By Aduragbemi Omiyale

Up to 20 million litres in surplus of Premium Motor Spirit (PMS), otherwise known as petrol, is being exported daily by the Dangote Petroleum Refinery and Petrochemicals after supplying about 65 million litres to the domestic market.

Nigeria’s average daily petrol consumption stands at between 50 and 60 million litres, indicating that the refinery’s output exceeds current domestic requirements, marking a decisive break from decades of fuel import dependence and recurrent scarcity.

The president of Dangote Group, Mr Aliko Dangote, speaking in Lagos, while confirming a structured offtake agreement with selected marketers to ensure nationwide distribution and eliminate supply instability, said the structured model was designed to eliminate supply bottlenecks and curb speculative practices that have historically triggered disruptions.

“We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market. Any surplus, estimated at between 15 and 20 million litres, will be exported,” he said.

Under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the refinery will channel nationwide supply through major marketing companies, including MRS Oil Nigeria Plc, Nigerian National Petroleum Company Limited Retail (NNPC), 11 plc (Mobil Producing Nigeria), TotalEnergies Marketing Nigeria Plc, Rainoil Limited, Northwest Petroleum & Gas Company Limited, Ardova Plc, Bovas & Company Limited, AA Rano Nigeria Limited, AYM Shafa Limited, Conoil and Masters Energy.

With local refining now exceeding national demand, the country stands to conserve billions of dollars annually in foreign exchange previously spent on petrol imports. Analysts say this would ease pressure on the naira, strengthen external reserves, and improve trade balance stability.

By Adedapo Adesanya

The Nigeria Employers’ Consultative Association (NECA) and the Centre for the Promotion of Private Enterprise (CPPE) have separately commended the Central Bank of Nigeria (CBN) for reducing the Monetary Policy Rate (MPR) from 27.0 per cent to 26.5 per cent at its 304th Monetary Policy Committee (MPC) meeting.

In reaction, NECA Director-General, Mr Adewale-Smatt Oyerinde, praised the decision in a statement, noting that the 50 basis-point cut is “a cautious but noteworthy signal” that authorities were responding to sustained pressures on businesses.

He said the marginal reduction might not immediately lower lending rates, but reflected “a gradual shift toward supporting growth without undermining price stability”.

According to him, the overall stance remained tight, with the Cash Reserve Ratio retained at 45 per cent and the liquidity ratio at 30 per cent.

He added that the asymmetric corridor around the MPR was also maintained, reinforcing a cautious monetary approach.

“With a substantial portion of deposits still sterilised, banks’ capacity to expand credit to the real sector may remain constrained in the near term,” he said.

Mr Oyerinde described the move as “a careful balancing act” aimed at moderating inflation without worsening pressures on businesses.

He noted that firms continued to grapple with high operating costs, exchange rate volatility and weakened consumer demand.

“Inflation, particularly in food, energy and transportation, remains a significant challenge to employers and households,” he said.

He stressed that the modest easing must be supported by coordinated fiscal and structural reforms to address supply-side constraints.

Such reforms, he said, should improve infrastructure and enhance productivity across key sectors of the economy.

Mr Oyerinde urged financial institutions to ensure the MPR reduction was gradually reflected in lending conditions for manufacturers and SMEs.

He affirmed that although the MPC had not fully relaxed its tightening stance, the rate cut signalled cautious optimism.

“Sustained improvements in inflation, exchange rate stability and investor confidence will determine scope for further easing that supports growth and employment,” he said.

On its part, the CPPE said the decision reflected improving macroeconomic fundamentals and a cautious shift from aggressive tightening.

The organisation noted that sustained disinflation, stronger external reserves, an improved trade balance and relative exchange-rate stability had created room for monetary easing.

It said the rate cut could boost investor confidence and support private-sector growth, but cautioned that weak monetary transmission might limit its impact on lending rates.

The CPPE identified high cash reserve requirements, elevated lending rates, government borrowing and structural banking costs as major constraints to effective transmission.

The group also stressed the need for fiscal consolidation, citing high public debt, persistent deficits and rising debt-service obligations as risks to macroeconomic stability.

According to the chief executive of CPPE, Mr Muda Yusuf, effective policy coordination and stronger transmission mechanisms were critical to unlocking investment and sustaining growth, lauding the CBN for what he described as a measured and data-driven policy adjustment.

The CPPE boss noted that the easing reflected strengthening macroeconomic performance, declining inflation, growing reserves, improved trade balance and enhanced foreign exchange stability.

Mr Yusuf added that for the benefits of monetary easing to be fully realised, authorities must strengthen transmission to ensure lower lending rates for the real sector and advance credible fiscal consolidation to safeguard stability.

He said that if supported by structural reforms and disciplined fiscal management, the current policy direction could unlock a stronger investment cycle and more durable economic growth.

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange extended the negative start to the week by 0.28 per cent on Tuesday, February 24, with the market capitalisation down by N6.64 billion to close at N2.378 trillion versus Monday’s N2.384 trillion, and the NASD Unlisted Security Index (NSI) falling by 11.1 points to 3,974.80 points from 3,985.90 points.

At the session, transaction value skyrocketed by 1,706.3 per cent to N1.2 billion from the previous day’s N61.8 million, as the transaction volume increased by 59.1 per cent to 11.6 million units from 7.3 million units, and the number of deals expanded by 23.1 per cent to 48 deals from the preceding session’s 39 deals.

Central Securities Clearing System (CSCS) Plc remained the most active stock by value on a year-to-date basis with 33.7 million units exchanged for N2.0 billion, Okitipupa Plc was next with 6.2 million units traded for N1.1 billion, and Geo-Fluids Plc occupied the third position with 121.0 million units valued at N474.9 million.

Resourcery Plc emerged as the most traded stock by volume on a year-to-date basis with 1.05 billion units worth N408.7 million, followed by Geo-Fluids Plc with the sale of 121.0 million units for N474.9 million, and CSCS Plc with 33.7 million units worth N2.0 billion.

Yesterday, the market breadth was flat after the bourse finished with three price gainers and three price losers led by MRS Oil Plc, which shed N14.50 to close at N200.00 per share versus the previous day’s N214.50 per share, CSCS Plc depleted by N1.39 to N65.82 per unit from N67.21 per unit, and Geo-Fluids Plc depreciated by 1 Kobo to close at N3.30 per share versus Monday’s N3.31 per share.

The price gainers were led by FrieslandCampina Wamco Nigeria Plc, which improved its value by N1.60 to close at N95.00 per unit compared with the preceding session’s N93.40 per unit, Afriland Property Plc gained 83 Kobo to sell at N18.00 per share versus N17.17 per share, and First Trust Mortgage Bank Plc advanced by 13 Kobo to N1.45 per unit from N1.32 per unit.