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Economy

Price of 12.5kg cooking gas soars to N8,500

 

—-as marketers warn it may hit N10,000 by December

 

The price of the 12.5 kilogramme of Liquefied Petroleum Gas,( LPG) or cooking gas, has continued to soar in an unprecedented manner as it has now hit N8,500 in many parts of the country.

This was despite the Federal Government’s plan to make the product appealing to the common man.

The government earlier this year launched the National Gas Expansion Programme,( NGEP,) to drive increased utilisation of gas as a better alternative for petroleum fuel for homes, industries and automobiles.

The 12kg of LPG sold for N7,000 in September and below N4,000 last year.

The high price of the product since about three months ago is caused by a supply gap following a drop in importation as the government imposed an import tax on cargo arriving in the country.

Of the 1.2 million metric tonnes, MT, of the product required for consumption in the country, the Nigeria LNG Limited, NLNG, supplies about 450,000MT while independent marketers supply 750,000MT through imports.

The Federal Government’s GEP was designed to make gas more attractive and accessible to the masses, thereby increasing its usage for cooking, transportation, and in industries.

However, despite this plan, prices of cooking gas have kept soaring in recent months, from about N3,500 last December to between N8,000 and N8,500 as at October, this month.

Investigations showed that the landing cost of the product has since skyrocketed as a result of a recent crisis in the foreign exchange market and the imposition of a new tax.

The Petroleum Products Pricing Regulatory Agency, (PPPRA), said out of the 85,264.80MT of LPG consumed in the country in August, 38,040.46MT were imported.

This puts the level of importation at 55.39 per cent versus 44.61 per cent supplied locally.

Further data showed that 21,606.30MT was imported from the United States, while 13,044.266 was imported from Algeria and 12,573.779MT was brought in from Equatorial Guinea.

Recent reports had marketers warning that the price of 12.5kg of the product could hit N10,000 by December if pending concerns were not addressed.

Marketers have debunked inflating prices, passing the buck of rising prices to the NLNG.

On the other hand, the NLNG claimed that marketers lacked enough infrastructure to take up its cooking gas supply, a claim also refuted by the marketers.

The Marketing Manager, NLNG, Austin Ogbogbo, had said: “NLNG has grown its capacity from 50,000 metric tonnes per annum to 450,000 metric tonnes per annum of LPG in the past 14 years.

“Nigeria needs 1.2 million metric tonnes per annum, but even the 450,000 we produce cannot be absorbed by the market’s current infrastructure.”

When asked if the NLNG’s position was true, the National Chairman, Liquefied Petroleum Gas Retailers Association of Nigeria, Michael Umudu, replied in the negative.

He said: “Marketers have the capacity to absorb the 1.2 million metric tonnes annually and this figure will continue to increase.

“Marketers have the capacity; rather, the challenges of the NLNG have to do with logistics. Many depots use to be empty for months; so, why should they say marketers don’t have capacity?”

According to Ubuntu, storage of cooking gas does not end in the midstream facilities, with inland facilities such as gas plants and retail outlets having more storage capacities.

“This is how it works: LPG is discharged in a depot, and LPG trucks are ready to load products to plants. From the plants, retailers refill their cylinders and store in their shops while end-users buy.

“This means that a depot of 5,000MT storage capacity can do a turnover of 15,000MT a month or even more. So, looking at the estimated 1.2 million MT yearly demand, it shows that if NLNG supplies only 100,000MT a month, then the 1.2 million MT target is met,” he said.

He added: “If the depot of 5,000MT storage capacity can do 15,000MT a month, then calculating other depots with even much more capacities and multiplying by three for a month turnover, you will realise that these depots would do up to 150,000MT monthly.

“And going by the 1.2 million MT annual consumption demand, we only consume about 100,000MT a month. So why should NLNG say there is not enough storage?”

The gas retailers’ chairman noted that the NLNG or any other supplier did not need to supply the annual need at once, adding that this was why he called for the improvement of logistics by the LPG producer.

“With respect to logistics, if they (NLNG) can adapt to compatible vessels and engage enough of the vessels, then more than 1.2 million MT annual estimate would be conveniently met,” Umudu added.

Reacting to the position of the marketers, the spokesperson of the NLNG, Eyono Fatayi-Williams, said the gas firm could only give 450,000MT at the moment to the domestic market.

She also observed that there were challenges with logistics, such as the delay of vessels at the Lagos port, but stressed that the NLNG was doing its best to deliver its part in the supply of cooking gas.

She explained that in 2007, Nigeria could only produce 50,000MT of LPG and that the NLNG was asked to intervene, stressing that the gas firm was primarily set up for export.

