VenturesNow

Nigerian stakeholders disagree on impact of local refining on petrol price

Published

1 year ago

September 10, 2023

Following conflicting arguments on the likely effect of local refining on the price of petroleum products in Nigeria, major oil marketers in the country have reiterated that likely reduction in prices will be minimal even if the refineries were revamped.

The position by the body, Major Oil Marketers Association of Nigeria (MOMAN), counters reports credited to another group in the sector, the Independent Petroleum Marketers Association of Nigeria (IPMAN), which had claimed that petrol price would crash to as low as N200 if crude oil were refined locally.

Joseph Obele, the chairman of the Rivers State chapter of IPMAN had claimed in an interview that “until our nation-owned refineries are functional, fuel prices will keep increasing due to international variables. But when our refineries are functional, Nigerians will buy fuel less than N200 per litre”.

Chief Executive Officer and former MOMAN chairman, Tunji Oyebanji, in another seperate interview on Saturday, agreed that the dollar’s exchange rate had an impact on gas prices.

He added that there had been an upward trend in crude oil prices on the global market as a result of strong demand and production curbs by the Organisation of Petroleum Exporting Countries (OPEC).

“Don’t you think the exchange rate of the dollar and naira is not affecting the price of petroleum products? Nigerians need to understand that the problem is actually the exchange rate, not the price of petrol.”

He noted that reports that petrol price would drop to N200 per litre were misleading.

Although Nigeria is one of the world’s top oil producers, it does not refine crude oil domestically. The state-owned Nigerian National Petroleum Corporation (NNPC) operates four refineries: two in Port Harcourt (PHRC), one each in Kaduna (KRPC), and Warri (WRPC). Despite several efforts to revive the refineries, none of them has been operating at full capacity for years.

The minister of Petroleum, Heineken Lokpobiri, last month, stated that the “Port Harcourt refinery will come on board by the end of the year,” while two other facilities in Warri and Kaduna would start processing crude between the first quarter and end of 2024.

Click to comment

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

16 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.