrol at filling stations operated by independent marketers, would always revolve around the government-approved price.

READ ALSO: Subsidy: I’m Sorry For The Next President – Sanusi

NNPCL is the sole importer of PMS into Nigeria and this has continued for several year. Other marketers stopped importing the commodity due to the difficulty in accessing the United States dollar for PMS imports.

The marketers now source the commodity from NNPCL at a subsidised cost, for onward distribution to consumers across the country.

“That is the situation of things now. The recent supply of PMS has really helped in making the product available in many retail outlets across the country. So, with enough supply, the issue of unnecessary price disparities would be addressed,” Ukadike stated.

On Thursday, The PUNCH reported that the consumption of petrol in Nigeria had risen to about 80 million litres daily, pushing up subsidy on the commodity to an estimated N484bn monthly.

The report stated that an analysis of PMS weekly evacuation/dispatch data from March 4 – 10, 2023, obtained from NNPCL, indicated that a total of 558.83 million litres of petrol was evacuated during the period, translating to an average daily consumption of 79.83 million litres.

Around mid-last month, the Group Chief Executive, NNPCL, Mele Kyari, said about 66 million litres of petrol was pumped daily into the market by the oil firm, as the company was spending about N202 on every litre of PMS consumed across the country.

Business

JUST IN: FirstBank Gets New MD/CEO

Published

on

Olusegun Alebiosu has been appointed as the Acting Managing Director/Chief Executive Officer of First Bank of Nigeria Limited (FirstBank Group), effective April 2024.

Alebiosu steps into this pivotal role from his previous position as the Executive Director, Chief Risk Officer, and Executive Compliance Officer, a position he held since January 2022.

Alebiosu brings to the helm of FirstBank over 28 years of extensive experience in the banking and financial services industry. His expertise spans various domains including credit risk management, financial planning and control, corporate and commercial banking, agriculture financing, oil and gas, transportation, and project financing.

READ ALSO: JUST IN: Access Holdings Names New Acting CEO

Having embarked on his professional journey in 1991 with Oceanic Bank Plc. (now EcoBank Plc.), Alebiosu has held several notable positions in esteemed financial institutions.

Prior to joining FirstBank in 2016, he served as Chief Risk Officer at Coronation Merchant Bank Limited, Chief Credit Risk Officer at the African Development Bank Group, and Group Head of Credit Policy & Deputy Chief Credit Risk Officer at United Bank for Africa Plc.

Alebiosu’s academic credentials further enrich his professional profile. He is an alumnus of the Harvard School of Government and holds a Bachelor’s degree in Industrial Relations and Personnel Management. Additionally, he obtained a Master’s degree in International Law and Diplomacy from the University of Lagos, as well as a Master’s degree in Development Studies from the London School of Economics and Political Science.

READ ALSO: Meet Newly Appointed Union Bank CEO

A distinguished member of various professional bodies, including the Institute of Chartered Accountants (FCA), Nigeria Institute of Management (ANIM), and Chartered Institute of Bankers of Nigeria (CIBN), Alebiosu is renowned for his commitment to excellence and ethical practices in the banking sector.

Beyond his professional endeavors, Alebiosu is known for his passion for golf and adventure. He is happily married and a proud parent.

With Alebiosu’s appointment, FirstBank of Nigeria Limited anticipates continued growth and innovation under his leadership, reinforcing its position as a leading financial institution in Nigeria and beyond.

 

Continue Reading

Business

CBN Gives New Directive On Lending In Real Estate

Published

on

The Central Bank of Nigeria, CBN, has released a new regulatory directive to enhance lending to the real sector of the Nigerian economy.

The directive, issued on April 17, 2024, with reference number BSD/DIR/PUB/LAB/017/005 and signed by the Acting Director of Banking Supervision, Adetona Adedeji, signifies a notable shift in the bank’s policy towards a more contractionary approach.

In line with the new measures, the CBN has reduced the loan-to-deposit ratio by 15 percentage points, down to 50 per cent.

This move aligns with the CBN’s current monetary tightening policies and reflects the increase in the Cash Reserve ratio rate for banks.

READ ALSO: JUST IN: CBN Gov Sacks Eight Directors, 32 Others

The LDR is a metric used to evaluate a bank’s liquidity by comparing its total loans to its total deposits over the same period, expressed as a percentage.

An excessively high ratio may indicate insufficient liquidity to meet unexpected fund requirements.

All Deposit Money Banks are now mandated to adhere to this revised LDR.

The CBN has stated that average daily figures will be utilised to gauge compliance with this directive.

Furthermore, while DMBs are encouraged to maintain robust risk management practices in their lending activities, the CBN has committed to continuous monitoring of adherence and will adjust the LDR as necessary based on market developments.

READ ALSO: JUST IN: CBN Increases Interest Rate To 24.75%

Adedeji has called on all banks to acknowledge these modifications and adjust their operations accordingly. He emphasised that this regulatory adjustment is anticipated to significantly influence the banking sector and the wider Nigerian economy.

The circular read in part, “Following a shift in the Bank’s policy stance towards a more contractionary approach, it is crucial to revise the loan-to-deposit ratio policy to conform with the CBN’s ongoing monetary tightening.

“Consequently, the CBN has decided to decrease the LDR by 15 percentage points to 50 per cent, proportionate to the rise in the CRR rate for banks.

“All DMBs must maintain this level, and it is advised that average daily figures will still be applied for compliance assessment.

“While DMBs are urged to sustain strong risk management practices concerning their lending operations, the CBN will persist in monitoring compliance, reviewing market developments, and making necessary adjustments to the LDR. Please be guided accordingly.”

Continue Reading

Business

JUST IN: Dangote Slashes Diesel Price

Published

on

The Dangote Petroleum Refinery has announced a reduction in the price of Automotive Gas Oil, popularly called diesel, from N1,200/litre to N1,000/litre.

It announced this in a statement issued on Tuesday by its spokesperson, Nduka Chiejina.

The statement read in part, “In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from N1,200 to N1,000/litre.

READ ALSO: NNPP Faction Suspends Kano Governor For Six Months

“While rolling out the products, the refinery supplied at a substantially reduced price of N1,200/litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600/litre.

“This significant reduction in the price of diesel at Dangote Petroleum Refinery is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.”

According to The PUNCH report, last week, oil marketers called on the refinery to reduce its diesel price, as they urged managers of the facility to sell at N850/litre.

Details later…

Continue Reading

Trending