Connect with us


BIG STORY

Fuel Crisis: Marketers Plan Petrol Import To Bridge Shortfall

Published

on

Oil marketers report that the volume of “Premium Motor Spirit,” commonly known as petrol, produced by the “Dangote Petroleum Refinery” is insufficient to meet domestic demand.

Due to this shortfall, dealers plan to import petrol to supplement the supply from the $20bn Lekki-based plant, as stated by the marketers on Tuesday.

They, in agreement with the “Trade Union Congress,” called for increased production at the refinery, as some allege that the plant is producing approximately 10 million litres of petrol daily, contrary to the initial commitment of 25 million litres.

When the refinery began releasing “PMS” to the domestic market on September 15, “Nigerian National Petroleum Company Limited” announced it would load 16.8 million litres of petrol from the Dangote refinery.

This volume was notably less than the 25 million litres that the refinery previously committed to releasing daily to the national oil company.

On September 3, 2024, the “Nigerian Midstream and Downstream Petroleum Regulatory Authority” (NMDPRA) stated the refinery would begin supplying 25 million litres of petrol daily to the Nigerian market starting from September.

The NMDPRA further noted that the supply would increase to 30 million litres from September. It added in a brief statement that it had coordinated with “NNPC” on local crude supply to the refinery.

“At the NMDPRA headquarters in Abuja, NNPC reached an agreement to commence crude oil sale and supply to Dangote refinery in local currency.

“The refinery is now poised to supply an initial 25 million litres of PMS into the domestic market this September. And will subsequently increase this amount to 30 million litres daily from October 2024,” the NMDPRA stated on its X page at the time.

However, on Tuesday, oil marketers indicated that the multi-billion dollar refinery was not producing up to the expected volume, aligning with the TUC’s call for the plant to increase production or for dealers to resort to “PMS” importation.

At a recent press briefing in Abuja, “Trade Union Congress” National President, Festus Osifo, urged “NNPC” to source refined petrol elsewhere if the Dangote refinery could not meet Nigeria’s daily demands.

“If it (petrol) is not available, it is a problem. If, for example, the production from Dangote Refinery is less than 15 million litres per day, it is not sufficient.

“So, while efforts are being made to ramp up production from Dangote refinery, what we are demanding is that we should look for every other means as we are ramping up production, we should source for that difference and bring it in for a while until Dangote can get to that level where the production is sufficient to get to all nooks and crannies of Nigeria.

“For us, that is key because it will address the issue of availability,” the TUC boss stated.

  • 10 Million Litres

A major oil marketer claimed that Dangote’s refinery is currently producing around 10 million litres of petrol, while the most recent consumption figure from the NMDPRA shows that Nigeria requires approximately 40 million litres daily.

“There is a lot of confusion in the industry. Even the Dangote refinery, the actual volume of PMS that comes out from there right now is not up to what it claims to be producing,” a major oil marketer said.

“I reliably confirmed that they are not refining up to 10 million litres of PMS daily. And even for AGO (diesel), they don’t have enough volumes. We are in confusion right now in the downstream oil sector.

“And it may shock you to know that NNPCL does not have any vessel now that is coming, which could be used to augment what Dangote is producing. As we speak now, I don’t think they have vessels coming into the country with products. And this is because of the Dangote refinery but the refinery is not producing enough.”

The petrol marketer indicated that the country would have seen widespread queues had fuel prices been lower.

“We would have started seeing chaotic queues across the country but because the price of petrol and diesel is now so high, many people have decided to park their vehicles. The consumption has dropped drastically.

“The traffic situation on our roads reveals all this. The roads are now freer than they used to be in the past when petrol was subsidised. This is because the purchasing power is not there anymore. People now consider the cost of moving from one point to the other,” the source stated.

National Vice President of the “Independent Petroleum Marketers Association of Nigeria,” Hammed Fashola, told one of our correspondents that the association will soon commence PMS importation.

He said two tank farms were acquired by the group in Calabar and Lagos for this purpose.

“We have acquired a tank farm in Calabar and another one in Lagos. We are positioning ourselves for the new era. We will not disclose the capacity of the tank farms now.

“We are free to start importation. With the new development, we are going to get our import licence soon, even as we are going to get a licence to buy from Dangote. So, it’s good to have two or three places to source your products from,” he said.

When questioned about importing at a time the government is trying to curb it, Fashola responded, “Once there is full deregulation, everybody’s free to bring in their products. And if the government doesn’t allow that, we will come back to square one.

“Monopoly will set in, which is not too good for Nigerians. You must have an alternative in life. When you don’t have an alternative, everything stands still.”

Commenting on the competitiveness of imported versus locally-produced PMS prices, he mentioned that crude oil prices are set globally.

