Economy

Nigerians may pay more for cooking gas —-as DPR advocates for market forces as determinant of prices

Eyewitness reporter

If the Federal government heeds the call of the Department of Petroleum Resources (DPR) to subject the prices of Liquefied Petroleum Gas(LPG), otherwise known as cooking gas, to the vagaries of market forces, then Nigerians may pay more for the product.

Mr Sarki Auwalu, the Chief Executive Officer, (DPR), believed that to achieve uninterrupted supply of gas, government should allow the factor of demand and supply to guide the prices of the product.

The position of DPR, one of the regulatory government agencies in the oil and gas industry, aligned with the similar call by the Nigeria National Petroleum Corporation (NNPC) when its Group Managing Director, Dr Mele Kyari also said the corporation could no longer bear the burden of sustaining the expensive subsidy regime on Premium Motor Spirit (PMS) and that its prices should be market- driven .

The positions of these two regulatory bodies in the Oil and Gas industry have further put pressure on Nigerians who should brace up to likely hike in the prices of these essential products.

While making this call in his keynote address at the pre-summit conference on “Decade of Gas’, in Abuja, on Monday, Auwalu said that the right and market-based pricing of gas was critical, as it would assure producers of returns on their investments.

He also outlined five critical levers for gas development, especially as Nigeria moves to leverage its abundant gas resources for national growth, diversification of the economy and to use gas as the fuel for economic transformation.

According to him, the levers include availability, accessibility, affordability, and acceptability, as well as deliverability.

He noted that these were critical to utilising Nigeria’s proven gas reserves of 203 trillion cubic feet, TCF, for national development.

“Whereas references have been made to the other elements in this discussion, right pricing of gas is requiring particular attention to ensure security of gas supply and security of credible gas demand.

“This is because upstream gas producers must be assured that they will receive fair and equitable returns for their investments whereas, the price must be such that the end-users are able to pay for gas offtake in a reliable and consistent manner.

“Accordingly, the most robust and sustainable pricing mechanism is that which ‘let the market speak’ in a way that all costs are reflective of prevailing market conditions and for which the economic dynamics of demand and supply are allowed to interplay in an open, transparent, and free market environment.

“Thus, our drive as a nation should be early attainment to the ‘willing buyer; willing seller’ market status.

“Any transitional pricing arrangements, today, must be structured to quickly give way for market-led pricing regime and conditions,” he said.

Auwalu commended President Muhammadu Buhari and the Minister of State for Petroleum Resources, Chief Timipre Sylva, for their outstanding leadership in deepening gas utilisation in Nigeria.

He noted that these efforts had culminated in the establishment of the National Gas Expansion Programme, National Gas Transportation Network Code and the National Gas Flare Commercialisation Programme.

Others, he noted, include the ongoing construction of the ELPS-II, OB3 and AKK pipelines as critical backbone gas infrastructure required to improve gas deliverability and availability.

He added that government was also working toward the expeditious passage of the Petroleum Industry Bill (PIB) which would enhance clarity in legislative, regulatory, fiscal, and administrative frameworks in the industry.

“This bill, when passed into law, will eliminate the uncertainties and bottlenecks associated with gas development in Nigeria and accelerate the growth of the Nigerian gas market to a fully developed and matured status.

“Specifically, on gas matters, the PIB provides for the following: promotion of dedicated gas exploration and development, gas terms, fiscal separation of gas as a commodity.

“It will also enhance the domestic gas delivery obligation, tariffing structure & methodology, open access regimes and revised gas pricing framework, to mention but a few,” Auwalu said.

He added that the DPR would continue to be an enabler and an opportunity provider in the oil and gas industry.

“Our focus remains the effective implementation of all policies and strategic programmes of government in an efficient manner that optimises the value of our petroleum resources for all stakeholders, all in overriding national interest,” he said.

Economy

Court reverses self over contempt charge against Fidelity Bank chief

Managing Director of Fidelity Bank,Nneka Chinwe Onyeali-Ikpe

The Eyewitness reporter

A Chief Magistrate Court sitting in Ikeja, Lagos has vacated its ruling that convicted and sentenced the Managing Director of Fidelity Bank,Nneka Chinwe Onyeali-Ikpe and Company Secretary of Fidelity Bank, Mrs. Unuigboje Ezinwa to six weeks in prison or a fine of Four Hundred Thousand Naira respectively for contempt.

