Fresh fuel crisis looms over dollar shortage

Nigerians may witness another round of fuel crisis soon following complaints by importers of petrol about scarcity of dollars to bring in the product.

They also claimed that the Nigerian National Petroleum Corporation had not promptly signed agreements to exchange crude oil for fuel.

Similarly, the fuel marketers said that the inability to access adequate foreign exchange from the banks was hampering fuel importation.

Already, fuel queues by motorists and other people have surfaced in some parts of Lagos and other cities.

The NNPC had recently increased its direct petrol imports to more than 70 per cent of the country’s needs, leaving the private importers with less than 30 per cent.

The Executive Secretary, MOMAN, Mr. Obafemi Olawore, in a telephone interview with our correspondent on Thursday, said, “Foreign exchange is the issue everybody is facing. We are unable to access enough forex at the same time. We accumulate over a period of time. Now, the commercial banks are giving us in trickles.”

As explained by the NNPC, the reason why they took a higher percentage (of fuel importation) was that its access to forex was flexible, he said.

Olawore said, “I believe that government should encourage the private sector to import more because we have more of the facilities and other logistics to bring in and distribute. We control most of the storage and distributing channels and we are not bringing in enough.

“The NNPC alone, even if it can bring in everything, doesn’t have where to discharge it. So, even if the supply is enough, distribution will pose as a challenge.”

When contacted for comment on the issue of forex scarcity, The Director, Corporate Communications Department, CBN, Ibrahim Mu’azu, who noted that forex inflow had reduced, said, “The position of the CBN is to give them (marketers) priority on access and that has been made over time.

“They all buy from the interbank, and not directly from the CBN. The CBN is only intervening at the interbank when the need arises. They apply for forex from their banks.”

The NNPC signed deals last year with refiners, Total, Varo Energy, Cepsa and ENI, to exchange oil directly for petrol and other products beginning in February.

Companies including Litasco, Noble and Total had secured “spot” swap contracts with the NNPC via local joint ventures in February and March. Sahara, an old hand in the swap deals, also won spot swap deals in March.

The Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, said the NNPC had adequate stock of products, adding that there was no cause for worry.

“There are no issues. Before now, it was about 50 per cent that was allocated to the NNPC, but somehow the government came and said the NNPC should bring 65 to 70 per cent so that we do not get embarrassed the way we were around December.”

Alegbe said the corporation was working to expand its retail and storage capacity. “By March, we are opening some storage facilities in Mosimi. We have started fixing them and others across the country.”

Nigeria’s crude oil languishes, waits for buyers

While Asian traders were mopping up Angola’s crude oil, Nigeria’s crude remains in ample supply, languishing as it waits for buyers.

According to Reuters, Nigeria’s Erha programme surfaced after weeks of delays that traders said related to a disagreement between state oil firm NNPC and the field operator, Exxon-Mobil.

* Programmes for Erha were issued after several weeks of delay. Four cargoes will be loading in March and three in April, the programmes showed.

* NNPC also issued its official selling price for Erha in March at 9 cents above dated Brent, up from a 17 cent discount in February.

* About 15 March-loading Nigerian crude cargoes are still available, traders said, and a force majeure on Forcados exports was doing little to boost differentials for most grades.

* Bonny Light for April loading was offered at dated Brent plus $1.50 per barrel and Bonga at a $1 premium.

Naira Continues Gains Against Dollar, Trades At N250

The fortunes of the American greenback against the Nigerian Naira has continued to plummet even as the Naira has firmed up it’s value and is currently trading at N250 to $1.

SUN reported The Acting President of the Association of Bureau de Change of Nigeria (ABCON), Aminu Gwadabe, as saying the market was reacting to President Muhammadu Buhari’s ‘no devaluation’ stance.

He, however, expressed ABCON’s support for President Buhari not to allow further devaluation of the naira.
Gwadabe, who said the association was in partnership with the authorities to step up efforts to rid the market of illegal currency traders stated: “Like the President indicated recently, since the only significant thing we export is crude oil, devaluation will do more harm to the economy than good. So we also say no to further devaluation of the naira!” he stated.

He also affirmed ABCON’s backing to ensure its members comply with the Central Bank of Nigeria’s regulation as well as operate within the approved margin of 3.5 per cent with the hope that the demand and supply situation would improve to restore calm and stability in the market.

Satchet water sellers in FCT protest hike in price

Sellers of sachet water popularly known as ‘’Pure Water’’ today took to the streets of Kubwa village of the FCT in protest against increase in the cost price of the product by whole sellers.

They further argued that if the situation was not addressed urgently, they could be out of business. A protester, Yusuf lamented that the product, which hitherto sold for N100 per bag, now sells between N140 and N150.

He said they witnessed low patronage in the past weeks. “Now that we sell at N15 and N20, people who drank five or more sachets have reduced their patronage, unlike when we sold at N10 per sachet.

Lamenting that it was unbearable for them to sell at the new price and still make profit, some of the protesters interviewed threatened to increase the price per sachet from N10 to N20 if nothing was done by the authorities to reverse the trend. “The turnover is poor and at the end of the day, what we take home is not commensurate with the stress.

We are in a season where people don’t drink much; the rains are here and people don’t seem to be thirsty like they are during the dry season. “We pay levy of between N20 to N50 every day before we are allowed to sell in motor parks and with the current situation, things are beyond our limit”.

Another hawker, Mrs. Cynthia Ikwumezie said problem started when producers went on strike for alleged rise in price of water proof used in packaging the product. The protesters called on the state government to address the situation.

They pleaded that government should abolish the tolls they pay in the parks. A bag of sachet water which sold for N100 now sells for between N140 to N150, while roadside retailers sell at N15 per sachet as against the previous N10.


Some sachet water dealer attribute the problem to alleged rise in price of water proof used in packaging the product.

Senate orders arrest of former EFCC Chairman, Ibrahim Lamorde

 Senate has commenced moves for the arrest of former Chairman of the Economic and Financial Crimes Commission, Ibrahim Lamorde, for alleged financial crimes and corruption.

The resolution was reached today in plenary after Chairman, Senate Committee on Ethics, Privileges and Public Petitions, Sam Anyanwu, presented its report at today’s plenary.

In its recommendations, Senator Anyanwu, urged the Senate leadership to direct the Inspector-General of Police, Solomon Arase, to issue a warrant of arrest to ensure Lamorde appears before it to defend himself. 

In his contribution,Deputy Senate President, Ike Ekweremadu, citing sections 88 and 89 of the constitution, explained that taking a resolution for Lamorde’s arrest in plenary will be a constitutional breach.  .

Recall that the former EFCC boss had on three occasions between August and November, 2015, failed to appear before the senate despite several invitations to answer to a petition filed against him by one Dr George Uboh and while reports says he may be far away in the Caribbean.

