Business
Petrol May Sell Above ₦340/Litre, Marketers Plan Imports Amidst Forex Crisis
Petrol May Sell Above ₦340/Litre, Marketers Plan Imports Amidst Forex Crisis
The pump price of Premium Motor Spirit, popularly called petrol, may go higher than the projected N340/litre in February 2022 when the Federal Government removes its subsidy on the commodity, oil marketers said on Tuesday.
Also, it was gathered that both independent and major oil marketers were perfecting plans to resume PMS imports once the government halts the subsidy regime.
They, however, expressed worry over the fluctuation in foreign exchange rates and how this would impact on petrol price next year.
For about four years, the Nigerian National Petroleum Company Limited has been the sole importer of petrol into Nigeria. Marketers stopped importing the commodity due to their inability to effectively access the United States dollar for imports.
Last week, the Group Managing Director of NNPC, Mele Kyari, announced at a World Bank event in Abuja that petrol would sell for between N320 and N340 per litre from February 2022 by which time the Federal Government have removed the subsidy.
He explained that Nigeria would be out of the subsidy regime in the first quarter of next year, stressing that subsidy would have been eliminated this year but was stalled due to certain conditions.
The current pump price of petrol at filing stations is between N162 and N165/litre, although the product is mostly sold at the upper N165/litre rate due to recent challenges in the downstream oil sector.
But marketers told our correspondent on Tuesday that the cost of petrol would be higher than the projected N320 – N340/litres if there was no improvement in the foreign exchange rate.
Dealers under the aegis of Independent Petroleum Marketers Association of Nigeria and Petroleum Products Retail Outlets owners Association of Nigeria stated that though they were set to import petrol, the cost of the commodity would be high in February.
IPMAN and PETROAN members own bulk of the filling stations across the country and currently make purchases from depots before selling to final consumers at their various retail outlets.
“Yes, if there is no subsidy, some marketers can import, but the only thing is that it will be costly. The price will be higher than the projected cost because of the exchange rate,” the National Vice President, IPMAN, Abubakar Maigandi, stated.
He added, “The challenge of accessing forex will definitely affect imports because over 90 per cent of petrol that will be consumed across the country will depend on importation. Also this is because the refineries are not functioning.”
The National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, also stated that the foreign exchange rate would determine the cost of petrol from next year after subsidy removal.
He said, “If the Federal Government says there is no going back on subsidy removal this time round, which is a challenge that has dragged on for about 30 years, then it means that they are going to liberalise the market.
“By liberalising the market it will now help independent and major marketers to be able to freely import petroleum products from any source so that products will be available in Nigeria.”
He added, “However, it is pertinent to note the forces of demand and supply will determine the price of the commodity in Nigeria. So literally, whatever the dollar rate is in the international and local markets will pose the actual challenge to marketers
“The issue of black market and official exchange rates is a serious challenge that we foresee. But we believe that the Federal Government is doing something by meeting with the bureau d’change operators on this, so that whatever is obtainable at the banks is what you get in the open market.”
On whether the forex issue could lead to a higher price than the projected N340/litre, Chinedu replied, “Aside from the adverse effects of the removal of subsidy on the wellbeing of Nigerians, we will, of course, see a price that is higher than what they project.
“The price will be higher. It will be higher because the dollar to a large extent determines the price of petroleum products. If the dollar goes up, the price of petrol will increase, and vice versa.”
The President PETROAN, Billy Gillis-Harry, confirmed the position of IPMAN, as he, however, explained that members of his association were ready to import the commodity.
He said, “At PETROAN we already have a vehicle that is in place to start importation petroleum products, gas and other products. We encourage the government to completely remove subsidy.
On the possibility of higher pump price than the projected N340/litre, Gillis-Harry said, “That is why we said that every single thing about petroleum products should be premised on the forces of the market.
“The forces of demand and supply should determine the price.”
The spokesperson of NNPC, Garba-Deen Muhammad, told our correspondent that the issue of petrol pricing was not the function of the oil firm.
“Price issues are policy matters. NNPC does not fix price, it has no mandate. It operates in the sector as a business concern governed by CAMA Laws,” he stated.
Marketers, however, urged the government to consider carrying out programmes that would help ameliorate the plights to be faced by consumers when it eventually puts an end to petrol subsidy.
Bola Tinubu: How I Made My First Million
Former Lagos State Governor and a leader of the ruling All Progressives Congress, APC, Bola Tinubu, has narrated how a working trip he made while serving as an auditor for auditing giant, Deloitte and Touche, made him an “instant millionaire”.
Mr. Tinubu first served as a senator in the short-lived third republic and later as governor of Lagos State between 1999 and 2007. He has been accused of making a fortune from politics.
“At Deloitte and Touche, I chose to travel more than 80 per cent of my working years there. And that is because if a staff chose to travel, he would make more money because he would get travel allowances,” Mr. Tinubu said in a lengthy interview he granted TheNews Magazine on March 29 about his journey through life as he celebrated his 64th birthday.
