News
Cost of forex: Brace up, fuel price may hit N720 soon, N1,000 by December – dealers
Nigerians currently reeling under intense hardship, occasioned by hyper-inflation that has seen prices of food and other commodities skyrocketing, may be in for harder times as the price of Premium Motor Spirit (PMS), otherwise known as petrol, may further climb from the current N617 to as high as N720 per litre.
The strong indications, the third within 10 weeks, is as a result of the revelation by oil marketers, suggesting that the landing cost had risen month-on-month (MoM), by 37.4 per cent to N632.17 per litre in July 2023, from N460 per litre in June 2023.
Vanguard reports that the landing, which excludes other additional costs, such as deport related charges, transportation logistics and marketers’ margin, would combine to bring delivery at filling stations at nearly N700/litre, could push prices further in August due to worsening factors in the last weeks.
The culprits, according to them, included continued rise in foreign exchange and deteriorating exchange rate, which forced the Naira, Nigeria’s local currency to depreciate by about 6.5 per cent in the official market and 25 per cent in the parallel market since the last pump price raise, as well as the recent rises in price of crude oil in the international market.
The paper quoted a transactional analysis of a major operator, at the weekend as showing that marketers were paying N604.14 per litre as total direct cost, broken into product cost per liter at N578.46, freight (Lome-Lagos) at N10.37, port charges at N7.37, NMDPRA levy of N4.47, storage cost at N2.58, Marine insurance cost at N0.47, fendering cost at N0.36 and ”others” at N0.05 as well as a finance cost amounting to N28.04.
Specifically, the transactional analysis put the landing cost of 28,000 metric tons of imported petrol at over $25 million, including total product cost, total direct cost, total finance cost, capable of generating more than N22 billion as sales revenue, indicating a loss of over N1.6 billion.
As a result of this development, the marketers said it would be unprofitable to import at current pump price, while the government has not guaranteed a free float of pump prices.
Consequently, the Nigerian National Petroleum Company Limited, NNPCL, has remained the only importer aside the minor private importation recorded last month.
The situation appears worsening as Nigeria’s crude oil output is now declining threatening the capacity to import refined products.
In its August 2023 Monthly Oil Market Report, MOMR, obtained by Financial Vanguard, the Organisation of Petroleum Exporting Countries, OPEC, noted the dwindling output of many nations, adding that Nigeria’s oil production dropped on a year-on-year, YoY, basis by 6.5 per cent to 1.26 million barrels per day, bpd in July 2023, from 1.2 million bpd recorded in the corresponding period of 2022.
It also noted that on a month-on-month, MoM basis, the nation’s output dropped by 3.0 per cent to 1.26 million bpd in July 2023, from 1.3 million bpd in June 2023.
Commenting on the oil price situation in a telephone interview with Financial Vanguard, weekend, the National Operations Controller, Independent Petroleum Marketers Association of Nigeria, IPMAN, Mike Osatuyi, said: “It is good because the high crude oil prices mean additional revenue to the federal government. The revenue would likely be used to fund projects and programmes because the government is no more involved in the payment of fuel subsidy.”
He, however, added: “But Nigerians will have to pay more for fuel, which prices have been deregulated. The prices are currently high, but we are optimistic that the prices will fall as a result of competition in future.”
The Managing Director of a major operator, who pleaded anonymity, said the instability and volatility being experienced now in the downstream sector have discouraged, not only importation, but also massive investment expected of a deregulated market.
He urged President Bola Tinubu to intervene in the management of the nation’s foreign exchange in order to rescue deregulation and the nation’s downstream sector from confusion, stagnation and eventual collapse.
He stated: “We have gotten to a point where President Bola Tinubu’s intervention is inevitable. Even if we have the resources to import, we cannot be very sure at what price the product would be sold. So, it is better to hold on and see the way things would unfold in the coming months.”
The paper showed that the situation could worsen, putting pressure on local and international dealers to adjust prices as Argus, a United Kingdom-based market intelligence, stated: “Nigerian crude values have seen an upward trend over the past few weeks, which could be attributed to steady demand from Europe.”
In her email response to Vanguard inquiries, the Business Development Manager, West Africa, Funmi Bashorun, stated: “Indeed, high crude prices and continuous depreciation of the Naira pose as deterrents to the effectiveness of the deregulation and active participation by more marketers.
“However, as long as Nigeria still has to import gasoline, European oil traders will still look to cover that supply. The volumes, of course, may be less to Nigeria and more direct to other parts of West Africa because of less smuggling, but the prices will still be high.
“We at Argus encourage, as we have been, that importers look more into the pricing terms from their suppliers. For transparency in the supply chain, fairness and more; the pricing benchmark for gasoline should be Argus’ Eurobob.”
Chidi Odinkalu, Nigeria’s fiery lawyer, law teacher and former Chairman of the National Human Rights Commission (NHRC), is emphatic that President Bola Tinubu is pushing to perpetuate himself in office, beginning with gaming the electoral process in 2027.
Odinkalu, Professor of Practice in International Human Rights Law at the Fletcher School, told his host Naija Unfiltered, a popular Nigerian podcast programme, that he was as sure as death that the President would not exit office in 2031, if he succeeded with his current gambit to remain in power beyond next year.
Hear him: “Yes. But as I said, let me repeat myself. There’ll be a third term. President Tinubu has not done all of this just for another four years. There will be a third term. And anybody who is doing, ‘it is not our portion,’ is not reading the evidence.”
To achieve this aim, the activist, who was also emphatic that the National Assembly, would play a role, added: “The current National Assembly is anything but national or an assembly. And if it’s an assembly, it’s not a parliamentary one. Many people have called it a rubber stamp, but I think that is actually abusive of rubber stamps. I think this National Assembly is a disgrace.