Naira appreciates against the dollar to N240

The Naira rose against the dollar in the parallel market to N240 from N310, before the close of business yesterday, while the official Central Bank of Nigeria rate remained unchanged at N197. The rise of the Naira defied speculation of further depreciation to about N450 this week after reaching an all-time low of about N400 to the dollar in the parallel market last week.

There has been widespread belief that the Naira appreciation is somehow due to Dr. Ifeanyi Ubah, the CEO of Capital Oil, after his statements on national television on Sunday, where he claimed that he could restore the value of the Naira to 200 in 30 days. He said, further, that the decrease in the value of the dollar has been largely artificial and due to manipulation by certain people.

Surprisingly, the Naira appreciated in the parallel market and is currently hovering around 310 to 340 Naira.

Contrary to this popular belief, Mr. Kunle Ezun, Currency Strategist in Ecobank Nigeria, attributed the rise of the Naira to President Buhari’s defiance on devaluation and the decision of the Bureau De Change (BDC) operators to peg their profit margin at 3.5 percent.

In a bid to ensure further appreciation of the Naira and enhance transparency in the the BDC sub-sector, the chairman of the Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, revealed plans to introduce a foreign exchange rate band weekly, which would be announced via press releases.

The forex market appears to be moving from perception to reality as the weekly forex rate band will serve as a guide for all BDCs and help curb further exploitation of forex end users, he added.

Only time will tell whether or not Dr. Ifeanyi Ubah is the saviour of the Naira, or just a mere coincidence that the Naira appreciated after his statements.

IMF calls on Nigeria to lift foreign exchange curbs

The International Monetary Fund (IMF) called on Wednesday for Nigeria to lift foreign exchange curbs and let the naira reflect "market forces" more closely, also urging more fiscal discipline and structural reform to bolster growth.

President Muhammadu Buhari has rejected a naira devaluation and backed hefty restrictions imposed by the central bank to prevent a collapse of the naira as Africa's biggest economy is whacked by a slump in oil revenues, its lifeblood.

Companies have laid off thousands, cut production and even closed operations as they struggle to get enough dollars to pay for imported spare parts and raw materials.

The naira is trading as much as 40 percent below the official rate on the black market. Devaluation would encourage investment and make domestically produced goods more affordable.

"The exchange rate should be allowed to reflect market forces more and restrictions on access to foreign exchange removed, while improving the functioning of the interbank foreign exchange market," the Washington-based fund said in a statement, after consultations with top officials in Nigeria.

Currency curbs had "significantly" affected parts of the private sector and the economic outlook for Africa's top oil producer was "challenging", it said.

Nigeria needs to import anything from milk to machines as authorities have failed to end its dependency on oil, a fact Buhari wants to change but which business leaders say will be impossible to achieve if plants cannot import raw materials.

The IMF also said it expected the West African nation to grow by 3.2 percent this year, below the official forecast of 3.78 percent. It urged boosting non-oil revenues, raising infrastructure spending and collecting more taxes.  

SEC, Judiciary collaborate on Investor Protection

The Securities and Exchange Commission (SEC) and the Nigerian Judiciary have pledged to collaborate in a bid to boost investor confidence in the dispute resolution mechanisms available in the Nigerian capital market.

Director General of SEC, Mounir Gwarzo disclosed this at the 2016 Judges Workshop organized in collaboration with the National Judicial Institute (NJI) in Abuja, Wednesday.

He said the excellent collaboration between the Apex regulator of the Capital market and the judiciary is crucial to ensure that the rights of investors are protected.

According to Gwarzo, Capital markets encompass all parts of the financial system where long-term equity or debt securities are bought and sold. By definition, such markets are highly specialized and governed by distinct sets of rules and regulations.

NSE CEO, Onyema, gets another five-year term

The Nigerian Stock Exchange on Tuesday announced that its National Council had approved the renewal of contract of employment for Mr. Oscar Onyema for another term of five years as the chief executive officer of the Exchange effective immediately.

The bourse, in a statement published on its website, said Onyema had served as the CEO of the Exchange since April 2011 and his initial five years employment contract expires on March 31, 2016.

Commenting on the renewal, the President, National Council, NSE, Mr. Aigboje Aig-Imokhuede, was quoted as saying, “Mr. Onyema’s tenure as CEO of the NSE is marked by outstanding achievements. The Council is confident that he can continue the Exchange’s trajectory of transformation, innovation and marketplace recognition by implementing its business strategies, which he has been instrumental in developing.

“The leadership qualities that he has demonstrated in his first term as CEO, in the face of such intense and challenging operating environment, have been exemplary. The Council believes that his vision and passion will ensure the Exchange remains a force to be reckoned with in Africa and beyond.”

On his part, Onyema said, “I am honoured to remain with the Nigerian Stock Exchange and to continue to lead our dedicated staff as we strive to achieve the Exchange’s vision. I am grateful to the Council for the opportunity to continue such an important work.”

Ifeanyi Ubah Dares FG To Seize His N500billion Assets On N200 Per Dollar Proposal

To prove his claim of rescuing the Naira, the Chairman of Capital Oil and Gas Services Limited, Dr Ifeanyi Ubah, on Tuesday staked his N500 billion assets.

The billionaire businessman, who addressed journalists in Abuja, dared the Federal Government to seize his assets said to be worth a whooping N500 billion if he fails to bring the dollar to N200 giving the opportunity.

His words, “I am saying that I pledge every asset of mine into my pro­posal, if I fail to bring a dollar to N200 within 30 days, the feder­al government should seize eve­rything I have. I thank Mr. Pres­ident for not heeding the advice to devalue the Naira. I thank him and he should remain firm be­cause nothing has changed.”

Ubah also backed President Muham­madu Buhari’s decision against devaluing the Naira, noting that such move would not augur well for the economy.

He there­fore called on the government to make him its chief consultant on financial stability, stressing that he would work with any govern­ment agency or groups includ­ing the Economic and Financial Crimes Commission (EFCC) to achieve his target.

Ubah stressed that since he appeared on Channels TV to make the proposal last Sunday, the Naira has appreciated tremen­dously, a clear indication “that this freefall of the Naira is artifi­cial and could be better managed with honesty and ingenuity”.

He stated that it was wrong to blame the fall of the Naira on low price of crude oil in the international market, insisting that other major oil exporting countries were not facing similar challenge with their national currency.

“This shows that the scarci­ty was artificial. The masses, es­pecially traders, are suffering. Some traders are almost packing up their things to go home, be­cause of the high cost of foreign exchange which is crippling their businesses. Those manipulating and benefitting from the foreign exchange racket should be fished out and punished,” Chief Ubah said.

He explained that having built the Capital Oil and Gas Services Limited to a position where it now accounts for 34 percent of Nige­ria’s daily consumption of petro­leum products, through his inge­nuity, and without any form of waiver, grant or concession from the government, he was ready to assist the country to stabilize the economy by growing the value of the Naira.

