FG gives ten companies 25-year gas distribution licenses
The Federal Government has issued 25-year gas distribution licenses to 10 companies, marking a major step in expanding Nigeria’s gas infrastructure. The licenses, awarded by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), cover franchise areas in Lagos, Ibadan, Port Harcourt, and Benin. The issuance ceremony, held in Abuja, was overseen by the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo. He explained that the initiative aligns with the government’s efforts to improve gas accessibility and support the country’s energy transition. According to Hon. Ekpo, the licences grant the companies the rights to construct and operate gas distribution systems in designated zones, ensuring efficient gas supply to industries and households. READ ALSO: Institute of town planners condemn harassment of FCDA staff The beneficiaries include major players such as NNPC, Shell, Axxela, NIPCO, Falcon, and Central Horizon Gas Company. NMDPRA’s Chief Executive, Engr. Farouk Ahmed, stated that the licences will enable the distribution of over 1.5 billion cubic feet of gas daily through a 1,200km pipeline network and 500 customer stations. He added that this development would create investment opportunities, boost domestic gas markets, and enhance economic growth. In a bid to support this expansion, NNPC Limited and its partners announced plans to invest $500 million in five Liquefied Natural Gas (LNG) plants in Ajaokuta, Kogi State. Ogunleye Olalekan, Executive Vice President of Gas and Power for NNPC, promised license holders a steady supply of gas throughout the franchise territories. The Federal Government called on stakeholders and investors to collaborate in advancing Nigeria’s gas infrastructure, with a focus on job creation, investment attraction, and a sustainable energy future.
Avoid Panic Buying: There is sufficient Fuel – IPMAN
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reassured citizens that the country has an adequate supply of petrol and urged them to avoid panic buying. In a move aimed at reducing transportation costs during the festive season, Dangote Petroleum Refinery recently lowered the price of Premium Motor Spirit (PMS) to N899.50 per litre. READ ALSO: The Dangers of Ethnicising Shettima-Badenich Clash This development is expected to bring relief to Nigerians and foster healthy market competition. IPMAN also encouraged its members to adjust their pump prices to align with the new rates, noting that this will attract more customers and eliminate queues at filling stations. . Many marketers have already begun implementing the price change, reflecting a shift towards smoother fuel availability nationwide. This follows an earlier reduction in November, when Dangote Refinery lowered the price of petrol to N970 per litre.
NNPCL Reduces Petrol Price to N965 per Litre in Abuja
The Nigerian National Petroleum Company Limited (NNPCL) has implemented another reduction in the pump price of petrol at its retail outlets in Abuja, lowering the cost to N965 per litre. This adjustment comes shortly after a previous decrease from N1,060 to N1,030 per litre earlier this month. This marks the second time in two weeks that the state-owned oil company has revised petrol prices downward, signaling efforts to make fuel more affordable for consumers amid ongoing economic challenges. ALSO READ: FG Declares 3 Days of Christmas Holidays The new price was observed across NNPC’s outlets in the Federal Capital Territory, and customers have already begun to enjoy the reduced rate. Dangote Refinery Ltd led the price cut when it partnered MRS filling stations nationwide, December 21, 2024 to offer fuel at N935/litre as part of Christmas give away. Many residents have expressed relief at the development, as fuel costs have been a significant concern for households and businesses alike. While no official explanation has been provided for the price adjustment, it is speculated that recent changes in market dynamics and competitive pricing strategies could have influenced the decision.
Dangote Refinery Clears Air On NNPC’s $1 Billion Stake
Dangote Refinery has clarified that the $1 billion loan secured by the Nigerian National Petroleum Company Limited (NNPC Ltd) was not used to resolve liquidity issues, but was an investment to acquire a 7.24% share in the refinery. This response follows claims by NNPC’s Olufemi Soneye, who suggested the loan helped overcome financial difficulties for the refinery. According to Dangote Refinery, the $1 billion represents only about 5% of the total investment in the project, and the partnership was structured around the sale of a 20% stake for $2.76 billion, with favorable payment terms. READ ALSO: FG Monitors Ekpa’s Trial in Finland The refinery further explained that NNPC’s equity share was reduced due to its inability to fulfill a crude oil supply agreement. As a result, NNPC’s stake was adjusted to 7.24% after missing a payment deadline in June 2024. The refinery emphasized that the investment was aimed at acquiring ownership, benefiting both parties, and not as a response to liquidity challenges.
