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Federal Government Insists on 165naira Pump Price, Advises Against Panic Buying

The Federal Government has said that the fixed pump price of Premium Motor Spirit -PMS remains 165 naira per litre as stipulated in the petroleum product pricing template.

The government also advised Nigerians against panic buying of PMS, also known as petrol, saying that the country currently had over two billion litres of PMS in various depots. This was made known by the Nigerian Midstream and Downstream Petroleum Regulatory Authority -NMDPRA, Nigerian National Petroleum Company -NNPC, and the Pipelines and Product Marketing Company -PPMC after visiting jetties in Apapa, Lagos.

However, Executive Director, Distribution Systems, Storage and Retail Infrastructure, NMDPRA Ugbugo Ukoha, maintained that petrol was a regulated product and urged marketers to comply with the pricing template. Ukoha said the conflict between Russia and Ukraine had led to an increment in the cost of Automotive Gas Oil (diesel), which was a critical product used in transporting petroleum products from the depots to the retail outlets.

President Muhammadu Buhari Rules out Fuel Subsidy Removal

Business, National News, News

Fuel, IMF, NNPC, Subsidy

President Muhammadu Buhari has ruled out the possibility of heeding to calls by the International Monetary Fund (IMF), World Bank and other leading economists to remove fuel subsidy. The President said this in an interview made available to newsmen by his media office in Abuja.

With fresh fuel scarcity biting across the country, Buhari said that though his administration had planned to remove fuel subsidy last year, further consultation with stakeholders, as well as events, which unfolded this year, made the move increasingly untenable. Defending his government’s retention of fuel subsidy against the advice of experts, Buhari said most western countries are today implementing fuel subsidies.

Further speaking with newsmen Buhari said that the step up in domestic production in fuel, enabled by Petroleum Industry Act (PIA) and food (agricultural policies) is a move toward unification of the economy.

Recall that earlier this year, the National Assembly had granted the President’s proposal to set aside N4 trillion for a fuel subsidy in 2022.

Fueled by the rising price of crude oil on the global market and the depreciating value of the naira, Nigeria’s fuel subsidy payments have increased over time by approximately 349.42%, from N350 billion in 2019 to N1.573 trillion in 2021.

The cost of subsidizing the product was estimated to be N450 billion in 2020.

According to data from the Nigerian National Petroleum Corporation, NNPC, the entire cost of subsidies during January and February of 2022 was estimated to be N396.72 billion.

The federal government spent $1.2 trillion between 2006 and 2019.

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Mining Firm, Glencore Pleads Guilty to UK Bribery Charges

Business, International, News

Mining, UK

A British subsidiary of the mining firm Glencore has pleaded guilty in a UK court to corruption offences for the second time in the last two months.

It was reportedly accused of paying millions of dollars in bribes to secure access to crude oil in several African countries. The Serious Fraud Office (SFO) found that bribes occurred from 2012 to 2016. It also found that bribes of over 28million dollars were paid via the Swiss-based firm’s employees and agents.

The bribery charges stated that the firm’s aim was for officials to perform their functions improperly, or reward them for so doing, by unduly favouring Glencore Energy UK Limited in the allocation of crude oil cargoes, the dates crude oil would be lifted and the grades of crude oil allocated. The mining giant has also pleaded guilty to corruption charges in the US and Brazil.

Glencore Energy (UK) Ltd has been found guilty of all bribery charges filed against it by the Serious Fraud Office, according to the SFO. The business “confessed to seven counts of paying bribes to acquire access to oil and make illegal profit at Southward Crown Court.”

Glencore is searching for a pattern.

and its worldwide subsidiaries are the subject of numerous legal inquiries. The business claims it anticipates making settlement payments totaling up to $1.5 billion in cases involving bribery and corruption. Its subsidiaries have admitted guilt to criminal charges in the US, UK, and Brazil.

Glencore reached a $1.1 billion settlement in the US last month for bribing officials in seven nations over a ten-year period, including the Democratic Republic of Congo, Nigeria, and Venezuela. An eight-year conspiracy to manipulate US oil-price benchmarks was the subject of a second criminal case in the US. Additionally, the company is currently the subject of inquiries from the Netherlands and Switzerland.

