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Group Managing Director/CEO, UBA Plc, Mr. Kennedy Uzoka; Group Chairman, Mr. Tony O. Elumelu; and Deputy Managing Director, Mr. Victor Osadolor, at the 55th Annual General Meeting of UBA Plc, held in Lagos on Friday

The Chairman of the United Bank for Africa Plc, Mr. Tony Elumelu, has strongly commended the Federal Government and the Central Bank of Nigeria (CBN) for their efforts in stimulating the Nigerian economy, and bringing to bear a coordinated policy response that will positively jumpstart the Nigerian economy.

According to Mr Elumelu, recent actions by the Federal Government, including greater liquidity in the foreign exchange markets, have already had a positive impact on the economy, giving Nigerians and foreign investors alike hope that the nation’s economy is on the road to recovery.

Speaking during 55th Annual General Meeting of the United Bank for Africa Plc, Elumelu said, “I would like to commend the Federal Government of Nigeria and President Buhari on the launch of the economic recovery programme. The Economic Recovery and Growth Plan is a robust call to action and we look forward to its rapid implementation. We were honoured to be consulted before the launch, and I believe, as a significant investor in Nigeria, that if we all give our support to the programme, the country will quickly recover.”

Mr Elumelu added that the CBN had also implemented decisions that have helped strengthen the nation’s economy. “I also commend the CBN for the decisive way they have been managing the economy, especially the way the foreign exchange regime is responding to their targeted intervention.”

The UBA Group Chairman used the opportunity to highlight the Group’s commitment to customer service. Our Customer First programme is central to the Bank’s ambition to be the Bank of choice for all Africans. He also applauded staff and shareholders on the performance of the Bank and for their loyalty, adding that the results show that UBA had made a wise decision, by investing in other African countries outside of Nigeria.

Addressing the shareholders at the AGM he said: “Many said we are too bold in ambitions in Africa. It is clear from these results that our strategy has been proved correct. I want you to know that by investing in UBA, you have diversified your portfolio, you have not just invested in a Nigerian bank, but have invested in a bank with earnings now coming from across Africa”.

Mr Elumelu also praised UBA’s new leadership team. “Last year we had a leadership change and a new CEO, Kennedy Uzoka was appointed, which we are formally introducing today. Let me say that Kennedy and his team have hit the ground running. At the board level, we are extremely impressed by the financial performance that they are already delivering. We all have great faith in their ability to deliver.”

Group Managing Director/Chief Executive Officer, UBA Plc, Mr. Kennedy Uzoka said: “As we deliver our Customer First Philosophy, we are approaching 2017 with stronger optimism, especially with the outlook remaining positive in most of our markets. We are aware of the macro economic challenges, competition and constantly changing customer preferences. However, we believe we are well equipped to win in the market. We will further develop our unique Pan- African platform to improve productivity, extract efficiency gains and grow our share of customers’ wallet across all business lines and markets. We will continue to build on our strong governance culture, zero-tolerance for infractions and transparency in furthering our frontiers of leadership in the African market.”

United Bank for Africa Plc is a leading pan-African financial services group, with presence in 19 African countries, as well as the United Kingdom, the United States of America and France.

UBA was incorporated in Nigeria as a limited liability company after taking over the assets of the British and French Bank Limited who had been operating in Nigeria since 1949. The United Bank for Africa merged with Standard Trust Bank in 2005 and from a single country operation founded in 1949 in Nigeria – Africa’s largest economy –

UBA has become one of the leading providers of banking and other financial services on the African continent. The Bank provides services to over14 million customers globally, through one of the most diverse service channels in sub-Saharan Africa, with over 1,000 branches and customer touch points and robust online and mobile banking platforms.

UBA was the first Nigerian bank to make an Initial Public Offering, following its listing on the NSE in1970. It was also the first Nigerian bank to issue Global Depository Receipts. The shares of UBA are publicly traded on the Nigerian Stock Exchange and the Bank has a well-diversified shareholder base, which includes foreign and local institutional investors, as well as individual shareholders.

BIG STORY

Oil Marketers Write Dangote Over Bulk Purchase Deal Amid Petrol Rising Cost

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  •  IPMAN, PETROAN Eye Refinery’s 500m Petrol Reserves, Queues In Abuja After NNPCL’s Price Hike

 

Oil marketers have reaffirmed their commitment to purchasing refined petroleum products from the Dangote Petroleum Refinery.

This comes in response to comments made by Aliko Dangote, President of the Dangote Group, who expressed disappointment over the lack of interest from marketers in the refinery’s products.

Dangote had criticized the continued importation of petrol by oil marketers and the Nigerian National Petroleum Company Limited (NNPCL), despite the local production capabilities of his refinery.

He raised these concerns during a meeting with President Bola Tinubu on Tuesday.

