Connect with us

News

Oil producers counter Tinubu’s order, say selling crude in naira to local refineries will worsen FX volatility

Published

on

The Independent Petroleum Producers Group (IPPG) says the plan to sell Nigeria-denominated crude in naira will potentially worsen Nigeria’s currency volatility and foreign exchange receipts.

According to a statement on Monday, Abdulrazak Isa, chairman of IPPG, expressed the group’s concern in a letter to Gbenga Komolafe, chief executive officer (CEO), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

On July 29, the federal executive council (FEC) approved a proposal by President Bola Tinubu directing the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to the Dangote Petroleum Refinery and other refineries in naira.

The sale of crude oil in naira will commence on October 1.

Speaking on the issue, Isa said such a move was not in tandem with the law.

He said a significant source of the government’s royalty and taxation earnings such as petroleum profit tax (PPT), company income tax (CIT), and hydrocarbon tax (HT), which are denominated in dollars, would be affected, and could further disrupt the fiscal regime.

“We are (also) aware of suggestions and proposal to sell crude in Naira, this is inconsistent with the law and will further put a materially significant strain on the efforts of the Government to manage the Naira as it will reduce Nigeria’s FX receipts from its highest FX revenue earner – the oil and gas industry, which is a significant source of the Nigerian Government’s royalty and income taxes earnings (PPT, CIT and HT) that are denominated in US Dollars,’’ Isa said.

See also  US court sends British-Nigerian to seven years in jail over $5m cyber fraud

Isa also expressed concerns over recent industry developments, including NUPRC’s domestic crude oil refining requirements and production forecast for 2024, and the request for monthly quotations for local refineries.

“However, it is important to highlight certain contractual, legal, financial and factual incongruencies that exist in the increasing push and demands on petroleum producers and particularly on members of the IPPG,” he said.

“We are indeed constrained to say that the current position on this matter may inevitably lead to economic damage and self-sabotage of the Nigerian economy. This is simply an inescapable fact.’’

The IPPG chairman, citing a potential economic emergency, said he is aware that the group’s members are mandated to allocate crude volumes to the domestic market for the second half of 2024, in line with the NUPRC’s domestic crude oil supply obligations (DCSO) guideline.

Isa said under Nigerian law, “any supply of crude oil to a refinery even under a DCSO umbrella is required to be on a willing buyer and willing seller basis”.

See also  Alaafin of Oyo, Oba Lamidi Adeyemi marks 51 years on the throne

“This is the position of the principal law that cannot be derogated by regulation or guideline,” he said.

“Additionally, all producers (including NNPC Limited) are currently beholden to either fixed supply contracts or forward sale contracts to international traders who have stepped in to fill the financing gap to fund upstream investments since international finance institutions have reduced their funding positions to fossil fuels due mainly to ESG requirements.

“These contractual arrangements have become the necessary collateral obligations for producers (including NNPC Limited) and thus they currently have contractual rights to producers’ barrels of crude oil.

“In addition, crude cargoes are normally sold at least three (3) months in advance and therefore your recent letters to some of our members received in August mandating DCSO volumes from July to December 2024 are not achievable, particularly as most, if not all, of the cargoes from July to October will already have been sold.’’

‘NIGERIA’S OIL PRODUCTION LEVEL WILL BE AFFECTED’

The IPPG chairman reaffirmed that any action that jeopardises the aforementioned funding mechanism would thereby jeopardise a substantial portion of Nigeria’s crude oil production.

He also said that any unilateral directive to IPPG members to supply domestic refineries in violation of the primary legislation would have certain repercussions, such as producers’ failure to fulfil their offtake obligations to buyers of crude oil who have already entered into contracts.

See also  Nigerian couple bag three years jail terms in UK over £433,000 fraud, may be deported

Isa said it would also impact the ability to raise the current production levels from 1.3 million barrels of oil per day to the federal government’s projected 2-2.5 million barrels of oil per day.

The oil producer said it could also put the country in an adversarial position with the international traders, who finance a significant portion of upstream activity, alongside their respective institutional investors.

He said it could cause cross defaults across IPPG members and this would dry up a critical source of foreign exchange (FX) for the country.

“This FX shortage would be acutely felt given that NNPC Limited has engaged in (and is currently marketing) a series of Forward Sale Agreements which mean future revenues are being secured against upfront funding,” he said.

If IPPG members cannot augment this gap with their FX inflows, he said it creates a spiral of liquidity funding that would further impair the economy on a macro level.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

US releases identities of 24 Nigerians arrested for alleged fraud, money laundering

Published

on

By

The United States Department of Homeland Security (DHS) has released the names and photographs of 24 Nigerians arrested by immigration authorities in relation to alleged criminal offences, as the country continues its deportation operations.

