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FG to make forex available to oil marketers for import to drive down petrol price

The Federal Government has announced plans to make the foreign exchange available to petroleum product marketers.

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FG to make forex available to oil marketers for import to drive down petrol price

The Federal Government has announced plans to make the foreign exchange available to petroleum product marketers, in order to make the importation of petrol into the country competitive, reduce the rising cost of the product, and stop the overdependence on the Nigerian National Petroleum Corporation (NNPC) for its importation.

According to a report from Punch, this disclosure was made by the National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okonkwo, during a chat with newsmen on Monday, November 17, 2020, after the oil marketers had met with officials of the Federal Ministry of Finance last week on the need to make the foreign exchange available for petrol imports.

READ: How FG makes N1 trillion from reforms, anti-graft operations

The scarcity of foreign exchange due to low dollar inflow into the country has been a major factor affecting the importation of petrol by oil marketers.

The availability of forex to oil marketers would stop the current monopoly in the importation of petrol by NNPC, who has been the major importer of petrol over the years with other players in the downstream oil business buying the product from them.

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The IPMAN President said, “Last week we got some assurance from the Ministry of Finance on how to help us access the dollar at the same rate with NNPC because the market is now open.

“Now if we get that, we have got people who are ready to bring in this product, but their challenge is how they can get the dollar. So, if by the time we finish with government and sort this out, a lot of marketers are ready to bring in products.”

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Going further, Okonkwo said, “I know that by the time that happens, it will create healthy competition, where if we can’t get the product from the Singaporean market, we will get from Russia or Europe. It will no more be a one-man show like it is right now.”

He said that the support for other oil marketers to get fully involved in the importation of the products is one of the strategies employed by the government to bring down the price of petrol.

What you should know

Nairametrics had last week, reported the increased in the ex-depot price of petrol from N147 per litre to N155.17 per litre by NNPC. This gave rise to a lot of public outcry and condemnation, as the move led to an increase in the retail pump price at the filling stations to between N168 and N170 per litre.

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The availability of foreign exchange to petroleum product marketers will help drive competition in the downstream sector of the oil industry and ultimately drive down the cost of petrol in the country, as there will be more products available.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Energy

Transmission company of Nigeria gives reason for nationwide blackout

Following the current nationwide blackout, TCN has stated that it has started the process of restoration to the national grid.

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The Transmission Company of Nigeria (TCN) has on Sunday announced that the current power blackout in the country was due to multiple trippings.

According to a report by Vanguard, General Manager, Public Affairs, TCN, Ndidi Mbah, who made the announcement through a statement said the company had started the process of restoration to the national grid.

Mbah pointed out that the places that power is yet to be restored were Calabar, Makurdi, Jos, Gombe, Yola, Ugwuaji and Maiduguri axis.

She stated, “The Transmission Company of Nigeria (TCN) regrets to inform electricity consumers nationwide that at 11:25 am today, the nation’s electricity grid experienced multiple trippings, which led to the collapse of the system.’’

“TCN has since commenced grid restoration; power has been successfully restored to every part of the country, except Calabar, Ugwuaji, Markurdi, Jos, Gombe, Yola, and Maiduguri axes. The effort is however ongoing to ensure full restoration nationwide.”

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“We regret the inconvenience this has caused electricity consumers. Investigations would be conducted to establish the immediate and remote cause(s) of the multiple trippings as soon as the grid is fully restored, considering that the grid had been relatively stable in the last couple of months.”

What  you should know

At around 11:25 pm on Sunday, November 29, electricity supply to most parts of the country was disrupted as the national electricity grid experienced multiple trippings.

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Energy

FG to start the installation of 5 million solar power across the country next week

FG will next week commence the process of installation of 5 million solar-home systems in under-served and off-grid communities across the country.

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The Federal Government has announced that it will commence the process of the installation of 5 million solar-home systems in under-served and off-grid communities across the country from next week.

