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BIG STORY

NNPCL Ends N24Trillion Annual Fuel Import, Buys From Dangote Refinery

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The Nigerian National Petroleum Company Limited has ceased importing refined petroleum products and is now sourcing fuel from the Dangote Petroleum Refinery and other local refineries.

NNPC’s Group Chief Executive Officer, Mele Kyari, made this announcement on Monday at the ongoing conference of the Nigerian Association of Petroleum Explorationists in Lagos, themed ‘Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth and Affordability.’

This development comes amid claims by some petroleum marketers that they would continue to import petroleum products but sell them at a price lower than that of the $20bn Dangote refinery.

In August, President Bola Tinubu stated that the country spent an average of N2tn monthly on fuel imports.

According to Tinubu, the introduction of compressed natural gas (CNG) into the country would save “over N2tn a month used to import PMS and AGO and free up our resources for more investment in healthcare and gas education.”

The President’s statement implies that the country spends approximately N24tn annually on importing petrol and diesel, excluding aviation fuel, kerosene, and gas.

Despite being an oil-producing nation, Nigeria has relied on imported fuels for years due to insufficient local refining capacity.

Speaking at the NAPE Conference, Kyari revealed that the NNPC is no longer importing fuel and is now sourcing only from domestic refineries.

“Today, NNPC does not import any product, we are taking only from domestic refineries,” he stated.

It’s important to recall that NNPC was initially the sole off-taker of Dangote PMS until the Federal Government allowed other marketers to source directly from the refinery.

Kyari dismissed claims that NNPC was sabotaging the Dangote refinery.

Addressing concerns about domestic refining, he said there had been several media reports suggesting that NNPC was hindering local refineries by not supporting them sufficiently.

“The point is very far from it, and I’m going to speak to it straight. We are very proud part-owners of Dangote refinery, no doubt about it. We saw an opportunity that there is a clear market for at least 300,000 barrels of our production; we know that as time moves on, people will start struggling to find markets for their production.

“It will happen, it’s already happening. Oil is found, as you know, in many unexpected locations across the world and people have choices. Therefore, we saw an opportunity to log supply to the domestic refinery, not just Dangote but any other refinery that operates in the country, so it was a very informed business decision.

“Therefore, from day one, we knew that it is to our benefit to supply crude oil to the domestic refinery, so we don’t need to be persuaded; we don’t need anyone to talk to us, there is no need for any pressure from the streets for us to do this. We are already doing this,” he clarified.

On the topic of Nigeria needing to domesticate its oil, Kyari noted that Nigerian crude is “Lamborghini crude,” meaning the products derived from it would be expensive.

He argued that the issue of high-quality fuel is relative, as many refineries avoid Nigerian crude due to its price.

Kyari shared that some global traders buy Nigerian crude and blend it with lower-quality fuels to reduce costs.

“We should never forget that Nigerian crude is ‘Lamborghini crude.’ If we choose that every product that we have in this country must come from domestic production, then we must deal with pricing. Otherwise, out there in the global market, everybody buys Nigerian crude and blends it with dirtier crude to process. A lot of you will confirm this. So, no one takes Nigerian crude except one or two refineries that I know. Straight processing of Nigerian crude, nobody does this because you do have a gap in value if you do this.

“Therefore, as a country, and I believe this strongly also, that we must process all the crude that we produce in the country to the optimum. You can do intermediate products and sell to the market, you are still adding value. You don’t have to sell gasoline that is coming from Nigerian production.

“You can do something different so you can process it domestically, but it’s going to be high quality. As we all know and it’s very clear in the media that we are selling high-quality products, that’s very true but you need not do this. You are driving a Keke-Napep and you want Lamborghini fuel, you do not need it. So, the quality issue is a relative thing, it’s by geography, by location, and we will do everything possible to make sure that we domesticate this.

“Today, NNPC does not import any product, we are taking only from domestic refineries. But I also know that we are working jointly with the government to make sure that we manage the issue around prices if we have to source all our supply from the domestic market. It will be an issue and we are already resolving it. I can confirm that substantial work has been done and this will no longer be an issue.”

