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Nigeria To Stop Fuel Importation By 2019 – Kachikwu

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The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said on Tuesday in Abuja at a public hearing on the review of petroleum pricing template for Premium Motor Spirit organised by the House of Representatives.

He said that within two years, the Federal Government revived refineries that were non-functional to contribute about eight million out of over 20 million litres of petrol consumed in the country daily.

He explained that the Federal Government initiated a model which attracted foreign investors to partner with the Nigeria National Petroleum Corporation to repair the country’s refineries within the two years period.

He said, “This has consistently served as a target for this government so that by December 2018, NNPC must be able to deliver on some of the terms given them, one of which is to reduce petroleum importation by 60 per cent.

“By 2019, we should be able to exist completely on the importation of petroleum products in this country.

“Cognisant of the fact that Dangote is building one refinery, we expect to have an excess situation.”

The minister said that Nigeria must also have the capacity to stop exporting crude oil.

According to him, selling crude oil is not different from selling agricultural produce in an unprocessed manner.

He said, “The world is leaving that, every member of OPEC is leaving that because of the prizing, volume and market challenges is now shifting from selling crude to selling refined petroleum products.

“That is what this country must do and there is a template we are working on.”

He further said that the ministry intended to create an enabling environment that would promote local refining of crude oil.

He said, “The issue is not giving licences to illegality, the issue is how do we ensure that we create an investment environment that pulls individuals from illegal creek activities to legal business activities.

“We are looking at modular refineries, about 60 licences were given out just before this government came in and none of that was utilised because it requires a lot of money, land and crude security.

“But now we are going out to identify refineries, get individuals who can build refineries on the same platforms where our refineries are and identify some key specific modular refineries backed up by foreign investments working with state governments.

“Hopefully this will address the restiveness you see in the Niger Delta.”

On the possibility of reducing the fuel pump price, Kachikwu said there was no padding in the petroleum pricing template for PMS currently sold at N145 per litre.

According to him, 71 per cent of the cost is for the production and freight, 18 per cent balance is covered by depot charges and retailers margin.

He said, “In other words, the storage tanks, the amount you get by verge of operating a filling station takes another 18 per cent, the output of those is already taking you to roughly about 90 per cent.

“The transportation is less than 10 per cent; we probably can do better; the templating is an insignificant 1 per cent or 2 per cent but that’s not where the problem is.

“The problem is with foreign exchange rate

“There are two key elements in the template, how much you buy it is internationally fixed, it is not a Nigerian issue the cost of foreign exchange is a monetary policy issue.

“So, at the time we did the template the Central Bank of Nigeria monetary policy was N245, that was the basis upon which we calculated the pricing, today N305 is the exchange rate.

“And what we have tried to do is to ensure that anybody who sells us foreign exchange follows basically the instructions of the CBN in terms of the amount.”

Source: NAN

National News

Shehu Sani Reacts To Hisbah’s Call For Scrapping Of Black Friday

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Shehu Sani Reacts To Hisbah's Call For Scrapping Of Black Friday

Shehu Sani

Former lawmaker, Senator Shehu Sani has reacted to the call for the scrapping of the popular ‘Black Friday’sales by the Kano State Hisbah Board.

Recall that earlier on Friday, the board asked a radio station, demanding that it stops using the word “Black Friday” to refer to Friday.

Also Read: TECNO Stormed Computer Village with BBNaija’s OZO to Wrap up its Black Friday Sales Activities

The board explained that since Friday is regarded as a holy day in Islam, tagging it “Black Friday” is derogatory and a thus, should not be condoned.

Reacting to the statement, the former lawmaker from Kaduna described the threat by the Hisbah board as ‘nonsensical.”

He wrote:

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Court Orders Release Of Sen. Ndume From Kuje Prison

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Court Orders Release Of Sen. Ndume From Kuje Prison

Ali Ndume

A Federal High Court sitting in Abuja has granted bail to Senator Ali Ndume who was detained in prison on Monday following the failure to produce Abdulrasheed Maina in court.

This was made known by the presiding judge, Justice Okon Abang in a ruling on Friday, November 27.

Also Read: BREAKING: Court Fixes Date For Ndume’s Bail Application

He stated that he chose to grant the senator bail based on his record of good behaviour before the court, notwithstanding that the other grounds of his bail application failed.

Justice Abang granted bail to Senator Ndume pending the hearing and determination of the Borno South Senator’s appeal filed at the Court of Appeal to challenge Monday’s order.

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We Deliberately Shut Down Refineries – NNPC GMD

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We Deliberately Shut Down Refineries – NNPC GMD

NNPC boss, Mele Kyari

The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has expressed that the corporation deliberately shut down the nation’s refineries because they became unsustainable.

The GMD disclosed this when he appeared before the House of Representatives Committee on Petroleum Upstream in Abuja.

He pointed out that the NNPC was unable to supply crude oil to the refineries, adding that the Excravos pipeline is the only one the NNPC managed to sustain through the contracting process.

He went on to express that it is practically impossible to run pipelines at their optimum capacity.

Also ReadBREAKING: NNPC Raises Petrol Depot Price, Marketers To Sell At N168-N170/Litre

“For instance, to run Kaduna and Warri refinery, you need to deliver 170,000 barrel of oil per day so that both will operate at 70 percent capacity,” he said.

Kyari said that at the moment, it only had over 5,000 kilometers of pipelines with 13 fuel depots, which according to him must be protected to forestall the activities of vandals.

“And I can tell you today that except the Atlas cove to Ibadan line and also the Portharcourt to Aba line, none of these pipelines is serviced.

“We cannot flow product into these lines, the cheap one is to say they are aged but the real reason is that the level of activities of vandals on these lines is gross, monumental, and profound.

“At every point within a month we fix 80 vandal points, the option is to shut them down and the result of having one depot is what we have seen in Lagos,” he said.

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