Oil marketers meet NNPC, others seek to resume petrol importation

The three major oil marketers associations in Nigeria, Tuesday met with the Nigerian National Petroleum Corporation (NNPC), Petroleum Equalisation Fund (PEF) and Petroleum Products Pricing Regulatory Agency (PPPRA), and expressed their willingness to resume importation of petroleum products, especially petrol.

It was learnt in Abuja that the marketers – Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPMA), and Independent Petroleum Marketers Association of Nigeria (IPMAN), were present at the meeting which held at the NNPC headquarters.

As reported, the NNPC has for several months remained the major importer of petrol into the country because of the inability of oil marketers to access foreign exchange at affordable rates to import the commodity.

The corporation in its December 2016 financial and operations report stated that in spite of the liberalisation of the downstream sector and government’s intervention to ease marketers’ access to foreign exchange for products importation, it remained the major importer of petroleum products.
But to supplement products’ importation and lessen the burden on the NNPC for unhindered supplies, the paper learnt that the oil marketers associations met with the corporation and other relevant government agencies to iron out issues that pertain to their operations.

Some of the marketers who attended the meeting told THISDAY that they met to impress it on the corporation that it was important they, especially MOMAN and DAPMA restart products importation to curtail possible resurgence of products scarcity and distribution challenges.

One of the marketers who is a member of MOMAN said that members of the association had been distributing products they lifted from the NNPC, but that it was time they resumed importation.
While pleading for anonymity, he stated that the meeting lasted several hours and in two batches between the major marketers and IPMAN which has now reconciled their lingering leadership troubles.

Nigeria Commodity Exchange: Lead Capital Consortium Emerges as Bidder for Advisory Services

Lead Capital Consortium has emerged the preferred bidder for Advisory services on the Nigeria Commodity Exchange (NCX) with a score of 83.1 percent having beaten PWC and United Capital Consortia which scored 61.4 percent and 58.3 percent to emerge second and third positions respectively.

At the close of  the opening of the financial and technical proposals submitted by prospective advisers for NCX  held by the Bureau of Public Enterprises (BPE) on Thursday, March 2, 2017, Lead Capital also submitted a financial bid of  Seventy-Six Million, Three Hundred and Four Thousand, Five Hundred Naira (N76,304,500) only to emerge the preferred bidder.

However, its emergence is subject to the approval of the National Council on Privatisation (NCP) Steering Committee  on the revitilisation of the NCX and the Chairman of the NCP, Professor Yemi Osinbajo (SAN).

Acting Director-General of the Bureau of Public Enterprises (BPE), Dr. Vincent Onome Akpotaire who was chairman of the occasion declared that the Federal Government’s desire to revamp the nation’s economy hinged on a well structured commodity exchange which is a catalyst for enhancing the effective and efficient marketing and distribution of agricultural and other  commodities.

He noted that an efficient commodity exchange would serve as a good platform for trading in produce, encourage warehouse receipts systems as a veritable source of cash flows to farmers and other market dealers, thus allowing for competitive and more profitable trade and exchange as opposed to the current status under which off-takers enjoy the larger chunk of market profitability.

Recession: Again, CBN pumps in $100m into forex market

The Central Bank of Nigeria (CBN) has another sum of $100 million into the inter-bank foreign exchange market.

The CBN Acting Director of Corporate Communications, Mr. Isaac Okorafor, who confirmed this to journalists in Abuja, said that the move was aimed to fund the commercial banks with enough forex to cater for the request of customers to meet Personal Travelling Allowance (PTA), Basic Travelling Allowance (BTA), medicals and tuition fees.

This latest injection by the apex bank brings the amount so far pumped into the interbank forex market within the last two weeks to $1.138 billion for both forwards and invisibles.

Market analysts have observed that the CBN action will further compound the problems of currency speculators who are yet to recover from the sudden appreciation of the Naira.

In the words of former economic adviser to the President and Minister, National Planning Commission, Prof Ode Ojowu, “It appears this time around, the CBN has decided to become smarter than the market manipulators, by putting on its cap of authority to look beneath the market forces”

Analysts have also commended the efforts of the CBN in ensuring the continuous appreciation of the Naira. This, they aver, is the outcome of sound policy and effective communication strategy, which has witnessed increased dollar supply to the market.

The CBN, in February 2017, changed its forex supply rule to guarantee supply to both small and the big end-users. The policy has restored stability and bolstered market confidence which has ultimately boosted the value of the Naira.

Helicopter operations set to boom on Lagos, Kaduna, Abuja routes

Helicopter service operators in the country are set for a boom time on account of the temporary closure of the Nnamdi Azikiwe International Airport (NAIA), Abuja, for its runway repair.

The operators, who are deploying both charter and shuttle service helicopters for different categories of people and pockets, on various routes inwards Abuja, are expecting to make it big with the traffic.

It was learnt from some marketing agents that the shuttle service, which is open to all air travellers, now ranges between N100, 000 to N200, 000 per head, depending on the boarding location and time of booking.

