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Economy

NNPC allays fears of fuel scarcity, admits hitches in depots

The Nigerian National Petroleum Corporation has admitted that there are pricing issues at some petrol depots in the country but ruled out any hike in the pump price of the product.

It was reported on Tuesday that fuel queues resurfaced on Monday in the Federal Capital Territory and some parts of Nasarawa and Niger states.

Retailers had claimed that the ex-depot price of the product had been increased by private tank farm owners from the recommended N148-N149.5/litre to between N153 and N155/litre.

The Group Managing Director, NNPC, Mele Kyari, while delivering a presentation at a conference organised by Energy correspondents in Lagos on Tuesday, said the corporation had an adequate stock of Premium Motor Spirit (petrol).

He said, “As we speak now, there is speculation of fuel scarcity within the media, but we have over 1.7 billion litres of Premium Motor Spirit in the country. We have another 2.3 billion litres coming in; so there is no shortage in supply as being speculated.

“Of course, there are issues about pricing at some depots but the government has no plan to revise the pricing structure.”

According to Kyari, NNPC’s objective is to provide energy security for Nigeria and ensure the availability of petroleum products in the country.

Speaking on ‘Petroleum Industry Act: Energy transition and the future of Nigeria’s oil and gas,’ he explained why Nigeria was demanding energy justice at the ongoing United Nations Climate Change Conference (COP26) in Glasgow, Scotland amid the global push for the energy transition.

Kyari noted that the COP26 again highlighted the challenges faced by Nigeria and other African countries in the global energy transition.

He noted that President Muhammadu Buhari in his speech before the world leaders had demanded energy justice for Africa and highlighted the need to exploit the available resources as a pathway to attain the net-zero carbon objective by 2050.

According to Kyari, although Africa accounts for only about three per cent of the global carbon emission, the continent still has the responsibility to join the world in combating climate change.

He said Nigeria had identified its abundant gas resources as its fuel for energy transition, citing the declaration of the year 2021 to 2030 as the ‘Decade of Gas’ by the government.

The NNPC boss said, “We are making good progress in terms of the implementation of the PIA which is clearly creating the path for transition.

“There is no way we can achieve this feat without adequate infrastructure to transport the resources to where it will be used, and that is why we are investing in massive gas infrastructure.”

He said gas projects such as the Obiafu-Obrikon-Oben and the Ajaokuta-Kaduna-Kano pipelines would deepen gas utilisation in the country.

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Economy

Prices of cooking gas to crash as federal government exempts LPG, allied products from Customs duty,VAT

 The Federal government has directed that imported Liquefied Petrolium Gas(Cooking gas) and all its allied equipment like cylinders should be excepted from the payment of Customs duty and Valu-Added Tax(VAT).
This directive is expected to crash the galloping prices of the product which is being sold between N950 to N1200 per 1 kg
The Ministry of Finance disclosed this in a letter (dated November 28, 2023) to the Special Adviser to the President on Energy; the Comptroller-General of the Nigeria Customs Service (NCS); and the Chairman of the Federal Inland Revenue Service (FIRS).
According to the ministry, the exemption aligned with President Bola Tinubu’s commitment to enhance Nigeria’s investment climate, and promote clean cooking practices.
“In line with His Excellency, President Bola Tinubu’s commitment to improving the investment climate in Nigeria, increasing the supply of LPG to meet local demand, reducing market prices and promoting clean cooking practices, I hereby affirm Presidential directive dated July 29, 2022, with reference number PRES/88/MPR/99,” the letter reads.
“Accordingly, the importation of LPG utilising HS Codes 2711.12.00.00, 2711.13.00.00 and 2711.19.00.00 is exempt from Import Duty and Value-Added Tax. Consequently, the Importation of LPG shall incur a 0% duty rate and 0% VAT rate, effective immediately.”
The ministry instructed the NCS and FIRS to comply with the directive pending its official gazetting.   \
Also, the ministry directed the NCS to comply with the presidential directive, dated July 29, 2022, and withdraw all debit notes issued to petroleum marketers who have imported LPG “using codes 2711.1.2.00.00 and 2711.13.00.00 from August 26, 2019, to the present date”.
Other items exempted from VAT and duty payment are LPG cylinders, LPG cascades, gas leak detectors, steel pipes, steel valves and fittings, LPG dispensers, gas generators, LPG trucks, among others.
Before now, 7.5 per cent VAT was slammed on the product which made its prices in the market to hit the roof.
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Economy

NNPCL dashes Nigerians’ hope of reduction in fuel pump prices as local refining operation gets underway at Dangote refinery  

Mele Kyari, GMD, NNPCL

The Eyewitness Reporter 

Nigerians’ hope of getting refined petroleum products cheaper following the full operation of the Dangote refinery and full utilisation of the nation’s moribund refineries may have been dashed following the stance of the Nigeria National Petroleum Corporation Limited (NNPCL).

