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Dangote supports NUPRC on domestic crude supply guidelines
By Kayode Sanni-Arewa
THE Management of Dangote Industries Limited (DIL), have commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), for its various interventions in the oil company’s crude supply requests from International Oil Companies (IOCs), and for publishing the Domestic Crude Supply Obligation (DCSO) guidelines to enshrine transparency in the oil industry.
Vice President, Oil & Gas, Dangote Industries Limited, Mr. DVG Edwin however said: “If the Domestic Crude Supply Obligation (DCSO) guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated by the PIA.”
Edwin insisted that IOCs operating in Nigeria have consistently frustrated the company’s requests for locally produced crude as feedstock for its refining process.
He highlighted that when cargoes are offered to the oil company by the trading arms, it is sometimes at $2-$4 (per barrel) premium above the official price set by NUPRC.
“As an example, we paid $96.23 per barrel for a cargo of Bonga crude grade in April (excluding transport). The price consisted of $90.15 dated Brent price + $5.08 NNPC premium (NSP) + $1 trader premium. In the same month, we were able to buy WTI at a dated Brent price of $90.15 + $0.93 trader premium including transport. When NNPC subsequently lowered its premium based on market feedback that it was too high, some traders then started asking us for a premium of up to $4m over and above the NSP for a cargo of Bonny Light.
“Data on platforms like Platts and Argus shows that the price offered to us is way higher than the market prices tracked by these platforms. We recently had to escalate this to NUPRC”, Edwin said adding we asked the regulator to take a second look at the crude pricing.
Edwin’s response came against the background of a statement by the Chief Executive Officer of NUPRC, Gbenga Komolafe, who in an interview on ARISE News TV said that “it is ‘erroneous’ for one to say that the International Oil Companies (IOCs) are refusing to make crude oil available to domestic refiners, as the Petroleum Industry Act (PIA) has a stipulation that calls for a willing buyer-willing seller relationship.”
Edwin noted that, “The NUPRC has been very supportive to the Dangote Refinery as they have intervened several times to help us secure crude supply. However, the NUPRC Chief Executive was probably misquoted by some people hence his statement that IOCs did not refuse to sell to us. To set the records straight, we would like to recap the facts below.
“Aside from Nigerian National Petroleum Corporation Limited (NNPCL), to date we have only purchased crude directly from only one other local producer (Sapetro). All other producers refer us to their international trading arms.
“These international trading arms are non-value adding middlemen who sit abroad and earn margin from crude being produced and consumed in Nigeria. They are not bound by Nigerian laws and do not pay tax in Nigeria on the unjustifiable margin they earn.
“The trading arm of one of the IOCs refused to sell to us directly and asked us to find a middleman who will buy from them and then sell to us at a margin. We dialogued with them for 9 months and in the end, we had to escalate to NUPRC who helped resolve the situation,” Edwin stated.
According to him, “When we entered the market to purchase our crude requirement for August, the international trading arms told us that they had entered their Nigerian cargoes into a Pertamina (the Indonesia National Oil Company) tender, and we had to wait for the tender to conclude to see what is still available.
“This is not the first time. In many cases, particular crude grades we wish to buy are sold to Indian or other Asian refiners even before the cargoes are formally allocated in the curtailment meeting chaired by NUPRC.
“However, we would like to urge NUPRC to take a second look at the issue of pricing. NUPRC has severally asserted that transactions should be on willing seller/willing buyer basis. The challenge however is that market liquidity (many sellers/many buyers in the market at the same time) is a precondition for this. Where a refinery needs a particular crude grade loading at a particular time then there is typically only one participant on either side of the market.
“It is to avoid the problem of price gouging in an illiquid market that the domestic gas supply obligation specifies volume obligation per producer and a formula for transparently determining pricing. The fact that the domestic crude supply obligation as defined in the PIA has gaps is no reason for wisdom not to prevail”, Edwin stated.
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Just in: Sack newly appointed Super Eagles coach now, NANS tell NFF
Members of the National Association of Nigerian Students (NANS) on Thursday protested the appointment of Eric Sekou Chelle as the substantive coach of the Super Eagles.
NANS held a protest on Thursday at the Moshood Abiola International Stadium in Abeokuta to register their displeasure, calling on the Nigeria Football Federation (NFF) to reverse the appointment with immediate effect.
Led by the clerk of the Senate, Abdul Yekini Odunayo, NANS condemned the appointment and said it fell short of the expectations of Nigerians and football enthusiasts.
The students also threatened to embark on a nationwide protest to drive home their demand and called for the appointment of a better coach who tactical and can harness the abundant talents abound in the country.
“We are gathered here today to address an issue that has not only baffled us but has also drawn widespread disapproval from Nigerian students and sports enthusiasts alike,” Odunayo said.
“On behalf of the National Association of Nigerian Students, I, Abdul-Yekinn Odunayo, Clerk of the Senate of NANS National Headquarters, wish to categorically express our displeasure over the appointment of Eric Sekou Chelle as the new head coach of the Super Eagles.
“This appointment, as announced by the Nigeria Football Federation (NFF), is not only unacceptable but also a slap in the face of our nation’s abundant pool of local coaching talent. Consequently, NANS, as the voice of the Nigerian students, is compelled to organise a national protest to demand a reversal of this decision.”
