VenturesNow

After decades of imports, Nigeria ends oil importation

Published

1 month ago

November 13, 2024

The Nigerian National Petroleum Company Limited (NNPC) has declared that it has finally stopped the long-standing practice of importing petroleum products after decades of doing so.

Nigeria’s national oil corporation stated that it now purchased from the 650,000 barrels per day Dangote Petroleum Refinery in Lagos, which is estimated to save the country up to $10 billion in hard currency each year.

This was revealed by Mr Mele Kyari, Group Chief Executive Officer of NNPC, in Lagos during his keynote address at the 42nd annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).

The statement coincided with the Independent Petroleum Marketers Association of Nigeria (IPMAN) announcing another positive development: the organisation had agreed to purchase goods directly from the $20 billion Dangote facility.

The oil dealers had fiercely protested the prior arrangement, which called for independent marketers to purchase from the NNPC rather than the Dangote Refinery.

However, Kyari also stated that all of the nation’s oil producers are required to send crude to the four NNPC refineries upon their return to the grid, citing the Domestic Crude Oil Obligation (DCOO) as outlined in the Petroleum Industry Act (PIA) 2021 as support.

He denied rumours that local refineries were being harmed by the national oil company’s refusal to supply them with crude oil.

As a proud co-owner of the Dangote Refinery, Kyari described NNPC as having recognised an opportunity in the $20 billion refinery as a clear market for at least 300,000 barrels per day of production, which would allow it to avoid being caught in the rapidly contracting crude oil market.

“Oil is found in very many unexpected locations across the world and people have choices. And therefore, we saw an opportunity to now supply to not just Dangote, but every refinery that operates in the country. So, it’s a well-informed business decision. Therefore, from day one, we knew that it was to our benefit to supply crude oil to domestic refineries.

“So, we don’t need to be persuaded. We don’t need anyone to talk to us. There is no need for any pressure from the streets for us to do this. We are already doing this”, Kyari stated.

Nigeria saw a decrease in petrol imports according to the National Bureau of Statistics, after President Bola Tinubu eliminated the gasoline subsidy in May 2023. Additionally, the report revealed that petroleum imports decreased by 13.77 percent year over year to 20.30 billion litres in 2023 from 23.54 billion litres in 2022.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

13 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.”