PETROAN, Dangote Join Forces to Secure Holiday Fuel Supply
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has teamed up with Dangote Refinery to guarantee a stable supply of petrol during the festive season and afterward. At a meeting at the Dangote Refinery complex in Lagos, PETROAN leaders finalized plans to prevent fuel shortages across the country. This collaboration includes monthly fuel allocations for PETROAN members, flexible payment terms, and competitive pricing, aimed at making petrol available and affordable for Nigerians. READ ALSO: Farotimi Will Be Free If He Can Prove His Allegations – Afe Babalola’s lawyers PETROAN assured citizens that measures have been implemented to avert fuel scarcity, thanks to joint efforts with Dangote Refinery and the resumed operations of the Port Harcourt refinery. The association also urged Nigerians to refrain from panic buying, emphasizing that hoarding petrol at home is unsafe. All PETROAN outlets nationwide are on standby to maintain uninterrupted service, reinforcing the association’s commitment to ensuring smooth fuel distribution throughout the holiday season and beyond.
PH Refinery: Tinubu Celebrates Restart, Urges Action on Others
The jinx has been broken, President Bola Tinubu congratulates the Nigeria National Petroleum Company Limited (NNPCL) for restarting the old Port Harcourt refinery, 28 years after the nation’s refineries topped production. As of today, November 26, 2024, the loading of refined petroleum products from the facility shall commence. This achievement follows the efforts of former President Muhammadu Buhari, who initiated the refinery’s overhaul, and was supported by the African Export-Import Bank’s financing. The President also commended NNPCL’s Group Chief Executive Officer, Mele Kyari, for his leadership in overcoming obstacles during the process. He called on NNPCL to quickly focus on reviving the Warri and Kaduna refineries, alongside the second Port Harcourt plant, to boost domestic production and strengthen Nigeria’s position as an energy hub. READ ALSO: This move, along with private sector involvement, is expected to enhance the country’s refining capacity. President Tinubu reaffirmed his commitment to restoring Nigeria’s refineries, aiming to address the longstanding issue of the country’s reliance on imported refined products despite being a major oil producer. He also emphasized the importance of integrity, accountability, and focus in the execution of national projects, aligning with his administration’s Renewed Hope Agenda for economic prosperity and energy security. The old Port Harcourt refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years.
Finally, Port-Harcourt Refinery Resumes Production
The Port Harcourt Refinery has resumed operations, with crude oil now being processed at 60% of its full capacity. This long-anticipated breakthrough is a major development in Nigeria’s oil and gas sector, addressing years of dependency on fuel imports. Managed by the Nigeria National Petroleum Company Limited (NNPCL), the refinery faced multiple setbacks earlier in the year, with scheduled operational dates in March, August, and September failing to materialize. The successful start of operations marks a fresh chapter for the facility, which has long been seen as a cornerstone of Nigeria’s energy framework. Beyond its immediate impact on oil refining, the refinery’s reopening is expected to contribute significantly to economic growth by reducing fuel import costs, stabilizing supply chains, and fostering industrial development. ALSO READ: Singer, Yemi Alade, Excited as She Makes Nnollywood Debut The NNPCL’s leadership has been credited with ensuring this project reaches fruition, with a focus on delivering long-term benefits to the country. This development positions Nigeria closer to achieving greater energy autonomy and economic sustainability, leveraging its abundant crude oil reserves to meet domestic demands.
