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  •  The Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA has appealed to Nigerians not to engage in panic buying of petrol saying it has enough in stock Mr Farouk Ahmed the Chief Executive Officer NMDPRA confirmed this to the News Agency of Nigeria in Lagos on Tuesday Ahmed said he had checked with the Major Oil Marketers Association of Nigeria MOMAN and Nigeria National Petroleum Company Ltd NNPC on the level of fuel stock and confirmed that they had sufficient stock l spoke with the MOMAN S Executive Secretary this morning and he told me they have sufficient stock I have directed them to start evacuating the product immediately to filling stations NNPC has also confirmed sufficiency and they have commenced evacuation From now till tomorrow the situation will be back to normal I don t know what is happening but we are on top of the situation he said Ahmed assured that there was enough fuel and therefore appealed to members of the public to avoid panic buying as all efforts were being made to resolve shortage in some filling stations in Lagos and its environs The National Operations Controller of the Independent Petroleum Marketers Association of Nigeria IPMAN Mr Mike Osatuyi attributed the scarcity to unsteady supply in the past few days Osatuyi told NAN that as a result of the unsteady supply depots prices had risen from N165 to N177 and N178 per litre in Apapa and its environs The marketers will only sell what they buy If the price of petrol increases we add our transportation cost and other charges to the selling price he said He appealed to NNPC and NMDPRA to supply enough petrol across the country to ease scarcity NAN correspondent reports that queues are beginning to build in some filling stations in Maryland Onipan Ikoyi and Victoria Island NewsSourceCredit NAN
    Petrol: Desist from panic buying, NMDPRA urges Nigerians
     The Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA has appealed to Nigerians not to engage in panic buying of petrol saying it has enough in stock Mr Farouk Ahmed the Chief Executive Officer NMDPRA confirmed this to the News Agency of Nigeria in Lagos on Tuesday Ahmed said he had checked with the Major Oil Marketers Association of Nigeria MOMAN and Nigeria National Petroleum Company Ltd NNPC on the level of fuel stock and confirmed that they had sufficient stock l spoke with the MOMAN S Executive Secretary this morning and he told me they have sufficient stock I have directed them to start evacuating the product immediately to filling stations NNPC has also confirmed sufficiency and they have commenced evacuation From now till tomorrow the situation will be back to normal I don t know what is happening but we are on top of the situation he said Ahmed assured that there was enough fuel and therefore appealed to members of the public to avoid panic buying as all efforts were being made to resolve shortage in some filling stations in Lagos and its environs The National Operations Controller of the Independent Petroleum Marketers Association of Nigeria IPMAN Mr Mike Osatuyi attributed the scarcity to unsteady supply in the past few days Osatuyi told NAN that as a result of the unsteady supply depots prices had risen from N165 to N177 and N178 per litre in Apapa and its environs The marketers will only sell what they buy If the price of petrol increases we add our transportation cost and other charges to the selling price he said He appealed to NNPC and NMDPRA to supply enough petrol across the country to ease scarcity NAN correspondent reports that queues are beginning to build in some filling stations in Maryland Onipan Ikoyi and Victoria Island NewsSourceCredit NAN
    Petrol: Desist from panic buying, NMDPRA urges Nigerians
    General news1 month ago

    Petrol: Desist from panic buying, NMDPRA urges Nigerians

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has appealed to Nigerians not to engage in panic buying of petrol, saying it has enough in stock.

    Mr Farouk Ahmed, the Chief Executive Officer, NMDPRA confirmed this to the News Agency of Nigeria in Lagos on Tuesday.

    Ahmed said he had checked with the Major Oil Marketers Association of Nigeria (MOMAN) and Nigeria National Petroleum Company Ltd. (NNPC) on the level of fuel stock and confirmed that they had sufficient stock.

    “l spoke with the MOMAN’S Executive Secretary this morning and he told me they have sufficient stock.

    “I have directed them to start evacuating the product immediately to filling stations.

    “NNPC has also confirmed sufficiency and they have commenced evacuation.

    “From now till tomorrow the situation will be back to normal.

    “I don’t know what is happening but we are on top of the situation,” he said.

    Ahmed assured that there was enough fuel and, therefore, appealed to members of the public to avoid panic buying as all efforts were being made to resolve shortage in some filling stations in Lagos and its environs.

    The National Operations Controller of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Mike Osatuyi, attributed the scarcity to unsteady supply in the past few days.

    Osatuyi told NAN that as a result of the unsteady supply, depots prices had risen from N165 to N177 and N178 per litre in Apapa and its environs.

    “The marketers will only sell what they buy.

    If the price of petrol increases, we add our transportation cost and other charges to the selling price,” he said.

    He appealed to NNPC and NMDPRA to supply enough petrol across the country to ease scarcity.

    NAN correspondent reports that queues are beginning to build in some filling stations in Maryland, Onipan, Ikoyi and Victoria Island.


    NewsSourceCredit: NAN

  •  The Major Oil Marketers Association of Nigeria MOMAN has reiterated its support to Nigeria s energy transition and efforts of the Federal Government to actualise net zero carbon emission target by 2060 MOMAN also said it had within the last one year organised several trainings for its members to improve efficiency and safety in the petroleum downstream sector operations Mr Olumide Adeosun made these known at a news conference to mark his first year anniversary as the chairman of the association on Friday in Lagos Adeosun said our members are committed to the energy transition and the sustainable decarbonisation of our respective businesses As a collective we have embarked on several impactful initiatives and projects that signals that commitment to cleaner energy According to him MOMAN has been engaging with the National Gas Expansion Programme NGEP to drive the expansion of the use of gas in Nigeria He said the association had recently reviewed the contents of the Federal Government s Auto Gas policy and have sent in a memorandum with the association s input to the policy My members are ready to move as long there is regulatory and policy clarity he said Adeosun who is also the Chief Executive of Ardova Plc said as part of these efforts the company had invested in the construction of a 20 000MT Liquefied Petroleum Gas LPG storage facility in Ijora Lagos He said this new capacity which would come on stream in 2023 would enable economies of scale for coastal gas delivery and help deepen the adoption of LPG as the cooking fuel of choice nationwide Adeosun also reiterated MOMAN s position for the petroleum downstream sector going forward especially with regards to the continued payment of fuel subsidy by the government He said We have tabled our recommendations to the government on our considered view on subsidy removal approach It can best be summarised as full deregulation in phases These huge subsidy payments are simply not sustainable The government should focus on palliatives for Nigerians such as mass transit improve power supply agriculture education etc Government may subsidise sectors that would stimulate sustainable economic growth Overwhelmingly the right course of action is a clear trajectory toward full implementation of the Petroleum Industry Act 2021 as it is a very well thought out legislation that would ultimately cause the petroleum industry in Nigeria to grow Listing some of the achievements of his administration in the past one year Adeosun said it included engagements with stakeholders such as the Ministry of Petroleum Resources the National Assembly and the Federal Competition and Consumer Protection Commission He said MOMAN had also engaged the Nigerian Midstream and Downstream Petroleum Regulatory Authority Dangote Refinery and the Nigerian National Petroleum Company Ltd and the media These engagements have all been in a bid to ensure that downstream positions and our customers interests are well articulated and documented The goal has always been to develop good working relationships with the regulator and positively impact the petroleum sector Adeosun said He said MOMAN member companies being the heritage of International Oil Companies IOCs who have operated in Nigeria in some cases for over 100 years were the custodians of years of operational experience and evolved industry competencies Adeosun said It was our opinion that under investment arising from years of operation under the subsidy regime has led to a degradation of equipment industry knowledge and practices In response MOMAN established regional collaborations with other industry associations across Africa We share best practices and collaborate on various fronts We have therefore pooled our resources and recently published compendiums of best practices for the downstream industry in Nigeria he concluded NewsSourceCredit NAN
    MOMAN reiterates support for energy transition, safety 
     The Major Oil Marketers Association of Nigeria MOMAN has reiterated its support to Nigeria s energy transition and efforts of the Federal Government to actualise net zero carbon emission target by 2060 MOMAN also said it had within the last one year organised several trainings for its members to improve efficiency and safety in the petroleum downstream sector operations Mr Olumide Adeosun made these known at a news conference to mark his first year anniversary as the chairman of the association on Friday in Lagos Adeosun said our members are committed to the energy transition and the sustainable decarbonisation of our respective businesses As a collective we have embarked on several impactful initiatives and projects that signals that commitment to cleaner energy According to him MOMAN has been engaging with the National Gas Expansion Programme NGEP to drive the expansion of the use of gas in Nigeria He said the association had recently reviewed the contents of the Federal Government s Auto Gas policy and have sent in a memorandum with the association s input to the policy My members are ready to move as long there is regulatory and policy clarity he said Adeosun who is also the Chief Executive of Ardova Plc said as part of these efforts the company had invested in the construction of a 20 000MT Liquefied Petroleum Gas LPG storage facility in Ijora Lagos He said this new capacity which would come on stream in 2023 would enable economies of scale for coastal gas delivery and help deepen the adoption of LPG as the cooking fuel of choice nationwide Adeosun also reiterated MOMAN s position for the petroleum downstream sector going forward especially with regards to the continued payment of fuel subsidy by the government He said We have tabled our recommendations to the government on our considered view on subsidy removal approach It can best be summarised as full deregulation in phases These huge subsidy payments are simply not sustainable The government should focus on palliatives for Nigerians such as mass transit improve power supply agriculture education etc Government may subsidise sectors that would stimulate sustainable economic growth Overwhelmingly the right course of action is a clear trajectory toward full implementation of the Petroleum Industry Act 2021 as it is a very well thought out legislation that would ultimately cause the petroleum industry in Nigeria to grow Listing some of the achievements of his administration in the past one year Adeosun said it included engagements with stakeholders such as the Ministry of Petroleum Resources the National Assembly and the Federal Competition and Consumer Protection Commission He said MOMAN had also engaged the Nigerian Midstream and Downstream Petroleum Regulatory Authority Dangote Refinery and the Nigerian National Petroleum Company Ltd and the media These engagements have all been in a bid to ensure that downstream positions and our customers interests are well articulated and documented The goal has always been to develop good working relationships with the regulator and positively impact the petroleum sector Adeosun said He said MOMAN member companies being the heritage of International Oil Companies IOCs who have operated in Nigeria in some cases for over 100 years were the custodians of years of operational experience and evolved industry competencies Adeosun said It was our opinion that under investment arising from years of operation under the subsidy regime has led to a degradation of equipment industry knowledge and practices In response MOMAN established regional collaborations with other industry associations across Africa We share best practices and collaborate on various fronts We have therefore pooled our resources and recently published compendiums of best practices for the downstream industry in Nigeria he concluded NewsSourceCredit NAN
    MOMAN reiterates support for energy transition, safety 
    General news2 months ago

    MOMAN reiterates support for energy transition, safety 

    The Major Oil Marketers Association of Nigeria (MOMAN) has reiterated its support to Nigeria’s energy transition and efforts of the Federal Government to actualise net zero carbon emission target by 2060.MOMAN also said it had within the last one year organised several trainings for its members to improve efficiency and safety in the petroleum downstream sector operations.

    Mr Olumide Adeosun made these known at a news conference to mark his first year anniversary as the chairman of the association on Friday in Lagos.

    Adeosun said: “our members are committed to the energy transition and the sustainable decarbonisation of our respective businesses.

    “As a collective, we have embarked on several impactful initiatives and projects that signals that commitment to cleaner energy.

    ”According to him, MOMAN has been engaging with the National Gas Expansion Programme (NGEP) to drive the expansion of the use of gas in Nigeria.

    He said the association had recently reviewed the contents of the Federal Government’s Auto Gas policy and have sent in a memorandum with the association’s input to the policy.

    “My members are ready to move as long there is regulatory and policy clarity,” he said.

    Adeosun, who is also the Chief Executive of Ardova Plc, said as part of these efforts, the company had invested in the construction of a 20,000MT Liquefied Petroleum Gas (LPG) storage facility in Ijora, Lagos.

    He said this new capacity which would come on stream in 2023 would enable economies of scale for coastal gas delivery and help deepen the adoption of LPG as the cooking fuel of choice nationwide.

    Adeosun also reiterated MOMAN’s position for the petroleum downstream sector going forward, especially with regards to the continued payment of fuel subsidy by the government.

    He said: “We have tabled our recommendations to the government on our considered view on subsidy removal approach.

    ” It can best be summarised as full deregulation in phases.

    These huge subsidy payments are simply not sustainable.

    “The government should focus on palliatives for Nigerians such as mass transit, improve power supply, agriculture, education etc.

    “Government may subsidise sectors that would stimulate sustainable economic growth.

    “Overwhelmingly the right course of action is a clear trajectory toward full implementation of the Petroleum Industry Act 2021, as it is a very well thought out legislation that would ultimately cause the petroleum industry in Nigeria to grow.

    “Listing some of the achievements of his administration in the past one year, Adeosun said it included engagements with  stakeholders such as the Ministry of Petroleum Resources, the National Assembly and the Federal Competition and Consumer Protection Commission.

    He said MOMAN had also engaged the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Dangote Refinery and the Nigerian National Petroleum Company Ltd. and the media.

    “These engagements have all been in a bid to ensure that downstream positions and our customers’ interests are well articulated and documented.

    “The goal has always been to develop good working relationships with the regulator and positively impact the petroleum sector,” Adeosun said.

    He said MOMAN member companies, being the heritage of International Oil Companies (IOCs) who have operated in Nigeria in some cases for over 100 years, were the custodians of years of operational experience and evolved industry competencies.

    Adeosun said: “It was our opinion that under investment arising from years of operation under the subsidy regime has led to a degradation of equipment, industry knowledge and practices.

    “In response, MOMAN established regional collaborations with other industry associations across Africa.

    We share best practices and collaborate on various fronts” We have, therefore, pooled our resources and recently published compendiums of best practices  for the downstream industry in Nigeria” he concluded.


