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Marketers in FCT outskirt yet to sell at N125 Per litre

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NMDPRA seals 35 petrol stations in Bauchi

…As NNPC announces 34% trading surplus for December***

Fuel stations at the outskirt of the Federal Capital Territory  (FCT) were yet to comply with the N125 new pump price for Premium Motor Spirit (PMS) also known as petrol.

A correspondent who went round Abuja on Sunday reports that while most stations at the city centre had complied with the new pump price, those at the outskirt were yet to comply.

Total, Gegu, Conoil and Eterna filling stations within Kubwa and Dutse  axis have complied and were dispensing to motorists at the designated price.

However, in Madala and Zuba most filling stations were yet to comply and had shut down operations.

Along Kubwa Express Road, while MRS filling stations were not selling, Rain Oil, Conoil, A A Rano, NNPC retail outlet, Total and Juda oil were all selling at the new pump price of N125.

At the Central Business District, Area 1 and Area 111 in, apart from Yaman Filling Station that closed, Total, Conoil, NIPCO filling stations were all dispensing with minimal queue visible.

Also, most filling stations along airport road had complied and were dispensing to motorists while in Karu and Nyanya axis another outskirt, some of the filling stations were still selling at N145 per litre.

A manager in one of the filling stations who spoke on condition of anonymity said that complying with the new pump price with an old stock would be at the detriment of his business.

“We will comply as soon as we finish selling this product. This is business, it will be a huge loss for us if we comply immediately,” he said.

Alhaji Suleiman Yakubu, National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria (IPMAN), earlier told NAN that most filling stations have adopted the new price regime while others would join in due course.

“We support government and its policy, as we also know government has its citizen’s welfare at heart. Some of the marketers just took products before the reduction so it came as a shock, we will find a way to deal with the situation,” Yakubu said.

Some motorists interviewed condemned marketers who refused to comply with the new price policy.

A motorist Mr Uche Michael said the fuel stations were unfair to motorists.

“It is very unfair that owners of fillings stations are not complying immediately.

“If it is increase in price, they will adjust even before the time they are asked to do so.

“For me, the regulators need to start working day and night to sanction defaulters,” he said.

“The Department of Petroleum Resources (DPR) has a lot of work to do now, it  should deploy its men everywhere to make sure that Nigerians enjoy this good deed of government,” he said.

The federal government had on March 18, reduced the pump price of petrol from N145 to N125 per litre following the crash in global oil prices.

The new pump price was effective from March 19, 2020.

The Petroleum Products Pricing Regulatory Agency ( PPPRA) said that the new price would run till the end of March adding that from April 1, it would start a monthly price modulation that would reflect global market fundamentals.

In the meantime, the Nigerian National Petroleum Corporation (NNPC) has announced a trading surplus of ₦5.28 billion for December 2019.

The corporation disclosed this in its Monthly Financial and Operation Report (MFOR) for December released in Abuja on Sunday.

It said that the amount was an increase compared to the ₦3.95 billion surplus posted in November 2019.

The report showed that the 34 per cent increase for the period resulted from improved performances by some of its entities both in the Upstream and Downstream sectors.

It listed NNPC’s subsidiaries with notable improved positions to include: Integrated Data Services Litd. (IDSL), Nigeria Gas Marketing Company (NGMC), Nigerian Pipeline and Storage Company (NPSC) and Duke Oil Incorporated.

It explained that in general terms, the performance was impacted positively by the reduced deficit posted by NNPC corporate Headquarters during the period under review.

The corporation also attributed performance to adjustments in previously understated revenues by IDSL and Duke Oil, reduction in the costs of pipeline repairs/Right of Way maintenance and gas purchases by NPSC and NGMC respectively.

In the Gas sector, it revealed that out of the 239.29 billion Cubic Feet (BCF) of gas supplied in December 2019, a total of 148.32BCF of gas was commercialised.

This, it noted consisted of 34.78BCF and 113.54BCF for the domestic and export market respectively.

According to the report, this translated to a supply of 1,121.77 million Standard Cubic Feet per day (mmscfd) of gas to the domestic market and 3,662.70 mmscfd of gas supplied to the export market for the month.

The corporation in the report noted that 62.22 per cent of the average daily gas produced was commercialised, while the balance of 37.78 per cent was re-injected used as Upstream fuel gas or flared.

It added that gas flare rate was 7.78 per cent for the month under review, i.e. 598.03 mmscfd, compared to the average gas flare rate of 8.56 per cent i.e. 678.02 mmscfd for the period December 2018 to December 2019.

The report said that gas supply for the period December 2018 to December 2019 stood at 3,105.48BCF out of which 466.00BCF and 1,369.90BCF were commercialised for the domestic and export market respectively.

It explained that gas re–injected, Fuel gas and Gas flared stood at 1,269.59BCF.

In the Downstream Sector, Petroleum Products Marketing Company (PPMC), NNPC’s Downstream entity in charge of bulk supply and distribution of petroleum products, distributed and sold 2.775 billion litres of white products in December 2019 compared with 0.841 billion litres in November same year.

