Press focuses on claims that coming on stream of Dangote refinery won’t change petrol price, others

APA – Lagos (Nigeria)
The report by the Nigerian National Petroleum Company Limited that local production of petrol by Dangote Refinery, Port Harcourt Refining Company and others in Nigeria is not going to change the pump price of the commodity dominates the headlines of Nigerian newspapers on Friday.
The Punch reports that the Nigerian National Petroleum Company Limited has said local production of Premium Motor Spirit, otherwise known as petrol, by Dangote Refinery, Port Harcourt Refining Company and others in Nigeria is not going to change the pump price of the commodity.
The NNPCL’s Group Chief Executive Officer, Mele Kyari, who disclosed this during an interview on Arise television in Abuja on Thursday, stressed that the notion that petrol prices would reduce once the country starts domestic production was false.
Kyari confirmed that the Dangote Refinery, which was inaugurated on May 22, 2023, by former President Muhammadu Buhari, would start pushing out products by the end of July and early August.
He also stated that the Port Harcourt Refinery would be delivered by the end of the year, adding that the facility was expected to further boost local production of petrol.
But Kyari declared that despite the volume of petrol being expected from these facilities, the cost of the commodity would not reduce, regardless of the fact that the product was produced locally.
“There is a notion that if the product is processed locally, prices will reduce. Let me make it clear that it is not going to change anything. If you produce locally, the refineries will also input the cost of production and other things and it will be sold at the current price.
“There will also be no subsidy when local production starts because there is no cash-to-back subsidy, this country no longer has the resources to continue with subsidy,” Kyari stated.
The newspaper says that in a bid to improve trade compliance, the Nigeria Customs Service, in collaboration with the World Bank under the Accelerating Revenue Mobilisation Reforms Programme, has introduced modalities for migration from the Fast Track Regime to Fast Track 2.0.
In a statement, on Wednesday, the National Public Relations Officer of the service, Abdullahi Maiwada, a Chief Superintendent of Customs, said that the platform also facilitates trade by admitting traders based on their adherence to regulations and contribution to trade in Nigeria.
He said, “By introducing Fast Track 2.0, the Nigeria Customs Service aims to streamline trade processes, promote compliance, and create a more efficient and rewarding environment for traders.”
Maiwada said that when fully operational, FT 2.0 would encourage traders to comply with Customs regulations and rules.
“One of the main advantages is the potential for significant cost reductions associated with cargo handling and demurrage at the ports.
“Traders who are interested in taking advantage of this facility can access more information and apply through the website. Existing traders who are currently using the old Fast Track system are advised to apply to the new Fast Track 2.0 (FT 2.0),” he stated.
The Guardian reports that the Central Bank of Nigeria (CBN) says it has not devalued the naira, even as it pledged its commitment to gradual rate convergence. The Deputy Governor in charge of Economic Policy, Dr. Kingsley Obiora, made this known, yesterday, in Abuja at the Fiscal Liquidity Assessment Committee (FALC) retreat.
This comes as the Import and Export window has adjusted the rates but it appeared that the CBN has not adjusted the rates officially. A report claimed the apex bank had devalued the local currency to N631/$.
But a statement signed by the Acting Director of Corporate Communications, Dr. Isa AbdulMumin, described the report as false, pointing out that the Investors and Exporters (I&E) window was trading at N465/$ yesterday morning. He noted that the apex bank was committed to a gradual convergence of the rates around I&E window.
But a financial analyst, Paul Alaje, said Nigerians should expect 34 to 38 per cent inflation in the next two to three months if naira is devalued, which he said would happen in a matter of days.
“No doubt the move will increase flows of foreign portfolio investment and foreign direct investment in dollars and more diaspora remittances without the need for rebate. More companies will also bring in their export proceeds dollars and not divert it to foreign accounts or use it to purchase equipment and bring it to sell,” he said.
The newspaper says that a Nigerian knowledge institution and advocate for fiscal transparency, Centre for Social Justice (CSJ), has expressed concern over the recent decision by the Federal Government to remove subsidy of Petroleum Motor Spirit (PMS) without engagement and consultation with stakeholders.
It also held that the amount of fuel supplied and what leaves the depot has remained unknown to Nigerian citizens.
The Lead Director, CSJ, Eze Onyekpere, stated that while the group has long advocated for the removal of PMS subsidy, the abruptness and lack of transparency surrounding the recent announcement raised several critical questions and potential consequences for the citizens of Nigeria.
CSJ while recalling President Bola Tinubu’s inaugural speech on May 29, in which he declared the end of petrol subsidy and the subsequent announcement by Nigerian National Petroleum Company Limited (NNPCL) of an upward review in the pump price of PMS across the nation with effective from May 31, recognized the need for sustainable economic policies and efforts at addressing issues relating to petrol subsidy.
The centre maintained that the current manner in which the removal of subsidy was carried out raises significant concerns that demand urgent attention.
“Lack of public consultation and agreements that should accompany the reform package, including palliatives for the poor, cutting down the cost of governance, the fate of the public refineries prior to the removal of the subsidy is troubling.
“It is very important that decisions of this magnitude, which directly affect the lives of citizens, are made through inclusive and participatory processes, ensuring that diverse perspectives are taken into account.
“Additionally, the lack of transparency and clarity in the computation of the new fuel prices circulated by NNPCL is disturbing.”
CSJ, therefore, urged the government to provide a comprehensive breakdown of the cost components and the basis for the calculation of the new fuel price.
GIK/APA