Connect with us

Finance

Nigeria Implements Direct Purchase Model for Premium Motor Spirit

Published

on

In a significant shift towards a deregulated petroleum market, the Federal Government of Nigeria has announced that petroleum product marketers can now directly purchase Premium Motor Spirit (PMS) from local refineries. This development, revealed by the Minister of Finance, Mr. Wale Edun, marks a major change in how fuel is distributed across the country

The announcement follows a directive from the Federal Executive Council (FEC) and is part of the new Naira-based sales mechanism aimed at improving the efficiency of the petroleum supply chain.
Previously, the Nigerian National Petroleum Corporation Limited (NNPCL) was the sole distributor, which limited competition and flexibility in the market.

During a recent review meeting of the Implementation Committee on the Sales of Crude Oil and Refined Products, Minister Edun stated that the direct purchasing model would empower marketers to negotiate terms directly with refineries, fostering a more competitive environment.
The director of information and public relations, Muhammed Manga in a statement said the change is expected to enhance product availability and stabilize market conditions, benefiting consumers across Nigeria.

“With the commencement of local production of PMS, we are better positioned to support these direct transactions,” Edun said.
He also reassured stakeholders that the government is committed to providing clarity and facilitating a seamless transition to this new model.

The initiative is anticipated to lead to growth and development, positioning the country for a more robust energy sector As Nigeria aims to streamline its petroleum industry the statement indicated
Explaining further the statement said the government plans to continue engaging with stakeholders to address any concerns as the new purchasing system takes effect.

The Federal Ministry of Finance through the statement encouraged all participants in the petroleum sector to prepare for the significant transition, which is poised to reshape the industry landscape in Nigeria.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Finance

FG Secures $2.2 Billion Eurobond Amid Surging Investor Demand

Published

on

By

Olayemi Cardoso, Wake Edun

The Federal Government has successfully raised $2.2 billion through a dual-tranche Eurobond issuance, underscoring renewed investor confidence in the country’s economic reforms. The bonds, maturing in 2031 and 2034, attracted peak orderbook subscriptions exceeding $9.0 billion, signaling robust global interest despite challenging market conditions.

The 6.5-year bond secured $700 million at a coupon rate of 9.625%, while the 10-year bond raised $1.5 billion at a coupon rate of 10.375%.
Investors from Europe, North America, Asia, the Middle East, and Nigeria participated, with demand coming from fund managers, pension funds, hedge funds, and banks.

“This successful issuance reflects the growing confidence in President Bola Tinubu’s administration and its commitment to stabilizing the Nigerian economy,” said Olawale Edun, Minister of Finance and Coordinating Minister of the Economy.

Central Bank Governor Olayemi Cardoso echoed this sentiment, emphasizing the country’s improved liquidity and continued access to international capital markets. Proceeds from the issuance will be used to finance Nigeria’s 2024 fiscal deficit and other budgetary priorities.

Nigeria’s Debt Management Office (DMO) Director-General Patience Oniha highlighted the strong investor appetite, noting that the bonds were priced competitively, reflecting confidence in Nigeria’s credit resilience.
The bonds will trade on the London Stock Exchange, FMDQ Securities Exchange, and Nigerian Exchange.

This successful Eurobond issuance marks a milestone in Nigeria’s efforts to diversify its funding sources and drive sustainable economic growth.

Continue Reading

Finance

Nigeria: Africa’s Investment Powerhouse, Poised for Global Partnerships

Published

on

By

In a decisive move to showcase Nigeria’s economic potential, the Federal Government has reaffirmed the nation’s position as Africa’s leading investment hub during the France-Nigeria Business Forum held in Paris.

This strategic declaration is to position Nigeria at the forefront of Africa’s investment landscape, leveraging its vast opportunities and dynamic market.

Addressing an esteemed gathering of French and Nigerian business leaders, policymakers, and investors, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized Nigeria’s unique advantages.
Director of Information and Public Relations, Mohammed Manga in a statement quoted Edun to have highlighted the nation’s large population and abundant investment prospects as key drivers of its prominence in Africa.

The Minister identified priority sectors ripe for investment to include, Agriculture. Renewable Energy, Technology and Creative Industries

He also underscored government initiatives designed to attract investors, such as tax holidays, duty waivers, and the development of Special Economic Zones (SEZs).

Mr. Edun reaffirmed Nigeria’s commitment to enhancing regulatory frameworks to create a conducive environment for both foreign and local investments.

As Nigeria continued to demonstrate its readiness to attract global capital and forge strategic partnerships, the France-Nigeria Business Forum has served as a vital platform for deepening economic ties between the two nations.

With its abundant natural resources, expansive market, and entrepreneurial spirit, Nigeria is well-positioned to become Africa’s premier investment destination.

Continue Reading

Finance

FG Unveils Bold Plan to Empower MSMEs, Tackle Unemployment with Loan Scheme

Published

on

By

Wale Edun

In a renewed push for economic growth and job creation, the Federal Government has pledged unwavering support to Micro, Small, and Medium Enterprises (MSMEs) through the FGN Loan Scheme.
The initiative, aimed at integrating the informal sector into the mainstream economy, seeks to accelerate development and reduce unemployment across the nation.

Speaking at the Media Activation/Townhall Meeting held in Lagos, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, underscored the vital role of MSMEs as the backbone of Nigeria’s economy.
Represented by Alhaji Ahmed Gazali, Director of the Youth Enterprise with Innovation in Nigeria (You-WIN), Edun acknowledged the challenges faced by small businesses, including limited access to capital, skill shortages, and inadequate power supply.
Director of Information and Public Relations, Mohammed Manga in a statement quoted the Minister to have outlined key interventions by the Bola Ahmed Tinubu-led administration, to include Presidential Conditional Grant Scheme that Provides single-digit loans to MSMEs, MSME Intervention Program that Delivers financial support to boost small enterprises, Casual Jobs Scheme that Creates employment in 10 SME clusters nationwide and the National Youth Unemployment Benefits Program that offers social welfare to the unemployed and self-employed.
“With the right support, MSMEs can thrive and significantly contribute to Nigeria’s economic growth and development,” Edun said, reaffirming the government’s commitment to sustainable development.

Efforts to enhance the ease of doing business were also highlighted, including the automation of the Import Duty Exemption Certificate (IDEC) process, harmonization of tax laws, and unification of exchange rate regimes.

The FGN Loan Scheme exemplifies the Federal Government’s dedication to empowering MSMEs, fostering innovation, and driving the nation toward a brighter economic future.

Continue Reading

Trending

Copyright © 2024 National Update