Additionally, Glencore has agreed to pay a settlement of $40 million in Brazil, of which $30 million will be paid to Petrobas, the country’s state-run oil corporation, as restitution for fraud, and the remaining $10 million will be paid as civil penalties to the national authorities.

Senate Passes Bill to Establish Chartered Risk Management Institute

Business, National News, News

Bill, National Assembly, Public service, senate

The Senate has passed a bill for the establishment of the Chartered Risk Management Institute of Nigeria.

The passage of the bill at plenary was sequel to the consideration of a report on it by the Committee on Establishment and Public Service. Senator Orker Jey while presenting the report said the Chartered Risk Management Institute, when finally signed into law, would regulate, control and manage the risk management profession in Nigeria.

Jey, who represented the Committee Chairman, Ibrahim Shekarau, explained that the establishment of the institution would, in no small measure, boost and entrench risk management culture in both the public and private sectors. According to him, the institute will also reduce risk factors embedded in everyday life.

He said that establishment of the Chartered Risk Management Institute of Nigeria would improve the overall risk consciousness of the nation by means of public education, seminars and workshops.

He further stated that the existence of a Chartered Risk Management Institute will provide effective oversight and sharing of information on risk management matters and tools that promote good practice among members.

The bill was passed after a clause-by-clause consideration by the Committee of the Whole.

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Minister of State for Petroleum Resources, Timipre Sylva says FG can not Intervene in Rising Price of Diesel and Fuel

Business, National News, News

Diesel, federal governmnet, NNPC, Petroleum

The Federal Government says it cannot intervene in the rising price of diesel and aviation fuel as the prices for both products are deregulated.

The Minister of State for Petroleum Resources, Timipre Sylva, who stated this while speaking in Abuja, explained that the prices of both products, which are imported, are being impacted by foreign exchange rate.

According to him, the NNPC has been the main importer of the product, noting that they are trying to democratize the importation so that the aviation fuel users themselves can be able to access foreign exchange and be able to import the product.

To import this, people lack access to foreign currency. NNPC has been the primary importer of this commodity up until now, but we’re working to democratize importation so that aviation fuel consumers themselves will be able to acquire foreign currency and import this product.

It’s not at all a supply issue. Simply said, it’s a world issue. You are aware that the issue in Russia and the Ukraine has actually made the price increase worse; it is not just a problem in Nigeria. The high price of diesel is due to the same factors, and since they are unsubsidized and unregulated goods, government intervention in these matters is not appropriate.

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Federal Government Says National Electricity Grid Crashed From 3,703MW To 9MW

Business, National News, News

Electricity, federal governmnet, Power Grid

Nigeria Electricity System Operator -NESO, an arm of the Federal Government’s power transmission company has said that the national electricity grid actually crashed from a peak of 3,703 megawatts to as low as 9Megawatts on Sunday.

Nigerians reportedly witnessed widespread blackout on Sunday after the national grid collapsed around 6.49pm, before engineers from the Transmission Company of Nigeria strived to ensure the recovery of the grid. Reports say that the grid collapse was the fifth in 2022, a development that made many power distribution companies to shut down their various outgoing electricity feeders.

According to NESO, the performance of the national grid had indicated that the peak generation last Sunday of 3,703Megawatts was recorded at 5am. Meanwhile Various Discos including Enugu Electricity Distribution Company Plc, Abuja Electricity Distribution Company, Kaduna Electricity Distribution Company, among others, had confirmed the grid collapse in various messages night.

Recall that Nigeria’s power grid had collapsed twice in March and twice again in April this year. Power generation on the system had reportedly continued to fluctuate due to various concerns such as gas constraints, water management challenges, gas pipeline vandalism, among others.

US Approves 40billion Dollars For Ukraine As Biden Rallies Behind NATO Bids

Business

The US Congress yesterday approved a gargantuan 40 billion dollars aid package for Ukraine to help fight Russia’s invasion as President Joe Biden rallied behind the historic NATO membership bids of Sweden and Finland.

