Economy
Oil-Producing Communities Urge FG to End Petrol, Diesel Importation
By Aduragbemi Omiyale
The federal government has been urged to put an end to the importation of premium motor spirit (PMS), commonly known as petrol, and automated gas oil (AGO), otherwise known as diesel, because it is putting the nation at the mercy of some oil cartels and international oil companies (IOCs).
This appeal was made by a group known as the Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) over the weekend.
The association was reacting to the recent development involving the lamentation of Africa’s richest man, Mr Aliko Dangote, who claimed that IOCs were frustrating the operations of his $20 billion refinery in Lagos.
HOSTCOM lamented that despite the billions of dollars spent on turnaround maintenance of Nigeria’s refineries, the country remains reliant on importing refined products.
This persistent issue, it argues, highlights the widespread corruption within Nigeria’s oil and gas industry, allegedly orchestrated by influential cabals who are intent on maintaining the status quo of exporting crude oil while importing refined petroleum products, warning that it will not hesitate to publicly name these identified cabals if necessary.
It threatened to renew agitation for greater autonomy and control of its natural resources if the Nigerian National Petroleum Company (NNPC) Limited and the IOCs fail to sell and supply crude oil to Dangote Refinery and other local refineries in their bid to ensure that Nigeria becomes self-sufficient in the local production of petroleum products.
The National President of HOSTCOM, Mr Benjamin Tamaramiebi, accompanied by his executives and traditional rulers from the Niger Delta region, during a tour of the Dangote Petroleum Refinery & Petrochemicals and the Dangote Fertiliser Limited complex in Lagos, also called for the removal of the chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Farouk Ahmed, over his recent statement that the government would not halt the importation of refined petroleum products.
“Our visit today to the largest and magnificent 650,000 bpd private refinery in Africa (Dangote Refinery) has opened our eyes to several ills, particularly the monumental corruption going on in the Nigerian oil and gas industry,” Mr Tamaramiebi said.
“It is obvious why the existing federal government refineries in Port Harcourt, Warri, and Kaduna can never work or operate maximally despite the billions of dollars spent on so-called turn-around maintenance (TAM) over the years.
“It is now clear that some persons in government and outside government have been identified as the cabal holding Nigeria’s oil sector by the jugular. We have identified them, and we shall reveal their names to the people of Nigeria if this trend continues,” he added.
Mr Tamaramiebi called on President Bola Tinubu to support and sustain Dangote Refinery, advising him to “do away with the cabals holding the oil sector to ransom,” emphasising that the government must not tolerate the economic sabotage being carried out by the IOCs operating in Nigeria, which have refused to sell crude oil to the Dangote Refinery and other modular refineries.
“We call on Mr President to direct NNPC or NNPCL to compel the IOCs operating in our communities to sell and supply crude oil to Dangote Refinery and other local refineries in line with Section 109 of the Petroleum Industry Act PIA 2021, particularly Section 109(4)(b), which states that “the supply of crude oil shall be commercially negotiated between the lessee and the crude oil refining licensee, having regard to the prevailing international market price for similar grades of crude oil.”
In his remarks, the Vice President for Oil and Gas at Dangote Industries Limited, Mr Devakumar Edwin, in his remarks, explained that the refinery was established primarily to source and refine local crudes for the benefit of Nigeria while also exporting excess production to boost the economy.
He noted that the lack of sufficient Nigerian crude supplies has necessitated importing crude from other countries and continents, adding that if the refinery had not been designed to process a wide range of crudes, including various African and Middle Eastern crudes as well as US Light Tight Oil, it would have become inactive due to the lack of Nigerian crude supplies.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange started the new week on an upward trajectory after it closed higher by 0.52 per cent on Monday, May 4.
This raised the market capitalisation by N12.48 billion to N2.409 trillion from last Thursday’s N2.396 trillion, and moved the NASD Unlisted Security Index (NSI) higher by 20.86 points to 4,026.64 points from 4,005.78 points.
The unlisted securities market gained weight yesterday despite recording two price gainers and two price losers.
FrieslandCampina Wamco Nigeria Plc added N8.92 to sell at N98.14 per share versus N89.24 per share, and Central Securities Clearing System (CSCS) Plc appreciated by N1.12 to N77.14 per unit from N76.02 per unit.
Conversely, NASD Plc lost N3.47 to sell at N31.23 per share compared with the previous price of N34.70 per share, and Food Concepts Plc declined by 26 Kobo to settle at N2.41 per unit, in contrast to the previous rate of N2.67 per unit.
During the session, the volume of securities traded by investors fell by 14.4 per cent to 751,518 units from 877,682 units, and the number of deals decreased by 44.1 per cent to 31 deals from 56 deals, while the value of securities climbed 32.8 per cent to N35.4 million from N26.7 million.
