Connect with us

News

FG To Review NNPC’s $6bn Oil Swaps

Published

on

Apparently scandalised by the acute petrol scarcity, which marred the Yuletide celebrations, the Federal Government is set to review the $6 billion Direct Sale-Direct Purchase (DSDP) contracts of the Nigerian National Petroleum Corporation (NNPC).
The objective is to blacklist some oil traders whose failure to meet their petrol supply obligations plunged the country into the fuel crisis.
Speaking to newsmen on the fuel crisis in an interview, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu stated that some of the oil traders failed to deliver petrol to NNPC due to either lack of capacity to deliver or for profiteering reasons.
According to him, the failure of the companies to meet their contractual obligations caused the fuel crisis, which was aggravated by the high cost of crude oil in the international market.
The minister stated that in order to avert future fuel crises, the federal government would explore support mechanisms, by way of tax relief to boost the capacity of marketers to import petrol on their own.
Kachikwu said the federal government would review the list of the beneficiaries of the DSDP contracts to ensure that those companies that breached their contractual agreements would not benefit from the contracts.
Kachikwu said: “I think the immediate cause of this (fuel crisis) is the increase in the price of crude, and then a lot of deliveries at obviously a loss that NNPC is doing just to keep the nation going – also not the fault of NNPC.”
“That is what caused it. So we need to do better planning obviously in terms of foreseeing this and trying to provide for this. And there were a lot of people who took the DSDP programme to deliver products that failed in their deadlines – some for profiteering reasons, some for just sheer lack of capacity.
“So, we need to look at that list again and see who performed this year and who breached the contracts and make sure that those who did not perform are not back on that list again as we go forward,” Kachikwu explained.
Kachikwu said the long-term solution to the perennial crisis would be to encourage private marketers to import petrol on their own without relying on NNPC.
“I would like to see marketers being able to bring in their own products on their own and not NNPC bringing products for them. I would like to see NNPC bring its own products.”
“If there is a support mechanism, we have to find a way – either through tax relief or whatever it is to try and address that issue so that everybody has the capacity to do business.
“That is one of the things I will be developing and try to see my principal (President Buhari) obviously in the coming days to address the long-term problems.
“Final one is that the refineries should work. All these will fall into insignificance if the refineries are up and running. And we are working hard to begin the refinery repairs.
“We are almost at the end of the recommendations that will go to Mr. President,” Kachikwu added.
He stated that the federal government would develop a model that would allow NNPC and the marketers to import their own products.
“At the end of the day, that is the solution. And I will have to sit down with the Group Managing Director of NNPC and obviously get approval of Mr. President and put together structures that will enable us to address this, so that people take responsibility and answer to liabilities.
“If you say you are going to bring a cargo and we depend on you, we are going to add a penalty on it if you fail to perform. We are going to be doing that, going forward,” Kachikwu noted.
Speaking to journalists while monitoring the fuel situation in Lagos on Christmas Day, Vice-President Yemi Osinbajo also attributed the scarcity to the failure of some companies to deliver petrol to NNPC.
“I think that going by what we have seen, there is what is called winter deliveries. Towards the end of the year, the premium goes up – the cost of fuel goes up in many parts of the world for those who are importing.
“Obviously, that gave rise to problems for those who were bringing in products. We had one or two short deliveries by the importers and that accounted for some of the problems,” he said.
“I think that over time – in fact, if you look at the past few months, NNPC has been importing and they have been doing a very good job because we didn’t have a shortage in October and we did not have a shortage in November; it is only in December that we had a disruption,” Osinbajo added.
Last April, NNPC signed about $6 billion in deals with local and international traders to exchange about 330,000 barrels per day (bpd) of crude oil for imported petrol.
Our correspondent gathered that the oil traders engaged by NNPC were meant to import petrol into the country after shipping crude oil to international refiners.
It was, however, learnt that in the months of November and December, some of the companies converted their DSDP contracts into diesel, as they could not bring back petrol owing to the high cost of the product in the international market.
The implication was a flooded domestic market with diesel, which is also imported by other private marketers as a deregulated product, while petrol, which other marketers lacked the capacity to import and had been relying on NNPC for supply, became scarce.

