₦airaland Forum

LAGOS — Nigeria’s difficulty to import refined petroleum products, particularly, Premium Motor Spirit, PMS, also known as petrol, has worsened as foreign suppliers have blacklisted Nigeria from further business until such transactions are dollar cash backed.

The development is further compounded with the deferment of about 5.4 million litres PMS daily production, as the Nigerian National Petroleum Corporation, NNPC, yesterday, announced the shut down of Port Harcourt and Kaduna refineries. The announcement came four days after the plants were closed.


The NNPC, in a statement by its Group General Manager, Group Public Affairs Division, Mr. Ohi Alegbe, said the shutdown of the refineries was as a result of crude oil supply challenges arising from the recent attacks on vital crude pipelines by militants in the Niger Delta.

Blacklisting of Nigerian importers

Vanguard exclusively gathered that the blacklisting of Nigerian oil marketers by the foreign suppliers followed the challenges faced by marketers to access foreign exchange due to stringent rules by the Central Bank of Nigeria, CBN, on foreign exchange transactions.

Marketers disclosed that they owe their foreign suppliers in excess of $1.29 billion, even as the marketers were paid only N413 billion in December 2015 for oil subsidies.

According to one of the marketers, who spoke in confidence, “yes, government paid us subsidy, but there is no dollar to buy anywhere. The Letters of Credit, LCs, that have matured since 2014 to 2015 are worth $1.29 billion. We are supposed to use the subsidy paid to us to buy the equivalent of what is due to our foreign suppliers, but the banks say there is no dollar.

“To show you how bad the situation is, one of us has outstanding matured LC of $75 million, but his banks are only able to provide $1.5 million last week. So how many weeks will it take the banks to offset the outstanding sum for him to be able to pay hiss foreign suppliers?

“Remember that what government paid to us was the Naira component of dollar transactions and government is still owes us the outstanding payments on the foreign exchange differentials. This is because when we brought in the products, exchange rate was N165 to $1, but by the time we were paid, it had risen to N197 to $1.

“This is why the foreign suppliers have blacklisted us until we are able to pay off our outstanding debts and back future transactions with dollar cash. Also, government did not pay within 45 days under the terms of our agreements, so they still owe us the interests on delayed payments.”

Consequently, he disclosed that except for a few marketers, mostly the majors, who already have foreign affiliations, all other marketers have abandoned further importation of petrol until government finds a way around access to foreign exchange.

NNPC to provide dollars

The source further disclosed that in one of the meetings with the Minister of State for Petroleum, the NNPC had promised to provide marketers who were licensed to import products in the first quarter, with dollars to pay for their products, as a way to ease the foreign exchange challenges.

He added that it is uncertain that the promise had been fulfilled, as no products had come in yet.

However, NNPC’s Alegbe, in a test message response denied any knowledge of such a promise to marketers, saying: “NNPC? Dollars? I’m not aware NNPC made such a promise.”

He wondered if perhaps the marketer meant CBN or the Petroleum Products Pricing Regulatory Agency, PPPRA.

PPPRA pricing template

Despite assurances by the NNPC, scepticisms are high over the capacity of the Pipelines and Products Marketing Company, PPMC, to meet about 80 per cent of Nigerians daily PMS consumption demand of 40 million.

This is because, according to the marketers, they will be running an average of N7/litre, if they imported products under the PPPRA current PMS pricing template of N86.50/Litre, another reason many of them have abandoned further imports.

Another marketer, who spoke on the condition of anonymity, said: “The PPPRA has adjusted the template and fixed ex-depot price at N77/litre, it has pre-determined most of the expenses and other components that make up the price.

“When we circulated the new template to our members, we discovered that we will be losing an average of N7/litre if we imported PMS based on that template. So, no marketer can import from a loss situation ab initio. We have made our case known to government and we are waiting for them to respond.”

But none of the three PPPRA officials contacted picked their calls or responded to text messages.

Refineries shut down

The NNPC, before the closure of the refineries, said in its statement that the Port Harcourt Refinery was recording a daily PMS yield of over 4.1 million litres, while Kaduna Refinery was posting a daily petrol production of about 1.3 million litres.

It explained that the plants were shut simultaneously on Sunday, after the Bonny-Okrika crude supply line to the Port Harcourt Refinery, and the Escravos-Warri crude supply line to the Kaduna Refinery, suffered breaches.

The NNPC, however, noted that the Warri Refining and Petrochemicals Company, WRPC, is still on stream and producing a little above 1.4 million litres of petrol per day.

It also assured of stability in the supply of petrol across the country, as it has put in place measures to ensure an unhindered supply of the product.

The NNPC said: “In response to the unexpected setback, we have activated comprehensive remedial measures to sustain the prevailing stability in the supply and distribution of petroleum products across the country.”

Suspected militants had last week blew up a gas pipeline in Warri South-West Local Government Area, Delta State conveying gas from Escravos–Warri-Lagos-Abuja, in what is believed to be a resumption of fresh hostilities in the Niger Delta region. The vandalized pipeline was believed to be the property of the Nigeria Gas Company, NGC.

The following day, the bombings continued, as the militants allegedly blew up the Abiteye flow station and Sagara to Chevron pipelines.

This led the Federal Government to issue a directive to the military to fish out the perpetrators of the act.

Days later, Joint Task Force Commander of Operation Pulo Shield in the Niger Delta, Major General Alani Okunola, vowed that the perpetrators would be fished out.

According to him, the task force was closing in on those blowing up oil pipelines belonging to the Nigeria Gas Company, Chevron Nigeria Limited and Nigerian National Petroleum Corporation, NNPC.

