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Strict adherence to standards vital for Nigeria’s global competitiveness, says SON DG

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The Standards Organisation of Nigeria (SON) has said that locally produced goods must adhere strictly to standards to be competitive globally.

The Director General of SON, Malam Farouk Salim, stated this at the flag off of a campaign tagged “Standardisation; Panacea for economic growth” in Enugu. (When?).

The SON boss said that adhering strictly to standardisation and quality assurance would make Nigerian products and services more acceptable at the international market.

Salim, who was represented by the Director South-East Operations of SON, Mr Fred Akingbesote, noted that when all products and services conform to standards, the country and her people would benefit tremendously from it.

He explained that there was standard for every product or service, adding that upholding standardisation even in service industry of hospitality, tourism and hotel would create international markets and patronage for such services.

The SON boss said standardisation would also lead to cost reduction, less effort on production, strengthen brands and make it convenient and easy for customers to recognise and pick quality products and services.

“If you see any product with SONCAP certification logo, rest assured that you have got a product with quality and satisfaction guaranteed.
“It provides a company with a competitive edge in the market. “Manufacturers and service providers need to ensure that their products and services meet the right specifications and deliver on their customers’ expectations.
“When a company assesses its products and services in accordance with relevant standards, this helps the company to adapt to the latest market trends regarding quality.

“And avoid the costs related to product returns, buyer complaints, and loss of goodwill in local, regional, and international markets,” the SON DG said.

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Earlier, the Senior Special Assistant (SSA) to the SON DG, Chief Duru Emeka, who doubles as coordinator of the sensitisation, said it was part of the agency efforts to take culture of standardisation to the grassroots.

“Once the people in rural areas imbibed standardisation as a way of life, the fight against influx of substandard products is almost won.

“We need collaborative efforts to tackle the menace,” he said.
Duru said that Nigerian products were produced in line with international best practices and enjoy global competitiveness in line with the organisation’s quality infrastructure strategy under the able leadership of Mallam Farouk Salim.

“This will reduce the rejection of some of our products at export market, increase industrialisation and wealth creation,” Duru said
Duru subsequently urged the participants to consider the sensitisation workshop as an opportunity to broaden their scope saying, Enugu is the first to benefit from this particular sensitisation series.

He charged stakeholders to remain committed and focused on ensuring standardisation at all times.
The stakeholders in the manufacturing, consumption, service and allied businesses commended SON for the workshop.
The stakeholders also urged the organisation to extend its services to the grassroots.

They were of the view that once the message of standardisation is achieved even at the local communities, it would in turn have a positive socio-economic effect on the country in general.

The Permanent Secretary, Enugu State Ministry of Commerce and Industry, Dr Godwin Anigbo, urged SON to extend its services to the grassroots by creating more awareness on standardisation of products and services.

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“We need robust engagement with the people at the grassroots in the local areas to enable them know how they can attain and maintain internationally acceptable standard for any endeavour they engage in.

“Once majority of our local people start doing the right things and getting it right; our products and services will be the best internationally and the country will be better for it,” Anigbo said.

Mr Felix Odoh, Deputy Director of National Orientation Agency (NOA) in Enugu State, said that SON could leverage on the spread of NOA officials scattered in the 774 council areas to reach Nigerians even in their localities.

“This sensitisation and enlightenment should go beyond here and get more Nigerians, especially the people at the grassroots to know the standard for all they produce at their localities,” Odoh said.