Continue Reading

News

Tinubu Orders Security Chiefs To Restore Peace In Plateau, Benue, Borno

Published

on

President Bola Tinubu has ordered a security outreach to the hotbeds of recent killings in Plateau, Benue and Borno States, to restore peace to areas wracked by mass killings and bomb attacks.
National Security Adviser, Nuhu Ribadu, disclosed this to State House correspondents after a four-hour security briefing with the President at the Aso Rock Villa, Abuja on Wednesday.
“We listened and we took instructions from him. We got new directives…to go meet with the political authorities there,” Ribadu told reporters, adding that Tinubu directed them to engage state-level authorities in the worst-hit regions.
Director-General, National Intelligence Agency, Mohammed Mohammed; Chief Defence Intelligence of the Nigerian Army, Gen. Emmanuel Undianeye; Director-General, Department of State Services, Oluwatosin Ajayi and Chief of Staff to the President, Femi Gbajabiamila, appeared for the briefing.
The Tide’s source reports that in Plateau State, inter-communal violence between predominantly Christian farmers and nomadic herders spiralled into gory slaughter when gunmen stormed Zikke village in Bassa Local Government early on April 14, killing at least 51 people and razing homes in a single night.
In Benue, at least 56 people were killed in Logo and Gbagir after twin assaults blamed on armed herders.
Meanwhile, in Borno State, eight passengers perished and scores were injured when an improvised explosive device ripped through a bus on the Damboa–Maiduguri highway on April 12.
Ribadu explained that after an extensive briefing, intelligence chiefs received fresh instructions to restore peace, security and stability across Nigeria.
“In particular, Tinubu had ordered immediate outreach to the political authorities in Plateau, Benue and Borno States, and the defence team had gone round those States to carry out his directives and report back.
“We gave him an update on what has been the case and what is going on, and even when he was out there, before coming back, he was constantly in touch. He was giving directives. He was following developments, and we, in charge of the security, got the opportunity today to come and brief him properly for hours. And it was exhaustive.
“We listened and we took instructions from him. We got new directives. The fact is, Mr. President is insisting and working so hard to ensure that we have peace, security and stability in our country. We gave him an update on what is going on, and we also assured him that work is ongoing and continues.
“We also carried out his instructions. We went round, the chiefs were all out where we had these incidents of insecurity in Plateau State, Benue State, even Borno, these particular three states, and we gave him feedback, because he directed us to go meet with the political authorities there,” the NSA explained.
Ribadu described Tinubu as “worried and concerned,” and said he directed that all security arms be deployed around the clock.
The government, he added, believes these steps have already produced measurable improvements, even if the situation is not yet 100 per cent safe and secure.
“He’s so worried and concerned, he insisted that enough is enough, and we are working and to ensure that we restore peace and security and all of us are there. The armed forces are there, the Civil Police, intelligence communities, they are there.
“They are working there 24 hours, and we feel that we have done enough to believe that we are on the right course, and we’ll be able to be on top of things,” Ribadu stated.
The NSA emphasised that combating insecurity was not solely a Federal Government responsibility.
He stated, “The issue of insecurity often is not just for the government. It involves the subunits. They are the ones who are directly with the people, especially if some of the challenges are more or less bordering on community problems.
“Not entirely everything is that, but of course it also plays a significant role. You need to work with the communities, the local governments, and the governors, especially the governors.
“The President will continue to direct that. We should be doing that, and that’s what we are able to. We are very happy and very satisfied with the instructions and directives given by Mr. President this evening.”
In Borno State, the NSA noted that while violence had surged in recent months, the insurgents refused to accept defeat.
He warned that most recent casualties there resulted from improvised explosive devices—”cowardly” IED attacks targeting civilians—and from opportunistic raids that follow any lull in fighting.
“We are getting the cooperation of the leadership at the state level, and everybody. It’s not 100 per cent…but we are going there.
“When you are having peace and you are beginning to get used to it, if one bad incident happens, you forget the periods that you enjoyed peacefully,” he added.
He paid tribute to the “many who do not sleep, who walk throughout, who do not go for any break or holiday”—the soldiers, police and intelligence officers whose sacrifices have created the fragile calm Nigerians now experience.
“They will continue to be there,” he said, adding, “Things have changed in this country…we are on the right track and we will not relent. We will not sit down; we will not stop until we are able to achieve results.”