This move is in continuation of coordinated implementation of the Economic Sustainability Plan (ESP) which is being coordinated by a committee headed by Vice President Yemi Osinbajo, across the country.

READ: FG says 174,574 successfully register for N75 billion MSME survival fund in 48 hours

This disclosure is contained in a series of tweet posts by the Presidency on Sunday, November 28, 2020, through their official Twitter handle.

It stated that the programme will include the assembly and manufacturing of components of off-grid solutions to facilitate the growth of the local manufacturing industry, while there will be incentives for use of local content. The first set of installation will be done nationwide in December 2020.

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The tweet post from the Presidency stated, ‘’In continuation of a coordinated implementation of the Economic Sustainability Plan (ESP) across the country, the Buhari administration will next week commence the process of installation of 5 million solar-home systems in under-served and off-grid communities across the country.’’

According to the statement, the Central Bank of Nigeria will make available funds to the private companies in the solar power sector involved in the manufacture, assembling installation, servicing of the solar systems, at rates ranging between 5 to 10%.

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It also states that apart from providing access to affordable energy, the objective of the plan is to improve social, economic and environmental welfare of 25 million Nigerians while generating jobs, increasing revenues and import substitution.

READ: FG goes after AMCON’s N5trillion debtors, sets up task force on funds recovery

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What you should know

The NESP, which was approved by the Federal Executive Council on June 24, 2020 and developed by the Economic Sustainability Committee, chaired by Vice President Yemi Osibanjo, is to develop a plan that responds robustly and appropriately to the challenges posed by the Covid-19 pandemic amongst other terms of reference.

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A major part of the plan is the installation of solar home systems that targets 5 million households, serving about 25 million individual Nigerians who are currently not connected to the National Grid. The solar manufacturers will be required to set up production facilities in Nigeria and provide the materials required.

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READ: Covid-19: Nigerian government explains how it will fund proposed N2.3 trillion stimulus

 

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Energy

AutoGas: President Buhari to launch scheme on December 1

President Buhari will launch a National AutoGas Scheme on the 1st of December.

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President Muhammadu Buhari will launch a National AutoGas Scheme on the 1st of December, as Nigeria makes alternative moves to maximize its rich natural gas reserves as a means of fuel consumption.

This was disclosed by Dr Mohammed Ibrahim,  Chairman, National Gas Expansion Programme (NGEP), in a statement after a meeting with stakeholders on Saturday in Lagos.

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Dr. Ibrahim told stakeholders on Saturday that the autogas scheme and deepening domestic utilisation of Liquefied Petroleum Gas (LPG) would create about 12.5 million direct and indirect jobs for Nigerians.

He also added that the Presidential fleet has already converted some of it fuel engines to run on  Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG), adding that the adoption of AutoGas was necessitated by the deregulation of petrol by the government, which had led to increment in the pump prices in recent times.

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”We need about 500, 000 conversion engineers in the next 90 days to ensure that the retrofitting of the vehicles go as planned.

“Fifty conversion centres are currently upgrading for mass conversion and trainings and over 30,000 vehicles are already running on dual fuels in Nigeria.”

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“The 90 days training is being undertaken by the Nigerian Content Development Monitoring Board and the Petroleum Trust and Development Fund.

” These entrepreneurs will get their own foundries for manufacturing and will thereafter train others as time goes on,” he said.

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What you should know 

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Nairametrics reported in September that the Minister of State for Petroleum Resources, Timipre Sylva revealed that Nigerians can now convert cars using petrol to gas, which is cheaper, with effect from October 2020.

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The Department of Petroleum Resources also ordered 9,000 filling stations nationwide to begin the installation of facilities for gas products.

In October, the Federal Government estimated that the Compressed Natural Gas (CNG) will cost N97 per litre, as it had promised to provide alternatives to the Premium Motor Spirit (PMS), otherwise known as petrol, for poor Nigerians.

READ: DPR shuts down 85 gas plants in Lagos for illegal operations

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