The most active stock by value on a year-to-date basis remained Great Nigeria Insurance (GNI) Plc with 3.4 billion units worth N8.4 billion, followed by CSCS Plc with 60.2 million units transacted for N4.1 billion, and Okitipupa Plc with 27.8 million units sold for N1.9 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, trailed by Resourcery Plc with 1.1 billion units exchanged for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
By Adedapo Adesanya
The Naira opened the week in the green territory in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday after it further appreciated against the US Dollar by N9.71 or 0.7 per cent to quote at N1,365.23/$1 compared with the previous session’s value of N1,374.94/$1.
The scenario was not different with the Pound Sterling at the same market window, where it gained N6.99 to sell for N1,851.25/£1 versus last Thursday’s closing price of N1,858.24/£1, and appreciated against the Euro by N8.62 to close at N1,607.58/€1, in contrast to the N1,612.87/€1 it was traded in the previous trading day.
Similarly, at the black market, the Naira improved its value against the greenback yesterday by N5 to settle at N1,380/$1 versus the previous rate of N1,385/$1, and at the GTBank FX desk, it closed flat at N1,384/$1.
The Nigerian Naira put up a good performance against the Dollar during the session due to sustained monetary tightening by the Central Bank of Nigeria (CBN) and a steady increase in foreign exchange inflows.
Specifically, stronger diaspora remittances, oil-related inflows, and a decline in speculative demand for the Dollar played pivotal roles in anchoring market expectations.
Sufficient FX liquidity has continued to keep the Naira stable. The local currency stayed strong despite an 83 per cent decline in CBN FX intervention in April to $150 million from $985 million in March.
As for the cryptocurrency market, prices were mixed as broader crypto markets were diverse and macro risks persisted, amid ongoing US-Iran tensions and steady central bank policy, with upcoming US earnings and jobs data seen as potential catalysts for further bitcoin volatility.
Bitcoin (BTC) gained 1.3 per cent to sell at $80,889.94, Ethereum (ETH) jumped 0.3 per cent to $2,376.40, Cardano (ADA) increased by 0.2 per cent to $0.2529, and TRON (TRX) appreciated by 0.2 per cent to $0.3399.
On the flip side, Dogecoin (DOGE) slid 0.8 per cent to $0.1113, Ripple (XRP) went down by 0.5 per cent to $1.40, Binance Coin (BNB) dropped 0.4 per cent to $626.41, and Solana (SOL) shrank by 0.3 per cent to $84.60, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
Oil prices jumped about 6 per cent on Monday as Iran stepped up attacks on the United Arab Emirates (UAE) and ships in the Middle East over the past 24 hours, the most serious escalation since a US-Iran ceasefire came into force in early April.
This pushed the price of Brent futures higher by $6.27 or 5.8 per cent to $114.44 per barrel, and raised the US West Texas Intermediate (WTI) crude by $4.48 or 4.4 per cent to $106.42 a barrel.
Iran hit several ships in the Strait of Hormuz on Monday and set a UAE oil port ablaze, as President Donald Trump’s attempt to use the US Navy to free up shipping provoked the war’s biggest escalation since a ceasefire was declared last month.
The UAE said its air defences were engaging missile and drone threats on Monday evening as firefighters battled a blaze at a major oil industry zone.
The US military said it destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones fired by Iran as it sought to thwart a new US naval effort to open shipping through the Strait of Hormuz. About 20 per cent of global oil and liquefied natural gas supplies passed through the strait before the US and Israel launched strikes against Iran on February 28.
Meanwhile, Iran’s Revolutionary Guards Navy (IGRC) issued a map that it said was expanding the areas controlled by Iran near the Strait of Hormuz.
The United Kingdom Maritime Trade Operations (UKMTO) said it received a report of an incident involving a cargo vessel about 36 nautical miles north of Dubai. The UKMTO also reported a separate incident earlier in the day near the UAE.
Oil executives from the Gulf and global oil traders have said that even when shipping through the Strait of Hormuz reopens, it will take several weeks, if not months, for flows to normalise.
Separately, the energy minister in the UAE, which left the Organisation of the Petroleum Exporting Countries (OPEC) last week, said the country owes it to its investment partners to produce what global oil markets require without restrictions, while cooperating with other crude producers.
OPEC and its allies, known as OPEC+, said they would raise oil output targets by 188,000 barrels per day in June for seven members, marking the third consecutive monthly increase.
The seven members who met on Sunday were Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. With the UAE leaving, OPEC+ includes 21 members, including Iran. However, in recent years, only the seven nations plus the UAE have been involved in monthly production decisions.
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