VenturesNow

Why Nigeria’s NNPC remains sole importer of petrol

Published

1 year ago

October 9, 2023

Despite the open market policy of the Nigerian government on petrol importation, the country’s national oil firm, NNPC Ltd has again become the sole importer of petrol.

This is because licensed local private firms are unable to obtain foreign currency.

NNPC chief executive confirmed the development on Monday, four months after imports were opened up to private players.

In order to wean the nation off of long-standing fuel subsidies, President Bola Tinubu implemented measures that included opening up petrol imports to the private sector. Some petrol businesses started importing in July, but Mele Kyari stated at an energy conference that they were now having difficulty obtaining dollars to import premium motor spirit, or petrol (PMS).

“We are the only company importing PMS into the country,” he said.

“None of them (fuel companies) can do it today. For them, access to foreign exchange is difficult. We create FX, therefore we have access to FX and their access to FX is limited.”

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.

Nigeria, a West African nation, is one of the world’s top oil producers, yet 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 one in Warri (WRPC). Despite several efforts to restart the refineries, none of them has been operating at full capacity for years.

One significant expense that influences the cost of the finished products is the requirement to export petroleum products for refining. In May, the nation 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.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

23 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.

VenturesNow

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.”