My Blog

Category: Economy

  • Dangote Refinery Eases Petrol Pump Price 

    Dangote Refinery Eases Petrol Pump Price 

    Nigerians may soon heave a heavy sigh of relief as Dangote Petroleum Refinery announced a cut in petrol pump price from N990 per litre to N970 per litre for marketers.

    The company stated that this price cut is a gesture of appreciation to Nigerians for their continued support in making the refinery a reality.

    As the year draws to a close, Dangote Refinery also expressed its gratitude to the Nigerian government for its unwavering support, highlighting that the reduction aligns with efforts to strengthen domestic industries for the benefit of all.

    In its statement, Anthony Chiejina, Group Chief Branding and Communications Officer, emphasized that while the refinery is committed to reducing costs, it will not compromise on the quality of its products. 

    The refinery assures the public of high-quality, environmentally friendly, and sustainable fuel.

    Looking ahead, Dangote Refinery is focused on increasing production capacity to meet and exceed the nation’s fuel demands, ensuring stability and security in the domestic fuel supply chain.

    In the Nigerian economy that is heavily challenged by deficit in transportation infrastructure, especially the near absence of reliable mass transport system, this marginal cut is expected to have a cascading effect on inflationary trend and the price of ancillary services.

  • FCCPC Uncovers Smuggled, Sub-standard Sugar in Nigeria

    FCCPC Uncovers Smuggled, Sub-standard Sugar in Nigeria

    The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over the circulation of adulterated sugar in Nigeria, reportedly smuggled from Brazil.

     Investigations have revealed that various brands, including Grupo Moreno, Terous, and USI S. Joao, are entering the market without proper registration or the necessary Vitamin A fortification. 

    These products, lacking critical labeling such as production dates and batch numbers, pose significant health risks and threaten the integrity of Nigeria’s sugar industry.  

    The smuggled sugar, which bypasses regulatory checks, creates unfair competition for local producers and contributes to price manipulation.

     Without proper fortification, it exposes consumers, particularly vulnerable groups like children and pregnant women, to health issues like blindness and immune deficiencies.  

    In response to this, the FCCPC is working with NAFDAC, the Nigeria Customs Service, and other agencies to tighten enforcement and disrupt the supply chain of these substandard goods. 

    Consumers are urged to check for proper labeling, including NAFDAC registration, before purchasing sugar products.

  • Yola DisCo Rolls Out Free Prepaid Meters to Band A Customers

    Yola DisCo Rolls Out Free Prepaid Meters to Band A Customers

    The Yola Electricity Distribution Company (YEDC) has started distributing 1,880 prepaid meters to its Band A customers as part of the Meter Asset Funds (MAF) Scheme. 

    This initiative follows the removal of electricity subsidies for Band A customers in April and aims to ensure fair billing and enhance customer service.

    Under the scheme, YEDC will install 1,500 single-phase and 380 three-phase meters at no cost to the customers.

     The Nigerian Electricity Regulatory Commission has approved the project, which will take place from November 18 to November 30, 2024.

    The installation will be carried out by approved vendors.

    The MAF project, part of the broader Presidential Metering Initiative launched earlier in 2024, is designed to speed up the nationwide rollout of meters. 

    YEDC encouraged all Band A customers to cooperate with the installers to ensure a smooth process.

    The company remains committed to providing transparent, reliable electricity services to all its customers.

  • Tinubu Seeks NASS Approval for N1.77tn External Loan

    Tinubu Seeks NASS Approval for N1.77tn External Loan

    Nigeria sinks deeper into the debt trap as President Bola Tinubu submits a request to the National Assembly to approve additional N1.77trillion external borrowing. 

    A communication from the Presidency states the loan shall be used to cover and portion of the N9.7 trillion deficit plan for 2024.

    During Tuesday’s plenary, the Speaker read the president’s request, which also included the MTEF/FSP 2025-2027 and a bill to amend the National Social Investment Programme. 

    The proposed amendment aims to centralize the social register as the primary tool for welfare program implementation.

    Meanwhile, the Central Bank of Nigeria reported that Nigeria’s foreign debt servicing costs climbed by nearly 40% in the first nine months of 2024, amounting to $3.58 billion, up from $2.56 billion in 2023. 

    The country’s rising debt obligations are becoming more expensive, driven partly by fluctuating exchange rates, with January 2024 witnessing a dramatic surge in payments.

    In related developments, the debt of Nigeria’s 36 states and the Federal Capital Territory reached N11.47 trillion by June 2024, a 14.57% increase from December 2023. 