Dosinspector:
Some Nigerians re educated illiterates.if you go through court ruling today on kanu's case,you will find out that the judge granted the request of kanu's counsel,which is to move kanu to prison against keeping him in dss custody,at prison kanu will have acess to his family and lawyer unlike in dss custody,I don't kw why some people re rejoicing over nothing or is it that they don't understand the arguments of both counsel,this judgement is a win for kanu for now.

MosakuAW:
Can this guy just keep mute and face his main duty as Governor of Ekiti and stop ranting like he is the new chairman of the dead party called PDP.

His ranting are not longer interesting like it use to be. Let him just change tactics.

When was the last time he commision good projects anf picture it for all to see in Ekiti, rather he keeps roaming the street of Ekiti and also attacking PMP at every corner.

Dont worry, PMP is cooking your pot of soup and you will eat it hot with cold Origin.

#Longlive SouthWest
#Longlive SouthEast
#Longlive NorthCentral
#Longlive NorthWest
#Longlive NorthEast
#Longlive SouthSouth and
#Longlive Nigeria.

#We are one and will remain one forever.

Eddygourdo:
I find it absolutely shameful that people are so partisan to their DNA. They could sell their mothers just to stand right with their idiosyncrasies. This country is greater than any party, the development of the country should surpass any desire by each party faithful to be supreme.

Any right thinking patriotic Nigerian knows corruption is a major issue hampering our development. Even with a clueless government Nigerian will still perform averagely if corruption was stamped out. This should be the main worry of a Nigerian. Thank God we now have a government which is hell bent on chasing, humiliating corrupt elements. Yet people are grumbling. Accusing the President of selective vendetta as though common sense has become extinct.

Please I apc should double more efforts to chase down every pdp member from past governments and collect our yams, such retrieved yams should make up 40% of out missing yams.

Please in 2019, other opposition parties should rise and challenge at national level because the Nigerian electorate has a more genuine love to opposition than the incumbent.

Please whichever opposition than wins in 2019 should chase and harass all apc member from past government to collect our stolen yams, such retrieved yams in combination of that gotten from the pdp should amount to 80% of our missing yams.

Enough of this accusation that the corruption fight should be a cross board, nobody fights his family members, that job should be left for perceived enemies which in this case is the opposition in Nigerian political sphere.

Why are we the populace who didn't gain a kobo from their kleptomania complain of selective blah blah blah, we keep talking of rule of law yet we forget our judicial system is poo (this doesn't imply we forgo the law). Apc is simply sowing a seed they will reap it's fruit in kind one day. Rather as good Nigerian we should support them because we see the big picture and not their crude methods.

Nigeria must rise, corruption must be killed, I advocate the death penalty, I advocate death by stoning, I advocate any measure that can curb out corruption wherever it may exist. Today it's the turn of the pdp, let them burn, let them produce our yams, it shall be in similar vein that the apc shall burn one day and produce our yams. I shall support all such efforts till the tyranny of corruption and lawlessness is wiped out of my country.

We have no other country, imagine if there was a refugee situation in Nigeria, with our current global image as theives, rapists and law breakers. Who will accept us or give us laxity. Just as is being offered to terrorism inclined arabs.

Nigeria must better, no matter whose ox is gored.

Farnsworth:
Differences
Gmb: 44 people to Lassa fever and counting
Gej: 9 people to Ebola and first country to end it.

Pidggin:
Zombies say GEJ was clueless yet Ebola was managed effectively with only a few lives lost, as for PMB, i still do not understand how a former army general cannot defeat an army of rats that have been killing his citizens.

hopelink1:
Aregbesola the greatest tyrant of all time

CecyAdrian:
That woman needs to be arrested

Two of the nation’s refineries were shut down by the Nigerian National Petroleum Corporation (NNPC) due to pipeline vandalism by the Niger Delta militants last week. The refineries, with a combined capacity of 235,000 barrels per day, resumed production in December and January respectively after long maintenance work.

Sources at the refineries said the work stopped on Sunday. Spokesperson of the corporation, Mr Ohi Alegbe, confirmed the shutdown of the refineries which he said was to avoid any fire incident along the pipelines. He said the corporation shut-in the pipelines both for gas and crude oil along the affected areas to avoid further damage to the two refineries.

He said the NNPC will continue to monitor the progress of the refineries and the Nigeria Gas Company and update the public at the appropriate time. Some militant groups weekend attacked pipelines in the Niger Delta region following the arrest warrant for former militant leader Government Ekpemupolo, known as Tompolo, as part of a crackdown on corruption by the President Buhari administration.

Before the incident, the two refineries were refining about 4 million litres of products which include Dual Purpose Kerosene and Premium Motor Sprit (PMS). Meanwhile, Brent crude oil prices rebounded about 3 per cent yesterday from 12-year lows after data showed Chinese oil demand likely hit a record high in 2015, but the recovery was not expected to last amid warnings that the market would stay oversupplied this year, according to Reuters news agency. The Brent contract for March delivery rose 91 cents to $29.46 a barrel, a 3.2 per cent rise, by 11:33 a.m. EST (1633 GMT). It traded as high as $30.24, rebounding from $27.67 on Monday, its lowest since 2003.

manitobor:
The Daura President is a thief. He knows that 98 percent of Ab0ki people don't put their money in the bank.

firstEVA:
Rubbish post

SeverusSnape:
Gbawe and his minions should also blame JONATHAN, PDP, IWEALA AND IPOD for this.

NavierStokes:
No longer 7 people stole 3.3 trillion. DJ keep remixing the music.

Aufbauh:
This democracy dey tire me abeg.
How i wish we were in military regime, all these cases will have been decided since. Under three days those found wanting will be cooling their heels in kirikiri, properties sold and cash recoup to fund our budget.
Buhari should buckle up!