On Tuesday, NFF confirmed the appointment of Éric Sékou Chelle as Head Coach of Nigeria’s Super Eagles.
His appointment is with immediate effect, and he has the responsibility of guiding the Super Eagles to earn a ticket to the 2026 FIFA World Cup finals, with the next round of matches (Matchdays 5 & 6) taking place in March.
Chelle, who won five caps for the Aiglons of Mali and coached clubs such as GS Consolat, FC Martigues, Boulogne and MC Oran, has been Head Coach of the Aiglons since 2022.
Chelle was appointed manager of Mali and was dismissed on 13 June 2024.
News
Nigeria-China Relations: A New Era of Cooperation in Peace, Trade, and Investment+PHOTOS
By Gloria Ikibah
Nigeria’s Minister of Foreign Affairs, Ambassador Yusuf Maitama Tuggar, on Thursday, played host to the Chinese Foreign Minister, Wang Yi, to discuss ways to deepen diplomatic ties and strengthen cooperation between the two nations.
Naijablitznews.com reports that the meeting focused on advancing peace, trade, investment, and mutual prosperity.
Ambassador Tuggar highlighted the long-standing relationship between Nigeria and China, which according to him, has been built on mutual respect, trust, and shared goals.
He commended China’s advancements in economic development, technological innovation, and global leadership,.and reiterated Nigeria’s is commitment to supporting the One-China Principle and strengthening collaboration on the international stage.
“Our cooperation has yielded fruitful results in various fields, including trade, investment, infrastructure development, and cultural exchange.
“Nigeria, too, is undergoing significant transformations, driven by our vision to become a more prosperous, peaceful, and democratic nation.
“Consequently, during our discussions, I look forward to exploring avenues to deepen our bilateral engagement, particularly in areas such as trade facilitation, capacity building, and people-to-people exchanges,” Tuggar stated.
He recalled the recent state visit by President Bola Ahmed Tinubu to China in September 2024, during which four Memorandums of Understanding (MoUs) were signed.
“Nigeria reaffirms its commitment to the terms of the MoUs, which are currently at various stages of implementation,” he affirmed.
Ambassador Tuggar further expressed confidence that ongoing discussions with China would yield meaningful outcomes, elevating relations between the two nations to new heights.
In his remarks, Chinese Foreign Minister Wang emphasized the importance of Nigeria-China relations, describing Nigeria as “a major African country with global influence” and “an important member of the global South.”
Yi who stated that his visit aimed to strengthen bilateral relations and foster cooperation in key areas such as trade, investment, and infrastructure development, lauded Nigeria’s contributions to Africa’s peace and development and acknowledged the country’s role in promoting stability across the region.
“China has always viewed and developed relations with Nigeria from a strategic height and a long-term perspective,” Yi said.
He also reiterated China’s commitment to solidarity with Nigeria, particularly in areas of development and economic revitalization.
The visit aligns with China’s broader objectives under the Forum on China-Africa Cooperation (FOCAC) and follows up on the commitments made during the FOCAC Beijing Summit.
Yi noted the success of the recent Intergovernmental Committee meeting in Beijing and acknowledged President Tinubu’s contributions to the summit.
“During his stay, Wang Yi is scheduled to hold high-level talks with government officials, discussing pressing global issues, regional security, and economic development,” the report added.
Wang Yi was received upon arrival by Ambassador Dunoma Umar Ahmed, Permanent Secretary of the Ministry of Foreign Affairs, alongside other top Nigerian officials and the Chinese Ambassador to Nigeria, H.E. Yu Dunhai.
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Reps Raises Alarm Over Poor Capital Budget Implementation
By Gloria Ikibah
The House of Representatives has expressed concern over the low implementation rate of the capital component of the 2024 budget.
Thr Chairman Public Accounts Committee (PAC), Rep. Bamidele Salam, during an interactive session with the Accountant General of the Federation, Dr. Shakirat Madein, on Wednesday, revealed that only 25 percent of the capital budget has been implemented.
The chairman who stated that the underperformance hinders economic growth and development, urged the AGF to expedite the submission of the 2022 Consolidated Financial Statement to the Auditor General in line with constitutional provisions.
Rep. Salam lamented Nigeria’s lag in timely audit report submissions compared to Kenya, Ghana, and Rwanda, attributing this to delays in financial statement submissions by the Accountant General’s office.
Addressing revenue leakages, the committee called for stricter measures, including process automation and regular audits of Government-Owned Enterprises. It also instructed the Accountant General, the Ministry of Foreign Affairs, and the Ministry of Interior to resolve issues delaying the automation of revenue collections from foreign missions to enhance transparency.
Rep. Salam disclosed that the 2021 Auditor General’s Report, recently submitted to the National Assembly, would be prioritized once the 2024 Appropriation Bill is passed.
In her remarks, Dr. Madein attributed delays in the consolidated financial statement to inadequate data from the Central Bank of Nigeria (CBN) but assured that efforts to resolve this are near completion. She pledged to conclude the process within two months.
The Accountant General also highlighted ongoing initiatives to enhance public expenditure management, including a review of the Financial Regulations 2009, which is awaiting Federal Executive Council approval.
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