With unusually bipartisan support, the Senate voted 86-11 to pass the package — the equivalent of the 2020 GDP of Cameroon — after one senator briefly held up the vote, voicing alarm on the costs.

The bundle includes 6 billion dollars earmarked for Ukraine to boost its armored vehicle inventory and air defense system. Nearly 9 billion dollars is set aside to help Ukraine ensure “continuity of government” as well as humanitarian aid.

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Naira Exchanges At 420.33 To Dollar At Investors And Exporters Window

Business

The Naira, yesterday, exchanged at 420.33 to the dollar at the Investors and Exporters window, compared to 419.25 traded on Wednesday, representing 0.26 per cent depreciation.

The open indicative rate closed at 417.70 naira to the dollar on Thursday.

An exchange rate of N444.00 to the dollar was the highest rate recorded within the day’s trading before it settled at N420.33.

The Naira sold for as low as 410 to the dollar within the day’s trading.

A total of 75.56 million dollars was traded in foreign exchange at the official Investors and Exporters window on Thursday.

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Federal Government Says Tax Exemptions Fail To Encourage Growth

Business

federal governmnet

The Minister of Finance, Budget and National Planning, Zainab Ahmed, has said despite the Federal Government’s efforts to leverage the benefits of tax exemptions and concessions, the incentive has rather led to huge revenue loss to the government.

According to her, though the government is committed to reducing tax expenditure, the nation’s current revenue to Gross Domestic Product (GDP) ratio of about seven per cent was poor and unsatisfactory. The minister stated this in Abuja, at the workshop on tax expenditure organised by the ECOWAS Commission under the Context of the Implementation of the Support Programme for Tax Transition in West Africa (PATF). The minister, represented by the Director, Technical Services in the Ministry, Fatima Hayatu, observed that Nigeria’s low revenue generation capabilities has been an enduring challenge to past and present governments.

She said though Nigeria is celebrated as the country in Africa with the largest economy, translating the wealth into revenue generation had remained a challenge. According to Ahmed, Nigeria is faced with challenges in mobilising domestic funds necessary for human capital development and infrastructure that are both drivers of sustainable economic growth and development.

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Reps Secure 6million Litres Of Aviation Fuel For Airlines, Seek Permanent Solution

Business

The House of Representatives have secured the cooperation of the Nigerian National Petroleum Corporation (NNPC) to make available six million litres of JetA1 (aviation fuel) to aviation fuel marketers chosen by the Airlines Operators of Nigeria (AON).

The deal was struck at a meeting with AON representatives at the National Assembly. Stakeholders present at the meeting included the representatives of the Federal Ministry of Petroleum Resources, Ministry of Aviation, Central Bank of Nigeria (CBN), NNPC, Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Authority (NAMA), among others.

Recall that the AON had earlier threatened to shutdown local airline services but reportedly withdrew the threat under pressure from the Federal Government. The airline operators say rising cost of key inputs such as aviation fuel necessitated the intended shutdown. Meanwhile, Part of the resolutions reached at the meeting, which lasted for over three hours, include that, as a long term solution, the airline operators must commence, as soon as possible, the process of securing a license for the importation of aviation fuel to avoid suspicion over the landing cost of the product and other associated logistic issues

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Business

Federal Government Insists on 165naira Pump Price, Advises Against Panic Buying

President Muhammadu Buhari Rules out Fuel Subsidy Removal

Mining Firm, Glencore Pleads Guilty to UK Bribery Charges

Senate Passes Bill to Establish Chartered Risk Management Institute

Minister of State for Petroleum Resources, Timipre Sylva says FG can not Intervene in Rising Price of Diesel and Fuel

Federal Government Says National Electricity Grid Crashed From 3,703MW To 9MW

US Approves 40billion Dollars For Ukraine As Biden Rallies Behind NATO Bids

Naira Exchanges At 420.33 To Dollar At Investors And Exporters Window

Federal Government Says Tax Exemptions Fail To Encourage Growth

Reps Secure 6million Litres Of Aviation Fuel For Airlines, Seek Permanent Solution

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