Oil and gas
Tinubu rattles oil sector, directs NNPCL to remit crude sales revenue to CBN
President Bola Tinubu has directed the Nigeria National Petroleum Company Limited (NNPCL) to immediately handover details of revenue from sales of crude oil to the Central Bank of Nigeria (CBN).
Apparently, the move had sent some shock waves down the spines of some players as it is believed to be part of Tinubu’s effort aimed at monitoring revenue accruing to the Federal Government
The NNPC had over the years been solely responsible for the maintenance and control over crude oil sales after which it merely rendered accounts to the Federal Government.
It was reliably gathered that the CBN while confirming the development, said that with the Presidential directive, all receipts of payment for oil sales would now be forwarded to the CBN with immediate effect.
The new directive requires the NNPC to submit all receipts for crude oil sales to the CBN for vetting and documentation. This aims to close any potential gaps in reporting and ensure accurate records of oil revenue.
CBN Governor, Mr. Olayemi Cardoso, had earlier indicated that the collaboration with the Ministry of Finance and the NNPCL is to ensure that all foreign inflows are returned to the Central Bank.
“This coordinated effort will greatly enhance the Bank’s foreign exchange flows and contribute to the accretion of reserves,” he said.
Cardoso, who was delivering a keynote address at the launch of the Nigerian Economic Summit Group (NESG) “2024 Macroeconomic Outlook Report”, said, “The expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum product imports and the recent implementation of a market-determined exchange rate policy by the CBN.
“This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage.
“The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors.”
“We are implementing a comprehensive strategy to improve liquidity in our FX markets in the short, medium, and long term. Our focus is on addressing fundamental issues that have hindered the effective operation of our markets over the years.
“Upholding the integrity of financial markets is crucial for building confidence. With the completion of an independent forensic review, we are addressing the backlog of valid FX transactions and we remain steadfast in our commitment to decisively address any infractions and abuses,” he added.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has querried the rational behind the Nigerian National Petroleum Company Limited (NNPCL) projections that make the price of petrol lifted from the Dangote Refinery higher than imported ones.
IPMAN’s National Welfare Officer, John Kekeocha spoke on Channels Television’s, the Morning Brief breakfast programme.
“If NNPC can sell Dangote products higher than the imported products, then it doesn’t make sense.
“What is the celebration we are having all these while then?” he querried.
Recall that the NNPCL started loading the first batch of petrol from the Dangote Refinery on Sunday.
The NNPCL had stated that it got the petrol at N898 per litre from the private refinery.
Meanwhile NNPCL retail outlets in Lagos have been selling petrol for around N855 before lifting petrol from the Dangote Refinery on Sunday.
However, a litre of Dangote petrol now sell for N950 per litre in Lagos and N1,019 in Borno.
The association urged NNPCL to ensure the product is not sold at a higher price than imported fuel.
IPMAN argued that such a disparity would be counterproductive to the nation’s drive for energy self-sufficiency and could negatively impact consumers and marketers alike.
According to IPMAN the pricing strategy for locally refined petrol should reflect the advantages of domestic production, offering Nigerians a more affordable option.
The association emphasized that maintaining competitive pricing is crucial for the success of the Dangote Refinery and for fostering a sustainable fuel market in the country.
The Dangote Refinery has described as misleading, claims by the Nigerian National Petroleum Company Limited (NNPCL) that it sells petrol at N898 per litre.
The refinery spokesman, Anthony Chiejina insisted that the NNPC’s claim is mischievous with the intent to undermind the refinery’s achievement in addressing energy insufficiency.
Chiejina urged Nigerians to disregard the statement and await an official announcement on pricing from the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by President Bola Ahmed Tinubu.
The denial is coming amid speculations of a higher price for petrol from the Dangote refinery, with marketers warning of difficulties in purchasing the commodity without government intervention.
Chejina said, “Our attention has been drawn to a statement attributed to NNPCL spokesperson, Mr. Olufemi Soneye, that we sell our PMS at N898 per litre to the NNPCL.
“This statement is both misleading and mischievous, deliberately aimed at undermining the milestone achievement recorded today, September 15, 2024, towards addressing energy insufficiency and insecurity, which has bedeviled the economy in the past 50 years.
“We urge Nigerians to disregard this malicious statement and await a formal announcement on the pricing, by the Technical Sub-Committee on Naira-based crude sales to local refineries, appointed by His Excellency, President Bola Ahmed Tinubu
The Nigerian National Petroleum Company Limited (NNPCL) has claimed that it is buying petrol from the Dangote Refinery at N898 per litre, signaling the start of operations at Africa’s largest oil refinery.
The first batch of petrol loading commenced on Sunday, with NNPCL trucks seen at the refinery in Ibeju-Lekki, Lagos.
This move follows a recent announcement by the Presidential Committee on the Sale of Crude Oil and Refined Products, outlining agreements for crude oil supply and refined product distribution in Naira.
The trucks, belonging to the Nigerian National Petroleum Corporation Limited, were seen in videos posted on the X handle of the Dangote Group.
“First set of trucks set for loading of PMS at the Dangote Petroleum Refinery,” the post read.
On Saturday, the NNPCL stated that hundreds of trucks would be deployed to the refinery today (Sunday) for PMS loading.
The NNPC stated, “In preparation for the Dangote Refinery’s scheduled petrol loading on Sunday, 15th September 2024, NNPC Ltd has been mobilising trucks to the refinery’s fuel loading gantry in Ibeju-Lekki. As of Saturday afternoon, NNPC Ltd had deployed over 100 trucks, with hundreds more en route.”
He said, “We successfully loaded PMS at the Dangote Refinery today.
“The claim that we purchased it at N760 per litre is incorrect.
“For this initial loading, the price from the refinery was N898 per litre.”
This comes two days after the Presidential Committee on the Sale of crude oil and Refined Product announced that loading of the first batch of petrol from the Dangote Refinery will commence on September 15.
A member of the committee and Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja on Friday.
Briefing journalists, the FIRS boss said that from October 1, the Nigerian National Petroleum Company Limited (NNPCL) will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.
“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September,” Adedeji stated.
He explained that Dangote Refinery will in return supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.
Other deliberations reached by the committee include the sale of Diesel in Naira by the Dangote Refinery to any interested off-taker while PMS will only be sold to NNPC.
“From 1 October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.
“In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.
“Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now. All associated regulatory costs will also be paid for in Naira.”
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