The Chief Magistrate, Mr. Lateef Owolabi vacated the order in a Suit No: MIK/4726/22 between Justin Ahmed, (judgement creditor), Prince Enabulele Osazee, (judgement debtor) and Fidelity Bank Plc, (1st Garnishee/Applicant).

The court, in an earlier ruling delivered on February 6, 2023, held that the Managing Director of Fidelity Bank, Nneka Chinwe Onyeali-Ikpe and the Company Secretary, Mrs. Unuigboje Ezinwa should be committed to six weeks’ imprisonment over alleged disobedience of a garnishee order of the court restraining the bank from allowing a judgement debtor access to his account.

However, at the resumed proceedings on the matter on Feb 15, 2023, the court vacated the committal order on the premise of facts presented before the court that the alleged acts of contempt were not deliberate but arose out of a communication gap between the said parties and the erstwhile counsel.

The court in its ruling also stated that the error or sin of the counsel should not be visited on a party or litigants. The court also noted that the monies that were the subject matter and fulcrum of the contempt proceedings have since been paid to the judgment creditor.

“From the materials presented before this court by the applicant, this application falls within the classic rule where the error or sin of the counsel should not be visited on a party or litigants. Moreover, the applicant has averred that the monies subject matter, the fulcrum of the contempt proceedings had since been paid to the judgment creditor.

”Having fully discharged this payment to the satisfaction of the judgment creditor, this court should not be seen to cry more than the bereaved”, Mr Lateef Owolabi held.

”The solicitor to the bank explained that Fidelity Bank, being a law-abiding institution that will never or under any circumstance, directly or indirectly denigrate the integrity of the nation’s judiciary, had upon receipt of the garnishee order nisi on December 22, 2022, conducted a search immediately, and the result showed several accounts bearing similar names to the Judgment Debtor’s (Prince Enabulele Osazee).”

”To prevent the bank from erroneously restricting the wrong account, the bank filed an affidavit requesting additional account details to enable it to ascertain the correct account(s) to restrict.”

He further stated that, on January 16, 2023, the bank received the Judgment Creditor’s affidavit showing the account number of the Judgment Debtor. Armed with the correct account number, the bank immediately identified and placed a lien on the Judgment Debtor’s account. Unfortunately, during the intervening period, the judgement debtor had carried on depositing and withdrawing from his account.

In vacating the order on February 15, 2023, the Chief Magistrate held that based on the materials before the court, the applicant has been able to tether the law to the facts to warrant the grant of the relief sought on their own strength and not based on lack of opposition.

Economy

Supreme court restrains FG from enforcing naira swap deadline

The Eyewitness reporter

There was a temporary relief for Nigerians over the scarcity of naira notes as the Supreme Court has issued an order of interim injunction restraining the Federal Government and the Central Bank of Nigeria (CBN) from enforcing the February 10 deadline for the phasing out of the old naira notes.

A five-member panel of the court, led by Justice John Okoro said that it was a matter of urgent national importance that the court intervenes and grant the order.

The ruling was on an ex-parte motion filed by the governments of Kaduna, Kogi and Zamfara states

The order, according to Justice Okoro, who read the lead ruling, is to subsist pending the hearing and determination of the motion on notice filed by the state for interlocutory injunctions.

The court adjourned till February 15 for the hearing of the motion on notice and the preliminary objection filed by the defendant – the Attorney General of the Federation (AGF), challenging the court’s jurisdiction over the case.

Economy

CBN succumbs to pressure, extends use of old naira notes to February 10

The Eyewitness reporter

The Central Bank of Nigeria (CBN) has finally caved in to Public outcry over the February 1st deadline for the use of old naira notes when on Sunday, the apex bank announced February 10 as the new date.

Announcing the new deadline in a statement, Governor Central Bank Of Nigeria(CBN), Godwin Emefiele, said the decision to add extra 10 days was “to allow for the collection of more old notes”

Up till Saturday, CBN had insisted on the 31st January deadline for the validity of the old N200, N500 and N1,000 despite overwhelming complaints that the notes are either not available or in short supply in the banks or their Automated Teller Machines.

Last October, Emefiele announced the Naira redesign policy which entails the issuance of new notes to replace the existing N200, N500 and N1,000 series.