    The devaluation of the naira significantly contributed to the growth of the external debt, which rose to $4.89 billion, up from $4.61 billion. Domestic debt, however, saw a decline.

    The rising debt figures across the country reflect the growing fiscal pressures faced by both the federal and state governments, highlighting the need for sustainable economic management strategies.

  • DisCos to halt charging customers for meter replacement

    DisCos to halt charging customers for meter replacement

    The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has taken a firm stance against Distribution Companies (DisCos) that attempt to charge customers for replacing faulty or obsolete meters.

     This directive stems from Order No. NERC/246/2021, which outlines the responsibilities of DisCos in maintaining and replacing meters within their network.

    Under the order, DisCos are required to replace defective meters at no cost to the customer, provided the damage was not caused by the customer.

     The commission also prohibited the practice of moving customers with malfunctioning meters to estimated billing, stressing that such actions are not permissible under its regulations.

    NERC has urged affected customers to report cases where DisCos violate this order. It provided multiple channels, including phone lines and an email address, for lodging complaints. 

    The commission reaffirmed its commitment to ensuring that DisCos adhere to regulatory standards and warned that any violations would attract penalties.

    This move is part of NERC’s broader effort to protect consumers and ensure that electricity providers comply with industry regulations. 

  • No plan to remove Kyari – NNPCL

    No plan to remove Kyari – NNPCL

    Contrary to speculations coming from usually informed quarters, the Nigerian National Petroleum Company Limited says there is no plan to remove its Group Chief Executive Officer of the company, Mele Kyari.

    The spokesperson of the NNPC, Olufemi Soneye, stated this in a chat with a media organisation yesterday in Abuja.

    Following the major shakeup in the company on Wednesday, an international newspaper reported that Kyari might be compelled to vacate his office before the end of the year.

    “As the Nigerian National Petroleum Company undergoes a leadership overhaul, the group CEO Mele Kyari may be forced out before year-end.

    “Insiders tell The Africa Report that more changes will follow in the coming weeks, culminating in the removal of Kyari as CEO,” the newspaper said.

    A source was quoted to have said, “Kyari has been in the danger zone for some time. He has told confidantes of his readiness to leave. He will likely leave in the next couple of weeks.”

    However, in an interview with Punch, Soneye described the report as a baseless speculation, wondering if the newspaper were Kyari’s employer.

    “One might wonder if they were the ones who hired Mele Kyari, given their apparent insight into his career plans. Such baseless speculation is not only laughable but also a testament to the lengths some will go to craft immature narratives,” Soneye said.

    Setting the record straight, Soneye explained that Kyari is performing exceptionally well in steering the energy sector towards success.

    According to him, the NNPC under his watch had transitioned from losses to profit declaration.

    He stated that the NNPC just reached a production milestone of 1.8 million barrels per day, saying this was a testimony to Kyari’s efforts as the GCEO.

    “Let’s set the record straight: GCEO Mele Kyari is performing exceptionally, steering Nigeria’s energy sector toward unprecedented success. Under his leadership, the Nigerian National Petroleum Company Limited has transitioned from years of losses to declaring profits—a historic achievement. Just yesterday (Thursday), we reached a production milestone of 1.8 million barrels per day, a testament to his unwavering commitment,” he stressed.

    The spokesman emphasised that Kyari is focused on actualising President Bola Tinubu’s vision for progress in the energy sector.

    “Mr Kyari remains focused on actualizing President Bola Ahmed Tinubu’s vision for progress and development in the sector, ensuring energy security for our nation. So, to address the rumour: it’s as credible as a mirage in the desert,” he added.

  • President Tinubu Approves Seplat Energy’s Acquisition Of Mobil

    President Tinubu Approves Seplat Energy’s Acquisition Of Mobil

    President Bola Tinubu has approved the acquisition of shares of Mobil Producing Nigeria Unlimited (MPNU) by Seplat Energy.

    Seplat Energy disclosed this in a statement, on Wednesday. In the statement, Seplat said it would work with all parties to bring the transaction to completion.

    The oil company thanked President Tinubu for granting and acquisition and his support.

    According to the statement, Tinubu‘s approval was communicated by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).

    It read, “Seplat Energy Plc, is delighted to announce that the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”) has confirmed that consent has been granted by the Honourable Minister of Petroleum Resources in Nigeria, President Bola Ahmed Tinubu GCFR, to proceed with the acquisition of the entire issued share capital of Mobil Producing Nigeria Unlimited (“MPNU”) (“the Transaction”).