Read more at http://expressng.com/2016/02/ifeanyi-ubah-dares-fg-to-seize-his-n500billion-assets-on-n200-per-dollar-proposal/#DOD0SoLr1uRIRiJa.99

Credit to domestic economy stands at N14trn, says CBN gov

The Central Bank of Nigeria (CBN), yesterday, said that the  total credit granted to the nation’s economy as of June 30, 2015 stood at  N14.7 trillion out of which N760.8 billion representing 5 per cent  was contributed by Development Financial Institutions (DFIs) in the country.

CBN Governor, Mr. Godwin Emefiele, who spoke while presenting a keynote address at the maiden edition of the bi-annual forum for stakeholders of DFIs, gave the sub-optimal performance of the DFIs in the area of granting credit facilities to real sector, told DFIs’ chieftains  to adopt a paradigm shift in their funding model for the institution to make more meaningful economic impact on the nation.

He also announced  that  the quest to acquire final licence for the take-off of Development Bank of Nigeria had reached  advanced stage following its collaboration with other development partners.

According to him, the  Development Bank of Nigeria would provide credit facility at tolerable interest rate for the financing of infrastructure projects, agriculture and Small and Medium Enterprises development through the retail DFIs and other participating financial institutions. Emefiele who was represented by the Deputy Governor (Financial System Stability), Dr. Okwu Joseph Nnanna,  said that given the limitation in the resources available at the disposal of DFIs, government was considering  how to make it possible for DFIs to access capital market for fund to finance critical sectors of the economy.

“The Nigerian experience has shown that government resources have been the main source of long term fund for these institutions, which is not sustainable. It is, therefore, envisaged that with time, the DFIs would be capable of accessing the capital market for funds to finance the critical sectors of the economy.  Thus, to be successful in the long term as catalysts and agents of sustainable economic change, DFIs must operate under a different philosophy that is underpinned by commercial orientation to guarantee their financial viability,” the  governor said, while challenging the DFI chief executives to think outside the box and leverage on international best practices and experiences of other countries such as Brazil and India, which, he said, offered useful lessons.

Also as part of efforts to deepen the Islamic Financial Services standards with the hosting of the fourth  technical workshop on the implementation of Islamic Financial Services Board (IFSB) standards in Nigeria, CBN yesterday declared open a workshop to dialogue with IFSB team from Malaysia and exchange ideas, experience and perspectives on developments in the area of Islamic finance and particularly how to implement IFSB standards in Nigeria.

IFSB, like the Basel Committee, is an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry by issuing global prudential standards and building principles for the industry, comprising banking, capital markets and insurance sectors.

MTN Withdraws Suit Against NCC

MTN has withdrawn its suit against the Nigerian Communications Commission (NCC) and paid N50 billion towards an amicable resolution of the fine imposed on the telecoms giant.

NCC had fined MTN N1.04 trillion for failing to deactivate 5.1 million unregistered SIM cards and later reduced the amount to N780 billion after the first round of negotiations.

However, MTN filed a suit as the December 31, 2015 deadline drew near, and later requested an out-of-court settlement. On Wednesday, the mobile phone company finally withdrew the case at the federal high court in Lagos in response to a request by the Nigerian authorities.

Ferdi Moolman, the CEO of MTN Nigeria said on the withdrawal: “This is a most encouraging development. It demonstrates a willingness and sincerity by both parties to work together towards a positive outcome.” MTN paid N50bn to the federal government “as a gesture of good faith and commitment to continued efforts towards an amicable resolution”, according to the telecoms company.

Moolman further said: “We are hopeful at this stage. Along with the authorities, it is clear that we are collectively committed to working towards a solution that is of mutual benefit to all parties. Our industry in Nigeria is an incredibly important example of the remarkable progress in ICT particularly as a much needed catalyst for socio-economic growth and development at this time.”

Quit if you can’t reduce tariff – NLC tells DISCOs

The Nigeria Labour Congress (NLC) has urged DISCO or GENCO operating in the country to immediately effect the directive of the NASS on tariff reduction or should honorably surrender its possessory and proprietary rights to government if they do not have the requisite capacity.

The Congress in a statement by its president, Ayuba Wabba, said while it is ready to submit itself to the ongoing intervention process at the NASS, it will not allow any one to take the people of this country for a ride any more.

The Congress condemned recent statement credited to former chairman of NERC, Amadi who described the directive of the Senate as “illegal, unconstitutional and a direct encroachment on the executive independence” and that NERC as presently constituted cannot suspend or rescind the decision by the previous NERC Commission.

The statement by Wabba reads in part, “Dr Amadi is being economical with the truth and his legal knowledge. The duties of the Legislature as defined by the constitution include legislation, oversight and investigation. Beside this, elementary knowledge of the Social Sciences tells us that independence of the three arms of government in a liberal democracy is a coordinate one. Even if it were absolute, such independence cannot be in pursuance of criminality, fraud or injustice.
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“Secondly, we find it disgusting that Dr Amadi could only remember the independence of the Executive and not that of the Judiciary which gave an earlier order and still subsisting that no increment be made until the determination of the substantive case.

“Flowing from the breach of this order, a contempt proceeding against NERC is on in court but Amadi will have none of this.”

Wabba called on the relevant agencies to probe not just the tenure of Amadi at NERC but the entire privatisation process of the power sector which he stage-managed.

“We are also keen to know his relationship with some of the DISCOs for whom he has become chief spokesman.

“We also demand that if any DISCO or GENCO does not have the requisite capacity, it should honorably surrender its possessory and proprietary rights to government as was the case with the Yola Electricity Company. The Yola Company was honourable enough and reasons adduced by it, genuine,” he said.


    

New Electricity Tariff: Court Dismisses Application To Stay Proceedings

A Federal High Court sitting in Lagos has thrown out a suit over the hike in electricity tariff, for lack of merit.

Justice Mohammed Idris held that contrary to the claims of the Nigerian Electricity Regulatory Commission (NERC), there is no indication that an appeal has been listed for hearing at the Appeal Court.

The NERC had asked the court to stay proceedings until its appeal against two previous rulings are heard and determined by the Appeal Court.

The application was dismissed and a cost of ten thousand Naira was awarded in favour of the plaintiff, a Lagos based lawyer, Toluwani Yemi-Adebiyi.

The Federal High Court sitting in Lagos on February 15, 2016 warned the Federal Government and the Distribution Companies (DISCOs) not to disobey subsisting court orders on electricity tariff.

The court also warned the government not to act in a way that showed disdain for the court in a constitutional democracy.

Presiding Justice, Mohammed Idris, gave the warning while ruling in a suit filed by a lawyer and rights activist, Toluwani Adebiyi, over the recent hike in electricity tariff on Monday.

Nigeria and Saudi Arabia committed to oil price stability - Presidency

Nigeria and Saudi Arabia are committed to a "stable oil market" and efforts to support the price rebound, a spokesman for Nigeria's president said on Tuesday.

President Muhammadu Buhari is in Riyadh to discuss with Saudi Arabia's King Salman ways to stabilise crude oil prices.