    NewsSourceCredit: NAN

  •  Mr Festus Osifo president Trade Union Congress TUC says Nigerians are not averse to the removal of subsidy on Premium Motor Spirit PMS but waiting for the government to win their trust over the issue Osifo spoke during a panel session at the Association of Energy Correspondents of Nigeria NAEC Strategic International Conference on Thursday in Lagos The News Agency of Nigeria reports that the topic of the session was Energy Transition PIA Petroleum Pricing and the Way Forward for the Downstream Sector He noted that majority of Nigerians were not really interested in energy transition but were only concerned about affordable and reliable energy Osifo who is also the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria PENGASSAN noted that the downstream sector had not achieved its potential due to the thorny issue of PMS subsidy He said apart from communicating with the people to create an attitudinal change the government must lead by example by cutting out wastage and making sacrifices that would help Nigeria overcome its economic challenges The Presidency should come out and say that they are reducing their budget The National Assembly also needs to do so That is leading by example Nigerians are not really averse to the subsidy removal but the government must be ready to demonstrate not just by talking but by doing and by acting The government must demonstrate that if subsidy must go this must reflect in our education it must reflect in our healthcare and also our level of infrastructure So the trust deficit that Nigerians have must be addressed before we can make any progress Osifo said However Mr Olumide Adeosun Chairman Major Oil Marketers Association of Nigeria MOMAN called for a phased removal of PMS subsidy to mitigate its impact on ordinary Nigerians Adeosun who was represented by Mr Clement Isong Executive Secretary MOMAN said the N5 trillion subsidy payment by the government was unsustainable and putting a huge strain on the nation s forex reserves He said the best option was to fully deregulate the sector and allow market forces to determine the price while also investing the subsidy gains in other critical areas such as mass transportation healthcare and education Similarly Dr Gabriel Ogbechie Group Managing Director Rainoil Ltd said the global average price currently for PMS was N516 per litre which was way higher than the N175 per litre it was being sold in Nigeria Ogbechie said the government should not only deregulate but also initiate a petrol tax to fund maintenance and construction of critical infrastructure across the country NewsSourceCredit NAN
    Subsidy removal: FG needs to win trust of Nigerians, says TUC president
     Mr Festus Osifo president Trade Union Congress TUC says Nigerians are not averse to the removal of subsidy on Premium Motor Spirit PMS but waiting for the government to win their trust over the issue Osifo spoke during a panel session at the Association of Energy Correspondents of Nigeria NAEC Strategic International Conference on Thursday in Lagos The News Agency of Nigeria reports that the topic of the session was Energy Transition PIA Petroleum Pricing and the Way Forward for the Downstream Sector He noted that majority of Nigerians were not really interested in energy transition but were only concerned about affordable and reliable energy Osifo who is also the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria PENGASSAN noted that the downstream sector had not achieved its potential due to the thorny issue of PMS subsidy He said apart from communicating with the people to create an attitudinal change the government must lead by example by cutting out wastage and making sacrifices that would help Nigeria overcome its economic challenges The Presidency should come out and say that they are reducing their budget The National Assembly also needs to do so That is leading by example Nigerians are not really averse to the subsidy removal but the government must be ready to demonstrate not just by talking but by doing and by acting The government must demonstrate that if subsidy must go this must reflect in our education it must reflect in our healthcare and also our level of infrastructure So the trust deficit that Nigerians have must be addressed before we can make any progress Osifo said However Mr Olumide Adeosun Chairman Major Oil Marketers Association of Nigeria MOMAN called for a phased removal of PMS subsidy to mitigate its impact on ordinary Nigerians Adeosun who was represented by Mr Clement Isong Executive Secretary MOMAN said the N5 trillion subsidy payment by the government was unsustainable and putting a huge strain on the nation s forex reserves He said the best option was to fully deregulate the sector and allow market forces to determine the price while also investing the subsidy gains in other critical areas such as mass transportation healthcare and education Similarly Dr Gabriel Ogbechie Group Managing Director Rainoil Ltd said the global average price currently for PMS was N516 per litre which was way higher than the N175 per litre it was being sold in Nigeria Ogbechie said the government should not only deregulate but also initiate a petrol tax to fund maintenance and construction of critical infrastructure across the country NewsSourceCredit NAN
    Subsidy removal: FG needs to win trust of Nigerians, says TUC president
    General news3 months ago

    Subsidy removal: FG needs to win trust of Nigerians, says TUC president

    Mr Festus Osifo, president, Trade Union Congress (TUC), says Nigerians are not averse to the removal of subsidy on Premium Motor Spirit (PMS) but waiting for the government to win their trust over the issue.

    Osifo spoke during a panel session at the Association of Energy Correspondents of Nigeria (NAEC) Strategic International Conference on Thursday in Lagos.

    The News Agency of Nigeria reports that the topic of the session was “Energy Transition, PIA, Petroleum Pricing and the Way Forward for the Downstream Sector.

    ” He noted that majority of Nigerians were not really interested in energy transition but were only concerned about affordable and reliable energy.

    Osifo, who is also the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), noted that the downstream sector had not achieved its potential due to the thorny issue of PMS subsidy.

    He said apart from communicating with the people to create an attitudinal change, the government must lead by example by cutting out wastage and making sacrifices that would help Nigeria overcome its economic challenges.

    “The Presidency should come out and say that they are reducing their budget.

    The National Assembly also needs to do so.

    That is leading by example.

    “Nigerians are not really averse to the subsidy removal but the government must be ready to demonstrate not just by talking but by doing and by acting.

    “The government must demonstrate that if subsidy must go, this must reflect in our education, it must reflect in our healthcare and also our level of infrastructure.

    “So, the trust deficit that Nigerians have must be addressed before we can make any progress,” Osifo said.

    However, Mr Olumide Adeosun, Chairman, Major Oil Marketers Association of Nigeria (MOMAN), called for a phased removal of PMS subsidy to mitigate its impact on ordinary Nigerians.

    Adeosun, who was represented by Mr Clement Isong, Executive Secretary, MOMAN, said the N5 trillion subsidy payment by the government was unsustainable and putting a huge strain on the nation’s forex reserves.

    He said the best option was to fully deregulate the sector and allow market forces to determine the price while also investing the subsidy gains in other critical areas such as mass transportation, healthcare and education.

    Similarly, Dr Gabriel Ogbechie, Group Managing Director, Rainoil Ltd., said the global average price currently for PMS was N516 per litre, which was way higher than the N175 per litre it was being sold in Nigeria.

    Ogbechie said the government should not only deregulate but also initiate a petrol tax to fund maintenance and construction of critical infrastructure across the country.


    NewsSourceCredit: NAN

  •  The Major Oil Marketers Association of Nigeria MOMAN says the regulated N165 pump price for Premium Motor Spirit PMS also known as petrol is no longer realistic Mr Olumide Adeosun Chairman MOMAN made this known on Wednesday during a virtual consumer protection workshop for Oil Marketers by the Federal Competition and Consumer Protection Commission FCCPC Adeosun who was reacting to the lingering fuel scarcity across the country blamed the situation on the ongoing conflict between Russia and Ukraine which had disrupted global energy supply distribution The MOMAN chairman likened the current situation to the COVID 19 pandemic era with some countries moving to halt exportation of petrol in favour of their own national energy securities He maintained that it would be difficult to enforce any kind of price control mechanism on marketers who had to slightly adjust their prices based on how much they bought products from the depots The MOMAN chairman said the way forward was a phased deregulation of PMS by the Federal Government to reduce the shock on consumers Adeosun said the gradual price deregulation should be followed with targeted palliatives in the areas of transportation and agricultural subsidies to the public to ease implementation He said the huge amount spent on petrol subsidy over the years would have been deployed to other critical areas that could have reduced the impact of the current energy crisis on Nigerians Adeosun empathised with Nigerians and the Federal Government who had been bearing the huge subsidy cost adding that the government was working assiduously to mitigate the effects of the situation on the economy He said as the nation was moving towards full deregulation of the downstream petroleum sector MOMAN would continue to collaborate with the FCCPC to ensure the protection of the rights of consumers Earlier Mr Babatunde Irukera Executive Vice Chairman FCCPC charged oil marketers to shun anti competitive conducts and other acts that would short changed consumers Irukera represented by Mr Adamu Abdullahi Executive Commissioner Operations FCCPC reiterated the commission s commitment to the protection of consumers from exploitation In his presentation Mr Ikem Isiekwena a lawyer and Partner at Simmons Coopers urged MOMAN to promote efficient health environmental safety and quality related industry processes in accordance with the provisions of the FCCPC Act He also urged the marketers to liase and coordinate with specific industry regulators and its members on consumer protection issues Isiekwena tasked MOMAN with monitoring the conduct of its players to ensure compliance and act as an information hub for industry related consumer protection enquires NewsSourceCredit NAN
    N165 petrol pump price no longer realistic- MOMAN
     The Major Oil Marketers Association of Nigeria MOMAN says the regulated N165 pump price for Premium Motor Spirit PMS also known as petrol is no longer realistic Mr Olumide Adeosun Chairman MOMAN made this known on Wednesday during a virtual consumer protection workshop for Oil Marketers by the Federal Competition and Consumer Protection Commission FCCPC Adeosun who was reacting to the lingering fuel scarcity across the country blamed the situation on the ongoing conflict between Russia and Ukraine which had disrupted global energy supply distribution The MOMAN chairman likened the current situation to the COVID 19 pandemic era with some countries moving to halt exportation of petrol in favour of their own national energy securities He maintained that it would be difficult to enforce any kind of price control mechanism on marketers who had to slightly adjust their prices based on how much they bought products from the depots The MOMAN chairman said the way forward was a phased deregulation of PMS by the Federal Government to reduce the shock on consumers Adeosun said the gradual price deregulation should be followed with targeted palliatives in the areas of transportation and agricultural subsidies to the public to ease implementation He said the huge amount spent on petrol subsidy over the years would have been deployed to other critical areas that could have reduced the impact of the current energy crisis on Nigerians Adeosun empathised with Nigerians and the Federal Government who had been bearing the huge subsidy cost adding that the government was working assiduously to mitigate the effects of the situation on the economy He said as the nation was moving towards full deregulation of the downstream petroleum sector MOMAN would continue to collaborate with the FCCPC to ensure the protection of the rights of consumers Earlier Mr Babatunde Irukera Executive Vice Chairman FCCPC charged oil marketers to shun anti competitive conducts and other acts that would short changed consumers Irukera represented by Mr Adamu Abdullahi Executive Commissioner Operations FCCPC reiterated the commission s commitment to the protection of consumers from exploitation In his presentation Mr Ikem Isiekwena a lawyer and Partner at Simmons Coopers urged MOMAN to promote efficient health environmental safety and quality related industry processes in accordance with the provisions of the FCCPC Act He also urged the marketers to liase and coordinate with specific industry regulators and its members on consumer protection issues Isiekwena tasked MOMAN with monitoring the conduct of its players to ensure compliance and act as an information hub for industry related consumer protection enquires NewsSourceCredit NAN
    N165 petrol pump price no longer realistic- MOMAN
    General news5 months ago

    N165 petrol pump price no longer realistic- MOMAN

    The Major Oil Marketers Association of Nigeria (MOMAN) says the regulated N165 pump price for Premium Motor Spirit (PMS), also known as petrol, is no longer realistic.Mr Olumide Adeosun, Chairman, MOMAN, made this known on Wednesday during a virtual consumer protection workshop for Oil Marketers by the Federal Competition and Consumer Protection Commission(FCCPC).Adeosun, who was reacting to the lingering fuel scarcity across the country, blamed the situation on the ongoing conflict between Russia and Ukraine which had disrupted global energy supply distribution.The MOMAN chairman likened the current situation to the COVID-19 pandemic era with some countries moving to halt exportation of petrol in favour of their own national energy securities.He maintained that it would be difficult to enforce any kind of price control mechanism on marketers who had to slightly adjust their prices based on how much they bought products from the depots.The MOMAN chairman said the way forward was a phased deregulation of PMS by the Federal Government to reduce the shock on consumers.Adeosun said the gradual price deregulation should be followed with targeted palliatives in the areas of transportation and agricultural subsidies to the public to ease implementation.He said the huge amount spent on petrol subsidy over the years would have been deployed to other critical areas that could have reduced the impact of the current energy crisis on Nigerians.Adeosun empathised with Nigerians and the Federal Government who had been bearing the huge subsidy cost, adding that the government was working assiduously to mitigate the effects of the situation on the economy.He said as the nation was moving towards full deregulation of the downstream petroleum sector, MOMAN would continue to collaborate with the FCCPC to ensure the protection of the rights of consumers.Earlier, Mr Babatunde Irukera, Executive Vice Chairman, FCCPC, charged oil marketers to shun anti-competitive conducts and other acts that would short-changed consumers.Irukera, represented by Mr Adamu Abdullahi, Executive Commissioner, Operations, FCCPC, reiterated the commission’s commitment to the protection of consumers from exploitation.In his presentation, Mr Ikem Isiekwena, a lawyer and Partner at Simmons Coopers, urged MOMAN to promote efficient health, environmental, safety and quality related industry processes in accordance with the provisions of the FCCPC Act.  He also urged the marketers to  liase and coordinate with specific industry regulators and its members on consumer protection issues.    Isiekwena tasked MOMAN with monitoring the conduct of its players to ensure compliance and act as an information hub for industry related consumer protection enquires.

    NewsSourceCredit: NAN

  •  The Federal Government has threatened to sanction any fuel stations or depot selling above the stipulated approved pump price of Premium Motor Spirit PMS The threat followed the persistent fuel scarcity being witnessed in the FCT and its environs as well as in other parts of the country Mr Farouk Ahmed Authority Chief Executive Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA gave the warning on Monday during a joint inspection on fuel stations in Abuja The exercise was carried out in collaboration with some top officials of the Nigerian National Petroleum Company Limited NNPC Petroleum Pipeline and Marketing Company PPMC and the NMDPRA He said the inspection aimed at taking action to enforce the regulations by following up warning given to the oil marketing companies particularly those selling over the official price of N148 kobo He explained that the pump price of PMS was still N165 per litre and remained sacrosanct adding that nothing had changed and government had not made any other decision on that He said it would take an action against defaulters because based on its engagement with the Depots and Petroleum Marketers Association of Nigeria DAPMAN and Major Oil Marketers of Nigeria MOMAN they were warned against over price at the depot He said as a regulator there were series of actions it could take which included withdrawal of service from a particular depot shutting and sanctioning them because nobody was above the law and we must enforce the regulations According to him the inspection has been an on going exercise the authority has seven teams going round in different locations while NNPC has its own teams going round in many locations with support from the security agencies We are actually trying to monitor the dispensing to ensure that all the stations with petrol are dispensing all their trucks to reduce the long queues and ensure efficiency in service We are monitoring the depot sales also checking the number of truck that loaded this is a serious fact which we look at There has been a lot of improvement in the distribution of PMS we have gone round the Airport road and saw a lot of stations selling and discharging fuel The queues are not long like before and the average trucks we have received in Abuja in the last three days are about 140 trucks against 70 trucks to 80 trucks received before so there is a lot of improvement Credit also goes to transporters because now they are reacting to the President s offer of additional N10 as an incentive on their transportation charges At least we are seeing the improvement he said The News Agency of Nigeria recalls that President Muhammadu Buhari recently approved the upward review in freight rate of oil transporters to alleviate challenges associated with PMS distribution nationwide The revised freight rate of PMS took effect from June 1 still maintaining the current regulated pump price of N165 per litre Ahmed explained that the president in his wisdom increased the freight rate of transporters by N10 which was a huge jump from N10 46 kobo to additional N10 and now N20 46 kobo Ahmed said this was just to show that the transporters could still transport the product across the nation without loss of revenue which they were complaining about On black marketers he said it was engaging with key oil marketers and had advised them to warn their station managers to stop selling to Jerrican peddlers because it was one of the causes of the problems Once they do not comply we are going to shut and deal with that particular station affected he said Mr Adeyemi Adetunji Group Executive Director Downstream NNPC Ltd reassured Nigerians that there was adequate supply of fuel Today we have 1 9 billion litres of PMS Lagos is cleared in a couple of days we will clear the queues in Abuja Adetunji added NAN reports that the fuel stations inspected were Shafa Energy Shema Ardova Plc and NIPCO fuel stations on Lugbe Airport Road Some of the motorists at the stations expressed excitement with the availability of fuel as against previous days and urged the government to sustain it to ease the queues and difficulties being witnessed The inspection also had in attendance Mr Isiyaku Abdullahi Managing Director PPMC Mr Garbadeen Muhammad Group General Manager Group Public Affairs Division NNPC Ltd and Mrs Abdulkadir Maijiddah Abuja Regional Coordinator NMDPRA among others NewsSourceCredit NAN
    Scarcity: FG to sanction erring fuel stations, maintains N165 pump price
     The Federal Government has threatened to sanction any fuel stations or depot selling above the stipulated approved pump price of Premium Motor Spirit PMS The threat followed the persistent fuel scarcity being witnessed in the FCT and its environs as well as in other parts of the country Mr Farouk Ahmed Authority Chief Executive Nigerian Midstream and Downstream Petroleum Regulatory Authority NMDPRA gave the warning on Monday during a joint inspection on fuel stations in Abuja The exercise was carried out in collaboration with some top officials of the Nigerian National Petroleum Company Limited NNPC Petroleum Pipeline and Marketing Company PPMC and the NMDPRA He said the inspection aimed at taking action to enforce the regulations by following up warning given to the oil marketing companies particularly those selling over the official price of N148 kobo He explained that the pump price of PMS was still N165 per litre and remained sacrosanct adding that nothing had changed and government had not made any other decision on that He said it would take an action against defaulters because based on its engagement with the Depots and Petroleum Marketers Association of Nigeria DAPMAN and Major Oil Marketers of Nigeria MOMAN they were warned against over price at the depot He said as a regulator there were series of actions it could take which included withdrawal of service from a particular depot shutting and sanctioning them because nobody was above the law and we must enforce the regulations According to him the inspection has been an on going exercise the authority has seven teams going round in different locations while NNPC has its own teams going round in many locations with support from the security agencies We are actually trying to monitor the dispensing to ensure that all the stations with petrol are dispensing all their trucks to reduce the long queues and ensure efficiency in service We are monitoring the depot sales also checking the number of truck that loaded this is a serious fact which we look at There has been a lot of improvement in the distribution of PMS we have gone round the Airport road and saw a lot of stations selling and discharging fuel The queues are not long like before and the average trucks we have received in Abuja in the last three days are about 140 trucks against 70 trucks to 80 trucks received before so there is a lot of improvement Credit also goes to transporters because now they are reacting to the President s offer of additional N10 as an incentive on their transportation charges At least we are seeing the improvement he said The News Agency of Nigeria recalls that President Muhammadu Buhari recently approved the upward review in freight rate of oil transporters to alleviate challenges associated with PMS distribution nationwide The revised freight rate of PMS took effect from June 1 still maintaining the current regulated pump price of N165 per litre Ahmed explained that the president in his wisdom increased the freight rate of transporters by N10 which was a huge jump from N10 46 kobo to additional N10 and now N20 46 kobo Ahmed said this was just to show that the transporters could still transport the product across the nation without loss of revenue which they were complaining about On black marketers he said it was engaging with key oil marketers and had advised them to warn their station managers to stop selling to Jerrican peddlers because it was one of the causes of the problems Once they do not comply we are going to shut and deal with that particular station affected he said Mr Adeyemi Adetunji Group Executive Director Downstream NNPC Ltd reassured Nigerians that there was adequate supply of fuel Today we have 1 9 billion litres of PMS Lagos is cleared in a couple of days we will clear the queues in Abuja Adetunji added NAN reports that the fuel stations inspected were Shafa Energy Shema Ardova Plc and NIPCO fuel stations on Lugbe Airport Road Some of the motorists at the stations expressed excitement with the availability of fuel as against previous days and urged the government to sustain it to ease the queues and difficulties being witnessed The inspection also had in attendance Mr Isiyaku Abdullahi Managing Director PPMC Mr Garbadeen Muhammad Group General Manager Group Public Affairs Division NNPC Ltd and Mrs Abdulkadir Maijiddah Abuja Regional Coordinator NMDPRA among others NewsSourceCredit NAN
    Scarcity: FG to sanction erring fuel stations, maintains N165 pump price
    General news5 months ago