    “Seplat Energy sincerely thanks His Excellency, President Bola Ahmed Tinubu GCFR, for granting this approval, and appreciates the support and diligence of the various Ministries and regulators for all the work on this Transaction.

    “The Company will now work with all parties to bring the Transaction to completion,” it stated.

    Seplat explained that further information concerning to takeover of Mobil would be made public in line with regulatory requirements after completing the transaction process.

    “Further announcements will be made as and when appropriate, in line with regulatory requirements,” it added.

  • NNPCL Signs 10-Year Gas Supply Deal with Dangote Refinery

    NNPCL Signs 10-Year Gas Supply Deal with Dangote Refinery

    After the initial squabbles, Alhaji Aliko Dangote has secured another win, signing a major contract with NNPC Gas Marketing Limited (NGML) yesterday, for the supply of gas as energy source and feedstock to his refinery.

    By last weekend, Nigerian Anchor reported the contract that was signed between Dangote Refinery and Independent Petroleum Marketers Association of Nigeria (IPMAN).

    The agreement enables the marketers to buy fuel directly from the refinery rather than go through a middleman.

    The current contract was brokered by Nigerian National Petroleum Corporation (NNPC) Limited for a gas supply deal through its subsidiary to the Dangote Petroleum Refinery and Petrochemicals FZE. 

    This deal, finalized on Tuesday at Dangote’s Lagos office, will see NGML provide a consistent supply of natural gas to the Dangote Refinery in Ibeju-Lekki, Lagos, for power generation and as a feedstock.

    Signed by Barr. Justin Ezeala, Managing Director of NGML, and Aliko Dangote, President/CEO of the Dangote Group, the agreement includes a supply of 100 million standard cubic feet per day (MMSCF/D). 

    Half of this supply is firm, while the remaining portion will be interruptible.

     This partnership is set to last for 10 years, with possibilities for renewal and expansion.

    NNPC’s announcement reflects the deal as a vital step in advancing Nigeria’s industrial growth and aligning with President Bola Tinubu’s agenda to leverage the country’s gas resources. 

    It also marks a unique achievement in Nigeria’s gas distribution sector, with no capital expenditure involved, setting a precedent for future ventures.

    The agreement is poised to support the operational success of Dangote Refinery while contributing to the nation’s energy security and economic development, reinforcing NGML’s role in fulfilling NNPC’s commitment to the country’s energy goals.

  • IPMAN Partners with Dangote Refinery for Direct Product Supply

    IPMAN Partners with Dangote Refinery for Direct Product Supply

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement with Dangote Refinery to procure petroleum products directly for distribution. 

    Abubakar Garima, IPMAN’s National President, made the announcement in Abuja after a meeting with the Association’s National Working Committee.

    The partnership aims to guarantee a consistent and affordable supply of petrol, kerosene, and diesel across the country. 

    Garima shared that following discussions with Aliko Dangote and his team in Lagos, Dangote Refinery will provide IPMAN with products directly for its depots and retail outlets.

    Garima encouraged members of IPMAN to support Dangote Refinery, highlighting the benefits of using local refineries, which will create jobs and boost the nation’s foreign exchange. 

    He also expressed confidence that the partnership would lead to competitive pricing.

    Regarding the shift to Compressed Natural Gas (CNG), Garima mentioned that IPMAN is preparing for the establishment of CNG refueling stations across Nigeria. 

    He emphasized the potential economic benefits of CNG and reaffirmed IPMAN’s commitment to working with the Federal Government to ensure the success of the transition.

    This partnership between IPMAN and Dangote Refinery is set to improve the efficiency and affordability of Nigeria’s petroleum sector while fostering economic growth.

  • Vandals Attack Disrupt power on Lokoja-Gwagwalada Transmission Line 

    Vandals Attack Disrupt power on Lokoja-Gwagwalada Transmission Line 

    These are very difficult times for Nigeria, as the “giant of Africa” is buffeted by a barrage of security challenges nationwide. The latest is that the Lokoja-Gwagwalada transmission line, a key component of Nigeria’s power grid, has been disrupted due to vandalism.

     Three towers along this line were targeted, resulting in damaged infrastructure and missing spans of aluminum conductors. 

    This incident affects power transmission on the main route, though power continues via an alternative circuit.

    The Transmission Company of Nigeria (TCN) is actively working to replace the stolen conductors and address the situation.

     Rising cases of vandalism on power infrastructure are posing challenges to Nigeria’s power stability, prompting TCN to call on local communities to assist security forces in safeguarding transmission facilities.