A consumer, Mrs Vivian Offor, said that the sensitisation would make more meaning if those at the local areas, whose extract raw materials add value to them could achieve quality standardisation.
“Something as simple as palm oil should be produced to standard with good packing to ensure better value and more gain for the ordinary Nigerians that engage in such endeavours,” Offor said.
Earlier, the Managing Director of Enugu State Investment Development Authority, Dr Sam Ogbu-Nwobodo, lauded SON for its consistence on its engagement of Nigerians to do the right thing and reposition the country’s economy.
“The issue of standardisation is important and it will be helpful to everybody and we must key into it.
”This is the only way to ensure we grow our economy and ensure conformity of our products and services,” Ogbu-Nwobodo said.
An Enugu-based manufacturer, Sir Eric Chime, noted that manufacturers and SON were both partners in progress, adding that SON had continued to ensure Nigerian products met international standard and acceptability.
“Apart from meeting international conformity and acceptability, standardisation also help the consumer not to be short-changed and quality guaranteed at all time.
“Standardisation also leads to better profit and international market opening for the manufactured products,” said Chime, who is the Chief Executive Officer of RICO Group of Companies manufacturers of petro-chemical products, said.

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Mrs Ijeoma Ezeazor, representative of the President, Manufacturers Association of Nigeria (MAN), Ahmed Mansur and Chairman, Anambra, Ebonyi and Enugu States of MAN, made a presentation on “Expanding Products Market Share via Standards”.
She urged the Federal Government to support in the fight against substandard products.

She noted that the menace was detrimental to the government efforts to industrial growth.

“ Our products can’t compete favorably with the low cheap products from some countries.
“We are in partnership with SON to address the problem,” she said.

Other SON officials also made presentations on MANCAP and Certification; SONCAP and Registration as well as Import and Export Requirements and “Driving Industrialisation with Quality Products”.
The sensitisation also witnessed question and answer sessions as well as goodwill messages from the Nigeria Immigration Service; National Drug Law Enforcement Agency and Nigeria Security and Civil Defense Corps among others.

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We Have Put in Place definitive measures to Bolster our Production’ – Oando GCE, Wale Tinubu

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After releasing the FY 2022 financial statements, Oando Plc has followed up with a press statement to address its net loss of N81.2 billion incurred in 2022, citing militancy and pipeline vandalism as major culprits.

 

Despite reporting a gross turnover of N1.99 trillion during the fiscal year, the group posted a loss after tax of N81.2 billion, a significant downturn from the N39.2 billion profit after tax posted in 2021.

 

Speaking on the result, Wale Tinubu, Group Chief Executive of Oando Plc, noted, “The heightened militancy and pipeline vandalism acts within the Niger Delta region dealt a substantial blow to our upstream operations, resulting in a marked reduction in our crude production volumes due to the protracted shut-ins for repair following each incidence.

 

“This was further compounded by a major gas plant fire incident which also necessitated a lengthy downtime.

 

“Furthermore, a rise in our net interest expense due to increased interest rates on several of our major facilities in line with global rates increases, also contributed to our Loss after Tax position.

 

“In response, we have put in place definitive measures to bolster our production and cash inflows towards ensuring a speedy return to profitability by collaborating with our partners to institute a comprehensive security framework aimed at permanently curbing the persistent pipeline vandalism whilst concurrently exploring inorganic growth opportunities to increase our reserves and production capabilities.

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“We have also implemented a strategic restructuring of our key facilities to ensure they align with our cash flow dynamics.”

 

Pipeline vandalism cost Nigeria N471 billion in 5 Years Economic implication of oil theft in Nigeria.

 

Theft and vandalism of oil installations is a major problem plaguing the oil and gas sector in Nigeria. The crime of oil theft has had a negative impact on the national economy and the business of local and international oil companies operating in the upstream sector.

 

Although there is no precise figure to quantify the financial impact of oil theft on the Nigerian economy, a study conducted by Dimkpa et al. (2023) estimates that Nigeria lost approximately $33.6 billion in oil revenue to oil theft between 2019 and 2022.

 

A significant economic implication for Nigeria has been the consistent decline in oil production. Nigeria’s average oil production in 2022 was at 1.45 million barrels per day, an almost 1-million-barrel decline from the 2.4 million barrels per day produced by Nigeria in 2012.

