The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that the Nigerian National Petroleum Company Limited (NNPCL) is owing it “almost N15 billion.”

“Roughly now, they are owing us almost getting to N15bn,” said IPMAN’s National President, Abubakar Garima, during Thursday’s edition of Channels Television’s Sunrise Daily.

“Our money has been with the NNPCL for almost three months now. Either they sell for us at the same rate they are getting the product from Dangote Refinery or refund us so we can buy directly from Dangote Refinery,” Garima added.

He explained, “We (IPMAN) have not loaded a single truck since the NNPCL increased its pump price.

“Our money is already with the NNPCL. It has refused to give us the product we paid for and is asking us to complete the difference,” IPMAN lamented.

These comments came after the NNPCL adjusted fuel prices at its retail outlets in Lagos and Abuja.

In Lagos, NNPCL outlets raised the price of a litre of petrol to ₦998, an increase of ₦150 from the previous ₦855.

Meanwhile, in Abuja, the price per litre rose to ₦1,030 from ₦897. Some stations in Lagos reportedly sold the product for as much as ₦1,050.

According to IPMAN, this is a result of the full deregulation of the sector.

“Well, we know now that we cannot call it an increase but rather we can call the removal of subsidy deregulation. Now, deregulation has started taking place fully,” Garima said.

Despite President Bola Tinubu’s declaration of the end of the fuel subsidy regime, fuel queues remain a common sight in Nigeria.

Garima mentioned that the price adjustment would lead to better product availability.

“The change that Nigerians are going to expect now: one, we are expecting availability since there is no subsidy,” he said.

“The NNPC is not the sole importer. Other marketers too will participate. It is the same thing in buying the product. Other marketers will buy products directly from Dangote [Refinery]. It is not only NNPC.”

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

The Central Bank of Nigeria (CBN) has moved to calm nerves, reassuring Nigerians that their deposits are safe in financial institutions across the country.

This comes after a recent panic sparked by warnings to withdraw deposits from certain banks whose licenses were reportedly withdrawn by the CBN.

A statement by the apex bank’s Ag. Director, Corporate Communications, Hakama Ali on Tuesday, reassured the public of its unwavering commitment to ensuring the stability and reliability of the Nigerian financial system.

This reassurance follows a fresh uproar across the country on Monday, warning customers of certain banks to immediately withdraw their deposits, as the licences of those banks had been withdrawn by the CBN.

The statement said, “The CBN actively ensures that banks adhere to established regulations and best practices to maintain the integrity of our financial system. Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient.”

“In addition, the CBN has implemented Early Warning Systems that proactively detect and address emerging risks, allowing us to provide timely solutions to any foreseen issues.”

“The Bank’s approach to Risk-Based Supervision ensures that it focuses its regulatory efforts on institutions that may pose the highest risk to the financial system. This targeted strategy allows it to maintain a robust oversight mechanism while promoting the overall health of the banking sector.”

Furthermore, the CBN stated that it has established Memoranda of Understanding with various countries where Nigerian banks’ subsidiaries are located.

“This collaboration enhances regulatory coordination and ensures that our banks operate within a safe and sound framework in accordance with banking regulations, both domestically and internationally.”

“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system,” the statement added.