BIG STORY

UBA And Mastercard Introduce Debit Card With Benefits And Discounts To Commemorate UBA’s 75th Anniversary

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Africa’s Global Bank, United Bank for Africa (UBA) Plc, has collaborated with Mastercard to launch a commemorative debit card in celebration of UBA’s 75th anniversary.

This collaboration aims to honor UBA’s long-standing customer relationships and enhance their banking experience with a range of offers and discounts across multiple platforms.

UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who spoke at the unveiling, highlighted that the card comes loaded with certain benefits aimed at rewarding customers, including limited 25% off purchases on Jumia and USD75 cashback on transactions made through AliExpress.

He added that this initiative symbolizes the shared vision between UBA and Mastercard towards empowering Africans by enhancing customer experience through secure and convenient transactions.

“This new card represents the deepening of our relationship and our shared mission to empower millions of Nigerians and Africans, by providing them with access to secure transactions and new opportunities across the continent,” Alawuba said.

The GMD also disclosed the bank’s plans to unveil similar products across all its subsidiaries. “We are proud of this collaboration, and we are confident that Mastercard’s role in Africa will only grow stronger in the coming years,” he added.

Mark Elliott, Division President for Africa, Mastercard, expressed his appreciation for the UBA collaboration, emphasising its significance in supporting Africa’s digital economy. “We are excited to collaborate with UBA to celebrate this milestone and bring more value to customers across Africa. This commemorative card is more than just a product; it reflects our commitment to advancing financial inclusion and supporting Africans in accessing secure, convenient and impactful financial solutions.”

Elliott highlighted the immense opportunities within the African payment ecosystem and shared that Mastercard is eager to explore new opportunities with UBA. “Together with UBA, we are focused on delivering innovation that meet the evolving needs of the region, empowering individuals, and promoting digital growth across the continent,” he stated.

The launch of the commemorative debit card represents a significant step in UBA and Mastercard’s shared journey towards financial empowerment and innovation across Africa.

 

About United Bank for Africa

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

 

About Mastercard

Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we’re building a sustainable economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.

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BIG STORY

19 Of 38 Directors Fail Permanent Secretary Examination

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Nineteen Directors have failed the Permanent Secretary written examinations conducted in Abuja on Monday.

They were among the 38 eligible candidates who sat for the three-stage selection process to fill the vacancies for the retiring permanent secretaries from Abia, Bayelsa, Ebonyi, Enugu, Gombe, Kaduna, Kebbi, and Rivers States.

The Head of Information and Public Relations, Office of the Head of Civil Service of the Federation, Mrs. Eno Olotu, said in a statement on Tuesday that the 19 candidates still in the race will on Wednesday proceed to the second stage of the exercise, which will test their competence in the use of “Information Communication and Technology (ICT)” in conducting government business.

The Office of the Head of Service of the Federation usually follows an established tradition of carrying out a rigorous three-stage exercise that ensures that only the very best among the directors on Grade Level 17 are appointed permanent secretaries and equipped with appropriate and relevant skills to improve and sustain effective delivery of services.

The statement further noted that the successful candidates would then proceed to the final stage, where they would be grilled by a carefully constituted panel of top bureaucrats and representatives of the organised private sector, on Friday, November 15.

Olotu extended the goodwill of the Head of the Civil Service of the Federation, Mrs. Esther Didi Walson-Jack, to all the 38 candidates and appreciated the continued support of the Nigerian public in entrenching “meritocracy” in career progression in the Civil Service.

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BIG STORY

Autonomy: FG, Governors, Local Government Chairmen Sign Implementation Agreement

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The Committee on Local Government Autonomy, set up by the Federal Government, has concluded its meetings and signed the technical document, which is expected to be transmitted to President Bola Tinubu soon.

The National President of the National Union of Local Government Employees (NULGE), Hakeem Ambali, made this known in an interview (with The PUNCH) on Tuesday.

In May, the Federal Government, represented by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, filed a lawsuit to challenge the governors’ authority to receive and withhold federal allocations meant for Local Government Areas (LGAs).