A direct helicopter shuttle service from Lagos to Abuja now goes for between N150, 000 to N200, 000 per head, depending on the operator of choice. Similar flight on Kaduna-Abuja or Minna-Abuja route costs between N50, 000 to N100, 000, depending on airline and time of booking.

Charter services, designated for the corporate bodies and the very rich are priced in millions of naira.

An online marketer said it was not the case that the prices were inflated since all operators were hoping to attract as many patronages as possible within the six-week window.
The Managing Director of Omni-Blu Aviation, Capt. Sunny Adegbuyi, said at least two helicopters have been deployed for the operations. One will run four chartered operations daily on Lagos-Abuja route, while the other is dedicated to shuttle services on Kaduna-Abuja route.

Bristow Helicopters (Nigeria), on its part, said it would continue to offer its Lagos-Abuja fixed-wing charter service via Minna Airport during the closure of the runway at Abuja Airport.

To complement Federal Government efforts to ease commuters’ burden, the Nigerian Railway Corporation (NRC) has released a new timetable for Abuja-Kaduna-Abuja train.
A statement by the commission revealed that the first up train would be departing Idu station, Abuja by 0600hrs signaling the commencement of six trips per day.
The statement also disclosed that two coaches were reserved strictly for airport passengers on both up and down direction while only one SP coach and SPA coach would be for existing passengers.

It also revealed that the train would not stop at Jere and Rijana stations, saying that the directive takes immediate effect and must be strictly complied with.
As part of fall-outs of the closure of the Abuja airport, the Indonesian Embassy has announced a cut down on air travels for the six-week period.

Fed govt unveils economic recovery plan, to raise VAT on luxury items

The Federal Government of Nigeria has finally released the Economic Recovery and Growth Plan, which raised the Value Added Tax rate on luxury items from the current five per cent to 15 per cent.
Through the increase in VAT rate on luxury items, which the document stated would commence in 2018, as well as improvement in Companies Income Tax, a total of N350bn is being projected to be generated annually.

The new plan comes after months of extensive consultation with stakeholders from both the private and public sectors of the economy.

The administration of former President Goodluck Jonathan had in 2014, while unveiling its austerity measures, identified some items that were to be taxed as luxury goods to include champagne, alcoholic beverages, private jets, luxury cars based on engine capacity, and yachts.

The President Muhammadu Buhari-led government said it would increase non-oil tax revenues by improving tax compliance and broadening the tax net by employing appropriate technology and tightening the tax code, as well as introducing tax on luxury items and other indirect taxes to capture a greater share of the non-formal economy.

It also announced plans to undertake major reforms in the budgeting for state-owned enterprises, which would include legislative amendments of the laws establishing many of the SOEs.
The government, according to the document, is targeting real Gross Domestic Product of N81.38tn by 2020.

The document, the content of which is expected to take the country out of recession, was released by the Ministry of Budget and National Planning and contains the economic blueprint of the government for the three-year period, 2017 to 2020.

FG to open up airports to private investment – Minister

The Federal Government says it would open up its airports to private investment.

This was disclosed by the Minister of Aviation, Hadi Sirika.

Speaking at a press conference in Abuja, Sirika says, “all government-owned airports will be offered to investors who have “the wherewithal, the know-how, the technology, the capacity, the ability, the finance to put up huge fantastic edifices as airports with everything including hotels, just the way you see them abroad.”
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 The minister, however, did not specify when the government airports would be opened to investment, or provide any other details, Reuters reports.

Abuja’s airport is set to close for six weeks for repairs on the runway, after it had become so damaged that international carriers were pulling their services or warning they may soon have to.

Margaret Ekpo International Airport wins ‘Best Airport Cleanliness 2016’

The Margaret Ekpo International Airport, Calabar, Cross State has clinched the “Best Airport Cleanliness award” for the year 2016 amongst the airports nationwide as well as among all airports managed by the Federal Airports Authority of Nigeria.

At the award ceremony, the organizers of the event, the Nigeria Aviation Awards, acknowledged the vital role played by MEIA leadership in turning the terminal around among its contemporaries nationwide.

The Chief Executive Officer for NIGAV, Fortune Idu, said: “The airport has maintained consistency over the years, and with the coming of the new Manager, Mr. Ayodele Sunday, has led to even better performance in management of resources, in term of cleanliness.”

MEIA under the leadership of Ayodele has led the drive towards maintaining international standard hygienic practices both within and outside the airport premises and has proven that it can outperform other airports even with other big contender in the category.

Meanwhile, the airport had won the best “Domestic Airport” award in the year 2015, showing that the current best performance in cleanliness is not a flux.

The Airport Manager, Ayodele, who received the award, thanked the organizers and promised not to rest on his oars, he assured airport users of greater service improvement in all areas of operations.

He disclosed that new airlines are already positioned to start operations into the airports before the end of the first quarter of the year 2017.

With the addition of new airlines, Calabar route will indeed become the tourist paradise nationwide.