Headline

Petrol Price May Crash to N300/Litre If…– Modular Refineries

Published

3 weeks ago

June 10, 2024

The pump price of Premium Motor Spirit, popularly called petrol, should drop to about N300/litre upon the commencement of massive production by the Dangote Petroleum Refinery and other indigenous producers, operators of modular refineries stated on Sunday.

However, they pointed out that this would be achieve when the government ensures the provision of adequate crude oil to local refiners, stressing that refineries abroad were ripping off Nigeria.

Speaking under the aegis of the Crude Oil Refinery Owners Association of Nigeria, they explained that what happened to the cost of diesel after Dangote started producing it, would happen to petrol price once it is being produced massively in Nigeria.

CORAN is a registered association of modular and conventional refinery companies in Nigeria.

“A lot of companies today benefit from the importation of petroleum products at the expense of Nigerians,” the Publicity Secretary, CORAN, Eche Idoko, stated.

He told The PUNCH that “if we begin to produce PMS today in large volumes, provided there is adequate crude oil supply, I can assure that we should be able to buy PMS at N300/litre as the pump price.

“Why make Nigerians buy it at almost N700/litre when you know that if you allow refineries work the price will come down? Is it because you want to satisfy the global refiners abroad that are making so much from us?”

When told that there are arguments that it is not possible to have such a drop in price because crude oil, the raw material for PMS, is price in dollars, the CORAN official insisted that petrol price would crash once it is being produced massively by indigenous refiners.

He said, “We were selling diesel for N1,700 to N1,800/litre, but as soon as Dangote refinery started production he brought down the price to N1,200/litre. What other proofs do you need?

“As I speak to you now there is every tendency that before December diesel price will drop further. The only reason reason why diesel is not doing below N1,000/litre is because of our exchange rate.

“If the exchange rate drops, diesel will drop below the N1,000/litre price. Now the exchange rate concern is because Dangote imports crude. If he is not importing, the exchange rate may not have so much effect, though he is still buying crude in dollars (in Nigeria) anyway.”

On May 18, 2024, The PUNCH reported that Africa’s richest man, Aliko Dangote, stated that following the laid-down plans of the Dangote refinery, Nigeria would no longer need to import petrol starting June this year.

Dangote had also stated that his refinery could meet West Africa’s petrol and diesel needs, as well as the continent’s aviation fuel demand. He spoke at the Africa CEO Forum Annual Summit in Kigali, expressing optimism about transforming Africa’s energy landscape.

“Right now, Nigeria has no cause to import anything apart from gasoline (petrol) and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre,” the billionaire had declared.

Also, Dangote had earlier in the year crashed the pump price of diesel to N1,200/litre when the commodity was selling at between N1,700 and N1,800/litre at the time.

He further dropped the price to below N1,000/litre, but could not sustain this price due to the rise in exchange rate. The refinery eventually returned the price to the initial rate of N1,200/litre.

Speaking on Sunday, the CORAN spokesperson stated that this was why the modular refiners had been calling for the sale of crude oil at the naira equivalent of the dollar rate.

“We have told them (government) that even the dollars that you are asking us to use and buy this product, it is detrimental to the country. Strengthen the naira. We will buy at the international market rate, but at a naira equivalent.

“These are the issues and they know these things but we can’t explain why they really can’t take decisions to change these concerns.

“Get crude to local refineries, allow crude purchase in naira equivalent, make the environment business-friendly and watch locally produced petroleum product prices crash,” Idoko stated.

Nigeria currently has 25 licensed modular refineries. Five of them are operating and producing diesel, kerosene, black oil and naphtha. About 10 are under various stages of completion, while the others have received licences to establish.

Operators of modular refineries earlier stated that aside from the five that are in operation currently, the remaining plants are embattled due to the major challenge of crude oil unavailability, a development that has stalled funding from financiers.

“Only about five of our members have completed their refineries. The others are having a major challenge.

“This challenge is that the people who are supposed to finance them have not disbursed financing for construction because they want some level of guarantee.

