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BIG STORY

FG May Slash N6tn Fuel Import As Dangote Begins Supply In June

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The Federal Government may cut its approximately N6.2tn yearly fuel import bill if the Dangote Petroleum Refinery begins the sale of petrol as promised by Aliko Dangote, the Chairman of the Dangote Group.

Speaking on Friday at the Africa CEO Forum Annual Summit in Kigali, Rwanda, Dangote gave Nigerians the assurance that, as per the refinery’s planned operations, the country would no longer require petrol imports beginning the next month.

According to a National Bureau of Statistics study, President Bola Ahmed Tinubu eliminated fuel subsidies on May 29 of last year, resulting in a monthly average reduction of the nation’s gasoline imports to one billion litres.

According to Dangote, the $20bn refinery can meet West Africa’s petrol and diesel needs, as well as the continent’s aviation fuel demand.

He said, “Right now, Nigeria has no cause to import anything apart from gasoline 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.

  • West Afria’s needs

“We have enough gasoline to give to at least the entire West Africa, diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico.

“We have started producing jet fuel, we are producing diesel, and by next month, we’ll be producing gasoline. What that will do is it will be able to take most African crudes.”

The assurance by Dangote, if realised, would reduce the country’s approximately N6.2tn annual spending on PMS import.

With an average pump price of N670/litre, marketers put the average landing cost of petrol currently at N520/litre, considering the price of the Nigerian National Petroleum Company Limited, which is the only importer of the product.

Operators also put the average difference between the landing cost and pump price of PMS at N150/litre.

With an average monthly consumption of 1 billion litres, Nigeria currently spends approximately N520bn on the importation of PMS every month. This is N6.2tn annually.

Going by the planned June supply of PMS by Dangote, the country is expected to save a substantial amount from the elimination of shipping and other charges attached to importation, according to operators and industry experts.

The difference between the landing cost and the pump price of petrol is N150 per litre, according to operators.

Landing cost is the total cost of delivering the shipment to Nigeria from a foreign country, including all expenses incurred from the point of production to the point of delivery.

Refined petroleum products often arrive in the country via the Atlas Cove, from where it is transferred to jetties via daughter vessels. From jetties, the fuel is moved to various tanks.

Marketers say this difference of N150 between the landing cost and the pump price has to do with the cost of moving PMS from the port to various filling stations across the country. This also includes marine costs, and the Nigerian Ports Authority charges, among others.

The PMS landing cost is different from that of diesel, aviation fuel, and other petroleum products.

In foreign currency, the country spends an average of $4.16bn annually if converted the N6.2tn at the rate of N1,520 per dollar. However, there are arguments that the NNPCL spends more than this on PMS importation.

The actualisation of Dangote’s promise is expected to strengthen the naira.

According to industry reports, Nigeria spends at least $10bn annually on the import of PMS, aviation fuel, diesel and other petroleum products.

Analysts believe that not less than one-third of the country’s annual foreign exchange expenditure goes into fuel imports.

  • Importation Stoppage

A reliable source at the Central Bank of Nigeria said that the anticipated commencement of fuel supply by the Dangote refinery in June would herald a positive shift in the nation’s economy.

According to the source, the move to halt fuel imports will lead to a substantial reduction in the demand for foreign exchange, thereby strengthening Nigeria’s economic position.

The source further noted that, with the demands on forex reducing, the naira would regain strength.”As the dollar demand reduces, the naira will rebound and that is good for the economy,” the CBN source said.

The NNPCL spokesperson, Olufemi Soneye, declined comments when contacted.

Soneye said the NNPCL is no longer a corporation and could not comment on Dangote refinery’s impact.

The Director of Press and Public Relations, Ministry of Finance, Mr. Mohammed Manga, could not be reached for comments on Sunday as calls and messages sent to him went unanswered.

Also, the Director of Corporate Communications, Central Bank of Nigeria, Hakama Sidi Ali, did not respond to calls to her phone. She had yet to respond to a message sent to her line.

