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Marketers To Begin Direct Dangote Petrol Purchase As NNPCL Pulls Out As Sole Distributor

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Major oil marketers are set to begin the direct purchase of Premium Motor Spirit, commonly referred to as petrol, from the Dangote Petroleum Refinery between Thursday and next week, as the Nigerian National Petroleum Company Limited (NNPC) ceases to be the sole off-taker of products from the $20bn refinery.

Multiple sources from NNPC and the Major Energies Marketers Association of Nigeria confirmed on Tuesday that NNPCL was no longer the exclusive buyer of petrol from the Dangote refinery, allowing other downstream players to directly procure products from the facility.

This development coincides with unverified reports that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had issued new, higher petrol prices across several locations in Nigeria.

When contacted on Tuesday night, George Ene-Ita, the spokesperson for NMDPRA, did not confirm these reports. He also did not respond to a text message on the matter as of the time of this report.

Meanwhile, oil marketers noted that NNPC’s decision to stop being the sole off-taker of petrol from the Dangote refinery signifies that the Federal Government has effectively ended the petrol subsidy.

Earlier reports in September had it that the Federal Government might spend approximately N236bn monthly to subsidize petrol imported by NNPC and the product NNPC solely off-took from the Dangote Petroleum Refinery.

The report revealed that NNPC was incurring a daily subsidy of around N3.3bn on Dangote petrol, which amounted to N99bn over a 30-day period.

By ceasing its role as the sole off-taker of Dangote petrol, NNPC could now save this amount.

It’s worth recalling that the Federal Government had repeatedly stated that only NNPC would off-take petrol from the Dangote refinery after the company began selling PMS in September.

Additionally, the government, through the Federal Ministry of Finance, had recently stated that “crude would be sold to Dangote in naira from October 1.” The Ministry also clarified, “In return, the Dangote refinery will supply PMS (petrol) and diesel of equivalent value to the domestic market to be paid in naira.”

“Diesel will be sold in naira by the Dangote refinery to any interested off-taker. PMS will only be sold to NNPC. NNPC will then sell to various marketers for now. All associated regulatory costs (NPA, NIMASA, etc.) will also be paid in naira. We are also setting up a one-stop shop that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative.”

A senior official with a major oil marketing firm confirmed on Tuesday that dealers had not yet started purchasing petrol directly from the Dangote refinery. However, he confirmed that NNPC had ceased to be the sole off-taker of Dangote petrol.

“It is not true that major marketers have started lifting PMS from the Dangote refinery. Rather, we were made to understand that the directive to start buying directly from them (Dangote refinery) was given today (Tuesday),” the official, who requested anonymity due to lack of authorization to speak on the matter, said.

“It was in the news yesterday (Monday), but it was formally stated today (Tuesday) that marketers should not go through NNPCL again, but instead buy directly from the refinery.

“However, as of today, Dangote has not set any price. The main thing is that it is now official that marketers can approach the refinery and purchase petrol. The truth is that NNPCL is no longer willing to buy the product at a subsidized cost for marketers. That is the implication of this development, which means the petrol subsidy has been fully removed,” the major marketer added.

He also mentioned that dealers had not yet revised their prices.

“But nobody has reviewed the price yet. Everyone is still selling at the current price, both at depots and filling stations. Perhaps they want to clear their old stock first. This also suggests that anytime soon, Dangote refinery may announce its petrol price to marketers.

“No marketer has started loading directly from the plant yet. It was rumored yesterday (Monday) that marketers were to start buying directly from the refinery, but I think it was formalized last night before the announcement today (Tuesday) that we could now buy directly from the refinery.”

Another senior official with MEMAN confirmed the change in the process of purchasing petrol from Dangote by operators in the downstream oil sector.

When asked if major marketers had started buying petrol directly from Dangote refinery and at what cost, the MEMAN official responded, “We were indeed buying through NNPC and just two weeks ago we were picking up the product by trucks from the Dangote refinery through NNPC. We were paying about the same amount as we had been paying NNPCL for its products.”

“This was the situation during the last two weeks of September. We were also buying from their imported stock to store in our tank farms. Now, we are aware that something new is on the way, as we’ve seen in the news. But I wouldn’t want to comment on it until we receive the full details. However, there is a change.”

The Managing Director of another major marketing company said marketers might begin purchasing petrol directly from Dangote next week.

“I’m not sure if any marketers have started loading directly from the plant yet. Maybe that will start next week, because as of now, what has happened is that we’ve been informed that NNPCL will no longer be the sole off-taker from the Dangote refinery.

“The last cargo we purchased was through NNPCL. Maybe the next time we go, they will inform us that we have to go directly to the Dangote refinery. These things take some time. People should not be in too much of a hurry. I am confident things will become clearer by next week.”

Similarly, an NNPCL management staff confirmed that the national oil company had withdrawn from being the sole off-taker of Dangote petrol.

“The burden is heavy. NNPC will no longer be the sole off-taker of Dangote petrol. Petrol prices will now be determined by market forces,” the source stated.