“I have a refinery. I’m not in the business of retail. If I’m in the business of retail then you can hold me responsible. But what I’m saying is that the retailers should please come forward and pick. If they don’t come forward and pick, what do you want me to do?

“So, I am expecting either the NNPCL or the marketers to stop importing; they should come and pick because we have what they need. And as they move, I will be pumping,” Dangote stated after the meeting with the President in Abuja.

Responding to this on Wednesday, oil dealers under the aegis of the Petroleum Retail Outlet Owners Association of Nigeria and their counterparts in the Independent Petroleum Marketers Association of Nigeria said they were willing to buy petrol from Dangote.

They specifically stated that they had approached the refinery a couple of times to express the interest of their members in lifting refined products from the plant.

“We have listened to him (Dangote) and as far as I’m concerned what he said is very strange to my hearing. PETROAN had written to him since 2022, we wanted to have a business meeting with him and understand the business dynamics,” PETROAN President, Billy Gillis-Harry, said.

He added, “I sent the same letter to him (Dangote) today (Wednesday) to ask for a meeting, so, we can determine the modality of business. We cannot drive our tankers into the Dangote refinery to start buying products just like that. We must have a business meeting to determine the modalities, make our inputs and compare notes.

“We are willing to patronise Dangote but cannot do it in the air. We have to sit down and have a productive business meeting with him that is transparent enough. That is the challenge. So, we are willing but we can’t just fly into the plant and start loading products.”

Asked what was the response of the refinery, Gillis-Harry replied, “Up till this moment, there has never been any positive response, rather, all we get from them is that they repeatedly say to us that ‘we will meet.’ But we never met. So, at what point are we going to meet and conclude the business? Let Nigerians know that PETROAN is willing to buy from him.

“If he has 500 million litres, we are willing to be one of the off-takers, for with the size of our membership and retailers scattered across the country, we are a very productive business mix that should be good for him. So, he also has the job to woo us and to get us to work with him.”

Gillis-Harry said petrol retailers were awaiting the plant to fix a date for both parties to meet.

Also, speaking on the matter, the National President of IPMAN, Abubakar Maigandi, raised concerns over difficulties faced by IPMAN members in accessing fuel at the Dangote refinery despite a N40bn payment made through NNPCL.

Maigandi stated that despite NNPCL’s directive that IPMAN members pick up fuel at the Lagos-based refinery, some marketers waited with their trucks for four days without being able to load any product.

He expressed surprise at Dangote’s statement on Tuesday, claiming the refinery had 500 million litres of petrol in stock and ready to supply the nation.

“If the refinery truly has 500 million litres, then there should be no reason our members couldn’t load after four days. We are willing to buy the product directly if the refinery is ready to sell to us, but for now, our members can’t access, it even after paying,” Maigandi said while speaking on Channels TV’s Sunrise Daily on Wednesday.

The refinery, touted as Africa’s largest, reportedly can produce over 30 million litres of fuel daily at full capacity.

Dangote, during Tuesday’s visit to Tinubu, reassured that the facility was prepared to meet local demands,emphasising that the stock in reserve could sustain the country for over 12 days without imports.

However, Maigandi countered Dangote’s claims, pointing out that IPMAN members were yet to successfully load fuel from the refinery through the NNPCL arrangement, despite their readiness to purchase directly.

He added, “Instead of routing through NNPCL, Dangote should consider registering independent marketers directly. This would simplify the process and prevent such delays in accessing the product.”

  • Import Licences

Meanwhile, some marketers revealed on Wednesday that Dangote refinery was currently selling its petrol to dealers with import licences.

The marketers said that the refinery, situated at the free trade zone in Lekki, Lagos State, is currently prioritising marketers with valid import licences even as plans were underway to start selling to other marketers soon.

After battling crude shortages for months, the refinery unveiled its petrol in early September and began selling to the NNPCL on September 15 as its sole off-taker.

However, following the Federal Government’s directive that all marketers could approach the refinery for PMS lifting without waiting for the NNPC, willing marketers said they had indicated interest in buying petrol from the $20bn refinery.

Officials of the refinery told one of our correspondents that the direct sale of PMS had begun without recourse to the Nigerian National Petroleum Company Limited.

This came barely a week after some marketers said their demand to lift fuel was halted by the existing agreement between the refinery and the NNPCL.

Speaking with our correspondent, some operators, who were yet to start business with the refinery, said officials had assured them of their cooperation.

The sources said the supply of PMS was being done in different categories, and those who had licences from the Nigerian Midstream and Downstream Petroleum Regulatory Authority to import petrol were the first set of marketers that were being attended to.

“Dangote refinery is selling to those who have import licences. They are the first set of customers. We don’t know the reason, but it may be because the refinery is in a free trade zone,” a marketer, who spoke on condition of anonymity because he was not authorised to speak on the matter, stated.