The two leaders "committed themselves to doing all that is possible to stabilize the market and rebound the oil price", said Buhari's spokesman Garba Shehu.

PENGASSAN shuts down PPPRA offices over appointment issues

The offices of the Petroleum Products Pricing Regulatory Agency across the country were on Tuesday shut down by the Petroleum and Natural Gas Senior Staff Association of Nigeria, PPPRA Branch, as result of issues bordering on the appointment of an acting executive secretary for the agency.

PPPRA is an agency of the Federal Government that fixes and regulates the prices of petroleum products in Nigeria.

Last week Thursday, the former Executive Secretary of the agency, Mr. Farouk Ahmed, handed over to the most senior management staff of the organisation, Mr. Moses Mbaba, who is the organisation’s General Manager, Administration and Human Resources.

But trouble started on Monday at the agency’s headquarters in Abuja when after Mbaba was sent on an official assignment to Lagos, one Mrs. Sotonye Iyoyo, who is not a staff of the agency was allegedly sent by the Federal Ministry of Petroleum Resources to head the PPPRA as its new acting ES.

It was gathered that this prompted PENGASSAN members at the various offices of the agency to shut down the operations of the PPPRA nationwide on Tuesday.

PENGASSAN Chairman, PPPRA Branch, Mr. Victor Confirmed the nationwide shut down to our correspondent during an interview, and stressed that it was not right to bring someone from outside the agency to head the regulatory body in an acting capacity.

“Operations are to remain shut down until a better explanation comes from the requisite authorities,” he said.

A senior official of the agency, who spoke on condition of anonymity, gave further explanations on what prompted the operational shut down of the PPPRA on Tuesday during an interview with our correspondent.

He said, “The office is shut down for now because of the appointment of another acting executive secretary. You know the former ES, Farouk Ahmed, left last Thursday and handed over to the most senior officer in the agency, Mr. Mbaba.

“But surprisingly yesterday being Monday they brought another person while Mbaba was away in Lagos on official assignment. So the union rejected it on the grounds that there was already an acting ES. Their agitation was that how can there be an acting ES on Thursday/Friday and another one on Monday?

“And they also argued that why is it that they are bringing somebody from outside the PPPRA to function in acting capacity, not a substantive ES? So these are the major thrust of the protest which led to the shutdown of our operational activities, both at the head office and at the zonal offices all over the country.”

When asked who appointed the acting executive secretary, the official said, “She must have come from the Permanent Secretary of the Federal Ministry of Petroleum Resources or the minister. But whoever it is that may have appointed her, the fact is that she can’t come from outside to act as ES of the PPPRA.”

The spokesperson for the Federal Ministry of Petroleum Resources, Mr. Kingsley Agha, did not answer calls to his phone when our correspondent tried contacting him for the ministry’s position on the issue. A text message sent to him was neither replied.

FG to reconnect railway with sea ports — Minister

The Minister of Transportation, Mr Rotimi Amaechi has said that the Federal Government will re-connect the country’s railway with the sea ports in a bid to boost economic activities.

Amaechi said this during a meeting he had with port professionals on Monday in Lagos.

The minister said President Muhamadu Buhari’s resolve to diversify the economy had brought to the front burner the need to implement the inter-modal means of transportation in the country.

“We expect that before June or July, we should begin the process or we should start the construction of the Lagos-Kano, and possibly the Lagos-Calabar railway.

“If those two contracts commence, then we expect that they would generate employment (and) economic activity would improve.

“And we say that all of these must terminate at the sea ports, so anybody can import from any particular place in time.

“You can import from Warri Sea Port; you can import from Port Harcourt sea port; you can import or export from Calabar sea port or any of the sea ports.

“In terminating the railway, we are going to terminate one at Apapa and another one at Tin Can to encourage inter-modal means of transportation.’’

The minister gave the assurance that appropriate measures would be taken to ensure that the country received the right amount of revenue from the system.

“We also want to know how much is coming in and how much is being spent.’’

“Nobody is expected to spend more than the budget has been approved for you so that we save money for the economy.’’

Amaechi, therefore, urged Nigerians to be patient with the Federal Government as its works assiduously to revive the economy, beginning with the implementation of the 2016 budget.

50,000 Abuja workers sacked in two months over scarcity of foreign exchange – ACCI

President of the Abuja Chambers of Commerce and Industry, ACCI, Tony Ejinkeonye, has revealed that in the last two months, over 50,000 workers have lost their jobs in Abuja due to continued scarcity of foreign exchange for importation of raw materials by local industries.

Speaking with The Punch in Abuja, Ejinkeonye said more people could lose their jobs, if the Federal Government refuses to urgently address the problem of forex exchange.

Ejinkeonye said, “Currently, in Abuja, we have about 50,000 workers that have lost their jobs in the last two months. I must confess this is not a good time for the manufacturing sector.”

“As manufacturers and industrialists, the scarcity of foreign exchange has affected us in the area of raw materials that need to be imported. We cannot access foreign exchange anymore to import raw materials.”

“Also, maintenance of some of these facilities has become a problem because the spare parts have to be imported and the inability to get foreign exchange to import them has impacted negatively on our operations.

“Some of our members who are manufacturers have even gone to the extreme of withdrawing their goods from the market and need to increase their prices to reflect the high foreign exchange rate. Many of us are having the problem of retaining our workers because the production is being hampered by lack of raw materials.”

He stated that the situation had become so bad that even big manufacturing companies such as Unilever Nigeria Plc, Dangote Cement, Air France and Emirate Airlines were having problem getting foreign exchange.

Ejinkeonye urged the Federal Government to take steps to address the problem.

“There is a need for government to do something urgently and stop living in denial. The Central Bank of Nigeria and the Ministry of Finance should come out and say something that would move us out of this forex crisis.”

“Things are really bad. As I’m talking to you now, Unilever, Dangote Cement and our other members are crying. A lot of companies have also threatened to lay off workers. If something urgently is not done within the next 30 days by the government to address this, you will see companies like Dangote and Unilever Nigeria sacking some of their workers.”

“Airlines like Air France and Emirates are really having very serious problems now in taking back their foreign earnings,” Ejinkeonye said.

AMCON says no more intervention fund for stockbrokers

 As prices of equities continue to plummet on account of the recent lull in the stock market, the Asset Management Corporation of Nigeria (AMCON), yesterday, said it was not considering another bailout for stockbrokers in line with recent calls by the stockbroking community.

The corporation also assured that being a key shareholder in the market, it was ready to work with the Nigerian Stock Exchange (NSE) to deepen and make the market more professional as well as ensure that it bounced back in the interest of all stakeholders.

Managing Director of AMCON, Mallam Ahmed Kuru, made the disclosure when management team of the corporation paid a courtesy visit to the NSE to sound the trade closing gong.

Recall that the stockbrokers through their umbrella body – the Chartered Institute of Stockbrokers (CIS) and the Association of Stockbroking Houses of Nigeria (ASHON), had called on the Federal Government to create an intervention fund of about N200 billion to be accessed by market makers to shore up the market and stop it from further decline.

