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With The Current Situation, Petrol Subsidy May Rise to N3tn – NNPC subsidiary

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With The Current Situation, Petrol Subsidy May Rise to N3tn - NNPC subsidiary
Mele Kyari
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With The Current Situation, Petrol Subsidy May Rise to N3tn – NNPC subsidiary

The Petroleum Products Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation, has said the annual subsidy on Premium Motor Spirit (petrol) will rise to N3tn if the current market realities persist.

The Managing Director, PPMC, Mr Isiyaku Abdullahi, said this on Wednesday at a panel session during the 15th OTL Africa Downstream Week 2021 in Lagos.

“At $80 crude oil, 60 million litres daily consumption and N411/$1 forex, PMS under-recovery per litre will be N138/litre. Daily PMS under-recovery will be N8.3bn. Annual PMS under-recovery will escalate to N3tn,” he said.

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The PUNCH had exclusively reported on October 12 that the sharp rise in global oil prices to record highs had pushed the subsidy cost being incurred by the Federal Government to N8.28bn daily.

The subsidy, which the NNPC prefers to call ‘value shortfall’ or ‘under-recovery’, resurfaced in January this year as the government left the pump price of petrol unchanged at N162-N165 per litre despite the increase in oil prices.

The Federal Government had in March 2020 removed petrol subsidy after reducing the pump price of the product to N125 per litre from N145 following the crash in oil prices.

The NNPC, which has been the sole importer of petrol into the country in recent years, has been bearing the subsidy cost since it resurfaced.

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Isiyaku said with the rehabilitation of the country’s refineries and the construction of condensate refineries as well as the Dangote refinery, the Nigerian fuels market would transform from import-dependent to a net exporter by 2024.

He said full deregulation of the downstream sector might push an accelerated switching to Compressed Natural Gas and Liquefied Petroleum Gas, subject to global energy prices trend in the near term.

With The Current Situation, Petrol Subsidy May Rise to N3tn – NNPC subsidiary

According to him, the Petroleum Industry Act presents a unique opportunity for investments across the value chain.

The Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, Mr Clement Isong, said with the Nigerian downstream sector headed for major changes, the regulator must strive to provide a level playing field, guard against the negative effect of a monopoly and encourage inflows from private sector investments.

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He said, “The implementation of the PIA is now more critical than the law itself. Petroleum products pricing needs to be right. Eliminate pricing distortions and create a competitive market for the sale and distribution of petroleum products and natural gas.

“Price competition will over time lead to innovation which should reduce logistics and distribution costs. The pricing strategy needs to take into consideration freight, landing costs, jetty throughput charges, storage costs, etc.”

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CBN rejects account opening for BVN violators

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CBN rejects account opening for BVN violators
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CBN rejects account opening for BVN violators

The Apex Bank in Nigeria, Central Bank of Nigeria (CBN) has barred BVN Violators from from opening a new bank accounts going by its fresh rule.
The new policy is contained in a Revised Regulatory Framework for Bank Verification Number (BVN) operations and Watch-List for the banking industry released by the apex bank in its Update Report circular.

According to the apex bank, the new framework has been designed to enhance the effectiveness of customer due diligence and Know Your Customer (KYC) processes.

it therefore described the policy as part of its overall strategy for promoting a safe and efficient banking and payment system.

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In the circular, the Director, Payments System Management Department, Musa Jimoh, explained that the watch-list is a database of customers identified by their BVNs, who have been involved in confirmed cases of breaches.

He explained that under the new framework, breaches on the part of customer could see the individual getting barred from entering a new relationship with any participant (banks).

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INTERPOL Elects Baba Umar As Vice President For Africa

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INTERPOL Elects Baba Umar As Vice President For Africa
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INTERPOL Elects Baba Umar As Vice President For Africa

INTERPOL has elected Nigeria’s Assistant Inspector General of Police, AIG GARBA Baba Umar as the Vice President (Africa) and Executive Committee Member of the International Criminal Police Organization (ICPO) – INTERPOL.

Umar was the Head of INTERPOL National Central Bureau (NCB), Nigeria.

A statement by the Force Public Relations Officer, CP Frank Mba on Thursday said Umar was elected in the early hours of that day “in the 89th INTERPOL General Assembly currently holding at the Halic Congress Hall, Istanbul, Turkey”.

The statement said, “The year 2021 General Assembly, which have in attendance 470 Police Chiefs, Ministers and Senior Law Enforcement Officials from the 195 INTERPOL member countries, seeks to identify areas where the organization can reinforce the global security architecture and enhance collaboration against national and transnational crimes.

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INTERPOL Elects Baba Umar As Vice President For Africa

“AIG Garba, one of Nigeria’s finest criminal investigators and professional strategic police manager, with over thirty (30) years policing experience both at national and international levels, polled the highest number of votes in the elections. With this appointment, which will span through a period of 3yrs, AIG Garba is expected to bring his wealth of experience to bear in coordinating INTERPOL operations targeted at ensuring a safer world for people and communities across the African continent.
“This is in addition to drawing international policing support and cooperation towards advancing public safety and security, protecting the cyberspace and generally addressing challenges faced by law enforcement officers and policing managers in the continent.

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“The Nigeria’s delegation to the 89th INTERPOL General Assembly was led by the Honourable Minister of Police Affairs, Muhammad Maigari Dingyadi, ably supported by the Inspector General of Police, IGP Usman Alkali Baba, psc (+), NPM, fdc. The other members of the delegation are: the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Abdulrasheed Bawa and the Chief of Naval Staff, Vice Admiral Awwal Zubairu Gambo (represented by the Naval Provost Marshal).”

INTERPOL Elects Baba Umar As Vice President For Africa

INTERPOL Elects Baba Umar As Vice President For Africa

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FCMB Sees Flat Loan Growth, Eyes UK Licence

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FCMB Sees Flat Loan Growth, Eyes UK Licence
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FCMB Sees Flat Loan Growth, Eyes UK Licence

A mid-tier lender, First City Monument Bank, expects loan growth to be flat this year — down from last year’s 5.4 per cent rise — as oil companies pay down debt, according to its Group Chief Executive Officer, Ladi Balogun.

Balogun said the bank would focus on retail banking with a higher margin this year to make up for a drop in government bond yields as the lender might not be able to write large loans quickly enough to counter-balance repayments by oil firms.

He said the economy was improving after the country experienced its worst recession in a quarter of a century in 2016, which should boost consumers, Reuters reported.

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“We expect to see large repayments in the oil and gas sector this year. We agree that the (economy) will be improving but largely because of chunky pay-down; we don’t think we would be able to replace quickly,” he told an analyst call, adding, “We are pushing more in the area of retail banking.”

Balogun said the group was seeking to convert its wholesale banking unit in Britain, FCMB UK, into a retail bank, as part of its push to grow its balance sheet and tap into non-institutional customers in Britain.

He stated that the impact of the British strategy would not be immediate but would enable the lender to achieve incremental growth.

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