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Fuel sells for N400/litre in Abuja, as scarcity persists in Lagos

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Residents of Abuja and neighbouring states are facing tough times to buy Premium Motor, better known in the country as petrol, with the commodity selling for as high as N400/litre by black marketers.

The development came almost one week after the import of millions of dirty PMS from Europe into Nigeria disrupted the fuel supply system of the country, leading to long queues nationwide.

The Nigerian National Petroleum Company Limited has ordered the recall of the contaminated fuel but oil marketers have been battling various challenges, ranging from PMS supply shortage to complaints by consumers who claimed the bad product has damaged their vehicles.

However, findings have shown that black marketers who sell petrol in jerry-cans are now the easily accessible suppliers of PMS in Abuja and neighbouring states.

A significant percentage of filling stations in the capital city do not currently have petrol to dispense.

Oil marketers said that a few other outlets that had products were still trying to return the adulterated petrol supplied to them since last week.

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This, they said, had prevented the affected stations from taking in uncontaminated products, as they currently lacked space to store new consignments.

Heavy queues greeted the limited number of filling stations that dispensed petrol on Sunday. Motorists spent several hours under the scorchy sun waiting to be served petrol.

The NNPC filling station on Arab Road in Kubwa, Abuja had hundreds of motorists who formed long queues that blocked the road and caused severe traffic in the area.

Providing an explanation as to why many filling stations were still not selling petrol, the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, said some retailers who purchased the adulterated products were still struggling to return them.

He explained that the contaminated products were still occupying spaces in the underground tanks of the affected filling stations, adding that this had prevented the outlets from accessing new stocks.

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“Where will you discharge your new stock when your underground tanks still have contaminated products that have not been returned? Many of those who bought the contaminated products are still struggling to have them returned to NNPC,” the marketer stated.

“We also want the government to come out with clear cut directives and procedures on how products that are contaminated should be returned,” the IPMAN official had stated.

He added, “Some marketers are still having the contaminated products in their stations and are not selling because of this. The products have not been returned yet due to lack of clear cut directives on how it should be returned.

“Also, you need documents to enable you to move the tankers from your filling station back to the place where the product is to be returned because if the police get you without the necessary accompanying documents, they will say you are involved in bunkering.”

READ  BREAKING: Petrol scarcity hits FCT as tanker drivers stops lifting products

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Nigerian Breweries announces cost savings measures, to downsize workforce

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Nigerian Breweries says some employees will be affected by the company’s cost savings measures adopted to improve its finances.

Cost savings measures were adopted by Nigerian Breweries following the N106 billion net loss reported in 2023.

During a media briefing in Lagos on April 17, the company said the workforce will be resized after suspending operations at two of the company’s breweries in Imo and Kaduna states.

Sade Morgan, Nigerian Breweries’ corporate affairs director, said the number of affected staff has not been ascertained.

“This is not a number that we have at this moment, but what we do have is the commitment to keep the number as minimal as possible,” Morgan said.

“How are we going to do that, it’s by exhausting all possibilities of relocating, redistributing our people to our other seven operating breweries.

“And for the affected people, we will ensure that we give them full support and good severance packages, which now are still a subject of discussion with the unions.”

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In a statement dated April 12, Nigerian Breweries told the leadership of the National Union of Food, Beverage & Tobacco Employees (NUFBTE) and the Food Beverage and Tobacco Senior Staff Association (FOBTOB) that its proposed plan would include operational efficiency measures.

Also, Nigerian Breweries said soaring inflation rates and foreign exchange (FX) volatility contributed to its net loss last year.

 

The company said a combination of other challenging economic factors such as heightened operational costs and continued pressure on consumer disposable income also impacted its earnings.

 

Nigerian Breweries said the resizing is crucial to the company’s quest to return to profitability.

Uaboi Agbebaku, Nigerian Breweries’ legal director, said there is a need to take action to reduce costs overall.

 

Agbebaku said the resizing and fundraising — through rights issue — are some of the steps taken by Nigerian Breweries to restore profit and give shareholders value.

 

On April 3, Nigerian Breweries said it would raise N600 billion through rights issue to reduce its debt burden.

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The company said its debt and overdue payables were N542 billion last year.

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Dangote refinery crashes diesel price to N1,000 per litre

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The Dangote refinery says it has reduced the price of automotive gas oil (AGO), also known as diesel, to N1,000 per litre.

According to a statement on Tuesday by the refinery, the price of the product was dropped from N1,200 per litre.

 

“In an unprecedented move, Dangote Petroleum Refinery has announced further reduction of the price of diesel to from 1200 to 1,000 naira per litre,” Dangote refinery said.

 

“While rolling out the products, the refinery supplied at a substantially reduced price of N1,200 per litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600 per litre.

 

“This significant reduction in the price of diesel, at Dangote Petroleum Refinery, is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.”

 

The development comes days after Dangote refinery fixed the minimum volume of diesel that can be purchased by oil marketers at one million litres.

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The 650,000 barrels per day (bpd) capacity refinery was inaugurated by former President Muhammadu Buhari in May 2023.

 

Subsequently, the plant commenced operations with the production of diesel and aviation fuel on January 12 — after receiving six shipments of crude from oil marketers.

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FG targets 24-hour ports clearance as Tinubu inaugurates national single window

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President Bola Tinubu has inaugurated the national single window project to boost trade in Nigeria.

INAUGURATES,PORT CLEARANCE,
Speaking during the inauguration of the project and the steering committee members on Tuesday in Abuja, Tinubu spoke about the importance of collaboration to ensure the success of the initiative.

According to the president, the project is estimated to yield $2.7 billion per year for the country.

 

Tinubu said it is time for Nigeria to join countries such as Singapore, Korea, Kenya and Saudi Arabia, which have experienced significant improvement in trade efficiency upon adopting single window systems.

 

“It is time for Nigeria to join their ranks and reap the reward of a streamlined, decentralised trade process,” Tinubu said.

“We cannot afford to lose an estimated $4 billion annually to red tape, bureaucracy, delays and corruption at our ports.”

Tinubu highlighted the project’s potential to improve regional integration and trade efficiency, making it a crucial step towards Nigeria’s economic advancement.

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Members of the national single window steering committee include representatives of the ministries of finance, marine and blue economy, transportation, industry, trade and investment, Federal Inland Revenue Service (FIRS), Nigerian Customs Service (NCS), and the Nigeria Sovereign Investment Authority (NSIA).

 

Others are the Central Bank of Nigeria (CBN), National Agency for Food and Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON), Nigerian Maritime Administration on Safety Agency (NIMASA), Nigerian Ports Authority (NPA) and Presidential Enabling Business Environment Council (PEBEC).

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