But the Director-General of the Centre for the Promotion of Public Enterprise, Dr Muda Yusuf, said the commencement of refining of petrol by the Dangote refinery would be a game changer for the Nigerian economy, especially from the perspective of the effect on the foreign exchange market and domestic energy cost.

Yusuf noted that, currently about 30 per cent of Nigeria’s import bill is on petroleum products.

“This has been estimated at between $10bn and $15bn annually over the decade. This would amount to a substantial easing of demand pressure on the foreign exchange market,” he stated.

Yusuf added further, “Already we have seen the impact of the domestic refining on diesel and aviation fuel importation. Even the prices have dropped. I therefore expect to see a major impact on the exchange rate.

“However, this positive outlook would depend on how much of the feedstock of crude can be sourced locally by the refinery.  If the refinery has to resort to crude oil importation, the optimism about the foreign exchange impact may have to be moderated.  Because that would imply some significant forex outflows for crude importation.”

He added that Nigeria is likely to see less importation of petrochemical products and other associated by-products from the refining process.

During an energy conference in Abuja recently, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, opined that Nigeria does not need to import fuel, expressing concerns that the bulk of the country’s foreign exchange goes into fuel importation.

“We must find a solution to our forex problem. Nigeria does not need to import fuel. We should free our scarce forex for other sectors of the economy. I am aware that the bulk of our forex goes to the importation of refined oil products.” Lokpbiri stated, expressing optimism that home-based refineries would put an end to fuel importation.

  • Marketers Plan Meeting

Meanwhile, fuel marketers said plans had been concluded to meet Dangote for discussions on possible price cuts as his refinery begins the production of PMS next month.

The marketers, under the aegis of the Independent Petroleum Marketers Association of Nigeria, told The PUNCH on Sunday they would meet with Dangote to negotiate a discount through bulk purchases.

Dangote’s 650,000 barrels per day refinery has been trying to secure crude supplies from the United States following the inability of Nigeria to ramp up production.

The refinery, which is the largest in Africa and Europe when it reaches full capacity, has since commenced the sale of diesel and aviation, but its petrol is yet to hit the market.

In April, Dangote crashed the price of diesel from around N1,500 to N1,000 per litre.

But Nigerians are currently eagerly waiting for petrol, which is the major fuel used by transporters, small-scale businesses and individuals for alternative power generation.

The promise of Dangote to end fuel import may be a relief to marketers and Nigerians, who are yet to fully recover from the recent fuel scarcity that nearly brought the economy to a halt in Lagos, Abuja and other parts of the nation.

Speaking in an interview with our correspondent, the National Vice President of the IPMAN, Hammed Fashola, disclosed that the marketers had requested a meeting with the Dangote Group chairman.

According to Fashola, there will be a follow-up to a letter written to Dangote earlier to fast-track a meeting and reach an agreement before the commencement of the sale of PMS.

Fashola had earlier called on the company to consider working directly with the association instead of individuals.

He noted that IPMAN should be a beautiful bride before Dangote for being in control of over 80 per cent of the filling stations in Nigeria.

The IPMAN leader said, “We have our letter with them, we are expecting their response, and we will surely do a follow-up. The letter was sent about a month ago and we are going to follow up. We are just like a ready-made market for Dangote. It is an advantage for him to have us in his programme. I believe that he would like to have us.”

He added that the association would request a discount during the meeting with Dangote.“You know when you come together as a group, you have that negotiating power on your strength. There is no way we will not negotiate for a discount. That is why we don’t encourage individual company participation,” he stated.

 

Credit: The Punch

BIG STORY

Federal Government Targets 8,000MW In 18 Months With Efficient Power Grid

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The Federal Government has expressed confidence that improved oversight of the national power grid by the Nigerian Independent System Operator (NISO) could boost electricity output to 8,000 megawatts within the next 12 to 18 months.

Speaking at a leadership retreat for NISO’s top management in Abuja, Director General of the Bureau of Public Enterprises (BPE), Ayodeji Gbeleyi, said the nation’s installed capacity is above 14,000MW, but actual generation remains around 5,500MW.

Gbeleyi noted that with enhanced grid management and greater investment in transmission and distribution systems, the sector is positioned to see major improvements soon.