Speaking through the Acting President of the CIS, Oluwaseyi Abe, and ASHON chairman, Mr. Emeka Mmadubuike, the stakeholders said each market maker should be availed between N1 billion and N10 billion to help them carry out their functions effectively.

However, while responding to questions, yesterday, at the end of the closing gong ceremony, Kuru said forbearance for stockbrokers was a closed issue.

In his words:  “The issue of forbearance has gone; this is not the time for forbearance. This is the time for businesses to come back. This is the time for businesses to work properly; this is the time for us to put proper corporate governance practices in place so that businesses don’t survive on the basis of supporting, but on basis of dynamics of those businesses.”

He continued: “AMCON was set up to buy non-performing assets from financial institutions and in those assets, we do have quite a lot of margin loans. Today, outside the energy sector, our holdings are highest in equities. That means that we have a lot of interest in what is happening in the Exchange. And you know recently, the Exchange has not been doing very well, which means that my balance sheet is also going down. So, AMCON as a resolution company will do everything possible within the ambit of the law to support the management of the Exchange.

“Margin loans represent very high proportion of equities we are holding and unfortunately because of deprecation in the Exchange, there is a very wide gap which necessarily we must pray that the market picks up so that we close the gap.”

On when the financial institutions bailed out by AMCON would come back for listing on the Exchange, he said: “To come back to the Exchange to be listed does not have anything to do with us or the management of the Exchange. What we try to do is to look at the underlining businesses, how to make the business to come back to life. Once the business has been revived, it is now left for them to apply to the Exchange whether they will allow them to start trading their shares.”

Massive job loss ‘coming in 4 weeks’

Babatunde Odunayo, pioneer CEO of Honeywell Flour Mills, says many companies in Nigeria will begin to shut down over the next four to six weeks.

In an interview with CNBC Africa, Odunayo said that it was not the best time for anyone to be president of Nigeria, adding that devaluation would be harmful to industry.

He said many companies planning expansion had borrowed money in dollars, and remain in a very difficult position to pay back. “People committed to expansion projects at 170, 178, and they thought this is profitable, let’s do it, let’s borrow.

They borrowed $30 million or 40, 50; the devaluation difference alone can send them packing,” said Odunayo, a member of the Nigerian Economic Summit group and the chairman, board of directors at FBN Mortgage. “So industry does not support devaluation.

But industry thinks government should relax its policies. It’s not the best time to clamp on other sources of dollars. “If oil was selling at $100 or more, you can say OK, if you don’t do it through the central bank, I don’t want to know you, because I don’t even know the source of your money.” He said government policies mandate that if any company must use dollars outside the CBN, it must show it to CBN as an inflow. “How many companies in Nigeria earn foreign currency as an inflow into a dom account?” he queried, adding that industry has “four weeks, maybe six weeks” before “significant closure and loss of employment”. Odunayo added that it was an error on the part of the CBN to explicitly announce that it would no longer fund bureau de change operators. “That sent the naira rate packing. You don’t need to go and make such announcement. They can go tomorrow and say; ‘now we shall begin to sell some limited amount to bureau de change’. Whether you give $50,000 or $10,000, the fact is that you’re selling something. “It would reduce the pressure, the reduction in pressure is not commensurate to what you give; it’s the relax atmosphere that makes the naira go down.”

$24bn contracts: Reps summon Diezani, to appear March 2

The House of Representatives on Monday despatched a letter to a former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, asking her to explain how she extended contracts for crude oil worth $24bn without valid agreements.

The Chairman of the House Ad hoc Committee on Crude Oil Swap, Mr. Zakari Mohammed, confirmed on Monday that a letter had been sent to Alison-Madueke to appear before the committee on March 2.

“Yes, she has been asked to come on March 2. The letter left the secretariat today, February 22 (yesterday),” Mohammed stated.

He said the letter was routed through the office of the Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Ibe Kachikwu.

Two firms, Duke Oil and Tranfigura, were given the swap contracts in 2011 under the controversial crude-for-refined products (swap) deals the NNPC executed between 2010 and 2014.

The NNPC was allocated 445,000 barrels of crude daily to refine for domestic consumption.

However, owing to the failure of the country’s three refineries to function, the corporation resorted to exchanging part of the crude for refined products by engaging Duke Oil and Tranfigura.

Incidentally, Duke Oil is a subsidiary of the NNPC while Tranfigura is an offshore firm trading in Nigeria’s crude but does not pay tax to the Federal Government.

The Mohammed-led committee, which is investigating the deals, heard last week that Duke Oil and Tranfigura got an initial swap contracts in 2010 to last one year.

However, after the contracts expired in 2011, the former minister reportedly ordered an “extension” of the contracts, to run till 2014, but did not sign any valid agreements with the firms.

Three former GMDs of the NNPC – Mr. Austin Oniwon, Mr. Andrew Yakubu and Mr. Joseph Dawha – had appeared before the committee last week in Abuja to admit that the crude exchange took place without formal contracts.

“There was an approval for the extension by the minister; I believe the records are with the NNPC,” Oniwon, who was the first to appear before the panel, told the committee.

On his part, Dawha revealed that Duke Oil lifted 210,000 barrels of crude daily, while Tranfigura loaded 90,000 barrels” per day.

“Thus, as of August 2014, when I assumed office, the contracts were being run long after they had expired,” he added.

For Yakubu, he disclosed how he sent a report to Alison-Madueke on the need to review and formalise the contracts, but that the report “never came back to me from the minister.”

Speaking on the documents the committee had directed the former minister to produce, Mohammed said they included “full brief on all swap arrangements, a proof of Federal Executive Council’s approval, the NNPC board resolution on the contracts, evidence of the approval limit of the board and that of the minister of petroleum resources and that of the GMD.”

Mohammed explained that the FEC approval was necessary because by regulations, the approval limit of a minister was N100m, while higher amounts like the controversial $24bn would require the approval of FEC.

Dawha, who was the last GMD to serve under Alison-Madueke, had explained how he later ended the swap deals because they were “abnormal.”

He admitted that in the 27 years he served as an employee of the NNPC, there was never a period in the history of the corporation that such arrangements were allowed.

Dawha told the committee that his immediate decision was to seek a legal opinion on how to correct the anomaly following which he wrote Alison-Madueke on the need to sign legally-binding contracts with the companies.

The former GMD said Alison-Madueke approved his proposal to formalise the contracts.

“Upon receipt of the minister’s approval granted in August 2014, the contracts were formally extended to cover the periods from their respective dates of expiry until the end of December 2014,” he added.

Dawha explained that incorporated in the new contracts was an agreement to end the swap arrangements on their expiration, and migrate fully to Offshore Processing Agreement, which involved the direct processing of crude for refined products.