    Scarcity: FG to sanction erring fuel stations, maintains N165 pump price

    The Federal Government has threatened to sanction any fuel stations or depot selling above the stipulated approved pump price of Premium Motor Spirit (PMS).

     

    The threat followed the persistent fuel scarcity being witnessed in the FCT and its environs as well as in other parts of the country.

     

    Mr Farouk Ahmed, Authority Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) gave the warning on Monday during a joint inspection on fuel stations in Abuja.

     

    The exercise was carried out in collaboration with some top officials of the Nigerian National Petroleum Company Limited (NNPC), Petroleum Pipeline and Marketing Company (PPMC) and the NMDPRA.

     

    He said the inspection aimed at taking action to enforce the regulations by following up warning given to the oil marketing companies, particularly those selling over the official price of N148 kobo.

     

    He explained that the pump price of PMS was still N165 per litre and remained sacrosanct, adding that nothing had changed and government had not made any other decision on that.

     

    He said it would take an action against defaulters because based on its engagement with the Depots and Petroleum Marketers Association of Nigeria (DAPMAN) and Major Oil Marketers of Nigeria (MOMAN), they were warned against over price at the depot.

     

    He said as a regulator, there were series of actions it could take which included withdrawal of service from a particular depot, shutting and sanctioning them because nobody was above the law and we must enforce the regulations.

     

    According to him, the inspection has been an on-going exercise; the authority has seven teams going round in different locations while NNPC has its own teams going round in many locations with support from the security agencies.

     

    “We are actually trying to monitor the dispensing to ensure that all the stations with petrol are dispensing all their trucks to reduce the long queues and ensure efficiency in service.

     

    “We are monitoring the depot sales also, checking the number of truck that loaded; this is a serious fact which we look at.

     

    “There has been a lot of improvement in the distribution of PMS, we have gone round the Airport road and saw a lot of stations selling and discharging fuel.

     

    “The queues are not long like before and the average trucks we have received in Abuja in the last three days are about 140 trucks against 70 trucks to 80 trucks received before; so there is a lot of improvement.

     

    “Credit also goes to transporters because now they are reacting to the President’s offer of additional N10 as an incentive on their transportation charges. At least we are seeing the improvement,’’ he said.

     

    The News Agency of Nigeria recalls that President Muhammadu Buhari recently approved the upward review in freight rate of oil transporters to alleviate challenges associated with PMS distribution nationwide.

     

    The revised freight rate of PMS took effect from June 1, still maintaining the current regulated pump price of N165 per litre.

     

    Ahmed explained that the president in his wisdom increased the freight rate of transporters by N10 which was a huge jump from N10.46 kobo to additional N10 and now N20.46 kobo

     

    Ahmed said this was just to show that the transporters could still transport the product across the nation without loss of revenue which they were complaining about.

     

    On black marketers, he said it was engaging with key oil marketers and had advised them to warn their station managers to stop selling to Jerrican peddlers because it was one of the causes of the problems.

     

    “Once they do not comply, we are going to shut and deal with that particular station affected,’’ he said.

     

    Mr Adeyemi Adetunji, Group Executive Director, Downstream, NNPC Ltd. reassured Nigerians that there was adequate supply of fuel.

     

    “Today we have 1.9 billion litres of PMS; Lagos is cleared in a couple of days; we will clear the queues in Abuja,’’ Adetunji added.

     

    NAN reports that the fuel stations inspected were Shafa Energy, Shema, Ardova Plc. and NIPCO fuel stations on Lugbe – Airport Road.

     

    Some of the motorists at the stations expressed excitement with the availability of fuel as against previous days and urged the government to sustain it to ease the queues and difficulties being witnessed.

     

    The inspection also had in attendance Mr Isiyaku Abdullahi, Managing Director, PPMC, Mr Garbadeen Muhammad, Group General Manager, Group Public Affairs Division, NNPC Ltd. and Mrs Abdulkadir Maijiddah, Abuja Regional Coordinator, NMDPRA, among others.

    NewsSourceCredit: NAN

  •   NEWS ANALYSIS The Socio Economic Implications of The Downfall of The Naira The Socio Economic Implications of The Downfall of The Naira A News Analysis by Solomon Asowata Lydia Ngwakwe and Rukayat Moisemhe Financial experts say the continuous downfall of the Naira has worsened the living standards of Nigerians and made inflation to rise The experts told the News Agency of Nigeria in separate interviews that if the local currency continued to fall against the dollar it could pose great consequences for the economy A professor of Finance and Capital Market Uche Uwaleke said that the free fall of the Naira was not in the interest of the economy The consequences are grave for the economy The rising inflationary pressure is not unconnected with imported inflation The official exchange rate which is now higher than the 2022 budgeted figure will end up widening the government s budget deficit It will equally increase oil subsidy which may push the economy into deeper debt Again in terms of the naira equivalent of servicing government foreign loans the burden will also increase he said According to Uwaleke the only benefit of naira depreciation is to the Federal Government and the Sub Nationals which naira equivalent of the Federal Accounts Allocation Committee FAAC distribution might increase But of what use is an increase in quantity of money which value is eroded by inflation Naira depreciation ordinarily should help the country s Balance of Payments position through discouraging imports and making exports cheaper Unfortunately this does not happen given Nigeria s weak export base and Nigerians penchant for foreign goods He said that Nigeria needed a strong currency to be able to provide the required leadership in Africa especially in the context of African Continental Free Trade Agreement Sheriffdeen Tella a Professor of Economics Olabisi Onabanjo University Ago Iwoye Ogun said the downfall of the naira was what caused the rising inflation Its what is causing inflation and difficulty in production presently Prolonged situation can affect employment and general welfare of citizens just as it can cause expected global recession arising from the Russian war with Ukraine which will affect Nigeria in no small measure he said Ndubisi Nwokoma the Director of the Centre for Economic Policy Analysis and Research of the University of Lagos Akoka urged the Central Bank of Nigeria CBN to increase the supply of foreign exchange and manage demand The fall of the Naira has had serious socio economic implications for the average Nigerian Inflation has been skyrocketing and living standards getting worse Challenges of insecurity also add to all these he said The downfall of the naira has had a huge impact on the oil and gas industry as well which is critical to the socio economic development of Nigeria The situation is further worsened by the ongoing conflict between Russia and Ukraine with the price of crude oil averaging about 120 dollars per barrel in recent weeks This has led to a rise in the prices of petroleum products such as Jet A1 aviation fuel diesel kerosene Premium Motor Spirit petrol as well as Liquefied Petroleum Gas cooking gas Presently the cost of diesel ranges from N650 to N800 per litre across the country while aviation fuel according to domestic airline operators is selling for between N600 and N700 per litre depending on the location Similarly kerosene is retailing at N650 per litre in some filling stations while a 12 5kg cooking gas cylinder is being sold at between N9 000 to N10 000 to end users According to the Major Oil Marketers Association of Nigeria MOMAN the landing cost of PMS is currently above N400 per litre compelling the Federal Government to spend huge amounts in subsidising the product to retail for N165 per litre Mr Clement Isong the Executive Secretary MOMAN empathised with Nigerians and the government over the challenges being faced as a result of the rising cost of crude and its derivatives at the international market He said lack of access to foreign exchange was one of the reasons for the increment in the retail prices of aviation fuel and diesel Isong also decried the subsidising of petrol by the government with huge funds that could be deployed to other critical areas of the economy such as education health care and infrastructure development A return to cost recovery and free market and competitive economics including access to foreign exchange at competitive rates is inevitable for the sustainability of the production and distribution framework in the petroleum downstream industry he said Mrs Nkechi Obi the Managing Director Techno Gas Ltd also called on the Federal Government to intervene in halting the rising price of cooking gas in the country Obi who made the appeal while speaking during a panel session at the recently concluded Nigerian Content Midstream and Downstream Oil and Gas Conference in Lagos said the product was becoming unaffordable to Nigerians Obi said since marketers were importing over 60 per cent of the LPG consumed in Nigeria it was imperative that the government should make forex available to them at competitive rates Obi said this would reduce the cost of the product and make it affordable for Nigerians who were already returning to using kerosene stoves and firewood for cooking Mr Michael Umudu the National Chairman the Liquefied Petroleum Gas Retailers LPGAR branch of National Union of Petroleum and Natural Gas Workers NUPENG described the situation as worrisome for both retailers and consumers The worrisome aspect of this development is that it has continued to rise on daily basis for weeks now but began to escalate in the last few weeks leading to significant increases in both depots and retail outlets For us as retailers it is a big problem because we can t even afford to stock up our shops and even when we do it will take time before we can make enough sales to get back our investments What we find now is that people even bring in 12 5kg cylinders but opt to fill them with less than 6kg of gas just to manage at home Umudu therefore appealed to the government to create a dedicated forex window for LPG importers to help bring down the cost of cooking gas Dr Muda Yusuf an economist attributed the downfall of the naira to consequences of the CBN fixed exchange rate regime and administrative allocation of foreign exchange Yusuf also founder Centre for the Promotion of Private Enterprises CPPEs said the policies had created a huge enterprise around foreign exchange round tripping speculation over invoicing capital flight among others He said that the action of the apex bank amounted to tackling the symptoms rather than dealing with the causative factors which was not a sustainable solution It is regrettable that the CBN does not believe in the market mechanism yet market systems are time tested as instruments of efficient resource allocation in leading economies around the world Of course market failures are recognised in economics and these cases are exceptions that can be identified and dealt with A market based management framework will restore calmness and stability to the foreign exchange market Although there may be a momentary spike in exchange rate but stability and gradual appreciation of the rate would follow soon after Suppressing the market is like swimming against the tide it is a difficult battle to win he said Yusuf likened moving retail forex transactions from Bureau De Change BDC to the banks to kicking the can down the road stating that the same issues would manifest even with the banks He noted that the BDCs were generally more accessible required minimum documentation had short response time and better interface with the Small and Medium Enterprises and the informal sector the dominant players in the Nigerian economy He said that the way out of this free fall of the Naira was for the CBN to allow the market to function Yusuf said it was also imperative for the apex bank to de emphasise demand management and focus on strategies to stimulate foreign exchange inflows According to him a fixed exchange rate regime is a major disincentive to inflows as it creates enormous pressure of demand for foreign exchange Dr Chinyere Almona the Director General Lagos Chamber of Commerce and Industry LCCI noted that the Naira had recorded unprecedented volatility already in the first quarter of 2022 This she said was due to the widening premium between the official NAFEX rate at N415 per dollar and the market rate of N580 She said that the position of industrialists was for the monetary authorities to liberalise the foreign exchange market by unifying the multiple rates and ensuring that the rates were market driven This Almona posited was critical to the process of enhancing stability liquidity and transparency in the foreign exchange market She said the unification would improve the country s currency management framework given that the multiple exchange rate systems had been creating uncertainty issues and sources of arbitrage The CBN needs to initiate a gradual transition to a unified exchange rate system and allow for a market reflective exchange rate The currency market is still beset with persisting liquidity challenges evidenced in the wide premium between the NAFEX and parallel market rates To consolidate on the interventions earlier initiated the CBN needs to roll out more friendly supply side policies to boost liquidity in the market This would help bolster investor confidence and attract foreign investment inflows into the economy Almona also stressed the need for more deliberate efforts toward making the business environment more conducive for Micro Small and Medium Enterprises MSMEs and large corporates at the national subnational and local government levels are imperative NANFeatures NewsSourceCredit NAN
    NEWS ANALYSIS: The Socio-Economic Implications of The Downfall of The Naira
      NEWS ANALYSIS The Socio Economic Implications of The Downfall of The Naira The Socio Economic Implications of The Downfall of The Naira A News Analysis by Solomon Asowata Lydia Ngwakwe and Rukayat Moisemhe Financial experts say the continuous downfall of the Naira has worsened the living standards of Nigerians and made inflation to rise The experts told the News Agency of Nigeria in separate interviews that if the local currency continued to fall against the dollar it could pose great consequences for the economy A professor of Finance and Capital Market Uche Uwaleke said that the free fall of the Naira was not in the interest of the economy The consequences are grave for the economy The rising inflationary pressure is not unconnected with imported inflation The official exchange rate which is now higher than the 2022 budgeted figure will end up widening the government s budget deficit It will equally increase oil subsidy which may push the economy into deeper debt Again in terms of the naira equivalent of servicing government foreign loans the burden will also increase he said According to Uwaleke the only benefit of naira depreciation is to the Federal Government and the Sub Nationals which naira equivalent of the Federal Accounts Allocation Committee FAAC distribution might increase But of what use is an increase in quantity of money which value is eroded by inflation Naira depreciation ordinarily should help the country s Balance of Payments position through discouraging imports and making exports cheaper Unfortunately this does not happen given Nigeria s weak export base and Nigerians penchant for foreign goods He said that Nigeria needed a strong currency to be able to provide the required leadership in Africa especially in the context of African Continental Free Trade Agreement Sheriffdeen Tella a Professor of Economics Olabisi Onabanjo University Ago Iwoye Ogun said the downfall of the naira was what caused the rising inflation Its what is causing inflation and difficulty in production presently Prolonged situation can affect employment and general welfare of citizens just as it can cause expected global recession arising from the Russian war with Ukraine which will affect Nigeria in no small measure he said Ndubisi Nwokoma the Director of the Centre for Economic Policy Analysis and Research of the University of Lagos Akoka urged the Central Bank of Nigeria CBN to increase the supply of foreign exchange and manage demand The fall of the Naira has had serious socio economic implications for the average Nigerian Inflation has been skyrocketing and living standards getting worse Challenges of insecurity also add to all these he said The downfall of the naira has had a huge impact on the oil and gas industry as well which is critical to the socio economic development of Nigeria The situation is further worsened by the ongoing conflict between Russia and Ukraine with the price of crude oil averaging about 120 dollars per barrel in recent weeks This has led to a rise in the prices of petroleum products such as Jet A1 aviation fuel diesel kerosene Premium Motor Spirit petrol as well as Liquefied Petroleum Gas cooking gas Presently the cost of diesel ranges from N650 to N800 per litre across the country while aviation fuel according to domestic airline operators is selling for between N600 and N700 per litre depending on the location Similarly kerosene is retailing at N650 per litre in some filling stations while a 12 5kg cooking gas cylinder is being sold at between N9 000 to N10 000 to end users According to the Major Oil Marketers Association of Nigeria MOMAN the landing cost of PMS is currently above N400 per litre compelling the Federal Government to spend huge amounts in subsidising the product to retail for N165 per litre Mr Clement Isong the Executive Secretary MOMAN empathised with Nigerians and the government over the challenges being faced as a result of the rising cost of crude and its derivatives at the international market He said lack of access to foreign exchange was one of the reasons for the increment in the retail prices of aviation fuel and diesel Isong also decried the subsidising of petrol by the government with huge funds that could be deployed to other critical areas of the economy such as education health care and infrastructure development A return to cost recovery and free market and competitive economics including access to foreign exchange at competitive rates is inevitable for the sustainability of the production and distribution framework in the petroleum downstream industry he said Mrs Nkechi Obi the Managing Director Techno Gas Ltd also called on the Federal Government to intervene in halting the rising price of cooking gas in the country Obi who made the appeal while speaking during a panel session at the recently concluded Nigerian Content Midstream and Downstream Oil and Gas Conference in Lagos said the product was becoming unaffordable to Nigerians Obi said since marketers were importing over 60 per cent of the LPG consumed in Nigeria it was imperative that the government should make forex available to them at competitive rates Obi said this would reduce the cost of the product and make it affordable for Nigerians who were already returning to using kerosene stoves and firewood for cooking Mr Michael Umudu the National Chairman the Liquefied Petroleum Gas Retailers LPGAR branch of National Union of Petroleum and Natural Gas Workers NUPENG described the situation as worrisome for both retailers and consumers The worrisome aspect of this development is that it has continued to rise on daily basis for weeks now but began to escalate in the last few weeks leading to significant increases in both depots and retail outlets For us as retailers it is a big problem because we can t even afford to stock up our shops and even when we do it will take time before we can make enough sales to get back our investments What we find now is that people even bring in 12 5kg cylinders but opt to fill them with less than 6kg of gas just to manage at home Umudu therefore appealed to the government to create a dedicated forex window for LPG importers to help bring down the cost of cooking gas Dr Muda Yusuf an economist attributed the downfall of the naira to consequences of the CBN fixed exchange rate regime and administrative allocation of foreign exchange Yusuf also founder Centre for the Promotion of Private Enterprises CPPEs said the policies had created a huge enterprise around foreign exchange round tripping speculation over invoicing capital flight among others He said that the action of the apex bank amounted to tackling the symptoms rather than dealing with the causative factors which was not a sustainable solution It is regrettable that the CBN does not believe in the market mechanism yet market systems are time tested as instruments of efficient resource allocation in leading economies around the world Of course market failures are recognised in economics and these cases are exceptions that can be identified and dealt with A market based management framework will restore calmness and stability to the foreign exchange market Although there may be a momentary spike in exchange rate but stability and gradual appreciation of the rate would follow soon after Suppressing the market is like swimming against the tide it is a difficult battle to win he said Yusuf likened moving retail forex transactions from Bureau De Change BDC to the banks to kicking the can down the road stating that the same issues would manifest even with the banks He noted that the BDCs were generally more accessible required minimum documentation had short response time and better interface with the Small and Medium Enterprises and the informal sector the dominant players in the Nigerian economy He said that the way out of this free fall of the Naira was for the CBN to allow the market to function Yusuf said it was also imperative for the apex bank to de emphasise demand management and focus on strategies to stimulate foreign exchange inflows According to him a fixed exchange rate regime is a major disincentive to inflows as it creates enormous pressure of demand for foreign exchange Dr Chinyere Almona the Director General Lagos Chamber of Commerce and Industry LCCI noted that the Naira had recorded unprecedented volatility already in the first quarter of 2022 This she said was due to the widening premium between the official NAFEX rate at N415 per dollar and the market rate of N580 She said that the position of industrialists was for the monetary authorities to liberalise the foreign exchange market by unifying the multiple rates and ensuring that the rates were market driven This Almona posited was critical to the process of enhancing stability liquidity and transparency in the foreign exchange market She said the unification would improve the country s currency management framework given that the multiple exchange rate systems had been creating uncertainty issues and sources of arbitrage The CBN needs to initiate a gradual transition to a unified exchange rate system and allow for a market reflective exchange rate The currency market is still beset with persisting liquidity challenges evidenced in the wide premium between the NAFEX and parallel market rates To consolidate on the interventions earlier initiated the CBN needs to roll out more friendly supply side policies to boost liquidity in the market This would help bolster investor confidence and attract foreign investment inflows into the economy Almona also stressed the need for more deliberate efforts toward making the business environment more conducive for Micro Small and Medium Enterprises MSMEs and large corporates at the national subnational and local government levels are imperative NANFeatures NewsSourceCredit NAN
    NEWS ANALYSIS: The Socio-Economic Implications of The Downfall of The Naira
    Features5 months ago