According to the DHS, the suspects were arrested in different parts of the United States by Immigration and Customs Enforcement (ICE).

The alleged offences listed against them include wire and mail fraud, money laundering, drug-related crimes, identity theft, assault, forgery and cruelty towards a child.

In a statement announcing the arrests, the DHS said the publication was intended to show non-US citizens with criminal records who had been arrested by immigration enforcement officers.

“The U.S. Department of Homeland Security is highlighting the worst of worst criminal aliens arrested by the U.S. Immigration and Customs Enforcement (ICE),” the statement reads.

“Under DHS leadership, the hardworking men and women of DHS and ICE are fulfilling President Trump’s promise and carrying out mass deportations – starting with the worst of the worst – including the illegal aliens you see here.”

See also  Hope rises for FG’s N26trn budget as oil price rises to $81.11

The list released by DHS identifies the Nigerian nationals, the alleged offences associated with their arrests and the locations where they were apprehended.

The list published by the department identifies the Nigerian nationals, the offences associated with their cases and the locations where they were arrested.

Emmanuel Omowaiye was arrested for mail fraud in  Richmond, Texas.

Laurene Onwuka arrested for fraud and impersonation in Chantilly, Virginia.

Olusegun Shonekan arrested for wire fraud in Newark, New Jersey.

Olusegun Olaseni was arrested for amphetamine sale in Greencastle, Indiana.

Peter Ude was arrested for wire fraud; in Atlanta, Georgia.

Newton Jemide was arrested for wire fraud, conspiracy and mail fraud in  Fort Dix, New Jersey.

Shedrack Umukoro was arrested for money laundering, Yazoo City, Mississippi.

Olasoji Akinbode was arrested for fraud and impersonation in Kearny, New Jersey.

Oluwatosin Afolabi was arrested for fraud, Conroe, Texas.

Alameen Adetunji Tokosi was arrested for drug possession in Chicago, Illinois.

See also  High expectations as $19bn Dangote Refinery gets another 1m barrels crude oil

Joshua Ipoade was arrested for wire fraud in Atlanta, Georgia.

Michael Orji was arrested for weapons violation, fraud, identity theft, wire fraud, false citizenship and money laundering in Oxford, Wisconsin.

Ahmadu Apooyin was arrested for drug-related offence in Baltimore, Maryland.

Teslim Kiriji was arrested for money laundering in Yazoo City, Mississippi.

Onomen Uduebor was arrested for identity theft in Seattle, Washington.

Charles Ochi was arrested for money laundering in white Deer, Pennsylvania.

Daniel Eta was arrested for wire fraud in White Deer, Pennsylvania.

Ifeanyi Ibennah was arrested for cruelty towards a child in Tampa, Florida.

Kazeem Runsewe was arrested for wire fraud in Thomson, Illinois.

Fatiu Lawal was arrested for wire fraud in Lompoc, California.

Justin Akubueze was arrested for money laundering in Orem, Utah.

Moyinoluwaseun Okeowo was arrested for larceny, forgery and concealing stolen property in Orlando,
Florida.

Babajide Oluwaseun Faseyi was arrested for assault in Alden, New York.

Bright Eigbedion was arrested for money laundering in Lompoc, California.

See also  Dangote's colourless petrol explained: What petrol colour really means

Continue Reading

News

Ogun 2027: Adebutu faults INEC over exclusion from governorship candidates list, tells supporters to remain calm

Published

on

By


Oladipupo Adebutu, the Peoples Democratic Party (PDP) governorship candidate in Ogun State, has faulted the decision of the Independent National Electoral Commission (INEC) to leave out his name from the list of governorship candidates.

Adebutu, in a statement addressing the development, said he remained a registered member of the PDP and had completed the necessary registration and documentation within the stipulated period.

“I have not at any point left the PDP, and my commitment to our great party remains unwavering,” he said.

According to him, the governorship primary that produced him as the party’s candidate was conducted with INEC officials present as observers, adding that relevant documents were submitted for verification, certification and confirmation.

The PDP candidate said the circumstances surrounding the exclusion raised concerns, particularly as other party candidates contesting for the House of Assembly, House of Representatives and Senate had appeared on INEC’s published lists.

Adebutu said the Ogun State PDP had expressed concern over what it described as undue pressure from the ruling All Progressives Congress (APC) on INEC, adding that the party would pursue the matter through appropriate channels.

See also  Police neutralise two suspected gunrunners, recover arms, others in Zamfara

“We will pursue this matter through the appropriate channels and insist that due process is respected,” he said.