NNPC Deploys Additional Volumes Of Petrol To Abuja

The Nigerian National Petroleum Corporation has announced the deployment of additional trucks of petrol to arrest the emerging fuel queues in some fuel stations in Abuja.

The Nigerian National Petroleum Corporation said this in a statement signed by its Group General Manager, Group Public Affairs Division, Ohi Alegbe.

The corporation explained that it had increased the fuel supply to the Federal Capital Territory and environs from the usual average of one hundred and sixty trucks per day to two hundred and fifty trucks amounting to 8.25 million litres.

This development, according to NNPC, was to arrest the lull experienced due to last weekend’s State House of Assembly re-run election in Niger State, which affected truck movement from the Suleja depot.

It called on members of the public to refrain from all forms of hoarding, diversion and panic buying of petroleum products.

The corporation also assured the citizens of availability of petrol to meet the demand of consumers in Abuja and beyond.

Oil-rich Venezuela finally devalues currency, raises petrol price 6000%

President Nicolas Maduro of Venezuela finally announced the devaluation of his country’s currency, bolivar by 59 percent, raising petrol prices by 6000 percent – meaning paying about 60 times more.
Making Venezuela’s biggest economic announcement on Tuesday, Maduro said the time has come for placing a fair price on hydrocarbons. “This is a necessary action, for which I take responsibility,” Maduro said in a nationwide address “The time has come to establish a system that guarantees access to hydrocarbons at a fair price but that also guarantees the funding of investment in producing that gasoline.”

Before the address, a litre of petrol in the oil rich country went for 1.5 US cents (N3), but would now go for 95 US cents (N190) per litre.

This is the country’s first increase in fuel price in 20 years. The official exchange rate used for food and medicine imports will weaken to 10 bolivars per dollar from 6.3, as of Thursday, while a second rate will be allowed to float – affirming the country’s dual exchange rate system.

According to the World Economic Forum (WEF), Venezuela has long lived in denial keeping its official currency at a point, while the parallel market rate plunges – just like in Nigeria. The country’s currency has fallen by 93 percent between 2014 and 2016, with WEF saying “Venezuela’s government has tried to deny economic reality with price and currency controls.

The idea was that it could stop inflation”. Inflation was however not curbed as the country recorded a 140 percent rise in inflation rates in 2015 alone. In his announcement, Maduro however increased the country’s minimum wage by 20 percent, adding that he hoped the new policies “will be understood by the people on the streets”, calling against looming protests.

The policies have already been rejected by the opposition, with Henrique Capriles, two-time opposition presidential candidate, saying it is time for a possible referendum on recalling Maduro. “The constitutional time has come … let’s go for recall,” he said in a tweet after Maduros’ speech.

Shell Declares Force Majeure On Nigeria’s Forcados Offtake Programme

On Monday, the Shell Petroleum Development Company of Nigeria Limited (SPDC) declared force majeure on Forcados liftings  effective  1500hrs (Nigerian time) February 21, 2016, following the disruption in production caused by the spill on the Forcados Terminal subsea crude export pipeline.

In statement SPDC spokesman Mr Precious Okolobo, “SPDC is intensifying efforts on containment and oil recovery from the February 14, 2016, spill while also finalising repair plans”

Last week a group known as Niger Delta Avengers claimed its men carried out attacks on Forcados terminal while declaring “OPERATION RED Economy”.

The statement read in part:

“We are a group of young Niger Deltans who have support from other parts of Nigeria, namely Northern, Western and Eastern part of the Country.

We have watched with keen interest, the way and manner in which the president Muhammadu Buhari Led APC government runs the affairs of this country, and we not pleased with the way things are going. For instance, the so-called anti-corruption fight is directed towards perceived enemies of the government, and those that are sympathetic to former President Goodluck Jonathan.

We wonder why this persecution, despite the peaceful manner Jonathan hand over government to All Progressive Congress APC. When they did not even the win the 2015 election because he was after lives of Nigerians as he saw that the APC is blood tasty”.

“So far the only two governorship elections that were conducted under this government were and still remain the most controversial elections in the history of this nation.

The 2016 budget that was presented to the national assembly is full of fraud, yet nobody has owned up to the frauds spotted in the budget by Nigerians and the national assembly.

The president has not deemed it fit to expose and prosecute those that are behind these frauds and punish them accordingly, because because he is neck dip in these frauds. What kind of anti-corrupt fight is this?”.

Council appeals to CBN to relax forex policy on imported goods

The Retail Council of Nigeria (RCN) on Monday appealed to the CBN to relax its foreign exchange policy on imported items to sustain the growth of the retail sector.

The Secretary of the council, Alhaji Kunle Hamzat, told the News Agency of Nigeria (NAN) in Lagos that sustainability of the retail sector was being threatened by stringent policies of the apex bank.

“We understand that forex is not available and you cannot give what you do not have but in apportioning what is available, the retail sector is neglected.

“The suppliers of goods that we sell are not given the desired attention by the CBN.

“The low supply and fluctuation in the exchange rate have made it impossible for our suppliers to give us sufficient goods and whatever is supplied is always at very high prices,” Hamzat said.

NAN recalls that the CBN had embargoed the sourcing of forex officially for 41 imported items.

The items include cement, margarine, palm kernel/palm oil products, vegetable oils, toothpick, glass and glassware.

Others are meat and processed meat products, turkey, private airplanes/jets, Indian incense, tinned fish in sauce, sardines and cold rolled steel sheets, among others.

The Governor of the CBN, Mr Godwin Emefiele, said the action became necessary to stimulate domestic production.

He explained that the apex bank would be vigilant and do a periodic review of the restricted items until it was satisfied that the excluded items were produced locally.

It is estimated that Nigerians spend $1.3 trillion every year importing items like rice, fish, sugar, wheat and toothpick.

Hamzat said the policy had led to depletion of goods in most stores, causing store managers to conceal the shortage of goods through re-arrangement of stores.

“There are no more goods to display on shelves in stores, the variety of goods have reduced.

“Where we usually have more than 20 items on display, we fill the space with one item so it does not look empty.”

Hamzat said that the policy had not only adversely affected supermarkets but all other types of retail outlets, including fashion, accessories, watches, fragrances, home-wares and e-commerce.

The secretary urged government to strengthen and sustain the growth of the retail sector through the formulation of positive economic policies.

A 2014 report by the Mckinsey’s Global Institute puts Nigeria’s current yearly retail consumption at 388 billion dollars with a projection to rise to 1.4 trillion dollars by 2030.

According to the Federal Ministry of Industry, Trade and Investment, N205.4 billion ($1.26bn) worth of investment was attracted into the retail sector of the country between 2012 and 2013.


    
    
    

FG backs Saudi, Russia in move to revive oil price

The Federal government has thrown its weight behind a proposal by Saudi Arabia, Russia, Venezuela and Qatar to freeze oil production in an effort to revive prices from a 12-year low.

