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BIG STORY

Petrol Pump Price May Drop As Dangote, Oil Marketers Sign Deal

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has secured an agreement with Dangote Petroleum Refinery to lift products directly.

This, according to the association, will ensure the availability of petroleum to Nigerians at a cheaper rate.

IPMAN’s National President, Abubakar Garima, made this announcement at a press briefing on Monday in Abuja, following a meeting of the National Working Committee of the association.

He explained that the Dangote refinery had agreed to allow IPMAN to lift PMS, AGO, and DPK directly for onward supply to IPMAN depots and retail outlets. This new arrangement with the Dangote refinery will ensure a steady and ceaseless supply of PMS products across Nigeria at an affordable rate.

He said, “Following our recent meeting with Alhaji Aliko Dangote and members of his top management staff in Lagos, we are happy to state the following; Dangote Refinery has obliged IPMAN to lift PMS, AGO, and DPK directly for onward supply to IPMAN depots and retail outlets. That this new arrangement with the Dangote refinery will ensure a steady and ceaseless supply of PMS products all over Nigeria, at an affordable rate for Nigerians also.”

On October 29, the founder of Dangote Industries Limited, Aliko Dangote, stated that the refinery held over 500 million litres of petrol, but added that oil marketers were not purchasing his product.

In response, IPMAN said its members had been unable to load petrol from the Dangote refinery for days. Garima noted that the association had paid N40bn to the Nigerian National Petroleum Company Limited but still could not source the product. However, the refinery said it had not received any payment from IPMAN for refined petroleum products.

Speaking further at the briefing, Garima urged IPMAN members to support Dangote Refinery, highlighting the backward integration benefits and the positive impacts on Nigeria’s foreign exchange market.

Regarding pricing, Garima expressed confidence that negotiations with Dangote would result in lower rates.

“All IPMAN members should fully support the Dangote refinery, as it’s the ideal thing to do considering the monumental benefits of backward integration and the medium to long-term impact it will have on the foreign exchange markets in Nigeria.

“IPMAN members nationwide should rely on the Dangote refinery and Nigerian refineries for their white products, as this will translate into ensuring more job opportunities in Nigeria, as well as signify total support for President Bola Tinubu’s Renewed Hope Agenda,” he added.

Energy expert Kelvin Emmanuel commented that the new agreement would eliminate financing and margin costs incurred by the NNPCL.

He said, “What is cheery about this news is that NNPC’s letter of credit as financing cost ($28 per metric tonne) that is passed to IPMAN — controlling 30,000 retail stations and their margin ($26.48 per metric tonne) will be removed.”

The IPMAN president also mentioned that the association is preparing for a smooth transition to nationwide CNG refill stations, as it is currently in negotiations with the presidential CNG initiative.

“On CNG, I would also like to call on all our members at IPMAN to begin to put all types of machinery in place for a successful transition of the Federal Government’s plans to initiate CNG refill stations in all our outlets. Truly, there is no doubt that CNG has the potential to rejuvenate our economy for a better life for Nigerians, and IPMAN is ready to give her all to support the CNG initiative.

“IPMAN is also calling for a partnership with the Federal Government of Nigeria to hasten the quick success of the CNG initiative for Nigeria. We believe that for the CNG initiative to succeed, there must be a credible partnership between IPMAN and the PCNGI, without which Nigerians would not have ready and near access to CNG outlets.”

This partnership between Dangote and IPMAN is expected to increase efficiency, affordability, and economic growth for Nigeria’s petroleum industry. This move is expected to eliminate middlemen, reduce costs, and ensure a steady supply.

Earlier this year, the Dangote Refinery announced that it would supply fuel to about 150,000 retail outlets operated by oil marketers.

In his remarks, the chairman of the Board of Trustees of the association, Aminu Abdukadir, stated that IPMAN must remain committed to providing the retail stations and funds necessary to ensure that products are delivered to consumers.

“The business of making money without doing anything is over with the deregulation of the sector. For IPMAN to survive, it must provide the filling stations, the money, and the trucks, to provide this commodity to motorists,” he said.

Meanwhile, the Executive Secretary of the Major Energy Marketers Association of Nigeria, Clement Isong, explained that the final landing price is determined by several key factors, including the exchange rate, logistics efficiency, and cost negotiating power based on volume purchased.

Isong said, “If you read our bulletin, there is not one landing price for the whole country. What we are saying is to give an idea of the landing price—if you land 38,000 metric tonnes into ASBM in Apapa, this is the landing price. That’s what we are saying. If you land 100,000 MT or 80,000 MT into Pinnacle, the landing price will be lower. But there are only two places where the landing price will be lower due to economies of scale. If you land in the majority of the country, the depots and facilities take less. So, if you land it into another place in Lagos, the landing price will be higher. It won’t be N971 per litre. It can be as close to N1,000.

“So, the landing price is a function of how much you got your exchange rate, logistics, and your negotiating power based on the volume bought. Some marketers are landing below N917. But the vast majority of people who don’t enjoy the benefits of economies of scale will land at significantly above that. What this teaches is that it is a free and open market. It’s how you buy that you sell. There is no one price. It is a function of the draft of the vessels that you land the product. It’s a function of how much product was bought. It’s a function of what rate of exchange was used to buy products. The exchange rate that we have used is the central bank rate. So, if you have the central bank rate, then you will not land at that price, but if you go to the black market, the price will be higher.

“The law says that we can only keep 30 days of stock in our depots. So, the fact that the spot market has gone up means nothing because you are selling based on the price of the average cost in your tank. The fact that the price has gone down to N971, it doesn’t matter because we are selling based on the average cost in your tank. How much did you buy and the average cost of everything in the tank? It’s a market price. And the market price is a range. It moves, depending on how efficient you are. And I think for us, the most important thing is the exchange rate.”

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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