“These locally produced petroleum products you are talking about, don’t forget that even the price of crude oil is still priced at the international rate. Don’t forget about that. So, we will look at it and the exchange rate, those are the two factors that determine the price. So, it depends,” he noted, adding that IPMAN had begun the import license process with the NMDPRA.

Another major marketer stated that no marketer had begun lifting “PMS” directly from the Dangote refinery.

“Up till now, no marketer has lifted any PMS from Dangote. The major marketers are only lifting NNPCL’s allocation, just like when NNPCL imports the product and distributes it to them.

“That is the same way NNPCL allocated its product from Dangote to the major marketers. Even some members of IPMAN did off-take the product from NNPCL,” the dealer stated.

  • Don Reacts

A “Professor of Economics” at “University of Ibadan,” Adeola Adenikinju, commented that decisions on whether to allow marketers to import PMS should consider consumer needs, stressing the importance of competition.

“At the end of the day, it is the consumers that we have to think about,” he said.

The professor noted that marketers would consider importation if local prices were high or supplies inadequate.

“Why is it that marketers want to import products? Is it that they find it cheaper? What is Dangote offering? If Dangote’s petrol product is cheaper than imported ones, the marketers would definitely purchase from him. So, is it that they find that it’s more expensive or some occurrences don’t make it possible for them to get it from Dangote?

“Marketers are profit-oriented people. If they find the terms of sales cheaper, I’m sure they will patronise Dangote,” the professor stated.

He added that some reports suggest current production falls short of daily consumption needs.

“If that is true, then, you know, again, at times we don’t even know how much our domestic consumption capacity is. In which case, you know, we must allow for competition – competition among domestic suppliers, competition between domestic suppliers and imported products.

“So, that competition will bring about efficiency and will reduce prices and consumers will benefit. Any time you don’t allow for competition, you simply allow producers to take advantage of the consumer,” he noted.

  • IPMAN Begins Loading

About 335 trucks associated with independent marketers have started loading petrol from NNPCL.

The “National Publicity Secretary of IPMAN,” Chinedu Ukadike, disclosed in an interview (with The Punch) on Tuesday.

He confirmed that dealers began loading following the release of NNPCL’s portal for marketers’ product requests.

“Yes, we have started loading, NNPCL has released our portal and we have turned in our request but we are buying at N998/litre. In Port Harcourt, we were asked to pay N1,040/litre,” he stated.

However, IPMAN’s “National Vice President,” Fashola, on Monday said that NNPCL agreed to sell petrol to association members at N995/litre after an intervention by the “Department of State Services.”

“For now, tentatively, I think they are offering us N995/litre,” Fashola had said.

Further findings revealed that if loaded at N995/litre from Lagos depot, oil marketers would be loading about 335 trucks. This means a 45,000-litre fuel tanker would cost around N44.76m.

Comparing this to the N15bn previously owed by the national oil firm, it implies about 335 trucks can be loaded. This highlights the financial dynamics in fuel distribution, showing the substantial investments marketers make and the product volumes needed to meet market demands.

Additionally, IPMAN members met with Dangote refinery officials on Tuesday, with discussions set to continue on Thursday.

This calculation highlights the financial dynamics at play within the fuel distribution sector, illustrating both the substantial investment required by marketers and the volume of products that can be mobilised to meet market demands.

This came as it was gathered that IPMAN members met with officials of the Dangote refinery on Tuesday.

Details of the meeting were not released by officials who knew about it on Tuesday night, rather they revealed that the meeting would continue on Thursday.

 

Credit: The Punch

BIG STORY

Federal Government Lifts Ban On Mineral Exploration In Zamfara

Published

on

After more than five years of security restriction, the Federal Government has lifted the ban on mining exploration activities in Zamfara State, citing significant improvements in the security situation across the state.

Making the announcement during a press briefing at the weekend, the Minister of Solid Minerals Development, Dr. Dele Alake stated that the nation has a lot to gain from reawakened economic activities in a highly mineralised state like Zamfara that is imbued with vast gold, Lithium, and copper belts. He noted that the previous ban, which was good intentioned, inadvertently created a vacuum exploited by illegal miners to fleece the nation of its resources. He emphasized that the state’s potential for contributing to national revenue is enormous.

It will be recalled that in 2019, the federal government imposed a total ban on mining activities in Zamfara State due to the escalating security concerns, particularly the links between banditry and illegal mining.

Since the beginning of the Tinubu administration, however, intelligence-driven, coordinated security operations have resulted in the neutralization of key bandit commanders, significantly reducing incidents of insecurity. A recent success was the capture of one of the most wanted bandit commanders, Halilu Sububu, in a covert operation in Zamfara.