  • Price Hike Unstoppable

Meanwhile, petrol prices are expected to rise to N1,029.01/litre in the Federal Capital Territory, according to a new petrol price template reportedly released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

An online medium (not PorscheClassy News) reported that, based on the template, NNPC had been paying an average estimated differential of N134.5 per litre in eight cities over a 10-day period from September 23 to October 4, 2024.

With the anticipated withdrawal of NNPCL as the exclusive off-taker from the Dangote refinery, NMDPRA data offers insights into possible future pump prices.

In all the cities mentioned in the document, the average NAFEM FX rate used for calculating the pump price was N1,604.89/4.

In Lagos State, the indicative pump price is N991.21, while the current NNPC pump price is N855. This suggests that NNPC has been covering about N136.21 as an estimated price differential.

In Abuja, the indicative pump price is N1,029.01, while the current pump price is N897, indicating an estimated price differential of N132.01.

For Kano, the indicative pump price is N1,040.31 per litre, while the actual pump price is N904, suggesting a differential of N136.31.

In Calabar, the indicative pump price is N1,007.35, while the current pump price is N885 per litre, with an estimated differential of N122.35.

In Sokoto, the indicative pump price is N1,045.72 per litre, with the actual pump price at N904, indicating a differential of N141.72.

In Maiduguri, the indicative pump price is N1,059.39, with an actual pump price of N924, reflecting a differential of N135.39.

In Ibadan, the indicative pump price is N999.27 per litre, while the current price is N865, resulting in a differential of N134.27.

In Enugu, the indicative pump price is N1,022.63, while the current pump price is N885 per litre, reflecting an estimated differential of N137.63.

Though NMDPRA did not confirm the document, marketers noted that petrol prices would increase once the subsidy is fully removed.

“Of course, petrol prices will rise once NNPC completely halts the subsidy,” said Ukadike Chinedu, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria.

“Nigerians should prepare for this reality. However, we hope that the sale of crude in naira will have some positive effects.”

 

Credit: The Punch

BIG STORY

Lagos Announces 15-Month Traffic Diversion For Mile 2 Interchange Construction

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The Lagos State Government has announced a 15-month traffic diversion at Mile 2 for the construction of the new Transport Interchange Terminal.

The Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, said this in a statement on Sunday in Lagos.

Osiyemi noted that the diversion would integrate rail, bus, water and non-motorised transportation.

He said the 15-month traffic diversion for the construction would begin on November 11, 2024 and end on February 16, 2026.

Osiyemi, however, enjoined motorists to use alternative routes.

“Motorists heading to Oshodi from Apapa will have thorough traffic and vice versa.

“Motorists heading to Badagry from Apapa will continue their journey on Apapa – Oshodi Expressway and take a turn into Akinwande Road to link Coker and access Lagos – Badagry Expressway to continue their journeys.

“Motorists heading to Lagos from Badagry will also have thorough traffic and vice versa.

“Motorists heading to Apapa will be diverted into Durban Road to link Amuwo Odofin Estate and connect Apapa-Oshodi Expressway to continue their journeys,” he said.

He assured that the diversion routes had been well marked with signs to assist motorists navigate their destinations.

Osiyemi added that officers of the Lagos State Traffic Management Authority would be on ground along the affected routes to oversee traffic flow.

He advised motorists to cooperate with the interventions put in place to minimise inconveniences.

“Motorists are implored to be patient as the closure is part of the traffic management plans for the construction of the Transport Interchange Terminal project by the Lagos Metropolitan Area Transport Authority,” he said.

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Editor Embarks On Book Tour, Announces Abuja Reading Event

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Author and accomplished newspaper editor/ journalism prizeman, Dayo Oketola, is set to embark on an international book tour taking off on November 15 with a book reading and signing event in Abuja.

Oketola has authored a book titled, ‘The Catalyst: Nigerian Tech Evolution Through a Journalist’s Lens’, presented to the public on September 17, 2024, at the Muson Centre in Lagos during an Exaugural Lecture marking the end of his tenure as Editor, The PUNCH.  The book was unveiled by former President Olusegun Obasanjo and other dignitaries.

The author expressed heartfelt gratitude on the incredible support and accolades that have followed the release of the book and announced an international book tour, beginning in Abuja and continuing to Lagos, Akwa-Ibom, Delta, as well as the UK, US, and Canada, among other locations.

He said, “The book reading and signing event, hosted by RovingHeights Bookstore in Abuja, will mark the start of the international “Catalyst Book Tour.” This tour will include readings, book signings, fireside chats, and interviews, serving as a platform to share insights from my 20 years in journalism while celebrating my contributions to the telecom industry’s knowledge base. It will also provide a chance to connect with friends, colleagues, critics, and fellow book lovers, both locally and internationally.”

Speaking on the book, the author explained that the 352-page compendium structured into 14 chapters celebrates remarkable industry achievements while critically addressing the persistent gaps that hinder its full potential.