“As an independent entity, NISO now carries the weighty responsibility of managing the national grid with impartiality and integrity. In doing so, it must guarantee non-discriminatory access, efficient dispatch coordination, and fair market settlement, free from undue influence or conflict of interest,” he said.

He added, “From where we stand today, we have about 5,500MW of power being wheeled on a day-to-day basis. Compare that with the fact that the total nameplate capacity for generation in the country is a bit above 14,000MW. So it’s not a tall order for us to believe that in the near term, 12 to 18 months, we can increase that 5,500 by a minimum of 50%, because the generation capacity is there. If this grid capacity can be scaled up and we build in resilience, chances are that with distribution infrastructure also being scaled up.”

He also revealed that the Federal Government has secured $500 million from the World Bank to finance distribution network upgrades. This includes providing 3.2 million meters nationwide, alongside another 2 to 3 million meters under a presidential initiative.

Chairman of the NISO Board, Adesegun Akin-Olugbade, stressed the importance of independence and coordination in delivering reliable power services.

“NISO is not just a new institution. It is a new idea. A system operator that is truly independent. A market coordinator that is truly neutral. A planning authority that is truly strategic. We are responsible for real-time grid operations, long-term system planning, and the coordination and development of the electricity market. These are not side functions, they are central pillars. Because when power fails, everything else, industry, healthcare, education, even security struggles,” he said.

Managing Director/CEO of NISO, Engr. Abdu Bello, stated that the goal is realistic, provided focus is maintained and private investment is attracted.

“It is a target that can be achieved. We have to put ourselves and our house in order by making sure that we are focused and making sure that we also attract investment from the private sector. I believe if we are able to do that, given this retreat, this retreat is part of the plan to keep us focused. We will have a direction, strategic plan, and actions going forward. So it’s achievable,” he said.

Executive Director of Portfolio Management at the Ministry of Finance Incorporated, Tajudeen Ahmed, affirmed that MOFI will fully support NISO in delivering on its mandate.

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BIG STORY

Keyamo Faults Atiku’s Use Of Coat Of Arms In PDP Resignation Letter, Says “You Left Office 18 Years Ago”

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Festus Keyamo, the minister of aviation and aerospace development, has criticised former Vice-President Atiku Abubakar for using a coat of arms letterhead to announce his departure from the Peoples Democratic Party (PDP).

He also expressed disapproval over Abubakar making the resignation letter public during the period of national mourning for the late President Muhammadu Buhari.

Buhari passed away on Sunday at a clinic in London, United Kingdom, and was laid to rest on Tuesday in Daura, Katsina state.

President Bola Tinubu had declared a seven-day period of national mourning in Buhari’s honour.

Despite this, Abubakar’s resignation letter from the PDP, dated July 14, was shared online on Wednesday.

Responding to the letter shared by Paul Ibe, Abubakar’s media adviser, on X, Keyamo said the former vice-president’s “perennial presidential ambition knows no sympathy or empathy”.

He wrote, “Your Excellency, Atiku Abubakar, whilst I acknowledge that it is within your constitutional right to change political Parties at any time you may wish, however, releasing your letter of resignation from the PDP during this week of the mourning of our immediate past President, Muhammadu Buhari, is clearly an attempt to draw the spotlight away from such a solemn occasion and direct it on yourself.”

“In fact (as the image below shows) you prepared, typed, signed and delivered that letter the morning after the passing away of the former President was announced.”

“With the greatest respect to you, this clearly demonstrates that your obsession with your perennial Presidential ambition knows no sympathy or empathy.”

Keyamo also pointed out that Abubakar’s use of the coat of arms letterhead, despite leaving office 18 years ago, is “illegal”.

He said, “And since we are on the issue of your letter, it is both morally and legally wrong to continue to use the Coat of Arms of the Federal Government in your private or political communications when you stopped being a functionary of the Federal Government more than 18 years ago.”

He cited Section 6 of the Flag and Coat of Arms Act, Cap. F30, Laws of the Federation of Nigeria, 2004, as the basis for his claim.