Bola Tinubu: How I Made My First Million
Mr. Tinubu said he was sent on an assignment to help set up a an accounting and auditing system for a joint-venture between National Oil and Aramco in Saudi Arabia but by the time he returned to the United States, he discovered that his account had been credited in millions.
Mr. Tinubu said he was sent on an assignment to help set up a an accounting and auditing system for a joint-venture between National Oil and Aramco in Saudi Arabia but by the time he returned to the United States, he discovered that his account had been credited in millions.
“We had gone there to set up their accounting and auditing system. It was while on that service that I got my financial break. When I returned to the United States, my employers gave me a huge bonus, which instantly turned me into a millionaire.
“The bonus was $850,000, before taxes. My salaries were also being paid into the bank and I was not touching them. At the time, my salary deposits in the bank had risen to about $1.8 million.”
Asked if he was not frightened by the development, Mr. Tinubu said, “No. This is because I had a strong grasp of financial matters. I was happy. I bought a house from the money and invested the rest in the U.S. I was living well. I was living in one of the most affluent neighbourhoods in the south of Chicago.”
Mr. Tinubu said he stayed back working for several years in the United States after completing his degree in Chicago. He worked in Deloitte and Touch before returning to Nigeria to serve as an accounting executive for Mobil.
First time in three months Oil price hits $85 a barrel
On Wednesday, Brent crude futures, the global benchmark, rose 1.66% to $85.11 a barrel by 19.06 GMT+1, while West Texas Intermediate (WTI) crude futures increased 2.25 percent to $83.05 a barrel.
The price of Brent crude had crossed the $85 mark on October 15, 2021.
Last week, the Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to increase oil output by 400,000 barrels per day.
Morgan Stanley, a multinational investment bank, had predicted that Brent crude would climb $90 a barrel in the third quarter of this year.
The bank added that it expects oil prices to “overshoot” to $125 a barrel this year and $150 in 2023.
In the 2022 budget, President Muhammadu Buhari earmarked $62 per barrel as the oil benchmark, up from the $57 per barrel in 2021.
Rising oil prices would translate to an increase in Nigeria’s oil revenue.
However, Nigeria has been ploughing its oil revenue into fuel subsidy shortfall payments, which stripped the country of more than N1 trillion last year.
We Have Disbursed Over ₦117 Billion Loans Since Inception – Fairmoney
FairMoney team have expressed the importance of serving the unbanked and underbanked which according to the bank is “stemmed from a burning desire to bridge the lag between developing African countries, Nigeria inclusive, and the new age of banking enjoyed in developed countries.
The FairMoney team stated this at the media parley held last Friday, as they stated that the bank was founded with an overarching vision to be the leading digital bank driving financial inclusion for the average Nigerian.
The strategy was said to be premised on the need to cater to the majority, stating that FairMoney was birthed to cater to the predominant needs of the Nigerian market – small & medium scale enterprises, through quick & seamless loans.
The management further stated that, based on the strategy, over the past 4 years of operation, FairMoney MFB is said to have grown its customer base to over 5 million users, and 2 million bank accounts through relentless positioning as the “New Bank for the masses”.
According to Laurin Hainy, Co-Founder/CEO, FairMoney, “FairMoney is positioned to support our customers across their various financial service needs even as we work to maintain our current position as the leading digital bank in Nigeria. Our mission has always been to serve the needs of as many Nigerians as possible. Our approach to doing this involves providing millions of Nigerians with loans and capital to meet their immediate needs and in some cases, to grow their businesses, and so far, we have disbursed over N117billion loans since inception.”
We Have Disbursed Over ₦117 Billion Loans Since Inception – Fairmoney
“Our goal ultimately is to use technology to bank the 60 million Nigerians currently excluded from the financial ecosystem. We have also introduced secure and innovative technology processes to improve our lending operations, as well as a strong privacy protection policy, and a comprehensive loan collection policy which has been successfully deployed in the last 4 years,” Laurin added.
FairMoney maintains that it has finely niched a reputation as a leading driver for financial inclusion in Nigeria, with millions benefiting from its numerous financial services & features, through its strong lending service offerings. Some of the services include quick loans without collateral, free debit cards & free inter-bank transfers to support SMEs & MSMEs by alleviating common expenses issued by traditional banks through account maintenance charges.
Amongst the many offerings of FairMoney is the digitization of general banking procedures through the app by making bill payments accessible without needing to visit banking halls & introducing consumer empowering initiatives like the recently concluded FairMoney Transact & Win Black Friday engagement which had lucky winners go home with 10 smartphones, 5 generators & a delivery motorcycle; not to mention the ongoing ’12 Days of Fair giveaways’ Christmas giveaways all in the bid to offer equal opportunities for all and stay true to their promise of Fair banking for all.
Speaking at the Media Parley, Nengi Akinola, Head Marketing & Branding reiterated FairMoney’s commitment to supporting Nigerians. “To us at FairMoney, the goal is to see a world where everyone has equal financial opportunities and support to reach their financial goals, however great or wide it may be. We will continue to build on our offerings, so that we can continue to meet the growing needs of the average Nigerian customers” she said.
“We can’t wait to share all the interesting new features we’re bringing to the FairMoney app in the new year” Nengi added.
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