“This comprised 2.762 billion litres of Premium Motor Spirit (PMS) otherwise called petrol, 0.013 billion litres of Automotive Gas Oil (AGO) or diesel, and 0.000 billion litres of Dual Purpose Kerosene (DPK) as well as sale of special product of 0.003 billion litres of Low Pure Fuel Oil (LPFO) in the month under review,” it said .

The MFOR indicated that sale of white products for the period December 2018 to December 2019 stood at 21.861 billion litres, with PMS accounting for 21.514 billion litres or 98.41 per cent.

In terms of value, ₦337.63 billion was made on the sale of white products by PPMC in December 2019, compared to ₦105.62 billion sales in November, 2019.

The report said revenues generated from the sale of white products for the period December 2018 to December 2019 stood at ₦2,705.76 billion, with PMS contributing about 97.56 per cent of the sales with a value of ₦2,639.68 billion.

On pipeline vandalism, the MFOR reported 40 vandalised pipeline points, representing about 41 per cent decrease from the 68 points vandalised in November 2019.

The report said that out of the vandalised points, 10 failed to be welded, while none was ruptured.

“Atlas Cove-Mosimi and Mosimi-Ibadan axis accounted for 35 per cent and 30 per cent of the breaks respectively, while other routes accounted for the remaining 35 per cent.”

NNPC explained in the release that it had stepped up collaboration with the local communities and other stakeholders to stem pipeline vandalism menace.

Economy

FAAC: FG, States, LGs Share N1.208trn Revenue For April

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FAAC: FG, States, LGs Share N1.208trn Revenue For April

The Federation Account Allocation Committee (FAAC), has shared the sum of N1.208 trillion as revenue for April among the Federal Government, states and Local Government Councils (LGCs).

The revenue was shared on Thursday at the May meeting of FAAC in Abuja.

A communiqué issued by the committee said that the N1.208 trillion total distributable revenue comprised statutory revenue of N284.716 billion, and Value Added Tax (VAT) revenue of N466.457 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N18.024 billion, and Exchange Difference revenue of N438.884 billion.

The communique said the total revenue of N2.192 billion was available in April.

“Total deduction for cost of collection is N80.517 billion; total transfers, interventions and refunds is N903.479 billion.

The communique said the Gross statutory revenue of N1.233 billion was received for the month under review. This was higher than the sum of N1.017 billion received in March by N216.282 billion,” it said.

It said that the gross revenue available from VAT in April was N500.920 billion, which is lower than the N549.698 billion available in March by N48.778 billion.

The communiqué said that from the N1.208 trillion total distributable revenue, the Federal Government received N390.412 billion, the state governments received N403.403 billion and the LGCs received N293.816 billion.

“A total sum of N120.450 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

It said that on the N284.716 billion distributable statutory revenue, the Federal Government received N112.148 billion, the state governments received N56.883 billion and the LGCs received N43.855 billion.

It said that the sum of N71.830 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“The Federal Government received N69.969 billion, the state governments received N233.229 billion and the LGCs received N163.260 billion from the N466.457 billion distributable VAT revenue.

“A total sum of N2.704 billion was received by the Federal Government from the N18.024 billion EMTL, the state governments received N9.012 billion and the LGCs received N6.308 billion.

“The Federal Government received N205.591 billion from the N438.884 billion Exchange Difference revenue; the state governments received N104.279 billion, and the LGCs received N80.394 billion.

“The sum of N48.620 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” it said.

According to the communiqué, Oil and Gas Royalties, Companies Income Tax (CIT), Excise Duty, Petroleum Profit Tax (PPT), EMTL and CET Levies increased significantly.

It, however, said that Import Duty and VAT recorded considerable decreases.

“The balance in the ECA was 473.754 million dollars.

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Economy

Extension Of Nigeria’s Continental Shelf As Lesson On Continuity

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Extension Of Nigeria’s Continental Shelf As Lesson On Continuity

On May 14, the High Powered-Presidential Committee on Nigeria’s Extended Continental Shelf Project was in the Presidential Villa, Abuja.

The committee came to brief President Bola Tinubu on recommendations given to Nigeria regarding its submission for an extended continental shelf by the United Nations Commission on the Limits of the Continental Shelf (CLCS).

The briefing was led by veteran diplomat, Amb. Hassan Tukur, the Chairman of the committee.

The update with the president featured technical presentations by Prof. Larry Awosika, a renowned marine scientist and Mr Aliyu Omar, Member/Secretary of the Committee and former staff of the National Boundary Commission (NBC).

Omar also served as the Desk Officer for the project office in New York for several years.

Worthy of note, Nigeria’s request to have it continental shelf extended was approved by the CLCS in August 2023.

The project, which aims to extend Nigeria’s maritime boundaries under the United Nations Convention on the Law of the Sea (UNCLOS), has granted Nigeria sovereignty over an additional 16,300 square kilometres of maritime territory.

This is roughly five times the size of Lagos State.

The CLCS is mandated to, inter alia, consider the data and information submitted and provide recommendations on the outer limits submitted by the coastal state.