Earlier in an interview (with The Punch), the National Vice President of IPMAN, Hammed Fashola, said this explained why IPMAN was making efforts to get its import licence from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

He also alluded to the opinion that this might be because the refinery was located in a free trade zone.

“Yes, I heard it too, they (Dangote) have started selling to some marketers. They categorised it. There are some marketers with import licences. Those are the people that they are attending to right now.

“And that’s why we are trying as much as possible to get our import licence too. So, I think very soon they will start dealing with the small ones. I don’t know how they came about that idea. I think it depends on the directive given to them, according to them. And we believe that they will soon start with the other marketers. Maybe it’s because that place is a free trade zone,” he said.

Fashola said he could not confirm whether or not the product was being sold in naira to those with import licences.

“I don’t want to say something that I cannot really confirm or that I’m not sure of,” he added.

Fashola disclosed that the association’s application for an import licence was still being processed by the NMDPRA.

“We are still on the import licence. We are seriously working on that. There is no way that it will not take the official time. There are things that we had to submit. You have to meet some terms and conditions to have it granted. So, we are trying to do that,” he said.

However, Fashola refused to state some of the conditions.

“I don’t need to mention that to the media,” he insisted.

For importation, Fashola said the association had enough storage capacity with tank farms in Calabar and Lagos.

“We have enough storage capacity. You know, I said the other time that I don’t want to discuss our capacity. But all those documents related to capacity have been submitted. And when we get what we want, we will disclose everything to the public,” he stated.

  • Expert Speaks

An energy expert, Professor Emeritus, Wumi Iledare, said though he would not know whether or not the refinery was selling to marketers with import licenses, this could be because of the location of the facility.

However, he advised that the government should give a waiver to Dangote so that the refinery would be able to sell to local marketers without, hindrance if that was the case.

“We recognise Dangote is in a free trade zone. So, if you want to buy something like that, unless there is a waiver, it is going to be like an import. But because of the arrangement with the Federal Government, this may be different. The Petroleum Industry Act allows for willing-buyer, willing-seller arrangements.

“As the marketers are seeking Dangote out, Dangote should be seeking them out too. The marketers know the landing cost and this will allow them to negotiate with Dangote. Import is the alternative, otherwise, Dangote will become a monopoly,” Iledare stated.

The Don maintained that the Dangote refinery was not a domestic refinery but an offshore refinery in the sense that it was located in a free trade zone.

“That is why Ghana, Senegal, Cameroon, and others are eager to buy from Dangote. The Nigerian marketers are actually competing with other other countries looking to buy from Dangote. The government has to grant a waiver to Dangote to sell to the domestic market. That is why NNPC should have taken an equity whereby products from Dangote will be for their domestic market, but they didn’t do that.

“Dangote should be granted waivers to sell to the domestic market if that is the issue. The government should look at this from the consumers’ point of view without jeopardising the investors from making money,” he noted.

  • 41.7 Million Litres

The Nigerian Ports Authority said two vessels carrying a total of 41,705,100 litres of petrol arrived in Lagos through the Tincan Island Ports on Wednesday.

According to The Punch, the NPA disclosed this in the Wednesday edition of its ‘Daily Shipping Position’.

Earlier report had it that a vessel with 20,115,000 litres of PMS was discharging at the Kirikiri Lighter Ports Phase 2 on Wednesday but a second check at the report showed that another vessel with 21,590,100 litres of the product was discharging at the Kirikiri Phase 3, Tincan Island Port the same day.

The document also showed that a vessel carrying 20,000 metric tonnes of AGO (diesel), discharged at the same terminal on Tuesday.

According to the document, aside from the vessel coming with 250 units of used vehicles on Saturday at Five Star Logistics, another vessel with 500 units of used vehicles would also be berthing at the Tincan Island Container Terminal the same day.

The document showed that a total of 12 vessels carrying different consignments, including butane gas, AGO and containers among others, are expected to berth between Monday, October 28, and Friday, November 8, 2024.

Meanwhile, it was recently reported that the Dangote refinery was not able to meet its commitment to the NNPC in the supply of PMS.

There were claims in the media that out of the 400 million litres of petrol that the refinery ought to supply in September, only 103 million litres were delivered.

It was also claimed that in October, Dangote supplied 214 million litres to the NNPC instead of 665 million litres, resulting in a shortfall of 78 percent.

The reports added that from September 15 to October 20, only 317 million litres of PMS had been supplied out of a total commitment of 1.065 billion litres of petrol.

Meanwhile, following the NNPCL’s increase of petrol across the country on Tuesday, long queues were seen at its retail outlets in Lagos and Abuja on Wednesday.