    NEWS ANALYSIS: The Socio-Economic Implications of The Downfall of The Naira

    NEWS ANALYSIS: The Socio-Economic Implications of The Downfall of The Naira

     

    The Socio-Economic Implications of The Downfall of The Naira: A News Analysis by Solomon Asowata, Lydia Ngwakwe and Rukayat Moisemhe

    Financial experts say the continuous downfall of the Naira has worsened the living standards of Nigerians and made inflation to rise.

    The experts told the News Agency of Nigeria in separate interviews that if the local currency continued to fall against the dollar, it could pose great consequences for the economy.

    A professor of Finance and Capital Market, Uche Uwaleke, said that the free fall of the Naira was not in the interest of the economy.

    “The consequences are grave for the economy. The rising inflationary pressure is not unconnected with imported inflation.

    “The official exchange rate which is now higher than the 2022 budgeted figure will end up widening the government’s budget deficit.

    “It will equally increase oil subsidy, which may push the economy into deeper debt.

    “Again, in terms of the naira equivalent of servicing government foreign loans, the burden will also increase,’’ he said.

    According to Uwaleke, the only benefit of naira depreciation is to the Federal Government and the Sub Nationals which naira equivalent of the Federal Accounts Allocation Committee (FAAC) distribution might increase.

    “But of what use is an increase in quantity of money which value is eroded by inflation?

    “Naira depreciation ordinarily should help the country’s Balance of Payments position through discouraging imports and making exports cheaper.

    “Unfortunately, this does not happen given Nigeria’s weak export base and Nigerians penchant for foreign goods.’’

    He said that Nigeria needed a strong currency to be able to provide the required leadership in Africa, especially in the context of African Continental Free Trade Agreement.

     

    Sheriffdeen Tella, a Professor of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun, said the downfall of the naira was what caused the rising inflation.

    “Its what is causing inflation and difficulty in production presently.

    “Prolonged situation can affect employment and general welfare of citizens, just as it can cause expected global recession arising from the Russian war with Ukraine which will affect Nigeria in no small measure,’’ he said.

    Ndubisi Nwokoma, the Director of the Centre for Economic Policy Analysis and Research of the University of Lagos, Akoka, urged the Central Bank of Nigeria (CBN) to increase the supply of foreign exchange and manage demand.

    “The fall of the Naira has had serious socio-economic implications for the average Nigerian. Inflation has been skyrocketing and living standards getting worse. Challenges of insecurity also add to all these,’’ he said.

    The downfall of the naira has had a huge impact on the oil and gas industry as well, which is critical to the socio-economic development of Nigeria.

    The situation is further worsened by the ongoing conflict between Russia and Ukraine with the price of crude oil averaging about 120 dollars per barrel in recent weeks.

    This has led to a rise in the prices of petroleum products such as Jet A1 (aviation fuel) diesel, kerosene, Premium Motor Spirit (petrol) as well as Liquefied Petroleum Gas (cooking gas).

    Presently, the cost of diesel ranges from N650 to N800 per litre across the country, while aviation fuel according to domestic airline operators is selling for between N600 and N700 per litre depending on the location.

     

    Similarly, kerosene is retailing at N650 per litre in some filling stations while a 12.5kg cooking gas cylinder is being sold at between N9,000 to N10,000 to end users.

    According to the Major Oil Marketers Association of Nigeria (MOMAN), the landing cost of PMS is currently above N400 per litre, compelling the Federal Government to spend huge amounts in subsidising the product to retail for N165 per litre.

    Mr Clement Isong, the Executive Secretary, MOMAN, empathised with Nigerians and the government over the challenges being faced as a result of the rising cost of crude and its derivatives at the international market.

    He said lack of access to foreign exchange was one of the reasons for the increment in the retail prices of aviation fuel and diesel.

    Isong also decried the subsidising of petrol by the government with huge funds that could be deployed to other critical areas of the economy such as education, health care and infrastructure development.

    “A return to cost recovery and free market and competitive economics (including access to foreign exchange at competitive rates) is inevitable for the sustainability of the production and distribution framework in the petroleum downstream industry,’’ he said.

    Mrs Nkechi Obi, the Managing Director, Techno Gas Ltd. also called on the Federal Government to intervene in halting the rising price of cooking gas in the country.

    Obi, who made the appeal while speaking during a panel session at the recently concluded Nigerian Content Midstream and Downstream Oil and Gas Conference in Lagos, said the product was becoming unaffordable to Nigerians.

    Obi said since marketers were importing over 60 per cent of the LPG consumed in Nigeria, it was imperative that the government should make forex available to them at competitive rates.

    Obi said this would reduce the cost of the product and make it affordable for Nigerians who were already returning to using kerosene stoves and firewood for cooking.

    Mr Michael Umudu, the National Chairman, the Liquefied Petroleum Gas Retailers (LPGAR) branch of National Union of Petroleum and Natural Gas Workers (NUPENG), described the situation as worrisome for both retailers and consumers.

    “The worrisome aspect of this development is that it has continued to rise on daily basis for weeks now but began to escalate in the last few weeks leading to significant increases in both depots and retail outlets.

    “For us as retailers, it is a big problem because we can’t even afford to stock up our shops and even when we do, it will take time before we can make enough sales to get back our investments.

    “What we find now is that people even bring in 12.5kg cylinders but opt to fill them with less than 6kg of gas just to manage at home.’’

    Umudu, therefore, appealed to the government to create a dedicated forex window for LPG importers to help bring down the cost of cooking gas.

    Dr Muda Yusuf, an economist attributed the downfall of the naira to consequences of the CBN fixed exchange rate regime and administrative allocation of foreign exchange.

    Yusuf, also founder, Centre for the Promotion of Private Enterprises (CPPEs), said the policies had created a huge enterprise around foreign exchange, round tripping, speculation, over invoicing, capital flight among others.

    He said that the action of the apex bank amounted to tackling the symptoms rather than dealing with the causative factors, which was not a sustainable solution.

    “It is regrettable that the CBN does not believe in the market mechanism, yet market systems are time tested as instruments of efficient resource allocation in leading economies around the world.

    “Of course, market failures are recognised in economics, and these cases are exceptions that can be identified and dealt with.

    “A market based management framework will restore calmness and stability to the foreign exchange market.

    “Although, there may be a momentary spike in exchange rate, but stability and gradual appreciation of the rate would follow soon after.

    “Suppressing the market is like swimming against the tide, it is a difficult battle to win,” he said.

    Yusuf likened moving retail forex transactions from Bureau De Change (BDC) to the banks to “kicking the can down the road’’, stating that the same issues would manifest even with the banks.

    He noted that the BDCs were generally more accessible, required minimum documentation, had short response time and better interface with the Small and Medium Enterprises and the informal sector, the dominant players in the Nigerian economy.

    He said that the way out of this free fall of the Naira was for the CBN to allow the market to function.

    Yusuf said it was also imperative for the apex bank to de-emphasise demand management and focus on strategies to stimulate foreign exchange inflows.

    According to him, a fixed exchange rate regime is a major disincentive to inflows as it creates enormous pressure of demand for foreign exchange.

    Dr Chinyere Almona, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), noted that the Naira had recorded unprecedented volatility already in the first quarter of 2022.

    This, she said was due to the widening premium between the official (NAFEX) rate at N415 per dollar and the market rate of N580.

    She said that the position of industrialists was for the monetary authorities to liberalise the foreign exchange market by unifying the multiple rates and ensuring that the rates were market-driven.

    This, Almona posited was critical to the process of enhancing stability, liquidity, and transparency in the foreign exchange market.

    She said the unification would improve the country’s currency management framework given that the multiple exchange rate systems had been creating uncertainty issues and sources of arbitrage.

    “The CBN needs to initiate a gradual transition to a unified exchange rate system and allow for a market reflective exchange rate.

    “The currency market is still beset with persisting liquidity challenges evidenced in the wide premium between the NAFEX and parallel market rates.

    “To consolidate on the interventions earlier initiated, the CBN needs to roll out more friendly supply-side policies to boost liquidity in the market.

    “This would help bolster investor confidence and attract foreign investment inflows into the economy.

