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Oil Price Rises To $92.79 On Output Cut, May Hit $107

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The price of Nigeria’s Bonny Light, weekend, rose to $92.79 per barrel, from $90.88 per barrel, recorded last Tuesday as the impact of extended output cuts hit the market.

Russia extended its voluntary crude oil export cut by 300,000 barrels daily until December 2023, while Saudi Arabia extended its 1 million daily supply cut into October 2023 to boost price stability.

The price, which is the highest in 2023, showed an excess of $17.79 per barrel against the 2023 budget benchmark price of $75.

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Meanwhile, Goldman Sachs Commodities Research, Saturday, predicted that oil supply cuts could lead to oil prices hitting $107 a barrel in 2024.

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In an interview with Vanguard, an sector analyst, Prof. Omowumi Iledare, said Nigerians and others should expect prices to rise further, especially as oil inventories have reduced drastically in the United States.

Iledare who is the Executive Director of Emmanuel Egbogah Foundation, stated: “Certainly, rising crude price is expected even though it may not be exactly $100 per barrel in the short run for some reasons. First, it will continue to rise because demand is growing.

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“Second, supply is declining because of geopolitics and inventory becoming low in the US. Interestingly too, reserves replacement is low, thus placing future supply at risk. Price, therefore will continue to inch up.”

Similarly, in another interview with Vanguard, the lead promoter, EnergyHub Nigeria, Prof. Felix Amieyeofori, said: “It is very possible that oil prices will cross the $100 per barrel level. First, the renewable sector is attracting more investment than oil globally. Some economies, including Saudi Arabia, have keyed into the global quest for a cleaner environment. Second, low investment, low production and export would continue to impact on the market in terms of price. Except, if something happens, we will likely witness a significant increase in price.”

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He also pointed out that consumers would have to pay more for petrol as refiners; currently paying more for crude oil stands to transfer the cost in the form of high fuel prices.

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Already, OPEC has identified Nigeria, as the least refining member with an average equivalent of 10,600 barrels per day, bpd in five years.

In its Annual Statistical Bulletin 2023, obtained by Vanguard, OPEC disclosed that the nation refined an equivalent of 33,000 bpd, 8,000 bpd, 1,000 bpd, 5,000 bpd and 6,000 bpd in 2018, 2019, 2020, 2021 and 2022, respectively.

On the other hand, Saudi Arabia emerged as the highest refining OPEC member with an average equivalent of 2.6 million barrels per day, mb/d, during the period.

Specifically, Saudi Arabia refined 2.8 mb/d, 2.6 mb/d, 2.3 mb/d, 2.5 mb/d and 2.9 mb/d in 2018, 2019, 2020, 2021 and 2022, respectively.

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Checks by Financial Vanguard indicated that major and independent marketers have abandoned fuel importation, due mainly to market uncertainties.

But the lifting of fuel was ongoing at both Ijegun and Satellite Town depots in Lagos, even though many filling stations remained shut against motorists and other users of the product.

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CAC To Cancel Certificates Of BDCs With Revoked Licences

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The Corporate Affairs Commission (CAC) has said it would cancel the certificates of incorporation of Bureaux De Change(BCDs) whose licences have been revoked by the Central Bank of Nigeria( CBN).

The Nation reported in February the CBN revoked the licences of 4,173 Bureau De Change operators over their failure to meet regulatory guidelines.

In a statement by its acting Director, Corporate Communications, Sidi Hakama, CBN explained that the regulatory provisions flouted include nonpayment of all necessary fees within the stipulated period.

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CBN said: “The affected institutions failed to observe at least one of the following regulatory provisions: Payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

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“Rendition of returns in line with the guidelines; compliance with guidelines, directives, and circulars of the CBN, particularly Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing regulations.”

However, in line with the above directive by the CBN, the CAC in a notice on its website on Wednesday, said the certificates would be cancelled within three months if the affected companies do not change the names and objects of such companies.

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The general public is hereby informed that following the revocation of the operational licenses of 4,173 Bureau De Change companies by the Central Bank of Nigeria vide a Federal Republic of Nigeria Official Gazette (Vol. 111) No. 37 of February 27, 2024 for noncompliance with Regulatory Standards, the Corporate Affairs Commission in the exercise of its powers under section 8(1)(e) of the Companies and Allied Matters Act, 2020 advises these companies to within three months from the date of this publication, change the names and objects of such companies.

“Failure to change the names and objects within the stipulated time frame shall result in cancellation of certificate of incorporation and dissolution. It is to be noted that it is unlawful for a company whose certificate has been deemed dissolved to carry on business,” the CAC notice reads.

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FG Suspends Taxes On Maize, Wheat, Rice, Others

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The Federal Government has suspended duties, tariffs and taxes on some essential food items imported through land and sea borders.

Minister of Agriculture and Food Security, Abubakar Kyari, announced this at the National Press Centre, Abuja.

Kyari also said the Federal Government has also inaugurated the Renewed Hope National Livestock Transformation Implementation Committee to develop and implement policies that prioritize livestock development and align with the National Livestock Transformation Plan.

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He stated that the listed food items, which include maize, wheat, husked brown rice and cowpeas, will enjoy a 150-day Duty-Free Import Window.

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He added that the move is part of the Presidential Accelerated Stabilization and Advancement Plan, which is aimed at achieving food security and economic stability in the country.

According to him: “The Federal Government has announced a 150-day Duty-Free Import Window for Food Commodities, suspension of duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat and cowpeas.

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“Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price (RRP).

“I am glad to reiterate that the Government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.

“In addition to the importation by the private sector, the Federal Government will import 250,000MT of wheat and 250,000MT of maize. The imported food commodities in their semi-processed state will target supplies to the small-scale processors and millers across the country.”

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CAC Extends PoS Registration Deadline 

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The Corporate Affairs Commission has announced the approval to extend the mandatory Point of Sales agents, super agents and sole agents registration to September 5th, 2024.

The commission made the announcement in a statement signed by its management and posted on its Facebook page on Saturday, giving a 60-day extension.

It said the extension is to give sufficient time to operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.

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The statement read, “The Corporate Affairs Commission wishes to notify Fintech Operators also known as Point of Sales Operators that the initial deadline of 7th July 2024 given for the registration of sole Agents, Super Agents and Agents has been extended for sixty days beginning from 7th July 2024 to the 5th September 2024.

“This is to give sufficient time to Operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.”

It added operators who continue to disobey after the new deadline will risk losing their businesses and facing prosecution for assisting criminal activities.

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“Operators who fail or refuse to register at the end of the extended deadline run the risk of losing such businesses and prosecution for aiding and abetting criminal activities,” it said.

 

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