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Subsidy removal saved Nigeria’s state oil firm, NNPCL from bankruptcy—CEO, Kyari

Published

1 year ago

October 10, 2023

Nigerian state oil firm, the Nigerian National Petroleum Company Limited (NNPCL) has claimed that it would have gone bankrupt in June this year if President Bola Tinubu had not halted subsidy on Premium Motor Spirit, popularly called petrol, in May.

President Tinubu had, during his inauguration speech on May 29, infamously declared “subsidy is gone” to usher in a regime that caused over 300% hike in the price of petrol, and a knock-on effect on the cost of living.

NNPCL also announced that Nigeria would become a net exporter of refined petroleum products by next year, going by efforts to revamp its refineries.

Shortly before the subsidy removal was announced in the same May, Nigeria launched the 650,000 BPD integrated private refinery, which, according to Godwin Emefiele, the governor of the central bank at the time, is anticipated to produce 12,000 megawatts of electricity, over 135,000 permanent jobs, and help the nation save $25 billion and $30 billion in foreign currency annually. However. the expectations have yet to materialise because the refinery owned by Africa’s richest man, Aliko Dangote, is yet to commence operations.

The Nigerian government also denied that it had reintroduced subsidy on petrol following reports by sections of the media last week. The rebuttal comes amid the closure of many filling stations nationwide due to various challenges in the downstream oil sector.

Following a meeting with the President at the Aso Rock villa, Mele Kyari, the Group Chief Executive Officer of NNPCL, informed State House Correspondents that the petrol subsidy had not been reinstated.

“No subsidy whatsoever. We are recovering our full cost from the products that we import. We sell to the market, and we understand why the marketers are unable to import. We hope that they do it very quickly and these are some of the interventions the government is doing. There is no subsidy,” he stated.

Kyari’s claim was made just 48 hours after the Nigerian Petroleum and Natural Gas Senior Staff Association announced the reinstatement of fuel subsidy.

One significant expense that influences the cost of the finished products is the requirement to export petroleum products for refining. Concerns about whether the pump price could remain the same have been raised by major oil marketers after the Naira declined against the dollar on the black market to between N950 and N1,000.

Related Topics:#NNPC Featured Fuel subsidy Nigeria

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Moroccan annual inflation rises to 0.8% in November

Published

17 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”