“Between 2007 and now, because we have guaranteed supply, the market has grown. Today, Nigeria can take over one million tonnes of cooking gas,” Fatayi-William said.

She added: “The maximum production we have of cooking gas is 450,000 metric tonnes annually and the market did over a million metric tonnes last year.

“Also, when we talk about logistics, the maximum amount we can now give, which is the maximum production volume, is less than what the entire country needs. We are not the only producer of LPG but we can only give 450,000MT.”

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Economy

Ojulari, new NNPCL MD, hits the ground running, assembles new management team as he takes over from Kyari

Funso OLOJO 

The new Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Bayo Ojulari, has assembled new management team that will drive the vision of President Bola Ahmed Tinubu in the petroleum sector shortly after he took over the mantle of leadership from his predecessor, Mr Mele Kyari.

It could be recalled that the appointment of the erswhile NNPCL boss, Kyari was terminated and Ojulari was appointed in his stead with immediate effect.

However, in a brief handover ceremony held at the NNPC Towers, Ojulari commended Kyari for his contributions to the growth of NNPC Ltd and his sterling service to the nation.

He disclosed that the objective of his management was to consolidate on the successes of his predecessor and take the company to the next level.

He said though the targets set for his management were quite enormous, he would be relying on the co-operation of the Management and staff of the company, as well as the counsel of his predecessor to achieve set targets.

“I will be counting on your support. I will need it. I will be coming around to seek your counsel,” Ojulari told Kyari.

Earlier in his remarks, Kyari congratulated Ojulari and thanked the Management and staff of the company for their support while in office.

He pledged to do everything within his power to support the new Management to succeed, stressing that he was only a call away.

Soon after the official handing over ceremony, the new new NNPCL, Mr Ojulari announced the appointment of a new 8-man Senior Management Team .

The team which will be headed by the GCEO, Mr Bashir Bayo Ojulari, has Roland Ewubare as Group Chief Operating Officer; Adedapo Segun as Group Chief Financial Officer; and Olalekan Ogunleye as Executive Vice President Gas, Power & New Energy.

Other members of the team are: Udy Ntia as Executive Vice President Upstream; Mumuni Dagazau as Executive Vice President Downstream; Sophia Mbakwe as Executive Vice President Business Services; and Adesua Dozie, as Company Secretary & Chief Legal Officer.

All appointments are with immediate effect.

