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.
CBN succumbs to pressure, extends use of old naira notes to February 10
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.
CBN reverses itself on cash withdrawal limits as Emefiele succumbs to pressure
—now pegs weekly withdrawal for individual to N500,000, Corporate N5million
The Eyewitness Reporter
The Central Bank of Nigeria(CBN) may have succumbed to pressure from the National Assembly and other rich Nigerians as it has reversed itself on its earlier cash withdrawal limits for individuals and corporate organisations.
In a circular number BSD/DIR/PUB/LAB/015/073 dated December 21st, 2022 and addressed to all Deposit Money Banks(DMBS) and other financial institutions, the apex bank disclosed that the new weekly cash withdrawal limits for both the individuals and corporate organisations have now been reviewed to N500,000 and N5million respectively.
The new weekly cash withdrawal limits now superseded the earlier one released on December 6th, 2022 which were put at N100,000 for individuals and N500,000 for corporate organisations.
In the new revised cash withdrawal limits, the CBN claimed the revision of the policy was in response to feedback from the stakeholders.
The new revised policy also slashed the processing fees for amounts above the approved threshold from an initial 5 percent for individuals to 3 percent and for corporate organisations from 10 percent to 5 percent.
The circular, which was signed by Haruna Mustafa, the Director of Banking supervision, the CBN said the new revised cash withdrawal policy takes effect from January, 9th,2022.
”Following our circular BSD/DIR/PUB/LAB/015/069 dated December 6, 2022, on the above subject and based on feedback received from stakeholders, the Central Bank Of Nigeria(CBN) hereby makes the following reviews;
–the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000 and N5 million respectively.
–In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of 3 percent and 5 percent for individuals and corporate organisations respectively.
–Futrher to (2) above, the financial institution shall obtain the following information from the Customer, at the minimum,and upload same on the CBN portal created for the purpose
a. Valid means of identification of the payee(National ID, International passport, or driver’s license)
b.Bank Verification Number(BVN) of the payee.
c.Tax Identification Number(TIN) of both the payee and the payer.
d. Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
–Third-party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsists.
—Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision, Other financial institution supervision and Payment System Management Departments as applicable
—Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence, currency and suspicious transaction reporting, etc is mandatory in all circumstances.
—Customers should be encouraged to use alternative channels(internet banking, mobile banking apps, USSD, cards/POS, eNaira,gets) to conduct their banking transactions”, the circular reads.
The CBN however warned all the banks and OFIS that aiding and abetting the circumvention of this policy will attract severe sanctions.
It could be recalled that the policy, which was first announced on December 6th, 2022, generated mixed reactions, especially from the members of the National Assembly who invited the CBN Governor. Godwin Emefiele to come and explain the rationale behind the cash withdrawal limits.
Twice, the National Assembly invited Mr. Emefiele, but twice, he did not appear, citing national assignment engagement as the reason for his non-appearance.
The review may, however, be as a result of the intense pressure that the CBN governor has lately been subjected to as a result of this policy which analysts believed does not favour the elites, the politicians and the rich Nigerians, especially giving the forthcoming elections.
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