“A guarantee that if they finish the refinery, they are going to get feedstock, which, of course, is crude oil,” Idoko had explained.

Oil marketers also believe that the cost of petrol should be lower than its current price once its production begins in Nigeria.

They welcomed the comment of Dangote that his refinery should start pumping out petrol this month, and expressed hope that the cost would be less than the price which the Nigerian National Petroleum Company Limited currently sells.

“We expect a reduced price for locally produced PMS, as I’ve earlier told you,” the National President, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, stated.

Maigandi, while speaking from Saudi Arabia with The PUNCH, also stated no date has been communicated to marketers on when Dangote would release petrol to the market. Officials of Dangote refinery have remained mute on this.

“It is a welcome development if the refinery can start releasing PMS this month because as marketers we are currently set to start buying the product from the plant,” Maigandi stated.

The IPMAN president earlier stated that marketers were discussing with the managers of the plant, but not specifically on petrol pricing.

“We have been discussing, but not about the price of petrol yet, rather on other matters such as the registration of members for the purchase of petrol and diesel from the refinery.

“It is true that we have started buying diesel from them, but you have to register with the company first. So a general registration is ongoing,” he explained.

Maigandi, however, stated that though marketers had yet to receive the projected price for petrol from the plant, dealers would want to see a PMS price of about N500/litre from the Dangote refinery.

“We are looking at having it (PMS) at any price below the NNPC rate. The price which NNPC sells petrol is N565.50/litre, so we are expecting something below that price, maybe around N500/litre,” Maigandi stated.

The oil dealers also joined in the call for the provision of crude oil to local refiners, stressing that this would impact positively on the prices of refined petroleum products.

“Of course, it is important for crude to be made available to local refineries because this will surely affect petroleum products’ prices positively,” the IPMAN president stated.

Regulators speak

The spokesperson of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, George Ene-Ita, said he was sure that the government has guidelines for the provision of feedstock (crude) to indigenous refiners.

Ene-Ita promised to provide additional information on the matter, as he stated that he could not give further details at the time he was contacted by our correspondent.

Recall that the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, had earlier promised that the government would ensure that crude oil was supplied to domestic refiners.

He stated that in compliance with the provisions of Section 109(2) of the Petroleum Industry Act 2021, the NUPRC in a landmark move, had developed a template guiding the activities for Domestic Crude Oil Supply Obligation.

“The commission in conjunction with relevant stakeholders from NNPC Upstream Investment Management Services, representatives of Crude Oil/Condensate Producers, Crude Oil Refinery-Owners Association of Nigeria, and Dangote Petroleum Refinery came up with the template for the buy-in of all.

“This is in a bid to foster a seamless implementation of the DCSO and ensure consistent supply of crude oil to domestic refineries,” Komolafe had stated.

Headline

Tinubu Orders Disbursement Of N155bn For Foodstuff Purchase Nationwide

Published

1 hour ago

June 27, 2024

Editor

President Bola Tinubu has ordered the purchase and sale of foodstuff worth N155 billion to be distributed across the nation.

The President gave the approval during the National Economic Council (NEC) meeting on Thursday in Abuja where he urged state governors to work together to meet the needs of citizens.

He said he is willing to provide the needed support to ensure that Nigerians are relieved of hardship, according to a statement by presidential spokesman, Ajuri Ngelale.

“President Bola Tinubu has approved the immediate rollout of the National Construction and Household Support Programme to cover all geo-political zones in the country,” the statement read.

“Other items under the National Construction and Household Support Programme include deployment of N155 billion for the purchase and sale of assorted foodstuff to be distributed across the nation.”

Tinubu also approved the delivery of a N50,000 uplift grant each to 100,000 families per state for three months.

Food Production
Tinubu emphasized the urgency of boosting food production, noting that the Sokoto-Badagry Highway is a pivotal project as the states within this axis form the food belt of the nation, with Badagry being an important artery for food export.