Citing how bizarre and completely compliant the national legislature had become to Tinubu, the ex-NHRC’s boss, stated: “If you can change your national anthem in less than 24 hours with no public hearing, no public consultation, no public involvement, it tells you you don’t have a country because a national anthem is fundamental to the construction of a national identity.”
Also referring to the current move by the President to introduce state police, Odinkalu, wondered how the Nigerian Senate would introduce the bill to that effect and proceed towards the first and second readings, as well as committee stage and passage in less than two hours, questioning how that was possible in normal clime.
Hear him: “Once we finish our elections, we’re going to amend our Constitution, introduce a single six-year presidential term. The current incumbent will be elected until 2031. In 2031, what will happen? The question will be, will he be entitled to run on the six-year term or will he not?
“You will then get the best Senior Advocates in Nigeria telling you the law is not retrospective. That is why the administration is supporting the litigation over President Jonathan’s tenure—not because the Constitution is not clear, but because they will say there is precedent. There will be a third term, and I’m prepared to bet on it.”
“If we continue to pay ransom, we are encouraging these criminals to kidnap more people. The cycle will only continue unless we stop rewarding criminality,” were the words of Dauda Lawal, Governor of Zamfara State, with which he blamed those in the habit of paying ransoms as the major factor fuelling the current wave of kidnapping incidents across the country.
Lawal, on Thursday at the ARISE News/THISDAY Town Hall Conference on State Police and National Security in Abuja, told his audience how he flatly refused to pay a ₦300 million ransom demanded by kidnappers who abducted his brothers in 2019.
Reiterating his opposition to negotiating with bandits and renewed his support for the establishment of state police, Lawal, while recounting the incident, said: “My own brothers were kidnapped in 2019, and the kidnappers demanded about ₦300 million. I told them I was not going to pay a dime. If they wanted to kill them, they could go ahead.”
Stating that his brothers were eventually released without any ransom being paid, he argued that paying ransom usually emboldened criminal groups by providing financial incentives for further kidnappings.
He added: “My position on ransom payments remains unchanged. I will not negotiate, and I will not pay ransom to any criminal, no matter what happens.”
Endorsing the move for the establishment of state police, to enable governors have greater operational authority over security within their states, he regretted that the current constitutional arrangement left governors with responsibility for security without corresponding powers to direct security agencies.
His words: “In as much as I am called the chief security officer of the state, I do not have the command-and-control authority to direct the operations of the security agencies. I’m prepared to support the funding of state police if the proposed policing structure is established. I’m confident that decentralised policing will improve intelligence gathering, response time and the overall fight against insecurity.”
Exactly seven years, two months and four days after he forced Walter Onnoghen, the 16th Chief Justice of Nigeria (CJN) out of office, Danladi Umar, former Chairman of the Code of Conduct Tribunal (CCT), on Thursday, found himself in Kuje prison.
Justice Peter Kekemeke, of the High Court of the Federal Capital Territory (FCT), sitting in Maitama, handed the ex-CCT boss the unwelcome package on Thursday, following his arraignment by the Federal Government on a four-count corruption charge.
Umar’s ordeal began after an investigations revealed that he abused his official position by conferring an undue advantage on himself while serving as head of the tribunal, having in 2021, reportedly using his wife’s bank account to collect the sum of N5.5 million from a contractor engaged to paint the headquarters of the CCT in Abuja.
He was also accuse of using the same account to collect another N6million on January 25, 2024, from a contractor who handled the digitisation of the CCT’s records and yet another N2.43 million a contractor paid as tuition fee of his daughter at Baze University, Abuja.
After pleading not guilty to offences, said to be punishable under section 19 of the Corrupt Practices and Other Related Offences Act, 2000, Christopher Mshelia, lawyer to the FG, prosecuting the matter, applied for his remand in a correctional facility, while urging the court to set a date for the commencement of trial.
His pleas to be freed on bail pending the determination of the case, was opposed by the prosecution, which drew the court’s attention to the fact that it had just been served with the bail application, saying it needed time to respond to it, forcing Kekemeke to adjourn the case till July 15 for hearing while the former CCT boss remained behind bars.
Umar, had as CCT Chairman, on January 23, 2019, issued a controversial ex parte order that led to the removal of a serving Chief Justice of Nigeria (CJN), Justice Walter Onnoghen.
Following the ex parte order, the late President Muhammadu Buhari, on January 25, swore in the next most senior jurist of the Supreme Court, Justice Tanko Muhammad, to take over the leadership of the judiciary as Acting CJN.
Even though Onnoghen later voluntarily resigned his position as CJN on April 4, Umar went ahead and convicted him on April 18, 2019, on the federal government’s allegation that he had failed to properly declare his assets as required by law.
He gave the federal government the go-ahead to confiscate all monies in five accounts belonging to the former CJN, and also removed him as Chairman of both the NJC and the Federal Judiciary Service Commission (FJSC).
-
News4 weeks agoBREAKING: Troops rescue wife of kidnapped General! *Terrorists flee scene
-
News4 weeks agoBREAKING: Count me out, Okonkwo tells Atiku *Amaechi VP’s choice an insult to Ndigbo
-
News2 weeks agoBREAKING: Court sentences Nigerien, two others to death over terrorism
-
News4 weeks agoDickson: Obi, a big asset to NDC, we’re working together … but!
-
News4 weeks agoOvia, ex-Zenith Bank boss swings into luxury apartments *Flats hit $2.8million price tag
-
News7 days agoBREAKING: EX-SSG mowed down by gunmen! *He resisted being kidnapped – driver
-
News3 weeks agoAbductors of Oyo teachers panicking, freedom coming for victims soon!
-
News3 weeks agoTwo hours after Igboho’s ‘red-eyes’ to ‘Fulani’ leaders, gunmen free kidnap victims!