He also alleged that the party had faced attempts to frustrate its campaign, including restrictions on its billboards, attacks at campaign grounds and harassment of members.

According to him, such challenges would not deter the party from participating in the democratic process or seeking the support of voters across the state.

“No amount of intimidation should prevent the people of Ogun State from having a fair opportunity to choose leaders of choice,” Adebutu said.

He urged PDP members, supporters and residents of Ogun State to remain calm while the party takes the necessary steps to address the omission.

“The party has spoken, and the necessary steps are being taken to address this matter. I remain confident that it will be resolved, and I assure you that I will not abandon the struggle to bring the leadership and relief our people deserve,” he said.

See also  Good morning! Here Are Some Major News Headlines In The Newspapers Today: P’Harcourt refinery begins test-run, Rivers, 11 others get supply soon

Adebutu described the party’s ambition as a broader effort to improve the welfare and development of Ogun State, rather than a struggle centred on an individual.

“Our cause is bigger than any individual. It is about the dignity of our people, the progress of our state and the right of Ogun people to determine our own future,” he said.

Reaffirming his commitment to the party’s campaign message, Adebutu said, “OGUN FOR OGUN is more than a slogan. It is a call for leadership rooted in our people, responsive to our needs and committed to our welfare.”

He concluded by urging supporters to remain focused and resolute, declaring: “The journey to a better Ogun continues.”

Continue Reading

News

12 killed, over three hundred injured as terror group attacks Saudi Arabia airport

Published

on

By



Twelve people were killed, while 309 others were injured following a deadly attack on the Riyadh’s international airport in Saudi Arabia by suspected Yemen’s Houthis.

The attack, reportedly the deadliest on Saudi soil in more than a decade, has prompted the Saudi-led coalition to vow on Sunday a decisive response against the group.

The coalition described the attack as a “full-fledged war crime” that a diplomatic source attributed to a missile.

The attack came during an unprecedented wave of Houthi strikes on the kingdom since a truce in the group’s long-running war with Yemen’s Riyadh-backed government unravelled in July.

The spiralling violence has raised the possibility of a wider escalation, with US President Donald Trump signalling Washington could join military action against the fighters.

A passenger told AFP they witnessed a strike in the airport’s domestic terminal.

“I was on gate 403,” the witness said. “I saw 401 hit, I saw injured in front of my eyes. Everyone was running.”

See also  US court sends British-Nigerian to seven years in jail over $5m cyber fraud

According to reports, four Saudi citizens were among those killed in the attack, as well as two Bangladeshis, one US citizen, one Egyptian, one Jordanian, one Syrian, one Palestinian and one Sudanese, the kingdom’s civil aviation authority said in a statement.

It said some of the 309 wounded were in serious condition.

Operations at the airport were suspended following the attack and authorities said damage assessments were ongoing.

The attack prompted health officials to activate a rare mass call-up of doctors to deal with the “serious emergency situation”, a medical source said.

Two doctors said that several pilgrims headed to Mecca were among the wounded.

Schools in Riyadh switched to remote learning for the second time in a month.

Parents in the capital received emails Sunday seen by AFP, citing an order from the education ministry, saying “all schools in Riyadh will switch to distance learning for the entire week”.

“The cowardly terrorist attack by the Terrorist Houthi Militia… which resulted in deaths and injuries among civilian passengers and airport staff, constitutes a full-fledged war crime,” coalition spokesman Major General Turki al-Malki said in a statement on X.

See also  Naira-for-crude oil deal will continue, says FG

Earlier, the coalition said it had intercepted missiles targeting Saudi Arabia and destroyed launch platforms.

The Houthis claimed a series of attacks targeting the airport on Thursday that killed three people and damaged a plane, though they did not immediately take responsibility for any new strikes on Saturday.

Saturday’s attack was the deadliest in the kingdom since May 2015, when a suicide bombing by the Islamic State (IS) jihadist group killed 21 worshippers in a Shia mosque in the eastern Qatif governorate.

The civil war in Yemen flared back to life in July after a four-year, UN-brokered truce collapsed, months into a wider Middle East war that has rocked the region and roiled energy supplies and markets.

Saudi Arabia leads an international coalition that has supported Yemen’s government militarily since 2015 and is now being drawn deeper into its impoverished neighbour’s conflict.

Asked on Saturday whether he had changed his mind about joining Saudi strikes on the group, Trump said: “We may.”

See also  Dangote refinery receives over 952,000 barrels of crude from NNPC

He said he would be speaking with Saudi Crown Prince Mohammed bin Salman, calling what happened in the kingdom “not acceptable”.

US media outlets have reported that previous Saudi requests for US military assistance in dealing with the Houthis have been rebuffed.

Continue Reading

Trending News