Minister of State for Petroleum Resources, Emmanuel Kachikwu who gave this indication on Sunday in Doha while speaking with reporters after meeting his Qatari counterpart Mohammed al-Sada on Sunday, however said Nigeria will want Iran and Iraq to regain some of their lost market share due to sanctions and war.

“Countries like Iran and Iraq have been out of the market for a while and if they are to come back you shouldn’t freeze them out where they are, you should freeze them at a higher level,” Kachikwu said.

“By June we will come very close to tightening the market.” Kachikwu spoke just as the Presidency announced on Sunday that President Muhammadu Buhari will begin a week-long official visit to Saudi Arabia and Qatar on Monday.

A statement issued by his Special Adviser on Media and Publicity, Mr Femi Adesina, said the President would first fly to Riyadyh for talks on Tuesday with King Salman Bin Abdulaziz Al Saud and senior officials of the Kingdom of Saudi Arabia.

He will later hold talks in Doha on Sunday with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani.

Saudi Arabia, Russia, Venezuela and Qatar agreed last week to keep production at January levels, as long as others follow suit, in an effort to revive prices.

Iran’s production has slumped since international sanctions were imposed on its exports, and Iraq is seeking to rebuild following years of war and under-investment.

Kachikwu, who met Al Sada and Qatar Petroleum Chief Executive Officer Saad Sharida Al Kaabi, is scheduled to meet with Saudi Arabian Oil Minister Ali al-Naimi on Monday, according to Bloomberg news agency quoting a person familiar with the matter, who asked not to be identified.

The Minister said Nigeria’s oil production will be 2.2 million barrels a day this month, unchanged from January.

“Nigeria will continue to look at the possibility of increasing production, not to sell it, because we have local consumption that is essential for us,” Kachikwu said.

“Right now we are not even exporting the quantity that OPEC has given us.”

Demand from domestic refineries is at least 500,000 barrels of oil a day, he said.

There is little chance that the Organization of Petroleum Exporting Countries will hold an emergency meeting before the next regular one scheduled for June, Kachikwu said.

“Rather than focus on emergency meeting, we need to talk more. Because if you held a meeting when you haven’t agreed largely on the solution it wouldn’t be productive and would also affect the price of oil.”

Meanwhile, Buhari’s Special Adviser on Media and Publicity, Mr Femi Adesina, in his statement said the President would be accompanied by a high-powered Federal Government delegation, including Dr Ibe Kachikwu.

It noted that the ongoing efforts by the Federal Government and other members of the Organisation of Petroleum Exporting Countries (OPEC) to achieve greater stability in the price of crude oil exports were expected to be high on the agenda of discussions between the President and the Saudi Monarch.

“Crude oil prices and market stability will also be on the front burner when President Buhari goes on to Doha on Saturday for talks on Sunday with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani.

“The President is also scheduled to meet with leading Saudi and Qatari businessmen in Riyadh and Doha, and invite them to support his administration’s efforts to revamp the Nigerian economy by taking advantage of the great investment opportunities currently available in Nigeria’s mining, agriculture, power supply, infrastructure, transportation, communications and other sectors.’’

The statement said Buhari’s other engagements in Saudi Arabia included meetings with heads of international financial organisations and multilateral associations.

It stated that before going on to Doha, the President would visit Medina and Makkah to pray for greater peace, prosperity and progress in the country.

We’ll increase oil production for domestic use – Kachikwu

Nigeria will keep striving to increase crude oil production to meet local demand and not to essentially sell it in the international market, the Minister of State for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Ibe Kachikwu, has said.

Kachikwu also announced Nigeria’s backing of Saudi Arabia and Russia in freezing oil production, while giving Iran and Iraq a way out to regain some of their lost market shares due to sanctions and war.

The minister said he supported a production freeze in an interview with reporters in Doha, Qatar on Sunday, according to a report by Bloomberg.

Kachikwu stated that Nigeria’s oil production would be 2.2 million barrels a day this month, unchanged from January, he said.

“Nigeria will continue to look at the possibility of increasing production, not to sell it, because we have local consumption that is essential for us. Right now, we are not even exporting the quantity that OPEC has given us,” he said, adding that demand from domestic refineries was at least 500,000 barrels of crude oil a day.

On Nigeria’s backing of a freeze in oil production, Kachikwu said, “Countries like Iran and Iraq have been out of the market for a while, and if they are to come back, you shouldn’t freeze them out where they are; you should freeze them at a higher level. By June, we will come very close to tightening the market.”

Saudi Arabia, Russia, Venezuela and Qatar agreed last week to keep production at January levels, as long as others followed suit, in an effort to revive prices from a 12-year low.

Iran’s production has slumped since international sanctions were imposed on its exports, and Iraq is seeking to rebuild following years of war and underinvestment.

Kachikwu noted that there was little chance that the Organisation of Petroleum Exporting Countries would hold an emergency meeting before the next regular one scheduled for June.

He said, “Rather than focus on an emergency meeting, we need to talk more. Because if you held a meeting when you haven’t agreed largely on the solution, it wouldn’t be productive and would also affect the price of oil.”

In another development, the NNPC said it was not recruiting and called on members of the public to be wary of fraudsters sending letters to unsuspecting individuals inviting them for “the second process of recruitment” billed to hold towards the end of this month.

Scarcity: 480 truckloads of fuel dispatched to Abuja, environs – NNPC

The Nigerian National Petroleum Corporation, NNPC, Monday, said over 480 truckloads of Premium Motor Spirit (PMS) also known as petrol, had been dispatched to Abuja and neighbouring states within Sunday and Monday, to quell the scarcity currently witnessed in the Federal Capital Territory and environs.

Speaking to newsmen in Abuja, Group General Manager, Group Public Affairs Department of the NNPC, Mr. Ohi Alegbe largely blamed the fuel scarcity on the re-run elections held in Niger State, over the weekend. He also stated that the situation was worsened by panic buying by motorists.

According to him, due to the restriction of movement on the day of the election it was impossible to load fuel from Suleja depot on Saturday. The Suleja depot supplies fuel to Abuja, Niger, Nasarawa and other nearby states.

He, however, explained that the NNPC has commenced measures to address the situation, stating that on Sunday, over 210 truckloads of fuel were despatched to Abuja and environs.

He also disclosed that another 270 truckloads of fuel were dispersed on Monday, while he expressed confidence that by today (Tuesday), the queues would have disappeared.

“Also note the situation in Abuja was largely due to panic buying because no despatch was made from Suleja depot due to restriction on movement for the re-run elections. However, as Sunday, over 210 trucks have been dispatched to Abuja,” he said.
The scarcity resurfaced on Sunday and continued till Monday in Abuja, with large queues witnessed in almost all the petrol stations selling the products, while most petrol stations were shut due to the unavailability of the product.
At the Airport Road in Abuja, there were queues in almost all the petrol stations along the expressway, while some were shut.