    Almona also stressed the need for more deliberate efforts toward making the business environment more conducive for Micro, Small and Medium Enterprises (MSMEs) and large corporates at the national, subnational, and local government levels are imperative. (NANFeatures) (

    NewsSourceCredit: NAN

  •  The Nigerian National Petroleum Company Limited NNPC Ltd started its activities for the new week with a meeting with major marketers of petroleum products in the nation s downstream sector The aim of the meeting was to grow a strong determination to sustain energy security for the country and avoid diversion of petroleum products The meeting which held at the NNPC Towers Abuja had in attendance the Major Oil Marketers Association of Nigeria MOMAN the Depot and Petroleum Products Marketers Association of Nigeria DAPPMAN and Independent Marketers on the need to curb products diversion The Group Executive Director Downstream who was represented by the Managing Director MD Petroleum Products Marketing Company PPMC Mr Isiyaku Abdullahi said that NNPC as the sole importer of petroleum products was in a critical situation that required the solid cooperation of the marketers to sustain product availability to Nigerians and reduce burden of high evacuation costs on government in terms of under recovery Abdullahi said that the company was concerned that in spite of the high truck out of Premium Motor Spirit PMS from depots across the country the market was still experiencing shortfalls noting that diversion of products had been identified as a likely reason for the gap He appealed to the marketers to activate the Corporate Social Responsibility CSR component of their businesses to support both the Federal Government and the NNPC in sustaining energy security for Nigeria Abdullahi stressed that such gesture would help in cushioning the effect of the current global energy crisis On his part the Executive Secretary of MOMAN Mr Clement Isong said that NNPC was playing a key role in keeping the country well supplied in terms of petroleum products especially at a critical time when the world faced inflationary problems Speaking in a similar vein the Executive Secretary of DAPPMAN Mr Clement Isong expressed satisfaction with the outcome of the meeting assuring that DAPPMAN as a responsible organisation is committed to ensuring efficient supply and distribution of petroleum products across the country NAN
    NNPC Weekly: Plans to end petroleum products diversion begin
     The Nigerian National Petroleum Company Limited NNPC Ltd started its activities for the new week with a meeting with major marketers of petroleum products in the nation s downstream sector The aim of the meeting was to grow a strong determination to sustain energy security for the country and avoid diversion of petroleum products The meeting which held at the NNPC Towers Abuja had in attendance the Major Oil Marketers Association of Nigeria MOMAN the Depot and Petroleum Products Marketers Association of Nigeria DAPPMAN and Independent Marketers on the need to curb products diversion The Group Executive Director Downstream who was represented by the Managing Director MD Petroleum Products Marketing Company PPMC Mr Isiyaku Abdullahi said that NNPC as the sole importer of petroleum products was in a critical situation that required the solid cooperation of the marketers to sustain product availability to Nigerians and reduce burden of high evacuation costs on government in terms of under recovery Abdullahi said that the company was concerned that in spite of the high truck out of Premium Motor Spirit PMS from depots across the country the market was still experiencing shortfalls noting that diversion of products had been identified as a likely reason for the gap He appealed to the marketers to activate the Corporate Social Responsibility CSR component of their businesses to support both the Federal Government and the NNPC in sustaining energy security for Nigeria Abdullahi stressed that such gesture would help in cushioning the effect of the current global energy crisis On his part the Executive Secretary of MOMAN Mr Clement Isong said that NNPC was playing a key role in keeping the country well supplied in terms of petroleum products especially at a critical time when the world faced inflationary problems Speaking in a similar vein the Executive Secretary of DAPPMAN Mr Clement Isong expressed satisfaction with the outcome of the meeting assuring that DAPPMAN as a responsible organisation is committed to ensuring efficient supply and distribution of petroleum products across the country NAN
    NNPC Weekly: Plans to end petroleum products diversion begin
    General news6 months ago

    NNPC Weekly: Plans to end petroleum products diversion begin

    The Nigerian National Petroleum Company Limited (NNPC Ltd.) started its activities for the new week with a meeting with major marketers of petroleum products in the nation’s downstream sector.

    The aim of the meeting was to grow a strong determination to sustain energy security for the country and avoid diversion of petroleum products.

    The meeting which held at the NNPC Towers, Abuja, had in attendance the Major Oil Marketers Association of Nigeria (MOMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Independent Marketers, on the need to curb products diversion.

    The Group Executive Director, Downstream who was represented by the Managing Director (MD), Petroleum Products Marketing Company (PPMC), Mr Isiyaku Abdullahi, said that NNPC as the sole importer of petroleum products was in a critical situation that required the solid cooperation of the marketers to sustain product availability to Nigerians and reduce burden of high evacuation costs on government in terms of under-recovery.

    Abdullahi said that the company was concerned that in spite of the high truck-out of Premium Motor Spirit (PMS) from depots across the country, the market was still experiencing shortfalls, noting that diversion of products had been identified as a likely reason for the gap.

    He appealed to the marketers to activate the Corporate Social Responsibility (CSR) component of their businesses to support both the Federal Government and the NNPC in sustaining energy security for Nigeria.

    Abdullahi stressed that such gesture would help in cushioning the effect of the current global energy crisis.

    On his part, the Executive Secretary of MOMAN, Mr Clement Isong, said that NNPC was playing a key role in keeping the country well supplied in terms of petroleum products, especially at a critical time when the world faced inflationary problems.

    Speaking in a similar vein, the Executive Secretary of DAPPMAN, Mr Clement Isong, expressed satisfaction with the outcome of the meeting, assuring that DAPPMAN as a responsible organisation is committed to ensuring efficient supply and distribution of petroleum products across the country.

    (NAN)

  •  The Major Oil Marketers Association of Nigeria MOMAN has debunked claims that Aviation Turbine Kerosene ATK also known as aviation fuel was being sold at N700 per litre in some parts of the country Mr Clement Isong Executive Secretary MOMAN made this known in an interview with the News Agency of Nigeria on Monday in Lagos NAN reports that the Airline Operators of Nigeria AON had threatened to go on strike on May 9 claiming that the cost of aviation fuel had risen to about N700 per litre from N190 per litre The strike was however called off after appeals by the Federal Government and other stakeholders in the aviation sector Isong said I am not aware that aviation fuel is sold currently anywhere at N700 per litre There has been an intervention by the Nigerian National Petroleum Company Ltd which is now bringing in ATK It gets into tank all costs together at about N500 per litre If we use Ikeja Murtala Mohammed Airport local as a bench mark it is sold there by marketers between N540 and N550 per litre Nobody with common sense will go and bring in ATK now that NNPC is bringing in product and selling it cheap NNPC is bringing in the product because it is swapping it with crude and when it swaps it with crude it uses the Central Bank of Nigeria exchange rate of N419 to a dollar Meanwhile the product is deregulated So no normal person can go and get it at that exchange rate You cannot use N589 black market rate to a dollar to bring in the product and sell at N550 per litre According to him the intervention by the NNPC has discouraged marketers from importing aviation fuel because it will be a bad business decision ATK as a product is handled very carefully It is continuously filtered It is carried by special trucks so there are extra handling costs Even with these costs it is sold at the tarmac between N540 and N550 per litre in Lagos and by the time you carry it all over the country including transportation cost it will be sold at about N570 or N580 at the farthest airport from Lagos There is no where aviation fuel is sold at N700 per litre the executive secretary said He said enquiries made by MOMAN also showed that aviation fuel was cheaper in Nigeria compared to other West African countries Isong said In Ghana aviation fuel is sold at Platt North Western Europe plus premium or minus at 1 25 dollars per litre In Liberia and Sierra Leone it is selling at 5 70 dollars per gallon which translates to 1 51 dollars per litre So those are your West African prices Now if you want to translate that to Naira if you are using the NNPC price which is N540 that is cheaper and even if you use the N700 they are claiming it is still cheaper We are not selling it at N700 per litre because of the NNPC intervention It is actually about 90 cents per litre with the NNPC price Isong however empathised with the airlines the Federal Government and ordinary Nigerians who are struggling with the consequences of the increment in the price of crude oil at the international market He blamed the hike in the price of crude oil and its derivatives such as aviation fuel petrol diesel and kerosene on the ongoing conflict between Russia and Ukraine The airlines know what they want which is justification to increase their air fares It is not only aviation fuel that has gone up even though it is a contributory factor Cost of operation has gone up there is inflation and anybody doing business will tell you that they are struggling All businesses are struggling including the airlines So maybe they are looking for bailout from the Federal Government because everybody needs some kind of bailout at the moment he said NAN
    Aviation fuel not selling at N700 per litre – MOMAN
     The Major Oil Marketers Association of Nigeria MOMAN has debunked claims that Aviation Turbine Kerosene ATK also known as aviation fuel was being sold at N700 per litre in some parts of the country Mr Clement Isong Executive Secretary MOMAN made this known in an interview with the News Agency of Nigeria on Monday in Lagos NAN reports that the Airline Operators of Nigeria AON had threatened to go on strike on May 9 claiming that the cost of aviation fuel had risen to about N700 per litre from N190 per litre The strike was however called off after appeals by the Federal Government and other stakeholders in the aviation sector Isong said I am not aware that aviation fuel is sold currently anywhere at N700 per litre There has been an intervention by the Nigerian National Petroleum Company Ltd which is now bringing in ATK It gets into tank all costs together at about N500 per litre If we use Ikeja Murtala Mohammed Airport local as a bench mark it is sold there by marketers between N540 and N550 per litre Nobody with common sense will go and bring in ATK now that NNPC is bringing in product and selling it cheap NNPC is bringing in the product because it is swapping it with crude and when it swaps it with crude it uses the Central Bank of Nigeria exchange rate of N419 to a dollar Meanwhile the product is deregulated So no normal person can go and get it at that exchange rate You cannot use N589 black market rate to a dollar to bring in the product and sell at N550 per litre According to him the intervention by the NNPC has discouraged marketers from importing aviation fuel because it will be a bad business decision ATK as a product is handled very carefully It is continuously filtered It is carried by special trucks so there are extra handling costs Even with these costs it is sold at the tarmac between N540 and N550 per litre in Lagos and by the time you carry it all over the country including transportation cost it will be sold at about N570 or N580 at the farthest airport from Lagos There is no where aviation fuel is sold at N700 per litre the executive secretary said He said enquiries made by MOMAN also showed that aviation fuel was cheaper in Nigeria compared to other West African countries Isong said In Ghana aviation fuel is sold at Platt North Western Europe plus premium or minus at 1 25 dollars per litre In Liberia and Sierra Leone it is selling at 5 70 dollars per gallon which translates to 1 51 dollars per litre So those are your West African prices Now if you want to translate that to Naira if you are using the NNPC price which is N540 that is cheaper and even if you use the N700 they are claiming it is still cheaper We are not selling it at N700 per litre because of the NNPC intervention It is actually about 90 cents per litre with the NNPC price Isong however empathised with the airlines the Federal Government and ordinary Nigerians who are struggling with the consequences of the increment in the price of crude oil at the international market He blamed the hike in the price of crude oil and its derivatives such as aviation fuel petrol diesel and kerosene on the ongoing conflict between Russia and Ukraine The airlines know what they want which is justification to increase their air fares It is not only aviation fuel that has gone up even though it is a contributory factor Cost of operation has gone up there is inflation and anybody doing business will tell you that they are struggling All businesses are struggling including the airlines So maybe they are looking for bailout from the Federal Government because everybody needs some kind of bailout at the moment he said NAN
    Aviation fuel not selling at N700 per litre – MOMAN
    General news7 months ago

    Aviation fuel not selling at N700 per litre – MOMAN

    The Major Oil Marketers Association of Nigeria (MOMAN) has debunked claims that Aviation Turbine Kerosene (ATK), also known as aviation fuel, was being sold at N700 per litre in some parts of the country.

    Mr Clement Isong, Executive Secretary, MOMAN, made this known in an interview with the News Agency of Nigeria on Monday in Lagos.

    NAN reports that the Airline Operators of Nigeria (AON) had threatened to go on strike on May 9, claiming that the cost of aviation fuel had risen to about N700 per litre from N190 per litre.

    The strike was, however, called off after appeals by the Federal Government and other stakeholders in the aviation sector.

    Isong said: “I am not aware that aviation fuel is sold currently anywhere at N700 per litre. There has been an intervention by the Nigerian National Petroleum Company Ltd., which is now bringing in ATK.

    “It gets into tank, all costs together, at about N500 per litre. If we use Ikeja (Murtala Mohammed Airport, local as a bench mark, it is sold there by marketers between N540 and N550 per litre.

    “Nobody with common sense will go and bring in ATK now that NNPC is bringing in product and selling it cheap.

    “NNPC is bringing in the product because it is swapping it with crude and when it swaps it with crude it uses the Central Bank of Nigeria exchange rate of N419 to a dollar.

    “Meanwhile the product is deregulated. So no normal person can go and get it at that exchange rate. You cannot use N589 (black market rate) to a dollar to bring in the product and sell at N550 per litre.”

    According to him, the intervention by the NNPC has discouraged marketers from importing aviation fuel because it will be a bad business decision.

    “ATK as a product is handled very carefully. It is continuously filtered. It is carried by special trucks, so there are extra handling costs.

    “Even with these costs, it is sold at the tarmac between N540 and N550 per litre in Lagos and by the time you carry it all over the country including transportation cost, it will be sold at about N570 or N580 at the farthest airport from Lagos.

    “There is no where aviation fuel is sold at N700 per litre,” the executive secretary said.

    He said enquiries made by MOMAN also showed that aviation fuel was cheaper in Nigeria compared to other West African countries.

    Isong said: “In Ghana, aviation fuel is sold at Platt, North Western Europe, plus premium or minus at 1.25 dollars per litre.

    “In Liberia and Sierra Leone, it is selling at 5.70 dollars per gallon, which translates to 1.51 dollars per litre. So, those are your West African prices.

    “Now, if you want to translate that to Naira, if you are using the NNPC price which is N540, that is cheaper and even if you use the N700 they are claiming, it is still cheaper.

    “We are not selling it at N700 per litre because of the NNPC intervention. It is actually about 90 cents per litre with the NNPC price.”

    Isong, however, empathised with the airlines, the Federal Government and ordinary Nigerians who are struggling with the consequences of the increment in the price of crude oil at the international market.

    He blamed the hike in the price of crude oil and its derivatives such as aviation fuel, petrol, diesel and kerosene on the ongoing conflict between Russia and Ukraine.

    “The airlines know what they want, which is justification to increase their air fares. It is not only aviation fuel that has gone up, even though it is a contributory factor.

    “Cost of operation has gone up; there is inflation and anybody doing business will tell you that they are struggling. All businesses are struggling including the airlines.

    “So, maybe they are looking for bailout from the Federal Government because everybody needs some kind of bailout at the moment,” he said. (

    (NAN)