The national oil firm raised the retail price of petrol in Abuja to N1,060 from N1,030 per litre, while in Lagos, it increased the unit price of the commodity from N998 to N1,025 per litre, which received widespread criticisms from the Organised Private Sector, Civil Society Organisations and Nigerians in general.

Experts and key followers of the Nigerian oil and gas sector fear inflation in the country may further skyrocket following the latest hike, after it rose to a 28-year high (34.2 per cent) in June, which could compound the hardship in the country.

 

Credit: The Punch

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BIG STORY

Oil Marketers Blame Dangote Refinery Over Its Unsold Petrol

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Nigerian petrol marketers have expressed difficulties in purchasing Premium Motor Spirit (petrol) from the Dangote Refinery, despite the recent fuel price hike.

Abubakar Maigandi, Chairman of the Independent Petrol Marketers Association of Nigeria (IPMAN), revealed this during an interview with Channels Television on Wednesday.

His statement contradicts claims by Aliko Dangote, President of the Dangote Group, who stated that retailers are neglecting his refinery’s surplus of 500 million liters of petrol.

Dangote, speaking during a visit by the Naira-for-crude implementation committee to President Bola Tinubu on Tuesday, expressed concerns about the refinery operating at a loss due to the lack of demand for its products.

However, reacting to the development, Maigandi blamed Dangote’s refinery for unending delays in registering IPMAN members to lift Dangote Fuel directly.

According to him, recently marketers on NNPCL instruction went to Dangote Refinery to lift petrol but stayed four days without getting product.

“Recently, some of the IPMAN marketers that NNPCL sent to Dangote Refinery to lift gasoline stayed with their trucks for four days; they are unable to load.

“That is why we have been contacting Dangote Refinery to allow loading directly, so that immediately we pay for the product, we could lift it immediately.

“If Dangote has 500 million litres of fuel in stock, we are ready to buy the product directly.

“Until now, NNPCL is still the sole offtaker of Dangote Petrol.

“In buying directly from Dangote Refinery, there are some processes put in place by the company that we are still following. They said they cannot sell the product to us individually. The company wants us to come in groups, which we have already done. We have submitted an application. Until the present day, Dangote Refinery has yet to register us, talkless of going to the refinery to lift the product.

“Yesterday (Tuesday), I called their attention; we were told to wait,” he said.

He added that oil marketers are boycotting Dangote’s Petrol for imported fuel because of the challenges they face in purchasing the product directly from Dangote Refinery and the pricing template.

This comes as Nigerians buy fuel at between N1030 and N1250 per litre across the country.

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BIG STORY

Marketers Refusing To Lift Our Fuel, We Have 500m Litres Enough To Serve Nigerians For 12 Days — Dangote

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Aliko Dangote, President of Dangote Group, expressed surprise over ongoing fuel shortages, given his company’s refinery’s capacity to meet domestic demand. Speaking to State House journalists on Tuesday, Dangote revealed that the refinery has produced a surplus of 500 million liters of petrol that retailers have yet to purchase.

The billionaire businessman made these comments following a meeting with President Bola Tinubu and the Implementation Committee on the Sale of Crude and Refined Petroleum Products. He questioned the rationale behind the persistent fuel scarcity despite the ample supply.

“We have enough supply of crude; we can produce much more than 30 million litres every day. At full capacity, we can even supply whatever is being consumed.

“As we speak today, we have 500 million litres in our tanks. With 500 million litres in our tanks. This can take the country for more than 12 days with no imports or production; so, we are very ready.

“And you know, I’m also putting my name on the line by giving Mr President my word that, yes, we will be able to supply the market minimum of 30 million per day, and we’ll be ramping up production. So, we’re ready. We’re more than ready.

Speaking further on the shortages and long queues at the filling stations, the African richest man, said that marketers were not coming forward to lift fuel from his refinery.

“One thing that you have to understand is that we are producers. I have a refinery. I’m not in the business of retail. If I’m in the business of retail then you hold me responsible. But what I’m saying is that the retailers should please come forward and pick, if they don’t come forward and pick, what do you want me to do?

“So, I don’t expect either the NNPC or the marketers to stop importing, but the truth is that they should come and pick because we have what they need. And you know, as they remove, I will be pumping. I don’t know whether you understand what it takes to keep half a billion litres inside our tank.

“It’s costing me money every day. If I can collect the naira, I can actually charge somebody 32 percent in interest. Right now, that’s what I’m losing. And we’re talking about 500 million litres, you know, I mean, we don’t print money.

“But the issue is that if they come and collect the product, then you will not see any queues in the filling stations.

“We have what it takes for them to come and collect. We are not retailers. We also don’t have trucks to send the products to the filling stations.

“We have a factory; we have where they can load. They should come and pick what we have… they have been doing that with importation. So, if they’ve been doing that with importation, if it’s true, they are doing 55 million litres, I see no reason why they won’t come and collect our own and distribute”, Dangote said.

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