“The existential threat to lives and properties that led to the 2019 ban has abated. The security operatives’ giant strides have led to a notable reduction in the level of insecurity, and with the ban on exploration lifted, Zamfara’s mining sector can gradually begin contributing to the nation’s revenue pool,” Alake asserted.

The minister added that the lifting of the ban would also facilitate better regulation of mining activities in the state. This will enable more effective intelligence gathering to combat illegal mining and ensure the country benefits from the state’s rich mineral resources.

Commending members of the fourth estate of the realm for championing the propagation of reforms and initiatives of the ministry in 2024, Alake noted that the press have been key allies in efforts to sanitise the mining sector, and promote market reforms which have made the industry attractive to indigenous and foreign investors.

On the recent controversy surrounding the Memorandum of Understanding (MOU) with France, Alake reaffirmed the Federal Government’s position that the agreement does not imply Nigeria is relinquishing control over its mineral resources or entering into any military pact with France. He emphasized that Nigeria’s military remains fully capable of safeguarding the nation’s territorial integrity.

“The high point of the MOU is on training and capacity building for our mining professionals. We need all the assistance we can get in terms of capacity, technical, and financial support from abroad, and that wasn’t even the first we are signing. We’ve signed similar ones with Germany and Australia. Deliberate peddling of misinformation, despite facts to the contrary, is uncalled for, “the minister emphasised.

Dr. Alake also urged the media to continue to play its crucial role in educating the public about government policies in order to prevent ignorance, mischief, and the spread of misinformation.

Looking ahead to 2025, the minister hinted at upcoming policy initiatives aimed at revitalizing the mining sector. He revealed that the ministry plans to further consolidate reforms, enhance the enabling environment for investments, and continue efforts to reposition the sector for long-term, sustainable growth.

 

Segun Tomori, FSCA

Special Assistant on Media

to the Honourable Minister of Solid Minerals Development

 

Continue Reading

BIG STORY

Emefiele Loses Warehouse Built On 1.925 Hectares To Federal Government

Published

on

The Economic and Financial Crimes Commission (EFCC) has secured the final forfeiture of a warehouse linked to Godwin Emefiele, the former governor of the Central Bank of Nigeria (CBN).

According to The Guardian, top sources revealed that Justice Deinde Dipeolu of the Federal High Court in Lagos issued the forfeiture order on Thursday, December 19, 2024, with the property forfeited to the Federal Government of Nigeria.

The warehouse, built on a 1.925-hectare piece of land located at Km 8 along the Lagos-Ibadan Expressway in Magboro, contained 54 general-purpose steel containers.

The containers were filled with various types of sewing machines.

Earlier, on November 28, the judge had ordered the interim forfeiture of the assets after the Commission filed an application for their forfeiture.

Following the court’s directive for the EFCC to publish the order in two national newspapers, allowing any interested party to show cause why the assets should not be finally forfeited, the Commission later returned to court to request the final forfeiture of the assets.

According to the source, the court also ordered the forfeiture of the land on which the warehouse is situated to the government.

“At the resumed hearing of the matter on Thursday, EFCC Counsel, Rotimi Oyedepo, SAN, told the court that the EFCC had complied with the court’s directives to publish the assets in two national newspapers,” the source said.

“Citing Section 44(2)(B) of the constitution and Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act 2006, he prayed the court to grant the final forfeiture of the assets.

“Justice Dipeolu granted the order, making the forfeiture another milestone in the asset recovery drive of the EFCC.”

Continue Reading

BIG STORY

10 Feared Dead, Several Others Injured At Catholic Church’s Palliative In Abuja

Published

on

A stampede at the Holy Trinity Catholic Church in Maitama District of Abuja on Saturday morning has resulted in several deaths and numerous injuries.

The tragic incident occurred during a palliative distribution event organized by the church to assist struggling residents.

It was reported that chaos erupted as thousands of residents rushed to receive relief items, leading to the deadly crush.

Over 3,000 people, including children, mostly from nearby areas such as Mpape and Gishiri Village, had gathered for the event before the unfortunate incident took place.

Mike Umoh, the National Director of Social Communications at the Catholic Secretariat of Nigeria, confirmed the incident.

“Yes, it’s true, but the details are sketchy,” he said in a brief statement.

On the same Saturday, a stampede in Okija, a community in Ihiala Local Government Area of Anambra State in Nigeria’s South-east, also left many people dead.

According to Premium Times, witnesses reported that the victims had gathered to participate in the distribution of bags of rice donated by a well-known entrepreneur, Ernest Obiejesi, commonly referred to as Obijackson.

Continue Reading



 

Join Us On Facebook

Most Popular