The law states that “Any person who, otherwise than in conformity with the terms of a licence granted by the Minister or under other lawful authority, uses or displays- (a) in connection with the carrying on of any business, trade, profession or calling; or (b) in connection with the activities of any body of persons, whether corporate or unincorporate, the National Flag, the National Coat of Arms or the Coat of Arms of royalty as Head of the Commonwealth, or any flag or arms so closely resembling that flag or either of those coat of arms that they might reasonably be taken to be that flag or coat of arms, shall be guilty of an offence against this Act.”

Keyamo further argued that using the national symbol in this manner is also “reprehensible”, as it gives the impression that Abubakar is acting in an official capacity on behalf of the government.

He said, “It borders on impersonation. Imagine a situation where all former Government functionaries continue to use the Coat of Arms of Nigeria in their personal, political or private communications. There would certainly be confusion everywhere.”

As a lawyer and a member of the federal executive council (FEC), Keyamo said he is obligated to uphold the laws of the country.

 

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BIG STORY

Road To 2027:  Tensions In APC As Buhari’s CPC Bloc May Dump Party

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The passing of former President Muhammadu Buhari has stirred renewed discussions about the future of his political loyalists, particularly those who belonged to the now-defunct Congress for Progressive Change, which he established in 2009.

Since President Bola Tinubu assumed office in 2023, the influence of Buhari’s CPC allies has diminished. Prominent figures like former Kaduna State Governor Nasir El-Rufai and ex-SGF Babachir Lawal have publicly criticized Tinubu’s potential reelection bid.

Analysts suggest that Buhari’s death could present new challenges for the APC, especially given his significant support base, long estimated to exceed 12 million people.

Signs of friction are emerging between the APC and the African Democratic Congress, as both parties attempt to court Buhari’s base. This shift comes after comments by former military Head of State, General Abdulsalami Abubakar, who remarked that Buhari’s death might redefine Nigeria’s political future.

“That shows the magnitude of what has befallen Nigeria,” Abdulsalami stated. “With the passing away of Buhari, politics in Nigeria will certainly change — I hope for the better.”

The ADC’s interim National Publicity Secretary, Bolaji Abdullahi, claimed during a PUNCH interview that many of Buhari’s key allies had already aligned with their coalition.

“Most of the Buhari loyalists are already with us,” Abdullahi said. “The majority of them, the entire North is already with our party. We are very confident. The passing of the former President will only cement that for us because that was his wish when he was alive — that his members should join the coalition.”

He added, “As you can see, there is a strong representation of CPC and Buhari loyalists in the senior ranks of the coalition — the likes of Babachir Lawal, Abubakar Malami, Isah Pantami, Emeka Nwajuba, Nasir El-Rufai, Rotimi Amaechi, Rauf Aregbesola and the rest of them. Those are Buhari people. And their presence in the leadership of the coalition indicates that that’s where Buhari stood.”

Abdullahi also emphasized that the coalition is determined to uphold Buhari’s legacy, arguing that the APC had sidelined and criticized the late President during his life.

“Why would they remain part of the APC?” he asked. “Is it because they enjoy the humiliation and the exclusion they have suffered? Or is it because they’ve watched the government demonise the legacy of Buhari while he was alive?”

He also blamed the Tinubu administration for attributing Nigeria’s economic problems to Buhari. “President Tinubu’s government has blamed Buhari for almost every economic woe. So, why would Buhari followers or loyalists remain with the APC?”

Some CPC figures still in the APC include former Nasarawa Governor, Senator Tanko Al-Makura; Babale Ila; Ibrahim Gobir; Senator Ibrahim Musa; Sanusi Aliyu; Mohammed Tukur; Senator Ahmed Sani; Ibrahim Chachangi; Yusuf Bala; and the party’s current North West National Vice Chairman, Garuba Datti.

Others include Katsina State Governor, Dikko Radda; Revenue Mobilisation Allocation and Fiscal Commission Chairman, M.B. Shehu; NDLEA Chairman, retired General Buba Marwa; former House of Representatives Speaker, Aminu Bello Masari; Adamu Farouk; Okoi Obono-Obla; former DG of the Voice of Nigeria, Osita Okechukwu; Senator Ibrahim Musa; and Nasiru Argungu.