The suit sought to prevent state governors from unilaterally dissolving democratically elected local government councils and establishing caretaker committees.

The AGF argued that the constitution mandated a democratically elected local government system and did not allow alternative governance structures.

On July 11, 2024, the Supreme Court gave a landmark judgment affirming the financial autonomy of the 774 LGs in the country, noting that governors could no longer control funds meant for the councils.

The seven-member Supreme Court panel, led by Justice Garba Lawal, ruled that it was illegal and unconstitutional for governors to manage and withhold LG funds.

The apex court also directed the Accountant-General of the Federation to pay LG allocations directly to their accounts, as it declared the non-remittance of funds by the 36 states unconstitutional.

Also, on August 20, the Federal Government instituted a 10-member inter-ministerial committee to implement the Supreme Court’s ruling on local government autonomy.

The committee members include the Minister of Finance & Coordinating Minister of the Economy, Wale Edun; Attorney-General of the Federation & Minister of Justice, Lateef Fagbemi SAN; Minister of Budget & Economic Planning, Abubakar Bagudu; Accountant-General of the Federation, Oluwatoyin Madein; and the Governor of the Central Bank of Nigeria, Olayemi Cardoso.

Others are the Permanent Secretary, Federal Ministry of Finance, Mrs Lydia Jafiya; the Chairman, Revenue Mobilisation Allocation & Fiscal Commission, Mohammed Shehu; and representatives of state governors and the local governments.

The committee’s primary goal is to ensure that local governments are granted full autonomy, allowing them to function effectively without interference from state governments.

Speaking to our correspondent on Tuesday, Ambali said, “The committee has held its final meeting and we have signed the technical document which will be transmitted to Mr President so by November end. It is expected that states will receive their allocations from FAAC. Also, I can tell you that the President is eager to receive that document. The committee worked within the time frame that was provided.”

Meanwhile, the National Union of Teachers (NUT) has expressed fears about the capacity of LGs to pay the N70,000 new minimum wage to primary school teachers.

The NUT’s apprehension is based on the failure of the councils to implement the former N30,000 minimum wage.

Findings by our correspondent show that some LG workers in Nasarawa, Enugu, Zamfara, Borno, Yobe, and Kogi states, among others, have remained on the N18,000 minimum wage, which was approved in 2011.

However, the inability of the councils to implement the minimum wage has been blamed on the failure of the government to fully implement LG autonomy.

Data obtained from the NUT revealed that teachers in LG primary schools were not paid the former minimum wage.

In Enugu State, for instance, LG workers were exempted from benefiting from the minimum wage, even though state workers enjoyed the salary.

Also, Abia, Adamawa, Bauchi, Nasarawa, Kogi, Sokoto, Taraba, Yobe, Zamfara, Imo, and Gombe States did not implement the old minimum wage for teachers at both state and local levels.

Confirming this, the General Secretary of the National Union of Teachers, Dr. Mike Ene, said, “I can tell you that some states didn’t even implement the N18,000 minimum wage for teachers at the local level. Some governors refused to pay, stating that the teachers are under the employment of the local governments.

“There should be no form of segregation when it comes to the implementation of the minimum wage. We all go to the same market. There is no specific market for local government workers. However, we commend all the governors who have come out to say that the minimum wage will be implemented across the board.

“Also, the NLC has vowed to shake the country by December should state governments fail to implement the minimum wage, so I can tell you that the move by the NLC will force things into play.”

But NULGE president Ambali assured that the minimum wage would be implemented across the board when the LG autonomy commences.

“Over the years, governors have had one excuse, and that is the fact that they always claimed that LGs are autonomous so they can’t negotiate minimum wage on behalf of LG workers. But the truth is that LGs were never autonomous during those periods.

“However, during the negotiation of the new minimum wage, the President brought in representatives of ALGON (Association of Local Governments of Nigeria) to also negotiate, and with the LG autonomy coming into play, that will be settled. The NLC has also given an ultimatum of December for all states as regards the payment of the minimum wage,” he added.

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