Article 76 of UNCLOS (1982) allows a qualifying coastal state to extend its continental shelf up to a maximum of 350M (350 nautical miles) or 150m nautical miles beyond its traditional Exclusive Economic Zone of 200 nautical miles.

Extension Of Nigeria’s Continental Shelf As Lesson On Continuity
President Bola Tinubu receiving Nigeria’s CLCS report from the committee

The continental shelf is the natural submerged prolongation of its land territory.

The journey to extend Nigeria’s continental shelf project began in 2009 with the country’s submission to the CLCS.

The project faced delays due to a lack of funds and administrative challenges; in 2013 the Senate of the Federal Republic in its resolution of Feb. 14, 2013, urged the Federal Government to fund the project and set up an independent body to handle it.

However, it was only in November 2015 that the then President Muhammadu Buhari revitalised it.

Subsequently, he appointed the High-Powered Presidential Committee (HPPC), headed by the former Minister of Justice and Attorney-General of the Federation, Malam Abubakar Malami, to oversee the project.

The HPPC operated as an independent technical body, effectively managing the project by cutting down on government bureaucracy.

Omar had led the Nigerian Technical Team through the question-and-answer sessions with the UN Commission on the Limits of the Continental Shelf (CLCS).

He was also the Member/Secretary of the HPPC with a strong institutional memory of the project, highlighted this during the committee’s briefing to President Tinubu on May 14.

Omar said that when the HPPC briefed Buhari in 2022 on the status of the project, the United Nations Commission on the Limits of the Continental Shelf (CLCS) was still considering Nigeria’s submission and having technical interactions with the HPPC.

”These interactions and consideration have now culminated in the approval for Nigeria to extend its continental shelf beyond 200M (200 nautical miles).

”As it stands now, the area approved for Nigeria is about 16,300 square kilometres, which is about five times the size of Lagos State”, he said.

Nigeria’s extended continental shelf is in an area that is referred to as the ‘Golden Triangle of the Gulf of Guinea’ due to its abundance of natural resources such as hydrocarbons, natural gas, and a variety of solid minerals.

Awosika, a pioneer member and former Chairman of the CLCS, explained that the technical team’s work involved lengthy processes.

He said it also required highly technical steps in the acquisition, processing and analysis of extensive marine scientific data offshore Nigeria’s margin for the submission to the UN CLCS.

He said that the Nigerian team had to defend the submission with the CLCS which involved highly technical question-and-answer sessions and provision of additional data and information.

Receiving the report, Tinubu commended the members of the technical team for working tirelessly.

He applauded their high technical and scientific expertise and solidarity to national cause throughout the eight years of service to the nation before an agreement was finally reached with the UN CLCS in August 2023.

It is instructive to note that Tinubu highlighted the interactions he had with his predecessor, Buhari, on the project; given that it was he, Buhari, who set up the HPPC to oversee the project in 2015.

Tinubu recounted how Buhari briefed him on the importance of the project.

”This is a big congratulations for Nigeria. I commend the team and we must take advantage of this and invite you again to have a repeat of this knowledge exploration on geography, hydrography and marine life.

”Nigeria is grateful for the efforts that you put into gaining additional territory for the country without going to war; some nations went to war; and lost people and economic opportunities.

”We lost nothing but have gained great benefits for Nigeria; we will pursue the best option for the country,” Tinubu said.

Tinubu has also promised to ‘pursue the best option for the country’ on the project, even though the CLCS recommendations fall short of Nigeria’s submitted claim.

Perceptive observers say the achievement is a lesson on the importance of continuity in government projects. Abandoning projects due to changes in administration can lead to wasted resources and lost opportunities.

The extended continental shelf is a significant achievement of Tinubu’s administration and to Nigeria.

According to experts, this is something that has never happened in the nation’s history, and may never happen again.

By learning from the ECS project, Nigeria can improve its approach to governance and project management, ensuring that with perseverance and continuity strategic initiatives are completed despite challenges.

The ECS project, initiated in 2009, faced delays and funding issues but persistence through the efforts of the immediate past administration paid off, and was finally approved by the UN in August 2023, shortly after Tinubu assumed office.

The country has taken note of articles 7 and 8 in Annex II to the Convention on the Law of the Sea concerning recommendations received from the CLCS.

The project also demonstrates the importance of long-term thinking in governance.

Discerning stakeholders hold that while the project’s benefits may not be immediate, it will surely have a significant impact on Nigeria’s economy and maritime boundaries in the future.

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Economy

Naira Gains N61.38 Against Dollar At Official Market

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Naira Gains N61.38 Against Dollar At Official Market

The Naira on Wednesday appreciated at the official market, trading at N1,459.02 to the dollar.

Data from the official trading platform of the FMDQ Exchange revealed that the Naira gained N61.38.

This represents a 4.04 per cent gain when compared to the previous trading date on Tuesday, when the local currency exchanged at N1,520.40 to a dollar.

Also, the total daily turnover increased to 289.14 million dollars on Wednesday up from 128.76 million dollars recorded on Tuesday.

Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,593 and N1,401 against the dollar. 

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