Also still in the APC are former Katsina Governor Aminu Masari; Nasarawa Governor Abdullahi Sule; Adamu Adamu; Senator Mustafa Salihu; Almajiri Geidam; Waziri Bulama; Dr. Nasiru Argungu; Dr. Dominic Alancha; Ayuba Balami; Lucy Ajayi; Captain Bala Jibrin; Uche Ufearoh; Yusuf Salih; and Alkali Ajikolo, among others.

However, sources within the party told The PUNCH that although many of these individuals are presently supporting the APC in the lead-up to 2027, not all are expected to remain. Some disgruntled members, particularly those who feel marginalized since Buhari left office, may eventually exit.

Another member of the ADC coalition, former APC North-West Vice Chairman Salihu Lukman, said Buhari’s death signals the close of a political era where his endorsement could secure electoral wins.

During an appearance on Arise TV, Lukman noted, “What we must learn, most especially in the coalition, is that we don’t have somebody with the kind of intimidating profile like that of the late Buhari. Our leaders must have a kind of team spirit.”

He stressed that the goal isn’t only to defeat the APC or Tinubu, but to build a new political system that meets the people’s expectations.

“I know that many politicians look forward to him raising their hands and endorsing them. That translates almost into victory in many places in the North. Now we don’t have any figure like that. Politicians must relate to citizens with higher humility rather than the current arrogance,” he added.

APC pushes back

In reaction to the growing rumors of defections, APC Publicity Director Bala Ibrahim insisted that Buhari’s supporters remain ideologically committed to the APC.

“No, they will not support ADC, it’s not possible. They are people of different ideologies. They are more comfortable with and in APC,” he said.

While acknowledging that Buhari’s death leaves a void, Ibrahim believes it will spur the party to reflect and improve.

“Yes, political atmosphere will change for our party. But it is not a vacuum that will deform the party. It is a vacuum that will push the party into sobriety… The party is doing something to reconcile, reassess the situation, and see to it that there is a very good sense of mending,” he added.

Shittu dismisses claim

Former Communications Minister Adebayo Shittu, another CPC stalwart, denied claims that he’s leaving the APC for the ADC.

“No way, I am not leaving the APC. In fact, I am even planning to run for Oyo governorship seat on the platform of the party in 2027. And I have no doubt I will defeat any opponent to clinch it if I am given the APC ticket,” he stated.

On the broader impact of Buhari’s death, Shittu said, “No, the exit of Buhari can’t break up or divide the APC. Although you can’t rule out the fact that some elements of CPC may go… there are more people moving into the APC.”

Arewa leaders react

Reactions from northern political figures remain mixed.

Anthony Sani, former Secretary General of the Arewa Consultative Forum, believes the APC will remain on course.

“I do not think there will be any substantial change in direction by the APC after the death of former President Buhari. He said he would remain in the APC, which had made him President twice,” Sani said. “Given the attitude of his supporters, I do not see how they will betray Buhari, even in his grave.”

He also questioned the strength of the coalition, citing a lack of distinct policies and zoning disadvantages.

“The politics of zoning does not favour the coalition. President Tinubu is about the only one who has only one term to go, and northerners cannot trust Peter Obi, they cannot support Atiku Abubakar to dismantle the zoning,” he added.

On the other hand, Arewa Youth Consultative Forum President, Yerima Shettima, warned that Buhari’s death might result in a leadership vacuum within the APC.

“Buhari’s leadership was characterised by a blend of loyalty and divisiveness. His death could trigger a power vacuum. The APC would face a critical juncture in its trajectory,” Shettima stated.

He added that how the APC manages Buhari’s legacy would determine the party’s future.

“If the party fails to address the grievances of the populace, it risks losing credibility and support,” he warned.

Shettima said the CPC bloc could either rise as the custodian of Buhari’s values or transition into an entirely new political entity, depending on how it responds to ongoing internal shifts.

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