  •   La C mara de Representantes y Nigerian National Petroleum Company Limited NNPC Ltd facilitaron la semana pasada un acuerdo entre los comercializadores de productos derivados del petr leo y los operadores de l neas a reas para mantener el precio del queroseno de turbina de aviaci n ATK en N500 por litro El ATK se conoce popularmente como combustible de aviaci n El acuerdo se alcanz el lunes en el segundo d a de la audiencia de investigaci n del Comit Adhoc de la C mara de Representantes sobre el Alto Costo del Combustible de Aviaci n que se llev a cabo en el Complejo de la Asamblea Nacional Abuja Al presentar los aspectos m s destacados del acuerdo el Director Gerente del Grupo Director Ejecutivo GMD CEO de NNPC Malam Mele Kyari afirm que ambas partes estaban representadas Los comercializadores de productos derivados del petr leo estuvieron representados por la Asociaci n de Comercializadores de Petr leo de Nigeria MOMAN y la Asociaci n de Comercializadores de Dep sitos y Productos del Petr leo DAPPMA En el otro extremo las partes interesadas de la industria de la aviaci n estuvieron representadas por los Operadores de Nigeria AON y la Autoridad de Aviaci n Civil de Nigeria NCAA ya que ambos grupos acordaron que el precio de surtidor del combustible de aviaci n se fije en N500 por litro durante los pr ximos tres d as En los pr ximos tres d as los representantes de MOMAN DAPMAN y Airline Operators of Nigeria se sentar n y adoptar n bases de precios transparentes Que tal como lo solicitaron los operadores de aerol neas de Nigeria se les otorgar una licencia para importar tambi n ATK a fin de tener una forma de comparar los precios Tambi n tendr n un tipo de cambio de referencia para la naira dijo Kyari Los interesados tambi n resolvieron comprometerse y acordar una prima que tambi n ser a diferente de cliente a cliente dependiendo de los vol menes que quieran comprar y el l mite de cr dito que cada comercializador puede permitir Se espera que esto ayude a establecer una base transparente para la fijaci n de precios elimine las discrepancias de precios y arroje el valor real de mercado del producto Anteriormente el Director Ejecutivo de Sistemas Almacenamiento e Infraestructura de Venta al por Menor de la Autoridad Reguladora de Midstream y Downstream de Nigeria NMDPRA el Sr Ogbogu Ukoha destac algunos de los factores que dispararon el precio de ATK Uno de los principales factores que influyen en el alto costo de ATK sigue siendo el problema de la disponibilidad de divisas es decir la fuente de la cual los comercializadores adquieren sus d lares ya sea del Banco Central de Nigeria CBN o del mercado paralelo Cuando eso se suma al hecho de que ATK est desregulado se convierte en un dilema comercial donde no vender por debajo de cierto precio debido a las barreras de divisas y los desaf os del costo de aterrizaje Sin embargo los operadores de l neas a reas insisten en que no pueden comprar productos por encima de una determinada cantidad si las tarifas a reas siguen siendo asequibles dijo Ukoha NNPC GMD CEO Malam Mele KyariHablando de manera similar el Secretario de DAPPMA el Sr Olufemi Adebayo explic que la escasez de divisas era un problema importante en el aumento del precio de ATK Si podemos comprar d lares en N410 o N420 el precio ser diferente Desafortunadamente no podemos Lo que compras en la calle es diferente a lo que obtienes en los bancos y por d lar cuanto m s lo quieres m s barato no es Por su parte el presidente de MOMAN Sr Olumide Adeosun afirm que parte del desaf o con la fijaci n de precios de ATK era el hecho de que es el m s dif cil de manejar de todos los destilados medios porque requer a licencias adicionales para producir Actualmente hay refiner as en Nigeria que producen ATK pero no pueden vender el producto porque tiene que ser autorizado Algunas de las refiner as modulares que producen di sel en el pa s pueden producir ATK pero estas refiner as no est n certificadas para esa producci n dijo Adeosun tambi n revel que el m todo retrospectivo para determinar el precio de ATK en el sector de la aviaci n se presta a abusos que a menudo quieren aprovechar las variaciones de precios en el mercado El ndice de precios del combustible de aviaci n se determina el promedio del mes Habitualmente los compradores de productos quieren aprovechar las variaciones de precios en el mercado que a veces generan p rdidas Puedes comprar productos hoy cuando es caro y venderlos ma ana con p rdidas teniendo en cuenta c mo se determina el ndice de precios en retrospectiva Hablando en nombre de AON el Sr Allen Onyema Vicepresidente y Presidente CEO de Air Peace expres su agradecimiento a GMD NNPC y al liderazgo de la C mara de Representantes por su enfoque directo sobre el problema del aumento de precios de ATK y prometi el compromiso de la grupo al bienestar de los nigerianos En sus comentarios de clausura el presidente del Comit Adhoc y vicepresidente de la C mara de Representantes el representante Idris Wase elogi al GMD NNPC Malam Mele Kyari y a todas las partes interesadas por sus sacrificios que hicieron posible el acuerdo interino Dijo que la C mara continuar a brindando el apoyo necesario para garantizar el bienestar y la seguridad de los nigerianos Miembros de los Operadores de Aerol neas de NigeriaA n en la semana bajo revisi n NNPC Ltd confirm que remiti la suma total de 59 8 mil millones a la Cuenta de la Federaci n de 2010 a 2018 La Compa a hizo la divulgaci n en una sesi n interactiva con el Comit de Cuentas P blicas de la C mara de Representantes En una presentaci n a los legisladores el Director de Finanzas CFO de NNPC el Sr Umar Ajiya quien represent al GMD CEO Kyari entreg documentos para demostrar que la suma de 59 8 mil millones fue remitida despu s de la conciliaci n con la oficina del Contador General de la Federaci n y la Comisi n Fiscal y de Movilizaci n de Ingresos Explic que antes de la aprobaci n de la Ley de la Industria del Petr leo PIA por sus siglas en ingl s la NNPC ten a el mandato de remitir ciertos flujos de ingresos a la Cuenta de la Federaci n y al Fondo de Ingresos Consolidados y enfatiz que bajo la PIA la Compa a solo har a remesas a la Federaci n Cuenta Sobre las remesas de ingresos generadas en 2019 y 2020 el CFO explic que los pagos a n se est n conciliando con la Oficina del Contador General y la Comisi n Fiscal y de Movilizaci n de Ingresos Por su parte el presidente del Comit el representante Oluwole Oke dijo que los legisladores estudiar an los documentos presentados para volver a la Compa a sobre cualquier asunto que necesitara mayor aclaraci n En la sesi n interactiva estuvieron presentes representantes de la Contralor a General de la Federaci n y de la Contralor a General de la Federaci n respectivamente Tambi n en la semana bajo revisi n NNPC Limited ha dicho que una de las razones clave por las que las refiner as modulares no pueden producir Premium Motor Spirit es la regulaci n del precio de venta del producto por parte del gobierno La declaraci n fue hecha por el Director Ejecutivo Refinaci n NNPC Ltd Sr Mustapha Yakubu durante una sesi n plenaria en la Cumbre Internacional de Energ a de Nigeria 2022 recientemente concluida en Abuja Una refiner a modular es una refiner a simplificada que requiere una inversi n de capital significativamente menor que las refiner as tradicionales a gran escala Es una planta de procesamiento de crudo con una capacidad de hasta 30 000 barriles por d a Nigeria tiene varias refiner as modulares en Edo Delta Imo y otros estados mientras que hay planes para aumentar el n mero a trav s de inversiones del sector privado El GED dijo que Algunas refiner as modulares deber an tomar hasta 50 000 barriles por d a pero debido a la fijaci n de precios se puede comenzar con 10 000 barriles y luego escalar gradualmente hasta 50 000 barriles Qu necesitas hacer para producir PMS Pregunt la respuesta seg n l es asegurar una inversi n adicional que pondr en el cracker necesario para producir el PMS Ilustraci n para refiner a modularTodav a hablando de la escasez de PMS los comercializadores de productos derivados del petr leo han pedido una desregulaci n total del sector downstream incluso cuando NNPC Ltd consider una nueva inversi n en refiner as e infraestructura de gas El presidente de la Major Oil Marketers Association of Nigeria MOMAN y director general de 11 Plc Tunji Oyebanji denunci el aplazamiento de la desregulaci n total del sector downstream Seg n l la medida es un rev s importante para la industria Dijo que la liberalizaci n del sector permitir a a los inversores a lo largo de la cadena de valor obtener rendimientos adecuados de sus inversiones El director ejecutivo de Rainoil Ltd Emmanuel Omuojine dijo que eliminar el subsidio a la gasolina agregar a un valor significativo a las reservas de divisas de Nigeria especialmente a nivel macroecon mico El presidente ejecutivo de OVH Energy Marketing Ltd Huub Stokman dijo que el desaf o actual con la escasez de gasolina era una clara indicaci n de que Nigeria necesitaba un buen plan de emergencia Tambi n hablando en la Cumbre Internacional de Energ a de Nigeria NIES recientemente concluida el Director Ejecutivo del Grupo Refinaci n NNPC Mustapha Yakubu dijo que los esfuerzos para rehabilitar las refiner as est n en marcha y se al que la desregulaci n del sector downstream impulsar a la capacidad de refinaci n nacional del pa s En otro desarrollo Nigerian Gas Company Limited NGC una subsidiaria de NNPC emergi como el mejor participante general en la reci n concluida 43 Feria Comercial Internacional de Kaduna La compa a tambi n se llev el Premio al Mejor Producto Nuevo en la feria con el tema Re estrategia de la Econom a de Nigeria para la Competitividad Global Al presentar el premio en la ceremonia de clausura el Ministro de Comercio e Inversi n Otumba Niyi Adebayo la secretaria representada la Sra Evelyn Ngige elogi a NGC por su desempe o en el evento Anteriormente en el d a especial de NGC el Director Gerente MD de la Compa a el Sr Seyi Omotowa dijo que el proyecto del gasoducto Ajaokuta Kaduna Kano AKK cumplir a su mandato de brindar oportunidades laborales y facilitar un crecimiento econ mico equilibrado El MD que estuvo representado por Igbokwuwe Gerente General de la Divisi n Comercial dijo que el estado de Kaduna obtendr a un gran beneficio econ mico debido a su ubicaci n estrat gica con respecto al gasoducto AKK La 43 Feria Comercial Internacional de Kaduna se llev a cabo del 25 de febrero al 6 de marzo Mientras tanto el Gobierno Federal dijo que tratar a con decisi n y sancionar a a cualquier Propietario de Dep sito que fuera sorprendido vendiendo productos derivados del petr leo por encima del precio Ex Dep sito aprobado en el pa s El Jefe Timipre Sylva Ministro de Estado Recursos Petrol feros revel esto en Abuja mientras informaba a los periodistas sobre su esfuerzo por resolver el problema de la escasez de combustible en el pa s Inst al p blico a denunciar a cualquiera que intentara aprovecharse de la situaci n para sancionar como corresponde En consecuencia el ministro dijo que los camiones que pod an mover productos derivados del petr leo que funcionaban con di sel se vieron afectados y realmente no pod an hacer frente a los altos precios del di sel Aunque dijo que los productos estaban disponibles en los dep sitos los camiones no pod an mover el producto debido al alto costo del transporte Esto dijo trajo otra dimensi n a la crisis Dijo que hasta ahora la administraci n de NNPC Ltd y la Autoridad Reguladora del Petr leo de Midstream y Downstream de Nigeria NMDPRA hab an estado trabajando muy duro Seg n l la situaci n se est controlando gradualmente mientras se aumenta el suministro para Abuja Jefe Timipre SylvaTambi n en la semana Nigeria y Guinea Ecuatorial firmaron un Memorando de Entendimiento para el suministro de gas de los campos marinos de Nigeria a la instalaci n de procesamiento de gas de Guinea Ecuatorial en Punta Europa En la ceremonia de firma el Ministro de Estado de Recursos Petroleros Jefe Timipre Sylva declar que el acuerdo hab a dado inicio a una colaboraci n estrat gica en todo el Golfo de Guinea Explic que las abundantes reservas de gas natural de Nigeria complementar an la infraestructura de procesamiento y licuefacci n de gas de Guinea Ecuatorial Sylva agreg que la reciente aprobaci n de la Ley de la Industria del Petr leo junto con la iniciativa de la D cada del Gas de Nigeria desencaden la concepci n del proyecto ya que facilit una importante afluencia de inversiones de Guinea Ecuatorial a Nigeria Dijo que el proyecto tambi n se al el esfuerzo conjunto de los dos pa ses para trabajar hacia un mundo energ tico m s verde Sylva se al que el proyecto ha previsto el desarrollo de un gasoducto en alta mar y tambi n crear a enormes oportunidades de contenido local en el pa s para los proveedores de servicios de gasoductos y otras infraestructuras Por su parte el Ministro de Minas e Hidrocarburos de Guinea Ecuatorial Gabriel Lima dijo que la ejecuci n del MoU es un gran ejemplo de la cooperaci n Sur Sur entre Nigeria y Guinea Ecuatorial Sylva firm el convenio en representaci n del Gobierno Federal mientras que el Ministro de Minas e Hidrocarburos de Guinea Ecuatorial Gabriel Lima firm en representaci n de su pa s Vis tenos en para m s detalles Sigue leyendo
    NNPC Weekly: How NASS, others intervened in aviation fuel price reduction
      La C mara de Representantes y Nigerian National Petroleum Company Limited NNPC Ltd facilitaron la semana pasada un acuerdo entre los comercializadores de productos derivados del petr leo y los operadores de l neas a reas para mantener el precio del queroseno de turbina de aviaci n ATK en N500 por litro El ATK se conoce popularmente como combustible de aviaci n El acuerdo se alcanz el lunes en el segundo d a de la audiencia de investigaci n del Comit Adhoc de la C mara de Representantes sobre el Alto Costo del Combustible de Aviaci n que se llev a cabo en el Complejo de la Asamblea Nacional Abuja Al presentar los aspectos m s destacados del acuerdo el Director Gerente del Grupo Director Ejecutivo GMD CEO de NNPC Malam Mele Kyari afirm que ambas partes estaban representadas Los comercializadores de productos derivados del petr leo estuvieron representados por la Asociaci n de Comercializadores de Petr leo de Nigeria MOMAN y la Asociaci n de Comercializadores de Dep sitos y Productos del Petr leo DAPPMA En el otro extremo las partes interesadas de la industria de la aviaci n estuvieron representadas por los Operadores de Nigeria AON y la Autoridad de Aviaci n Civil de Nigeria NCAA ya que ambos grupos acordaron que el precio de surtidor del combustible de aviaci n se fije en N500 por litro durante los pr ximos tres d as En los pr ximos tres d as los representantes de MOMAN DAPMAN y Airline Operators of Nigeria se sentar n y adoptar n bases de precios transparentes Que tal como lo solicitaron los operadores de aerol neas de Nigeria se les otorgar una licencia para importar tambi n ATK a fin de tener una forma de comparar los precios Tambi n tendr n un tipo de cambio de referencia para la naira dijo Kyari Los interesados tambi n resolvieron comprometerse y acordar una prima que tambi n ser a diferente de cliente a cliente dependiendo de los vol menes que quieran comprar y el l mite de cr dito que cada comercializador puede permitir Se espera que esto ayude a establecer una base transparente para la fijaci n de precios elimine las discrepancias de precios y arroje el valor real de mercado del producto Anteriormente el Director Ejecutivo de Sistemas Almacenamiento e Infraestructura de Venta al por Menor de la Autoridad Reguladora de Midstream y Downstream de Nigeria NMDPRA el Sr Ogbogu Ukoha destac algunos de los factores que dispararon el precio de ATK Uno de los principales factores que influyen en el alto costo de ATK sigue siendo el problema de la disponibilidad de divisas es decir la fuente de la cual los comercializadores adquieren sus d lares ya sea del Banco Central de Nigeria CBN o del mercado paralelo Cuando eso se suma al hecho de que ATK est desregulado se convierte en un dilema comercial donde no vender por debajo de cierto precio debido a las barreras de divisas y los desaf os del costo de aterrizaje Sin embargo los operadores de l neas a reas insisten en que no pueden comprar productos por encima de una determinada cantidad si las tarifas a reas siguen siendo asequibles dijo Ukoha NNPC GMD CEO Malam Mele KyariHablando de manera similar el Secretario de DAPPMA el Sr Olufemi Adebayo explic que la escasez de divisas era un problema importante en el aumento del precio de ATK Si podemos comprar d lares en N410 o N420 el precio ser diferente Desafortunadamente no podemos Lo que compras en la calle es diferente a lo que obtienes en los bancos y por d lar cuanto m s lo quieres m s barato no es Por su parte el presidente de MOMAN Sr Olumide Adeosun afirm que parte del desaf o con la fijaci n de precios de ATK era el hecho de que es el m s dif cil de manejar de todos los destilados medios porque requer a licencias adicionales para producir Actualmente hay refiner as en Nigeria que producen ATK pero no pueden vender el producto porque tiene que ser autorizado Algunas de las refiner as modulares que producen di sel en el pa s pueden producir ATK pero estas refiner as no est n certificadas para esa producci n dijo Adeosun tambi n revel que el m todo retrospectivo para determinar el precio de ATK en el sector de la aviaci n se presta a abusos que a menudo quieren aprovechar las variaciones de precios en el mercado El ndice de precios del combustible de aviaci n se determina el promedio del mes Habitualmente los compradores de productos quieren aprovechar las variaciones de precios en el mercado que a veces generan p rdidas Puedes comprar productos hoy cuando es caro y venderlos ma ana con p rdidas teniendo en cuenta c mo se determina el ndice de precios en retrospectiva Hablando en nombre de AON el Sr Allen Onyema Vicepresidente y Presidente CEO de Air Peace expres su agradecimiento a GMD NNPC y al liderazgo de la C mara de Representantes por su enfoque directo sobre el problema del aumento de precios de ATK y prometi el compromiso de la grupo al bienestar de los nigerianos En sus comentarios de clausura el presidente del Comit Adhoc y vicepresidente de la C mara de Representantes el representante Idris Wase elogi al GMD NNPC Malam Mele Kyari y a todas las partes interesadas por sus sacrificios que hicieron posible el acuerdo interino Dijo que la C mara continuar a brindando el apoyo necesario para garantizar el bienestar y la seguridad de los nigerianos Miembros de los Operadores de Aerol neas de NigeriaA n en la semana bajo revisi n NNPC Ltd confirm que remiti la suma total de 59 8 mil millones a la Cuenta de la Federaci n de 2010 a 2018 La Compa a hizo la divulgaci n en una sesi n interactiva con el Comit de Cuentas P blicas de la C mara de Representantes En una presentaci n a los legisladores el Director de Finanzas CFO de NNPC el Sr Umar Ajiya quien represent al GMD CEO Kyari entreg documentos para demostrar que la suma de 59 8 mil millones fue remitida despu s de la conciliaci n con la oficina del Contador General de la Federaci n y la Comisi n Fiscal y de Movilizaci n de Ingresos Explic que antes de la aprobaci n de la Ley de la Industria del Petr leo PIA por sus siglas en ingl s la NNPC ten a el mandato de remitir ciertos flujos de ingresos a la Cuenta de la Federaci n y al Fondo de Ingresos Consolidados y enfatiz que bajo la PIA la Compa a solo har a remesas a la Federaci n Cuenta Sobre las remesas de ingresos generadas en 2019 y 2020 el CFO explic que los pagos a n se est n conciliando con la Oficina del Contador General y la Comisi n Fiscal y de Movilizaci n de Ingresos Por su parte el presidente del Comit el representante Oluwole Oke dijo que los legisladores estudiar an los documentos presentados para volver a la Compa a sobre cualquier asunto que necesitara mayor aclaraci n En la sesi n interactiva estuvieron presentes representantes de la Contralor a General de la Federaci n y de la Contralor a General de la Federaci n respectivamente Tambi n en la semana bajo revisi n NNPC Limited ha dicho que una de las razones clave por las que las refiner as modulares no pueden producir Premium Motor Spirit es la regulaci n del precio de venta del producto por parte del gobierno La declaraci n fue hecha por el Director Ejecutivo Refinaci n NNPC Ltd Sr Mustapha Yakubu durante una sesi n plenaria en la Cumbre Internacional de Energ a de Nigeria 2022 recientemente concluida en Abuja Una refiner a modular es una refiner a simplificada que requiere una inversi n de capital significativamente menor que las refiner as tradicionales a gran escala Es una planta de procesamiento de crudo con una capacidad de hasta 30 000 barriles por d a Nigeria tiene varias refiner as modulares en Edo Delta Imo y otros estados mientras que hay planes para aumentar el n mero a trav s de inversiones del sector privado El GED dijo que Algunas refiner as modulares deber an tomar hasta 50 000 barriles por d a pero debido a la fijaci n de precios se puede comenzar con 10 000 barriles y luego escalar gradualmente hasta 50 000 barriles Qu necesitas hacer para producir PMS Pregunt la respuesta seg n l es asegurar una inversi n adicional que pondr en el cracker necesario para producir el PMS Ilustraci n para refiner a modularTodav a hablando de la escasez de PMS los comercializadores de productos derivados del petr leo han pedido una desregulaci n total del sector downstream incluso cuando NNPC Ltd consider una nueva inversi n en refiner as e infraestructura de gas El presidente de la Major Oil Marketers Association of Nigeria MOMAN y director general de 11 Plc Tunji Oyebanji denunci el aplazamiento de la desregulaci n total del sector downstream Seg n l la medida es un rev s importante para la industria Dijo que la liberalizaci n del sector permitir a a los inversores a lo largo de la cadena de valor obtener rendimientos adecuados de sus inversiones El director ejecutivo de Rainoil Ltd Emmanuel Omuojine dijo que eliminar el subsidio a la gasolina agregar a un valor significativo a las reservas de divisas de Nigeria especialmente a nivel macroecon mico El presidente ejecutivo de OVH Energy Marketing Ltd Huub Stokman dijo que el desaf o actual con la escasez de gasolina era una clara indicaci n de que Nigeria necesitaba un buen plan de emergencia Tambi n hablando en la Cumbre Internacional de Energ a de Nigeria NIES recientemente concluida el Director Ejecutivo del Grupo Refinaci n NNPC Mustapha Yakubu dijo que los esfuerzos para rehabilitar las refiner as est n en marcha y se al que la desregulaci n del sector downstream impulsar a la capacidad de refinaci n nacional del pa s En otro desarrollo Nigerian Gas Company Limited NGC una subsidiaria de NNPC emergi como el mejor participante general en la reci n concluida 43 Feria Comercial Internacional de Kaduna La compa a tambi n se llev el Premio al Mejor Producto Nuevo en la feria con el tema Re estrategia de la Econom a de Nigeria para la Competitividad Global Al presentar el premio en la ceremonia de clausura el Ministro de Comercio e Inversi n Otumba Niyi Adebayo la secretaria representada la Sra Evelyn Ngige elogi a NGC por su desempe o en el evento Anteriormente en el d a especial de NGC el Director Gerente MD de la Compa a el Sr Seyi Omotowa dijo que el proyecto del gasoducto Ajaokuta Kaduna Kano AKK cumplir a su mandato de brindar oportunidades laborales y facilitar un crecimiento econ mico equilibrado El MD que estuvo representado por Igbokwuwe Gerente General de la Divisi n Comercial dijo que el estado de Kaduna obtendr a un gran beneficio econ mico debido a su ubicaci n estrat gica con respecto al gasoducto AKK La 43 Feria Comercial Internacional de Kaduna se llev a cabo del 25 de febrero al 6 de marzo Mientras tanto el Gobierno Federal dijo que tratar a con decisi n y sancionar a a cualquier Propietario de Dep sito que fuera sorprendido vendiendo productos derivados del petr leo por encima del precio Ex Dep sito aprobado en el pa s El Jefe Timipre Sylva Ministro de Estado Recursos Petrol feros revel esto en Abuja mientras informaba a los periodistas sobre su esfuerzo por resolver el problema de la escasez de combustible en el pa s Inst al p blico a denunciar a cualquiera que intentara aprovecharse de la situaci n para sancionar como corresponde En consecuencia el ministro dijo que los camiones que pod an mover productos derivados del petr leo que funcionaban con di sel se vieron afectados y realmente no pod an hacer frente a los altos precios del di sel Aunque dijo que los productos estaban disponibles en los dep sitos los camiones no pod an mover el producto debido al alto costo del transporte Esto dijo trajo otra dimensi n a la crisis Dijo que hasta ahora la administraci n de NNPC Ltd y la Autoridad Reguladora del Petr leo de Midstream y Downstream de Nigeria NMDPRA hab an estado trabajando muy duro Seg n l la situaci n se est controlando gradualmente mientras se aumenta el suministro para Abuja Jefe Timipre SylvaTambi n en la semana Nigeria y Guinea Ecuatorial firmaron un Memorando de Entendimiento para el suministro de gas de los campos marinos de Nigeria a la instalaci n de procesamiento de gas de Guinea Ecuatorial en Punta Europa En la ceremonia de firma el Ministro de Estado de Recursos Petroleros Jefe Timipre Sylva declar que el acuerdo hab a dado inicio a una colaboraci n estrat gica en todo el Golfo de Guinea Explic que las abundantes reservas de gas natural de Nigeria complementar an la infraestructura de procesamiento y licuefacci n de gas de Guinea Ecuatorial Sylva agreg que la reciente aprobaci n de la Ley de la Industria del Petr leo junto con la iniciativa de la D cada del Gas de Nigeria desencaden la concepci n del proyecto ya que facilit una importante afluencia de inversiones de Guinea Ecuatorial a Nigeria Dijo que el proyecto tambi n se al el esfuerzo conjunto de los dos pa ses para trabajar hacia un mundo energ tico m s verde Sylva se al que el proyecto ha previsto el desarrollo de un gasoducto en alta mar y tambi n crear a enormes oportunidades de contenido local en el pa s para los proveedores de servicios de gasoductos y otras infraestructuras Por su parte el Ministro de Minas e Hidrocarburos de Guinea Ecuatorial Gabriel Lima dijo que la ejecuci n del MoU es un gran ejemplo de la cooperaci n Sur Sur entre Nigeria y Guinea Ecuatorial Sylva firm el convenio en representaci n del Gobierno Federal mientras que el Ministro de Minas e Hidrocarburos de Guinea Ecuatorial Gabriel Lima firm en representaci n de su pa s Vis tenos en para m s detalles Sigue leyendo
    NNPC Weekly: How NASS, others intervened in aviation fuel price reduction
    General news8 months ago