“Our states must work together to deliver on the critical reforms required of us to meet the needs of our people. Time is humanity’s most precious asset. You can never have enough of it. It is getting late.

“We are ready and able to support you in the form of the mechanization of your agricultural processes and the provision of high-quality seedlings.

“We are prepared to provide solar-powered irrigation facilities to support our farmers across seasons, but we must now produce. We must produce the food our people eat, and it will require coordination and intentionality between members of the National Economic Council (NEC).

“There is nothing we are doing that is more important than producing high-quality food for our people to consume, buy, and sell. We create jobs in the production of it. And that is before we generate wealth by exporting the excess. It is not beyond us to achieve this for Nigerians.

“How much support do you need from me and in what form? I am prepared to provide it. But we must achieve the result. We must deliver on our targets at all levels. Please report back following your consultations and submit to my office within seven days,” President Tinubu said.

See the full statement below:

To boost agricultural productivity, strengthen the economy by creating opportunities in the real sectors of agriculture, manufacturing, and construction, as well as provide urgent economic relief for Nigerians, President Bola Tinubu has approved the immediate rollout of the National Construction and Household Support Programme to cover all geo-political zones in the country.

Under the programme, the Sokoto-Badagry Highway, which will traverse Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, is prioritized.

Other road infrastructure projects, such as the Lagos-Calabar Coastal Highway, which is underway, and the Trans-Saharan Highway, which links Enugu, Abakaliki, Ogoja, Benue, Kogi, Nasarawa, and Abuja, are also prioritized.

The President has also approved full counterpart financing for Port Harcourt-Maiduguri Railway; to traverse Rivers, Abia, Enugu, Benue, Nasarawa, Plateau, Bauchi, Gombe, Yobe and Borno, as well as for the Ibadan-Abuja segment of the Lagos-Kano Standard-Gauge Railway; which will traverse Lagos, Ogun, Oyo, Osun, Kwara, Niger, Abuja, Kaduna, and Kano.

The Sokoto-Badagry road project is specially prioritized for its importance as some of the states it will traverse are strategic to the agricultural sustainability of the nation.

Within the Sokoto-Badagry Highway corridor, there are 216 agricultural communities, 58 large and medium dams spread across six states, seven Special Agro-Industrial Processing Zones (SAPZs), 156 local government areas, 39 commercial cities and towns, and over 1 million hectares of arable land.

In addition, other items under the National Construction and Household Support Programme include:

(1) One-off allocation to states and the Federal Capital Territory of N10 billion for the procurement of buses and CNG uplift programme.

(2) Delivery of N50,000 uplift grant each to 100,000 families per state for three (3) months.

(3) Provision for labour unions and civil society organizations.

(4) Deployment of N155 billion for the purchase and sale of assorted foodstuff to be distributed across the nation.

Speaking during the National Economic Council (NEC) meeting on Thursday in Abuja, President Tinubu urged state governors to work together to meet the needs of citizens, stating that he is willing to provide the needed support to ensure that Nigerians are relieved of hardship.

While emphasizing the urgency of boosting food production, the President noted that the Sokoto-Badagry Highway is a pivotal project as the states within this axis form the food belt of the nation, and with Badagry being an important artery for food export.

“We are ready and able to support you in the form of the mechanization of your agricultural processes and the provision of high-quality seedlings.

“We are prepared to provide solar powered irrigation facilities to support our farmers across seasons, but we must now produce. We must produce the food our people eat, and it will require coordination and intentionality between members of the National Economic Council (NEC).

“How much support do you need from me and in what form? I am prepared to provide it. But we must achieve the result. We must deliver on our targets at all levels. Please report back following your consultations and submit to my office within seven days,” President Tinubu said.

Chief Ajuri Ngelale

Special Adviser to the President

(Media & Publicity)

Headline

JUST IN: Tinubu Approves N50,000 Uplift Grant For 3.6m Nigerian Families

Published

2 hours ago

June 27, 2024

Editor

President Bola Tinubu has approved an uplift grant under the National Construction and Household Support Programme for 3.6m Nigerian families.