All the petrol stations along the Nyanya-Mararaba axis down to Asokoro were shut down, as they claimed they do not have the products in their tanks.
Also, queues were seen at the NNPC petrol station behind the national Stadium Abuja, while some motorists who spoke with Vanguard claimed they spent about 40 minutes on the queue before they could get the product to buy.

Also light queues were recorded at some petrol stations at the Central Business District (CBD), such as Conoil, Total, Forte Oil, NNPC mega station among others.

Yaman filling station at Area 3 in Garki sold fuel to motorist, while the queue at the station was longer than usual; however, the queue was not as bad as in previous fuel scarcity periods.

Nigeria naira firms on parallel market after president rejects devaluation

 

 Nigeria's naira firmed sharply to 375 on the parallel market on Monday after importers started to reduce demand for dollars following the president's defiance over devaluing the currency, hit hard by the fall in global oil prices, one trader said.

The naira firmed 4 percent from Friday's close of 390 to the dollar, while the official interbank rate remained at 199.50 to the dollar at the close of trading on Monday.

Aminu Gwadabe, the head of Nigeria's bureaux de change association, said that retail currency operators were working to introduce a single quote across the parallel market and maintain a bid-ask spread of 3.5 percent for trades.

"We have set up a unit to monitor compliance with the new measures," he told Reuters, adding that the central bank has been informed of the measures.

President Muhammadu Buhari on Saturday again rejected the idea of devaluing the West African nation's currency, despite a hammering of the naira on the secondary market last week.

Gwadabe said the market was trying to adjust to the reality of no currency devaluation by the government.

The central bank has resisted the depreciation by imposing hard currency curbs. It banned dollar sales to retail currency outlets last month, sending the naira to record lows on the parallel market, and later stopped daily sales to the interbank market, in an effort to conserve reserves, now at their lowest in more than 11 years.

NLC calls for probe of Amadi’s tenure as NERC chairman

Leadership of Nigeria Labour Congress (NLC) on Sunday called for the investigation into the operations of Nigerian Electricity Regulatory Commission (NERC) and its immediate chairman, Sam Amadi.

Ayuba Wabba, NLC president, gave the charge while reacting to the statement credited to Amadi, who alleged that the call by the Senate to rescind the 45 percent electricity tariff was ‘illegal, unconstitutional and a direct encroachment on the executive independence.’

Wabba in a statement titled ‘Probe NERC and Amadi,’ described Amadi’s position as “treacherous, shameful and saddening.

“Dr Amadi had among other things said the directive of the Senate is “illegal, unconstitutional and a direct encroachment on the executive independence,” and that NERC as presently constituted cannot suspend or rescind the decision by the previous NERC commission.

“Dr Amadi is being economical with the truth and his legal knowledge. The duties of the Legislature as defined by the constitution include legislation, oversight and investigation. Beside this, elementary knowledge of the Social Sciences tells us that independence of the three arms of government in a liberal democracy is a coordinate one. Even if it were absolute, such independence cannot be in pursuance of criminality, fraud or injustice.

“Secondly, we find it disgusting that Dr Amadi could only remember the independence of the Executive and not that of the Judiciary, which gave an earlier order and still subsisting that no increment be made until the determination of the substantive case.

“Flowing from the breach of this order, a contempt proceeding against NERC is on in court but Amadi will have none of this.

“But what else do we expect from a Chairman who not only compromised the Commission but surrendered willy nilly its functions to the successor-companies in the power sector for God-knows why!

“Amadi not only described the Senate directive as a “dangerous precedence”, but has instigated NERC not to obey the directive as ” it would have put itself in a double bind between the executive and legislature and a violation of the provisions of the Act.

“We are disgusted by this and are accordingly calling on the relevant agencies to probe not just the tenure of Amadi at NERC but the entire privatisation process of the power sector which he stage-managed. We are also keen to know his relationship with some of the Discos for whom he has become chief spokesman,” the NLC boss alleged.

While applauding the Senate’s resolution, Wabba called on the management of all the Distribution Companies (Discos) and Generating Companies (Gencos) to respect and effect the directive of the National Assembly without further delay.

“We also demand that if any Disco or Genco does not have the requisite capacity, it should honourably surrender its possessory and proprietary rights to government as was the case with the Yola Electricity Company. The Yola Company was honourable enough and reasons adduced by it, genuine.

“We will not fold our hands while a few individuals or companies or institutions further plunder and plunge this country into abyss.

“While we are ready to submit ourselves to the ongoing intervention process at the NASS, we must sound a note of warning that we shall not allow any one to take the people of this country for a ride any more. Let the Amadis of this world listen, if they have ears,” Wabba warned.

FG collects N8 per litre on imported PMS – PPPRA

The Petroleum Products Pricing Regulatory Agency (PPPRA) said Federal Government would be collecting N8 per litre as subsidy on petrol imported by NNPC and other marketers.

fuel-pumpAlhaji Farouk Ahmed, outgoing Executive Secretary of the Agency, announced this while handing over to Mr Moses Mbaba, General Manager Administration, and Human Resources, last week in Abuja.

Ahmed is among the heads of government agencies that were disengaged and asked to hand over to most senior directors in the office.

“The subsidy as at today came down to minus N8 per litre for PMS.

“ What I mean by minus N8 is that government now will collect N8 for every litre imported by NNPC and marketers as against payment to marketers and NNPC,’’ he said.

He said that at the close of work on Feb. 16, the subsidy on petrol was N13.81k, adding that the landing cost was lower than the selling price by N13.81k.

According to him, it translates to what is called over recovery.

Ahmed said that an Over Recovery Account had been opened with the Central Bank of Nigeria on Feb. 3 and would be managed by the Office of the Accountant General of the Federation.

He said currently, about N2.6 billion had been lodged into the account with the December importation by NNPC and the marketers.

“This is just the beginning because some of products just arrived in December; that’s why the subsidy over recovery is low.

“But for those cargo that are loaded in January for example, we want the over recovery to start manifesting; then by calculation, we will begin to know what the price will be for marketers and NNPC respectively,’’ he said.

Commenting on review of template for price modulation in the first quarter, he said the agency was building data which it would analyse at the appropriate time.

He said that the data would look at the trend and analyse how the market had fared in the last two and half months.

He added that the agency would also check what the over recovery accumulated into before advising the minister.

He said that stakeholders in the sector would meet next week to deliberate on the development which would form part of the decision on the price going forward.

He noted that the price modulation review had some challenges but had led to the over recovery witnessed in the sector.

“There are a lot of things and that’s why we are into over recovery because first of all, we looked at the pricing after we reviewed the template.

“The review instilled some efficiency and cost savings and that cost savings translated into reduction of pump price even though it is 50k and N1 but it is an indication that something is working.

“That is the whole essence of modulation; cut cost; be more efficient and let Nigeria enjoy the benefit of that efficiency,’’ he said.

He expressed the hope that with over recovery, there might be price reduction on PMS in March after the review of the template.

He called on the staff to support the incoming leadership of the agency and advised his predecessor to continue with the legacy established by the agency to ensure positive change.