    NNPC Weekly: How NASS, others intervened in aviation fuel price reduction

    La Cámara de Representantes y Nigerian National Petroleum Company Limited (NNPC Ltd) facilitaron la semana pasada un acuerdo entre los comercializadores de productos derivados del petróleo y los operadores de líneas aéreas para mantener el precio del queroseno de turbina de aviación (ATK) en N500 por litro.

    El ATK se conoce popularmente como combustible de aviación.

    El acuerdo se alcanzó el lunes en el segundo día de la audiencia de investigación del Comité Adhoc de la Cámara de Representantes sobre el Alto Costo del Combustible de Aviación que se llevó a cabo en el Complejo de la Asamblea Nacional, Abuja.

    Al presentar los aspectos más destacados del acuerdo, el Director Gerente del Grupo/Director Ejecutivo GMD/CEO de NNPC, Malam Mele Kyari, afirmó que ambas partes estaban representadas.

    Los comercializadores de productos derivados del petróleo estuvieron representados por la Asociación de Comercializadores de Petróleo de Nigeria (MOMAN) y la Asociación de Comercializadores de Depósitos y Productos del Petróleo (DAPPMA).

    En el otro extremo, las partes interesadas de la industria de la aviación estuvieron representadas por los Operadores de Nigeria (AON) y la Autoridad de Aviación Civil de Nigeria (NCAA), ya que ambos grupos acordaron que el precio de surtidor del combustible de aviación se fije en N500 por litro durante los próximos tres días.

    “En los próximos tres días, los representantes de MOMAN, DAPMAN y Airline Operators of Nigeria se sentarán y adoptarán bases de precios transparentes.

    “Que, tal como lo solicitaron los operadores de aerolíneas de Nigeria, se les otorgará una licencia para importar también ATK a fin de tener una forma de comparar los precios.

    “También tendrán un tipo de cambio de referencia para la naira”, dijo Kyari.

    Los interesados ​​también resolvieron comprometerse y acordar una prima que también sería diferente de cliente a cliente dependiendo de los volúmenes que quieran comprar y el límite de crédito que cada comercializador puede permitir.

    Se espera que esto ayude a establecer una base transparente para la fijación de precios, elimine las discrepancias de precios y arroje el valor real de mercado del producto.

    Anteriormente, el Director Ejecutivo de Sistemas, Almacenamiento e Infraestructura de Venta al por Menor de la Autoridad Reguladora de Midstream y Downstream de Nigeria (NMDPRA), el Sr. Ogbogu Ukoha, destacó algunos de los factores que dispararon el precio de ATK.

    “Uno de los principales factores que influyen en el alto costo de ATK sigue siendo el problema de la disponibilidad de divisas, es decir, la fuente de la cual los comercializadores adquieren sus dólares, ya sea del Banco Central de Nigeria (CBN) o del mercado paralelo.

    “Cuando eso se suma al hecho de que ATK está desregulado, se convierte en un dilema comercial donde no vender por debajo de cierto precio debido a las barreras de divisas y los desafíos del costo de aterrizaje.

    “Sin embargo, los operadores de líneas aéreas insisten en que no pueden comprar productos por encima de una determinada cantidad si las tarifas aéreas siguen siendo asequibles”, dijo Ukoha.

    NNPC GMD/CEO, Malam Mele Kyari

    Hablando de manera similar, el Secretario de DAPPMA, el Sr. Olufemi Adebayo, explicó que la escasez de divisas era un problema importante en el aumento del precio de ATK.

    “Si podemos comprar dólares en N410 o N420, el precio será diferente. Desafortunadamente, no podemos.

    “Lo que compras en la calle es diferente a lo que obtienes en los bancos; y por dólar, cuanto más lo quieres, más barato no es”.

    Por su parte, el presidente de MOMAN, Sr. Olumide Adeosun, afirmó que parte del desafío con la fijación de precios de ATK era el hecho de que es el más difícil de manejar de todos los destilados medios porque requería licencias adicionales para producir.

    “Actualmente hay refinerías en Nigeria que producen ATK pero no pueden vender el producto porque tiene que ser autorizado.

    “Algunas de las refinerías modulares que producen diésel en el país pueden producir ATK, pero estas refinerías no están certificadas para esa producción”, dijo.

    Adeosun también reveló que el método retrospectivo para determinar el precio de ATK en el sector de la aviación se presta a abusos que a menudo quieren aprovechar las variaciones de precios en el mercado.

    “El índice de precios del combustible de aviación se determina el promedio del mes.

    “Habitualmente, los compradores de productos quieren aprovechar las variaciones de precios en el mercado, que a veces generan pérdidas.

    “Puedes comprar productos hoy cuando es caro y venderlos mañana con pérdidas, teniendo en cuenta cómo se determina el índice de precios en retrospectiva”.

    Hablando en nombre de AON, el Sr. Allen Onyema, Vicepresidente y Presidente/CEO de Air Peace, expresó su agradecimiento a GMD NNPC y al liderazgo de la Cámara de Representantes por su enfoque directo sobre el problema del aumento de precios de ATK y prometió el compromiso de la grupo al bienestar de los nigerianos.

    En sus comentarios de clausura, el presidente del Comité Adhoc y vicepresidente de la Cámara de Representantes, el representante Idris Wase, elogió al GMD NNPC, Malam Mele Kyari y a todas las partes interesadas por sus sacrificios que hicieron posible el acuerdo interino.

    Dijo que la Cámara continuaría brindando el apoyo necesario para garantizar el bienestar y la seguridad de los nigerianos.

    Miembros de los Operadores de Aerolíneas de Nigeria

    Aún en la semana bajo revisión, NNPC Ltd. confirmó que remitió la suma total de ₦ 59.8 mil millones a la Cuenta de la Federación de 2010 a 2018.

    La Compañía hizo la divulgación en una sesión interactiva con el Comité de Cuentas Públicas de la Cámara de Representantes.

    En una presentación a los legisladores, el Director de Finanzas (CFO) de NNPC, el Sr. Umar Ajiya, quien representó al GMD/CEO Kyari, entregó documentos para demostrar que la suma de ₦59.8 mil millones fue remitida después de la conciliación con la oficina del Contador General de la Federación y la Comisión Fiscal y de Movilización de Ingresos.

    Explicó que antes de la aprobación de la Ley de la Industria del Petróleo (PIA, por sus siglas en inglés), la NNPC tenía el mandato de remitir ciertos flujos de ingresos a la Cuenta de la Federación y al Fondo de Ingresos Consolidados, y enfatizó que bajo la PIA, la Compañía solo haría remesas a la Federación Cuenta.

    Sobre las remesas de ingresos generadas en 2019 y 2020, el CFO explicó que los pagos aún se están conciliando con la Oficina del Contador General y la Comisión Fiscal y de Movilización de Ingresos.

    Por su parte, el presidente del Comité, el representante Oluwole Oke, dijo que los legisladores estudiarían los documentos presentados para volver a la Compañía sobre cualquier asunto que necesitara mayor aclaración.

    En la sesión interactiva estuvieron presentes representantes de la Contraloría General de la Federación y de la Contraloría General de la Federación respectivamente.

    También en la semana bajo revisión, NNPC Limited ha dicho que una de las razones clave por las que las refinerías modulares no pueden producir Premium Motor Spirit es la regulación del precio de venta del producto por parte del gobierno.

    La declaración fue hecha por el Director Ejecutivo, Refinación, NNPC Ltd, Sr. Mustapha Yakubu durante una sesión plenaria en la Cumbre Internacional de Energía de Nigeria 2022 recientemente concluida en Abuja.