 

He said,  “Blending personal narratives with meticulous industry analyses, ‘The Catalyst: Nigerian Tech Evolution Through a Journalist’s Lens’ offers a profound exploration of Nigeria’s telecommunications evolution,  which began with the introduction of GSM in 2001, to the vibrant and competitive industry we witness today.  It also highlights the bold initiatives that opened the sector to private investment, leading to over $70 billion in capital inflow and the creation of over 500,000 jobs in over 20 years.

“From emphasising how advancements in telecommunications, fintech, and infrastructure have catalysed Nigeria’s national development, the book delves into strategic planning and governance, showcasing successful projects that highlight the importance of foresight in harnessing technology for societal growth. Through real-life stories and case studies, readers will witness the transformative power of innovation in various sectors, from agriculture to education, among others.”

In the chapters dedicated to inclusivity in technology, the author confronts the marginalisation of vulnerable groups, particularly persons with disabilities (PWDs) and women. By exploring initiatives aimed at fostering inclusivity, the book advocates for equitable access to technological advancements, emphasising the need for diverse voices in shaping the digital future.

According to Oketola, the book further examines the roles of regulatory agencies in shaping the telecoms and fintech sectors. It identified both the successes and failures of existing regulatory frameworks, shedding light on how these have influenced industry innovation and equipping readers with a deeper understanding of the complexities at play in Nigeria’s tech ecosystem.

The author equally investigates the operational challenges faced by NigComSat-1R, Nigeria’s multi-million dollar communication satellite, while looking into the future by examining the government’s initiatives aimed at unlocking Nigeria’s digital economic potential through broadband expansion, infrastructure development, and the rise of 5G technology.

According to him, the book is a collector’s item for ICT sector stakeholders, policymakers, researchers, lecturers, STEM students, university libraries and those interested in understanding the dynamic intersection of technology, policy, and social impact in Nigeria.

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BIG STORY

NDLEA Intercepts UK, UAE, Australia-Bound Illicit Drugs Concealed In Body Cream, Artwork

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The National Drug Law Enforcement Agency (NDLEA) has successfully thwarted attempts by drug trafficking syndicates to smuggle cocaine, cannabis, and tramadol to Australia, the United Arab Emirates, and the United Kingdom.

On October 28, 2024, NDLEA officers intercepted drug shipments concealed within body cream containers and pieces of artwork at various courier companies in Lagos State.

Additionally, on October 29, 2024, the agency seized 754,000 pills of tapentadol and acetaminophen at the Apapa seaport during a joint operation with Nigerian Customs Service and other security agencies.

In another operation in the Federal Capital Territory, 24-year-old Mujahid Hamisu was arrested with 147,000 tramadol pills concealed in plumbing materials along the Kwali-Gwagwalada-Abuja Expressway.

Hamisu was on his way from Onitsha, Anambra State on November 2, 2024.

Another suspect, Seun Abimbola, 47, was nabbed by NDLEA operatives the same day with 512 grams of methamphetamine during a raid operation at Giri Junction area of the FCT.

In Kogi State, NDLEA officers on patrol along Kabba-Obajana Highway arrested Mercy Ameh, 28, in a commercial bus travelling from Lagos to Abuja while a search of her luggage led to the recovery of fake Naira notes worth N4,353,200.

Another suspect, Shaibu Dahiru, 27, was nabbed in a vehicle going from Lagos to Katsina along Lokoja-Okene-Abuja Road on October 30 with 68 blocks of cannabis weighing 27.400kg.

A notorious drug dealer, Usman Abba (alias Timaya), who has been on the watchlist of the Katsina State Command of the NDLEA was on October 30 arrested at Liberty Hotel, Kofar Kaura with consignments of Arizona, a strain of cannabis.

The same day, NDLEA operatives in Adamawa State arrested a suspect, Augustine Dike, 31, with 50.3 grams of methamphetamine at Quarisa Hotel, Jimeta.

In Taraba State, operatives on November 1 arrested Danlami Fakwa, 46, at Sabon Gari, Jalingo Local Government Area with 49.795kg cannabis, while a total of 561kg of the same substance was recovered from a Sienna bus at Ogbese village in Ondo State on October 28.

A suspect Kabiru Yusuf, 25, was on October 2 arrested in possession of 51,813 pills of tramadol and exol 5 at NDA Bus Stop, Kaduna, just as raids in Edo State led to the seizure of 603.6kg cannabis at Farm Road, Ekiadolor and 308.4kg of same substance at Uroe community.

Meanwhile, across the country, NDLEA Commands continued their War Against Drug Abuse sensitisation lectures and advocacy visits to worship centres, schools, workplaces, palaces of traditional rulers and communities all through the past week.

Instances include WADA sensitisation lecture to students and staff of Government Day Secondary School, Sanganare, Adamawa State; students of College of Arts and Islamic Studies, Tungan Magajiya, Niger State; students and staff of Regina Catholic International College, Obehie, Abia State; students and teachers of Akinmorin Grammar School, Oyo, Oyo State; as well as students and teachers of Redeemer’s International School, Abakaliki, Ebonyi State.

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