Mele Kyari, the Managing Director of the National Oil company, told Nigeria’s Senators Friday, December 8th, 2023, that a possible crash in prices of Premium Motor Spirit (PMS)  otherwise known as petrol following the full utilisation and functionality of refineries at Warri, Kaduna and Port Harcourt, is not feasible in the foreseeable future.
Speaking before the joint committee on Appropriation of the National Assembly who summoned the oil chief, Kyari said reduction in prices of the pump price of petrol was not the immediate priority of NNPCL as it commences the rehabilitation of the nation’s refineries for full operations.
Instead, the National Oil Chief said the major concern of the National Oil company is how to determine the local consumption of petrol which has been a controversial subject in the past.
This declaration therefore put paid to the expectations of Nigerians, who have been under the heavy yoke of subsidy removal on fuel, that there would be a price reduction in the product once the Dangote refinery starts full operation and local refineries start full production.
This scary revelation by the NNPCL Chief came on the heels of the first major supply of crude to the multi-billion dollar refinery.

In what stakeholders in the Oil and Gas industry regarded as a major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency), Dangote Petroleum Refinery and Petrochemicals plant has purchased 1 million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), one of the largest trading companies in Nigeria as well as globally, trading over 8 million barrels of crude oil per day.

The STASCO cargo contained 1 million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks.

The maiden 1 million barrels, which represent the first phase of the 6 million barrels of crude oil to be supplied to Dangote Petroleum Refinery by a range of suppliers, should sustain the initial 350,000 barrels per day to be processed by the facility.

The next four cargoes will be supplied by the NNPCL in two to three weeks and the final of the six cargoes will be supplied by ExxonMobil.

This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS).

This latest development will play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.

Designed for 100% Nigerian crude with the flexibility to process other crudes, the 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries.

Dangote Petroleum Refinery can meet 100% of Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also has a surplus of each of these products for export.

The refinery was built to take crude through its two SPMs located 25 kilometres from the shore and to discharge petroleum products through three separate SPMs.

In addition, the refinery has the capacity to load 2,900 trucks a day at its truck-loading gantries.

Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available.

In addition, all products from the refinery will conform to Euro V specifications.

The refinery is designed to comply with US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms as well as African Refiners and Distribution Association (ARDA) standards.

 “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.
” Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.” an elated President of Dangote Group, Mr. Aliko Dangote, declared.

The Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor stated: “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulfur fuels for Nigeria and across West Africa and are happy to be enabling it.”

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Economy

Buhari, Jonathan, Obasanjo, Babangida, Abdusalami, Osinbajo, Atiku, others to spend N13.8billon from N27.5 trillion 2024 budget 

Tinubu presentation of 2024 budget to the National Assembly

The Eyewitness Reporter

The Federal government has earmarked the sum of N13.8 billion in the 2024 budget as the cost of upkeep of
former presidents, vice presidents, heads of state, Chiefs of General Staff, retired heads of service, permanent secretaries, and retired heads of government agencies and parastatals.

The beneficiaries include former Presidents Olusegun Obasanjo, Goodluck Jonathan and Muhammadu Buhari, ex-vice-presidents Atiku Abubakar, Namadi Sambo and Prof Yemi Osinbajo.

Also expected to benefit from the windfall are ex-military Heads of State, General Yakubu Gowon and General Abdusalami Abubakar, as well as a former dictator and self-styled military President, General Ibrahim Babangida, and a former Chief of General Staff, Commodore Ebitu Ukiwe (retd.).

Also, N1tn was provisioned for the public service wage adjustment for government Ministries, Departments and Agencies (including arrears of promotion and salary increases, and payment of severance benefits and minimum wage-related adjustments).

A breakdown shows that the entitlements of former presidents/heads of state and vice presidents/chief of general staff will cost N2.3bn. At the same time, N10.5bn is proposed as benefits for retired heads of service, permanent secretaries and professors.

The payment of severance benefits to retired heads of government agencies and parastatals is proposed to cost N1bn.

Other allocations include N65bn for the Presidential Amnesty Programme for the reintegration of transformed ex-militants; N1bn for the Office of the Presidential Adviser on Energy; and N108bn for unnamed special projects.

The government is also proposing the sum of N40bn to offset electricity debts owed to power distribution companies by all MDAs.

President Bola Tinubu unveiled the N27.5 trillion budget estimates for the 2024 fiscal year.
The budget was presented to a joint session of the National Assembly on Wednesday, where it is currently undergoing scrutiny and deliberation for final approval.

In his presentation, he declared, “The 2024 Appropriation has been themed the Budget of Renewed Hope.

The proposed budget seeks to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security.

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