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In 2022, Oando’s total upstream production amounted to 20,703 barrels of oil equivalent per day (boe/day). This comprised 4,939 barrels per day of crude oil, 472 barrels per day of natural gas liquids, and 15,292 barrels per day of natural gas.

 

This figure represents a 22.7% decline from the 26,775 boe/d output reported by the group in 2021.

 

According to the company’s press statement, the decline in production was attributed to downtimes caused by shut-ins for repairs and sabotage activities.

 

In 2022, Oando Plc sold approximately 21.8 million barrels of crude oil, representing a 25% increase from the 17.4 million barrels sold in 2021. The group also sold about 1.94 million metric tonnes of refined petroleum, representing a 101% increase from the 962,371 metric tonnes sold in 2021.

 

Despite recording a decline in oil output, the group was able to sell an increased amount of crude oil due to its contracts with the then Nigerian National Petroleum Corporation (NNPC), ultimately contributing to its 148% revenue growth in 2022.

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In 2022, Oando sold crude oil at an average realized oil price of $101.55/barrel and a gas price of $14.74/Boe, compared to 2021’s prices of $62.14/barrel for crude oil and $9.95/Boe for gas.

 

OMLs 60 to 63 gulped about $77.7 million in capital expenditure (CAPEX) from Oando, while OML 56 and OML 13 gulped about $22.6 million and $200,000 respectively. The group also spent $1.4 million in capital expenditure (CAPEX) on other assets.

 

As of 2022, Oando owned 20% stake in OMLs 60 to 63, as Nigerian Agip Oil Company (NAOC) also owned a 20% stake.

 

However, Oando is in the process of purchasing NAOC’s 20% stake in the oil fields, which will push its stake up to 40%.

 

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UPDATED: Dangote refinery slashes diesel price to N940 per litre

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Dangote Petroleum Refinery has announced another reduction in the prices of both diesel and aviation fuel to N940 and N980 per litre, respectively.

 

The development comes days after the refinery reduced diesel price to N1,000 per litre.

 

In a statement on Tuesday, the refinery said the price change of N940 is applicable to customers buying five million litres or more from the refinery, while those purchasing one million litres or more will pay N970.

 

According to the company, this marks the third major reduction in diesel price “in less than three weeks when the product sold at N1,700 to N1,200 and also a further reduction to N1,000 and now N940 for diesel and N980 for aviation fuel per litre”.

Speaking on the new development, Anthony Chiejina, head of communication, Dangote Group, said the new price is in tandem with the company’s commitment to alleviating the effect of economic hardship in Nigeria.

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“I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable price, in all their stations be it Lagos or Maiduguri,” he said.

 

“You can buy as low as 1 litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates.”

 

He added that the partnership will be extended to other major oil marketers.

 

“The essence of this is to ensure that retail buyers do not buy at exorbitant prices,” he said.

 

“The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce this new prices and hope that it would go a long way to cushion the effect of economic challenges in the country.”

Reacting to the latest development, Ajayi Kadiri, director-general of the Manufacturers Association of Nigeria (MAN), said the decision “to first crash the price from about N1,750/litre to N1,200/litre, N1,000/litre and now N940 is an eloquent demonstration of the capacity of local industries to positively impact the fortunes of the national economy”.

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“The trickledown effect of this singular intervention promises to change the dynamics in the energy cost equation of the country, in the midst of inadequate and rising cost of electricity,” Kadiri said.

 

He said the reduction will ease the high inflation rate in the country, and have far-reaching impact on critical sectors like industrial operations, transportation, logistics, and agriculture.

 

Kadiri added that companies will be back in operation due to the price reduction.

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JUST IN: Dangote refinery slashes diesel price to N940 per litre

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Dangote Petroleum Refinery has announced a further reduction in the prices of diesel and aviation fuel to N940 and N980 per litre, respectively.

 

The development comes days after the refinery slashed diesel price to N1,000.

 

Details later …

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