VAT, vassal states and restructuring (2)
“Almost two years since his hare-brained twin policies, market forces are yet to fully determine the prices of petroleum products and the price of the Naira… The irony right now is that there are claims that the country is turning the corner, and that good days are on the horizon. Tinubu says so.” THERE are too many things wrong with the regime of Nigeria’s president, Alhaji Bola Ahmed Tinubu. For 18 months since the advent of the administration, it has been a case of stumbling from one problem to the other. The tragedy is that almost all the challenges that this regime has been grappling with were self-inflicted. It started off with an ill-conceived petrol subsidy removal, and it followed that almost immediately with allowing the national currency, the Naira, to be floated. Both policies turned out to be disastrous because the so-called petrol subsidy payment persisted in an opaque manner, and subsidizing the Naira did abate. Recently, the state oil corporation, the Nigerian National Petroleum Company Limited (NNPCL) insisted that it will continue to import petroleum products in spite of the existence of a domestic producer, Dangote Refinery and Petrochemical Company, Lagos, which said that it has the capacity to satisfy domestic consumption for petroleum products. Dangote’s 650,000 barrels of crude oil per day production should on full stream produce 50 million litres of petrol and 15 million litres of diesel per day. READ ALSO: THREE TRAGICALLY KILLED AFTER GOOGLE MAPS DIRECT CAR ONTO UNFINNISHED BRIDGE Experts estimate that petrol consumption in Nigeria should not exceed 35 million litres per day. But corruption puts it much higher, sometimes for as high as 70 million litres per day. This outrageous figure is not strange because Nigeria is widely acknowledged as a crime scene – a country hurting in the hands of its supposed care-givers. Private importers who work at the behest of collaborators inside the government have been known to ‘import’ shiploads of petroleum products without the ships being sited anywhere near the country’s territorial waters, not to talk of discharging any products. But such ‘importers’ file claims with excellent shipping documents, and collect hundreds of millions of dollars from the public treasury. NNPCL does the same. Then a cartel hijacks the little litres of petrol that were in truth brought in, ferrying such to neighbouring countries in 33000-litre trucks and in broad daylight where they make a kill. Nigeria has clearly delineated borders with its neighbours. We have all manner of tax-payer paid government officials at those borders. But the trade booms. Currently, an investigative reporter has been reporting on the daily massive smuggling of 50kg bags of rice into the country with the active involvement of immigration top shots. He has been doing so with video evidence. Last week the journalist reported that the leader of the smugglers was accorded a red carpet reception at the Abuja headquarters of the Nigeria Immigration Service. His reports have not been disputed and nothing has happened to the economic saboteurs. Back to the issue at hand. Alhaji Tinubu takes responsibility for his misadventures on petrol and Naira. Almost two years since his hare-brained twin policies, market forces are yet to fully determine the prices of petroleum products and the price of the Naira. Whilst the NNPCL moderates the prices of petroleum products especially petrol by importing and fixing different pump head prices for different parts of the country, the Central Bank defends the Naira through regular sales of the United States dollars to the bureaux de change, and through the aggressive mopping up of Naira in circulation. The policies are obviously not working. The price of petrol at over N1000/litre is not sustainable. It has ruined the economy and will inflict more damage with the regime’s insistence that it will stay the course. Nigerian families are worse off. Bloomberg, an American news organization reported last week that about two -third of Nigerian households can barely manage to feed once a day. And the quality of the meal is suspect. Their report was drawn from the latest statistics from the Nigeria’s National Bureau of Statistics (NBS). PLEASE READ: NIGERIA, THREE OTHER COUNTRIES GO LIVE ON ECOWAS E-Certificate The irony right now is that there are claims that the country is turning the corner, and that good days are on the horizon. Tinubu says so. The central bank governor says the same. Finance minister who is also the coordinating minister for the economy sees the same signs of economic recovery. Even the national security adviser, yes the NSA, who should have his hands full with widespread insecurity pervading the land, parrots the same message of visible economic turn around. But they are the only people who see economic recovery on the horizon. And they all share one thing in common – they all binge on the public treasury. I wager that none of them had been to a gas station to buy