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Nigeria: Dangote Refinery, govt panel agree on September fuel rollout

Published

4 months ago

August 20, 2024

A deal has been struck between the Nigerian government’s committee set up to oversee the implementation of crude oil sales to local refineries in naira and the Dangote Petroleum Refinery on the September rollout of Premium Motor Spirit, also known as petrol. Additionally, the Federal Government revealed that starting on October 1, 2024, crude oil would be sold to Dangote Refinery and other local refineries.

This was disclosed on Monday in Abuja during a meeting with the Implementation Committee by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.

A message on the finance ministry’s official X (formerly Twitter) page stated that the purpose of the gathering was to assess the status of important projects.

To ensure a seamless implementation, important roles for stakeholders were outlined at the conference. These included the African Export-Import Bank, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission, and Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The post read, “The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today led the Implementation Committee meeting on the transition to crude oil sales in naira.

“The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024.”

Also, the Chairman of the Technical Sub-Committee and Dr Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service, noted that “The first PMS delivery from Dangote is expected next month under existing agreements.”

Additionally, it said that updates on the Port Harcourt and Dangote refineries were given, and that beginning in November 2024, considerable production increases were anticipated.

To ensure that the President’s directives are being carried out as planned starting in September, the minister highlighted the need for transparency and gave the Technical Sub-Committee instructions to finalise specifics and prepare a report.

Remember that on July 29, the Federal Executive Council approved President Tinubu’s request that NNPC stop selling crude oil to regional refineries in foreign currencies.

The Federal Executive Council gave its approval to provide Nigerian refineries, starting with the Dangote refinery, 450,000 barrels intended for domestic use in exchange for Naira.

The action is intended to maintain stability in both the dollar-to-naira exchange rate and the refined gasoline pump price. According to research, Dangote Refinery currently needs fifteen cargoes of crude oil each year.

Related Topics:DANGOTE REFINERY Featured Nigeria

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IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

9 hours ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

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Libya’s eastern govt accepts petrol subsidy elimination

Published

9 hours ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.