    Una refinería modular es una refinería simplificada que requiere una inversión de capital significativamente menor que las refinerías tradicionales a gran escala. Es una planta de procesamiento de crudo con una capacidad de hasta 30.000 barriles por día.

    Nigeria tiene varias refinerías modulares en Edo, Delta, Imo y otros estados, mientras que hay planes para aumentar el número a través de inversiones del sector privado.

    El GED dijo que, “Algunas refinerías modulares deberían tomar hasta 50 000 barriles por día, pero debido a la fijación de precios, se puede comenzar con 10 000 barriles y luego escalar gradualmente hasta 50 000 barriles.

    “¿Qué necesitas hacer para producir PMS? Preguntó, la respuesta según él, es asegurar una inversión adicional que pondrá en el cracker necesario para producir el PMS”.

    Ilustración para refinería modular

    Todavía hablando de la escasez de PMS, los comercializadores de productos derivados del petróleo han pedido una desregulación total del sector downstream, incluso cuando NNPC Ltd. consideró una nueva inversión en refinerías e infraestructura de gas.

    El presidente de la Major Oil Marketers Association of Nigeria (MOMAN) y director general de 11 Plc, Tunji Oyebanji, denunció el aplazamiento de la desregulación total del sector downstream.

    Según él, “la medida es un revés importante para la industria”.

    Dijo que la liberalización del sector permitiría a los inversores a lo largo de la cadena de valor obtener rendimientos adecuados de sus inversiones.

    El director ejecutivo de Rainoil Ltd., Emmanuel Omuojine, dijo que eliminar el subsidio a la gasolina agregaría un valor significativo a las reservas de divisas de Nigeria, especialmente a nivel macroeconómico.

    El presidente ejecutivo de OVH Energy Marketing Ltd., Huub Stokman, dijo que el desafío actual con la escasez de gasolina era una clara indicación de que Nigeria necesitaba un buen plan de emergencia.

    También hablando en la Cumbre Internacional de Energía de Nigeria (NIES) recientemente concluida, el Director Ejecutivo del Grupo, Refinación, NNPC, Mustapha Yakubu, dijo que los esfuerzos para rehabilitar las refinerías están en marcha, y señaló que la desregulación del sector downstream impulsaría la capacidad de refinación nacional del país.

    En otro desarrollo, Nigerian Gas Company Limited (NGC), una subsidiaria de NNPC, emergió como el mejor participante general en la recién concluida 43ª Feria Comercial Internacional de Kaduna.

    La compañía también se llevó el “Premio al Mejor Producto Nuevo” en la feria con el tema “Re-estrategia de la Economía de Nigeria para la Competitividad Global”.

    Al presentar el premio en la ceremonia de clausura, el Ministro de Comercio e Inversión, Otumba Niyi Adebayo, la secretaria representada, la Sra. Evelyn Ngige, elogió a NGC por su desempeño en el evento.

    Anteriormente en el día especial de NGC, el Director Gerente (MD) de la Compañía, el Sr. Seyi Omotowa, dijo que el proyecto del gasoducto Ajaokuta-Kaduna-Kano (AKK) cumpliría su mandato de brindar oportunidades laborales y facilitar un crecimiento económico equilibrado.

    El MD que estuvo representado por Igbokwuwe, Gerente General de la División Comercial, dijo que el estado de Kaduna obtendría un gran beneficio económico debido a su ubicación estratégica con respecto al gasoducto AKK.

    La 43.ª Feria Comercial Internacional de Kaduna se llevó a cabo del 25 de febrero al 6 de marzo.

    Mientras tanto, el Gobierno Federal dijo que trataría con decisión y sancionaría a cualquier Propietario de Depósito que fuera sorprendido vendiendo productos derivados del petróleo por encima del precio Ex-Depósito aprobado en el país.

    El Jefe Timipre Sylva, Ministro de Estado, Recursos Petrolíferos, reveló esto en Abuja mientras informaba a los periodistas sobre su esfuerzo por resolver el problema de la escasez de combustible en el país.

    Instó al público a denunciar a cualquiera que intentara aprovecharse de la situación para sancionar como corresponde.

    En consecuencia, el ministro dijo que los camiones que podían mover productos derivados del petróleo que funcionaban con diésel se vieron afectados y realmente no podían hacer frente a los altos precios del diésel.

    Aunque dijo que los productos estaban disponibles en los depósitos, los camiones no podían mover el producto debido al alto costo del transporte.

    Esto, dijo, trajo otra dimensión a la crisis.

    Dijo que hasta ahora, la administración de NNPC Ltd. y la Autoridad Reguladora del Petróleo de Midstream y Downstream de Nigeria (NMDPRA) habían estado trabajando muy duro.

    Según él, la situación se está controlando gradualmente mientras se aumenta el suministro para Abuja.

    Jefe Timipre Sylva

    También en la semana, Nigeria y Guinea Ecuatorial firmaron un Memorando de Entendimiento para el suministro de gas de los campos marinos de Nigeria a la instalación de procesamiento de gas de Guinea Ecuatorial en Punta Europa.

    En la ceremonia de firma, el Ministro de Estado de Recursos Petroleros, Jefe Timipre Sylva, declaró que el acuerdo había dado inicio a una colaboración estratégica en todo el Golfo de Guinea.

    Explicó que las abundantes reservas de gas natural de Nigeria complementarían la infraestructura de procesamiento y licuefacción de gas de Guinea Ecuatorial.

    Sylva agregó que la reciente aprobación de la Ley de la Industria del Petróleo, junto con la iniciativa de la Década del Gas de Nigeria, desencadenó la concepción del proyecto, ya que facilitó una importante afluencia de inversiones de Guinea Ecuatorial a Nigeria.

    Dijo que el proyecto también señaló el esfuerzo conjunto de los dos países para trabajar hacia un mundo energético más verde.

    Sylva señaló que el proyecto ha previsto el desarrollo de un gasoducto en alta mar y también crearía enormes oportunidades de contenido local en el país para los proveedores de servicios de gasoductos y otras infraestructuras.

    Por su parte, el Ministro de Minas e Hidrocarburos de Guinea Ecuatorial, Gabriel Lima, dijo que la ejecución del MoU es un gran ejemplo de la cooperación Sur-Sur entre Nigeria y Guinea Ecuatorial.

    Sylva, firmó el convenio en representación del Gobierno Federal, mientras que el Ministro de Minas e Hidrocarburos de Guinea Ecuatorial, Gabriel Lima, firmó en representación de su país.

    Visítenos en para más detalles.

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  •  The Major Petroleum Traders Association of Nigeria MOMAN says it is in talks with national airlines to secure a steady supply of aviation fuel for their operations Mr Clement Isong Executive Secretary of MOMAN confirmed the development in an interview with the Nigerian News Agency on Wednesday in Lagos He said the compromise followed the Representatives intervention and oversight by the Midstream and Downstream Petroleum Regulatory Authority The Executive Secretary expressed solidarity with all stakeholders including ordinary Nigerians struggling with the consequences of rising crude oil prices on the international market Isong blamed the rising price of crude oil and its derivatives such as jet fuel gasoline diesel and kerosene on ongoing hostilities between Russia and Ukraine We understand your pain including the Federal Government that is paying a higher cost to subsidize gasoline The rise and fall of oil prices is cyclical We have been here before and we expect that within a short period the international supply of crude oil will adjust to meet demand and prices will drop to more acceptable levels he said According to him the situation can also lessen if marketers can get foreign exchange at decent rates instead of sourcing from the parallel market Isong however advised domestic airlines to change the way they do business to enable them to get a steady supply of jet fuel to run their operations He urged airline operators to pay off their debts and adopt a pricing formula for jet fuel purchases in line with international best practices Isong said There is aviation fuel in the country However the product is expensive Many of us who have contracts with international airlines have to maintain stocks for them International airlines now pay for their products based on a pricing formula so it s predictable There is no dispute about the price It is Platts more Premium The premium is fixed The Platts which is a price reference service for the oil industry goes up and down depending on the international market price The executive secretary said that the pricing template is transparent and predictable I should also add that we buy the product in forex and foreign airlines pay in forex So there is no forex risk For local airlines there are two challenges First of all they do not like to sign binding contracts based on pricing formulas They prefer to run from one marketer to another trying to get products at cheaper prices Second a lot of them are in debt They owe millions of Naira to the industry not just the vendors When they finish from one marketer they run to another According to him marketers are demanding that airlines pay their debts because the burden on the industry is becoming too much Explaining further he said that the adoption of a pricing formula meant that the marketer had to commit to a volume of products that would be supplied to the airline within a specified period The pricing formula means that you buy over a period of a month a certain number of products and the airline must choose that product So when they ve agreed you go and buy that volume and keep it for them but if they don t agree you can t keep that volume for them he said He explained that national airlines had to change the way they did business This is what the Nigerian National Petroleum Company Ltd Group CEO Mele Kyari has asked them to do There are international best practices that they must adhere to when running their business This includes a price based formula that commits to volumes and also settles its outstanding debts to ensure smooth operations in the sector If they adopt this method traders can take the risk of buying a product and storing it in our tank farms but they have to commit to volume because that s how business is done Isong said The executive secretary said he had nothing but respect for the national airlines that over time had invested in leasing more modern aircraft to improve the quality of service to their passengers He added that he also understood the challenges of charging airfares that were reasonable but allowed them to meet their obligations to their suppliers
    Marketers, airlines dialogue over aviation fuel price hike – MOMAN
     The Major Petroleum Traders Association of Nigeria MOMAN says it is in talks with national airlines to secure a steady supply of aviation fuel for their operations Mr Clement Isong Executive Secretary of MOMAN confirmed the development in an interview with the Nigerian News Agency on Wednesday in Lagos He said the compromise followed the Representatives intervention and oversight by the Midstream and Downstream Petroleum Regulatory Authority The Executive Secretary expressed solidarity with all stakeholders including ordinary Nigerians struggling with the consequences of rising crude oil prices on the international market Isong blamed the rising price of crude oil and its derivatives such as jet fuel gasoline diesel and kerosene on ongoing hostilities between Russia and Ukraine We understand your pain including the Federal Government that is paying a higher cost to subsidize gasoline The rise and fall of oil prices is cyclical We have been here before and we expect that within a short period the international supply of crude oil will adjust to meet demand and prices will drop to more acceptable levels he said According to him the situation can also lessen if marketers can get foreign exchange at decent rates instead of sourcing from the parallel market Isong however advised domestic airlines to change the way they do business to enable them to get a steady supply of jet fuel to run their operations He urged airline operators to pay off their debts and adopt a pricing formula for jet fuel purchases in line with international best practices Isong said There is aviation fuel in the country However the product is expensive Many of us who have contracts with international airlines have to maintain stocks for them International airlines now pay for their products based on a pricing formula so it s predictable There is no dispute about the price It is Platts more Premium The premium is fixed The Platts which is a price reference service for the oil industry goes up and down depending on the international market price The executive secretary said that the pricing template is transparent and predictable I should also add that we buy the product in forex and foreign airlines pay in forex So there is no forex risk For local airlines there are two challenges First of all they do not like to sign binding contracts based on pricing formulas They prefer to run from one marketer to another trying to get products at cheaper prices Second a lot of them are in debt They owe millions of Naira to the industry not just the vendors When they finish from one marketer they run to another According to him marketers are demanding that airlines pay their debts because the burden on the industry is becoming too much Explaining further he said that the adoption of a pricing formula meant that the marketer had to commit to a volume of products that would be supplied to the airline within a specified period The pricing formula means that you buy over a period of a month a certain number of products and the airline must choose that product So when they ve agreed you go and buy that volume and keep it for them but if they don t agree you can t keep that volume for them he said He explained that national airlines had to change the way they did business This is what the Nigerian National Petroleum Company Ltd Group CEO Mele Kyari has asked them to do There are international best practices that they must adhere to when running their business This includes a price based formula that commits to volumes and also settles its outstanding debts to ensure smooth operations in the sector If they adopt this method traders can take the risk of buying a product and storing it in our tank farms but they have to commit to volume because that s how business is done Isong said The executive secretary said he had nothing but respect for the national airlines that over time had invested in leasing more modern aircraft to improve the quality of service to their passengers He added that he also understood the challenges of charging airfares that were reasonable but allowed them to meet their obligations to their suppliers
    Marketers, airlines dialogue over aviation fuel price hike – MOMAN
    Aviation9 months ago

    Marketers, airlines dialogue over aviation fuel price hike – MOMAN

    The Major Petroleum Traders Association of Nigeria (MOMAN) says it is in talks with national airlines to secure a steady supply of aviation fuel for their operations.

    Mr. Clement Isong, Executive Secretary of MOMAN, confirmed the development in an interview with the Nigerian News Agency on Wednesday in Lagos.

    He said the compromise followed the Representatives' intervention and oversight by the Midstream and Downstream Petroleum Regulatory Authority.

    The Executive Secretary expressed solidarity with all stakeholders, including ordinary Nigerians struggling with the consequences of rising crude oil prices on the international market.

    Isong blamed the rising price of crude oil and its derivatives, such as jet fuel, gasoline, diesel and kerosene, on ongoing hostilities between Russia and Ukraine.

    “We understand your pain, including the Federal Government that is paying a higher cost to subsidize gasoline.

    “The rise and fall of oil prices is cyclical. We have been here before and we expect that within a short period the international supply of crude oil will adjust to meet demand and prices will drop to more acceptable levels,” he said.

    According to him, the situation can also lessen if marketers can get foreign exchange at decent rates instead of sourcing from the parallel market.

    Isong, however, advised domestic airlines to change the way they do business to enable them to get a steady supply of jet fuel to run their operations.

    He urged airline operators to pay off their debts and adopt a pricing formula for jet fuel purchases in line with international best practices.

    Isong said, “There is aviation fuel in the country. However, the product is expensive. Many of us who have contracts with international airlines have to maintain stocks for them.

    “International airlines now pay for their products based on a pricing formula, so it's predictable. There is no dispute about the price. It is Platts more Premium.

    “The premium is fixed. The Platts, which is a price reference service for the oil industry, goes up and down depending on the international market price.”

    The executive secretary said that the pricing template is transparent and predictable.

    “I should also add that we buy the product in forex and foreign airlines pay in forex. So there is no forex risk.

    “For local airlines, there are two challenges. First of all, they do not like to sign binding contracts based on pricing formulas. They prefer to run from one marketer to another trying to get products at cheaper prices.

    “Second, a lot of them are in debt. They owe millions of Naira to the industry, not just the vendors. When they finish from one marketer, they run to another.”

    According to him, marketers are demanding that airlines pay their debts because the burden on the industry is becoming too much.

    Explaining further, he said that the adoption of a pricing formula meant that the marketer had to commit to a volume of products that would be supplied to the airline within a specified period.

    “The pricing formula means that you buy over a period of a month a certain number of products and the airline must choose that product.

    "So when they've agreed, you go and buy that volume and keep it for them, but if they don't agree, you can't keep that volume for them," he said.

    He explained that national airlines had to change the way they did business.

    “This is what the Nigerian National Petroleum Company Ltd. Group CEO, Mele Kyari, has asked them to do.

    “There are international best practices that they must adhere to when running their business.

    “This includes a price-based formula that commits to volumes and also settles its outstanding debts to ensure smooth operations in the sector.

    “If they adopt this method, traders can take the risk of buying a product and storing it in our tank farms, but they have to commit to volume because that's how business is done,” Isong said.

    The executive secretary said he had nothing but respect for the national airlines that over time had invested in leasing more modern aircraft to improve the quality of service to their passengers.

    He added that he also understood the challenges of charging airfares that were reasonable but allowed them to meet their obligations to their suppliers.

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