either petrol for the government SUVs (armour- plated and bomb-resistant brands) that they are driven in or to purchase diesel to fire government – owned electricity generators in their residences which also are built and tastefully furnished with taxpayers money. It is not strange, therefore, that they are separated from reality and the daily grind of the majority of Nigerians. The case of the NSA is particularly painful and pathetic. Daily, he joins the security agencies including the secret police otherwise called the Directorate of State Services (DSS), the regular Police, the Civil Defence Corps, the Armed Forces, among others, to run political commentaries on the state of the country. In place of combating insecurity, what the NSA does is to warn non-state agents terrorizing Nigeria to know that Tinubu is not known to lose any battle. Is he for real? The man cannot be, and should not be, a national security adviser even in a banana republic. What our rulers are doing is beyond talking up the economy, they are deliberately deceiving Nigerians. Any sign of economic recovery must
Dangote Refinery Eases Petrol Pump Price
Nigerians may soon heave a heavy sigh of relief as Dangote Petroleum Refinery announced a cut in petrol pump price from N990 per litre to N970 per litre for marketers. The company stated that this price cut is a gesture of appreciation to Nigerians for their continued support in making the refinery a reality. As the year draws to a close, Dangote Refinery also expressed its gratitude to the Nigerian government for its unwavering support, highlighting that the reduction aligns with efforts to strengthen domestic industries for the benefit of all. In its statement, Anthony Chiejina, Group Chief Branding and Communications Officer, emphasized that while the refinery is committed to reducing costs, it will not compromise on the quality of its products. The refinery assures the public of high-quality, environmentally friendly, and sustainable fuel. Looking ahead, Dangote Refinery is focused on increasing production capacity to meet and exceed the nation’s fuel demands, ensuring stability and security in the domestic fuel supply chain. In the Nigerian economy that is heavily challenged by deficit in transportation infrastructure, especially the near absence of reliable mass transport system, this marginal cut is expected to have a cascading effect on inflationary trend and the price of ancillary services.
No plan to remove Kyari – NNPCL
Contrary to speculations coming from usually informed quarters, the Nigerian National Petroleum Company Limited says there is no plan to remove its Group Chief Executive Officer of the company, Mele Kyari. The spokesperson of the NNPC, Olufemi Soneye, stated this in a chat with a media organisation yesterday in Abuja. Following the major shakeup in the company on Wednesday, an international newspaper reported that Kyari might be compelled to vacate his office before the end of the year. “As the Nigerian National Petroleum Company undergoes a leadership overhaul, the group CEO Mele Kyari may be forced out before year-end. “Insiders tell The Africa Report that more changes will follow in the coming weeks, culminating in the removal of Kyari as CEO,” the newspaper said. A source was quoted to have said, “Kyari has been in the danger zone for some time. He has told confidantes of his readiness to leave. He will likely leave in the next couple of weeks.” However, in an interview with Punch, Soneye described the report as a baseless speculation, wondering if the newspaper were Kyari’s employer. “One might wonder if they were the ones who hired Mele Kyari, given their apparent insight into his career plans. Such baseless speculation is not only laughable but also a testament to the lengths some will go to craft immature narratives,” Soneye said. Setting the record straight, Soneye explained that Kyari is performing exceptionally well in steering the energy sector towards success. According to him, the NNPC under his watch had transitioned from losses to profit declaration. He stated that the NNPC just reached a production milestone of 1.8 million barrels per day, saying this was a testimony to Kyari’s efforts as the GCEO. “Let’s set the record straight: GCEO Mele Kyari is performing exceptionally, steering Nigeria’s energy sector toward unprecedented success. Under his leadership, the Nigerian National Petroleum Company Limited has transitioned from years of losses to declaring profits—a historic achievement. Just yesterday (Thursday), we reached a production milestone of 1.8 million barrels per day, a testament to his unwavering commitment,” he stressed. The spokesman emphasised that Kyari is focused on actualising President Bola Tinubu’s vision for progress in the energy sector. “Mr Kyari remains focused on actualizing President Bola Ahmed Tinubu’s vision for progress and development in the sector, ensuring energy security for our nation. So, to address the rumour: it’s as credible as a mirage in the desert,” he added.