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Economy

Tinubu sacks Kyari, NNPCL GMD, appoints Ojulari as new CEO,  reconstitutes board

Funso OLOJO

President Bola Ahmed Tinubu has approved sweeping changes on the board of the Nigerian National Petroleum Corporation Limited (NNPCL) as he removed the Board Chairman, Chief Pius Akinyelire and the Chief Executive Officer, Mallam Meke Kolo Kyari.
Their removal took immediate effect.
The President also removed all other board members appointed with Akinyelure and Kyari in November 2023.
Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, revealed the development in a statement he signed in the early hours of Wednesday titled, ‘President Tinubu reconstitutes NNPC limited board, appoints new Chairman, Group CEO.’
“President Tinubu removed all other board members appointed with Akinyelure and Kyari in November 2023.
The new 11-man board has Engineer Bashir Bayo Ojulari as the Group CEO and Ahmadu Musa Kida as non-executive chairman,” the statement reads.
Adedapo Segun, who replaced Umaru Isa Ajiya as the chief financial officer last November, has been appointed to the new board by President Tinubu.
Six board members, non-executive directors, represent the country’s geopolitical zones.
They are Bello Rabiu, North West, Yusuf Usman, North East, and Babs Omotowa, a former Managing Director of the Nigerian Liquified Natural Gas( NLNG), who represents North Central.
President Tinubu appointed Austin Avuru as a non-executive director from the South-South, David Ige as a Non-Executive Director from the South West, and Henry Obih as a non-executive director from the South East.
Ahmad Musa Kida, NNPC new chairman,
Bayo Bashir Ojulari new NNPC GCEO,
Mrs Lydia Shehu Jafiya, Permanent Secretary of the Federal Ministry of Finance, will represent the ministry on the new board, while Aminu Said Ahmed will represent the Ministry of Petroleum Resources.
All the appointments are effective immediately ,April 2nd, 2025.
President Tinubu, invoking the powers granted under Section 59, subsection 2 of the Petroleum Industry Act, 2021, emphasised that the board’s restructuring is crucial for enhancing operational efficiency, restoring investor confidence, boosting local content, driving economic growth, and advancing gas commercialisation and diversification.
President Tinubu also handed out an immediate action plan to the new board which include to conduct a strategic portfolio review of NNPC-operated and Joint Venture Assets to ensure alignment with value maximisation objectives.
Since 2023, the Tinubu administration has implemented oil sector reforms to attract investment.
Last year, NNPC reported $17 billion in new investments within the sector. The administration now envisions increasing the investment to $30 billion by 2027 and $60 billion by 2030.
The Tinubu administration targets raising oil production to two million barrels daily by 2027 and three million daily by 2030.
 Concurrently, the government wants gas production jacked to 8 billion cubic feet daily by 2027 and 10 billion cubic feet by 2030.
Furthermore, President Tinubu expects the new board to elevate NNPC’s share of crude oil refining output to 200,000 barrels by 2027 and reach 500,000 by 2030.
The new board chairman, Ahmadu Musa Kida, is from Borno State.
 He is an alumnus of Ahmadu Bello University, Zaria, where he received a degree in civil engineering in 1984.
 He also obtained a Postgraduate Diploma in petroleum engineering from the Institut Francaise du Petrol (IFP) in Paris.
He started his career in the oil industry at Elf Petroleum Nigeria and later joined Total Exploration and Production as a trainee engineer in 1985.
Musa became Total Nigeria’s Deputy Managing Director of Deep Water Services in 2015.
Last year, he became an Independent Non-Executive Director at Pan Ocean-Newcross Group.
Apart from his oil industry career, Ahmadu Musa Kida is a former basketballer and the President of the Nigerian Basketball Federation(NBBF) board.
Ojulari, the new NNPC Limited Group CEO, hails from Kwara State.
Until his new appointment, he was Executive Vice President and Chief Operating Officer of Renaissance Africa Energy Company.
His Renaissance recently led a consortium of indigenous energy firms in the landmark acquisition of the entire equity holding in the Shell Petroleum Development Company of Nigeria (SPDC), worth $2.4 billion.
Like Kida, Ojulari is also an alumnus of Ahmadu Bello University, Zaria.
He graduated with a degree in Mechanical Engineering.
 He worked for Elf Aquitaine as the first Nigerian process engineer to begin a stellar career in the oil sector.
From Elf, he joined Shell Petroleum Development Company of Nigeria Ltd in 1991 as an associate production technologist.
Apart from working in Nigeria, he worked in Europe and the Middle East in different capacities as a petroleum process and production engineer, strategic planner, field developer, and asset manager.
In 2015, he became the managing director of Shell Nigeria Exploration and Production Company (SNEPCO).
During his career, he was chairman and member of the board of trustees of the Society of Petroleum Engineers (SPE Nigerian Council) and a fellow of the Nigerian Society of Engineers.
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Economy

Dangote group remits N402.3 billion tax to government coffers in 2024

Gloria Odion 
The Pan African Conglomerate, Dangote Industries Limited and its subsidiaries, have disclosed that it paid over N402 billion in taxes in 2024, making it the highest taxpayer in the country.
Dangote’s Chief Branding and Communication Officer, Anthony Chiejina, declared during a meeting with some senior media executives who visited him in his Lagos Office.
He said Dangote Industries Limited (DIL) and its subsidiaries, namely, Dangote Cement, NASCON, Dangote Packaging Limited among others, remitted a total of N402.319billion for the out-gone year as taxes as responsible business enterprises.
Recall that Federal Inland Revenue Service (FIRS) had in late 2024 recognised  Dangote group and its subsidiary, Bluestar Shipping as the most tax compliant organizations in the country during its Special Day at the 2024 Lagos International Trade Fair organised by the Lagos Chamber of Commerce and Industry (LCCI).
The Federal Inland Revenue Service is Nigeria’s agency responsible for assessing, collecting and accounting for tax and other revenues accruing to the Federal Government of Nigeria.
Chiejina told his visitors that as a responsible business organisation, DIL and its subsidiaries have never shieded away from its obligations either to the government in the form of tax payment at all levels or to host communities in the form of Corporate Social Responsibility (CSR).
According to him, the Group’s corporate strategy has evolved just as its businesses have grown, matured and diversified into new sectors and regions over the last four decades.
He noted that Dangote Group has almost single-handedly taken Nigeria to self-sufficiency in cement and refined petroleum products and is expanding rapidly across Africa.
Dangote Group and its subsidiaries were recognised as number one most compliant in tax payment in the country, just as its subsidiary Dangote Cement, the country’s leading cement manufacturer, at another occasion won three awards at the FMDQ Gold Awards in Lagos as the most active business in the Foreign Exchange market.
Dangote Cement Plc was adjudged as the Largest Commercial Paper Quotation on FMDQ and Single Largest Corporate Debt Issue on FMDQ.
 Also, Dangote Industries Ltd also emerged as the “Most active corporate in the foreign exchange market”.
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