This initiative will deliver N50,000 to 100,000 families in each state for three months.

The disbursement of the Tinubu uplift grant to families will occur over a three-month period, according to presidential spokesman Chief Ajuri Ngelale.

This initiative is part of the National Construction and Household Support Programme.

Full Statement on the National Construction and Household Support Programme

“To boost agricultural productivity, strengthen the economy by creating opportunities in the real sectors of agriculture, manufacturing, and construction, as well as provide urgent economic relief for Nigerians, President Bola Tinubu has approved the immediate rollout of the National Construction and Household Support Programme to cover all geo-political zones in the country.

“Under the programme, the Sokoto-Badagry Highway, which will traverse Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, is prioritized.

“Other road infrastructure projects, such as the Lagos-Calabar Coastal Highway, which is underway, and the Trans-Saharan Highway, which links Enugu, Abakaliki, Ogoja, Benue, Kogi, Nasarawa, and Abuja, are also prioritized.

“The President has also approved full counterpart financing for Port Harcourt-Maiduguri Railway; to traverse Rivers, Abia, Enugu, Benue, Nasarawa, Plateau, Bauchi, Gombe, Yobe and Borno, as well as for the Ibadan-Abuja segment of the Lagos-Kano Standard-Gauge Railway; which will traverse Lagos, Ogun, Oyo, Osun, Kwara, Niger, Abuja, Kaduna, and Kano.

“The Sokoto-Badagry road project is specially prioritized for its importance as some of the states it will traverse are strategic to the agricultural sustainability of the nation.

“Within the Sokoto-Badagry Highway corridor, there are 216 agricultural communities, 58 large and medium dams spread across six states, seven Special Agro-Industrial Processing Zones (SAPZs), 156 local government areas, 39 commercial cities and towns, and over 1 million hectares of arable land.

“In addition, other items under the National Construction and Household Support Programme include:

(1) One-off allocation to states and the Federal Capital Territory of N10 billion for the procurement of buses and CNG uplift programme.

(2) Delivery of N50,000 uplift grant each to 100,000 families per state for three (3) months.

(3) Provision for labour unions and civil society organizations.

(4) Deployment of N155 billion for the purchase and sale of assorted foodstuff to be distributed across the nation.

“Speaking during the National Economic Council (NEC) meeting on Thursday in Abuja, President Tinubu urged state governors to work together to meet the needs of citizens, stating that he is willing to provide the needed support to ensure that Nigerians are relieved of hardship.

“While emphasizing the urgency of boosting food production, the President noted that the Sokoto-Badagry Highway is a pivotal project as the states within this axis form the food belt of the nation, and with Badagry being an important artery for food export.

“We are ready and able to support you in the form of the mechanization of your agricultural processes and the provision of high-quality seedlings.

Headline

EFCC Boss Orders Arrest Of Officers Over Nighttime Raid On Lagos Hotel Rooms

Published

4 hours ago

June 27, 2024

Editor

photo: file copy

The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has directed the arrest of two EFCC officers accused of reportedly manhandling a female staff member at Regional Hotel in Ojo, Lagos.

In a viral video online, EFCC officials dressed in plain clothes were observed forcefully entering one of the hotel rooms.

Regional Hotel Operation: Olukoyede Orders Arrest of Officers Involved in Unprofessional Conduct.

The Executive Chairman of the Economic and Financial Crimes Commission, EFCC, Mr. Ola Olukoyede has ordered the arrest of two officers of the Commission allegedly involved in the.

In his statement, Oyewale said the incident happened during an early morning sting operation.

He said the operation led to the arrest of a sizable number of suspects who were still being profiled.

It reads: “The EFCC’s boss has also ordered detailed investigations of the operation carried out at the hotel and assured that appropriate disciplinary measures would be taken against any of the officers found to be culpable.

“Olukoyede assures the general public that the EFCC would continue to ply its job professionally and with profound respect for the rule of law.”