Continue Reading

News

FG Laments Low Patronage Of Made-In-Nigeria Products

Published

on

A Federal Government agency – the National Agency for Science and Engineering Infrastructure, has decried the low patronage of Nigerian-made products by Nigerians.
The agency identified some challenges leading to the low patronage of the local products as affordability and public perception, among others.
Speaking during a stakeholders meeting organised by the agency in Akure, Ondo State capital, yesterday, the Deputy Director of Engineering at NASENI, Mr Joseph Alasoluyi, said Nigerians preferred buying foreign goods compared to local goods.
Alasoluyi, however disclosed that the agency had trained over 50 participants in the production of hand-made products, in a bid to ensure Nigeria-made products are patronised.
He explained that NASENI was set up to promote science, technology, and engineering as a foundation for Nigeria’s development and currently operates 12 institutes nationwide to achieve its objectives.
According to him, the aim of President Bola Tinubu, who is also the overall chairman of NASENI, was to ensure high production and patronage of “our local products thereby creating employment opportunities for many.”
He said, “The idea of this programme is to interface to ensure we produce products using our indigenous technology. This is what NASENI is out for, to ensure that homegrown technologies are encouraged.
“We are out there to ensure we integrate efforts to ensure that local technology is used to develop products within the resources we have.
“ The NASENI’s ‘3 Cs’ – Creation, Collaboration, and Commercialisation – that define NASENI’s strategic mandate: Creating innovations through research, Collaborating with partners to develop and refine products, and Commercialising these solutions to benefit the economy.
“Our achievements include the development of solar irrigation systems, CNG conversion centres, building machines capable of producing up to 1,000 blocks per hour, 10-inch tablets, locally made laptops, and electric tricycles (Keke Napep) set for market launch.”
In his remarks, the Deputy Vice Chancellor of the Federal University of Technology, Akure, Prof. Samuel Oluyamo, blamed the Federal Government for not properly funding research in the varsities, also noting that many research outputs were left halfway due to lack of funding and weak linkages between research institutions and industry.
Oluyamo also queried the Federal Government’s commitment to funding research and development, saying many academic innovations remained on the shelve due to a lack of support for commercialisation and poor infrastructure.
“Until we upscale research into mass production, technological growth will remain elusive. The government is not funding research in the universities enough. Thank God for TETfund that is trying in this regime. The major interest in beefing up research in universities and research institutions is really not there,” he said.

Continue Reading

News

Nigeria Seeks Return To JP Morgan Bond Index

Published

on

The Director-General of the Debt Management Office, Patience Oniha, has said that Nigeria is in advanced discussions with JP Morgan to re-enter the Government Bond Index and renew investors’ confidence.
Oniha disclosed this on Wednesday at a Nigerian Investors’ Forum on the sidelines of the World Bank and International Monetary Fund Spring Meetings in Washington, D.C.
The DMO boss explained that Nigeria has enjoyed favourable credit assessment among rating agencies in recent times on the back of the sweeping reforms initiated by the Central Bank of Nigeria.
Fitch Ratings recently upgraded the Long-Term Issuer Default Ratings of seven Nigerian banks and two bank holding companies to ‘B’ from ‘B-‘, noting that the outlooks are Stable.
The affected issuers are Access Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Bank Limited, Guaranty Trust Holding Company Plc, First HoldCo Plc, First Bank of Nigeria Ltd, Fidelity Bank Plc and Bank of Industry Limited.
The upgrades of the Long-Term IDRs of the banks followed the recent sovereign upgrade and reflect Fitch’s view that Nigeria’s sovereign credit profile has become less of a constraint on the issuers’ standalone creditworthiness, the rating agency said.
Fitch also upgraded Nigeria’s Long-Term IDRs to ‘B’ from ‘B-‘ on 11 April, a decision that reflected increased confidence in the government’s broad commitment to policy reforms implemented since its move to orthodox economic policies in June 2023, including exchange rate liberalisation, monetary policy tightening and steps to end deficit monetisation and remove fuel subsidies.
“These have improved policy coherence and credibility and reduced economic distortions and near-term risks to macroeconomic stability, enhancing resilience in the context of persistent domestic challenges and heightened external risks,” Fitch said.
Nigeria was removed from the JP Morgan index in 2015 ostensibly due to its deviation from orthodox monetary policies and influence of capital control in its management of foreign exchange.
Principally due to reduction in oil revenues at the time, Nigeria introduced currency restrictions to defend the naira after it failed to halt a dangerous slide with burning of dollar reserves. The bank had earlier warned Nigeria to restore liquidity to its currency market in a way that allowed foreign investors tracking the index to conduct transactions with minimal hurdles.
“Foreign investors who track the GBI-EM series continue to face challenges and uncertainty while transacting in the naira due to the lack of a fully functional two-way FX market and limited transparency,” the bank said in a 2015 note.
Nigeria was listed in JP Morgan’s emerging government bond index in October 2012, after the Central Bank removed a requirement that foreign investors hold government bonds for a minimum of one year before exiting.
The JP Morgan Government Bond Index reflects investor confidence and opens doors to billions of investment flows, making Nigeria’s proposed re-entry a positive signal to the market and investors.
Oniha explained that talks with JP Morgan were ongoing and had gained momentum in recent times due to the stability created by the FX market reforms.
“With all the reforms that have taken place, particularly around FX, we have started engaging JP Morgan again to get back into the index. We think we are eligible now,” the DMO DG said.

Continue Reading

Trending