The projection by stakeholders in the downstream segment of the oil and gas sector as well as some members of the private sector of N3 trillion subsidy payment on petrol by the government, going by oil futures and landing cost of the commodity is one of the trending stories in Nigerian newspapers on Wednesday.
The Guardian reports that the stakeholders in the downstream segment of the oil and gas sector as well as some members of the private sector have projected that the country’s spending on subsidy may exceed the N3 trillion appropriated for it going by oil futures and landing cost of the commodity.
With the landing cost of premium motor spirit (PMS) already hovering over N400 a litre at the official exchange rate (N416.45), marketers noted that the figure may be higher if the parallel market price is used as a benchmark.
Specifically, the Lagos Chamber of Commerce and Industry (LCCI) yesterday, predicted that Nigeria would borrow more to finance its monthly payment of subsidising fuel consumption in the country.
Indeed, the Chamber stated that with a monthly payment of about N250 billion to subsidise fuel consumption and the sum of N3 trillion already provided in the 2022 Federal Government budget and an additional expenditure against the projected revenue, deficit financing has increased significantly.
Yesterday, Reuters stated that the Minister of Finance, Zainab Ahmed said the country plans to tap two billion euros ($2.2 billion) this month or next of the money it raised in a eurobond sale last year and target more local borrowing in 2022 to help fund its costly petrol subsidies as oil prices rise.
The newspaper says that rising energy costs both in electricity and fuel segments, geopolitical tension and fiscal indiscipline have triggered fresh concern over fast-rising prices even as headline inflation rose marginally to 15.7 per cent in February, 0.1 per cent higher than the January figure.
The latest inflation data were contained in the February consumer price index (CPI) released by the National Bureau of Statistics (NBS), yesterday.
But a professor of applied economics, Godwin Owoh, balked at the reliability of the data, insisting the aggregation might be mathematically correct but cannot be empirically proven.
The economists, who warned that the crisis in the energy market suggests that the days ahead could be tougher than what has been experienced in recent years, said the inflation data may doctored to achieve a predetermined political objective.
The food inflation rate, which is a closely watched index, dropped to 17.11 per cent in February 2022 from 17.13 per cent recorded in the previous month. This represents the lowest food inflation rate recorded in Nigeria since September 2020.
The integrity question of the country’s inflation came to the fore last year, as prices nearly doubled every month while NBS continues to report “moderating” figures.
The Punch reports that Nigeria’s electricity grid collapsed around 5pm on Tuesday, which was less barely 48 hours after it collapsed on Monday, a development that caused widespread darkness across the country.
Power distribution companies again alerted their customers about the collapse, as it was gathered that the meeting summoned by the Federal Government on Monday over issues in the sector, had to drag on till late night on Tuesday.
The grid collapse further prolonged the blackouts witnessed across the country, amidst the current energy crisis in the petroleum sector in Nigeria.
In a public announcement to its customers on Tuesday, the Ibadan Electricity Distribution Company described the collapse of the grid as total.
It said, “Dear esteemed customers, we regret to inform you of a total system collapse on the national grid at 1709hours of today Tuesday, March 15, 2022 leading to outages across our network.
“We are closely monitoring the situation with our TCN (Transmission Company of Nigeria) partners and will keep you updated on the situation. We sincerely apologise for the inconvenience.”
Also, the Head, Corporate Communications, Ikeja Electric Plc, Mr Felix Ofulue, confirmed the development to the News Agency of Nigeria in Lagos.
Eko Electricity Distribution Company also confirmed the partial collapse of the grid in a public notice.
Power distributors said the collapse had disrupted power supply within their networks as customers were experiencing blackouts nationwide.
The newspaper says that the Executive Vice-Chairman of the Nigerian Communications Commission, Prof. Umar Danbatta, has stated that 35 million Nigerians are yet to access digital financial and telecommunications services.
He said this at the 2022 World Consumer Rights Day, celebrated on Tuesday in Abuja.
Danbatta said, “As many as 35 million Nigerians are yet to have access to telecommunications services and by implication, they lack access to digital financial services.
“This situation denies these Nigerians access to digital financial inclusion. It is a challenge that is attributable to the inadequacy of both wireless and fibre connectivity infrastructure.”
Earlier in February 2020, the EVC had started that 35 million Nigerians lacked access to digital financial and telecommunications services. This may then means that the NCC has failed to fill up this gap after two years.
However, the EVC further noted that the launch of the Nigerian National Broadband Plan 2020-2025 is critical in addressing existing issues and filling up relevant gaps.
The Nation reports that for two consecutive months – January and February – Nigeria failed to meet its quota as allocated by the Organisation of Petroleum Exporting Countries (OPEC).
In its March report released yesterday, OPEC said Nigeria produced 1.399m barrels per day in January and 1.25 million barrels per day in February.
This is far below the 1.7mb/d allocation for January and 1.8mb/d for February
The report added that Nigeria maintained an average daily oil production of 1.424mb in 2021.
It did not, however, give reasons why the country could not meet its quota.
OPEC said: “According to secondary sources, total OPEC-13 crude oil production averaged 28.47 mb/d in February 2022, higher by 0.44 mb/d month -on-month.
It noted that Crude oil output increased mainly in Saudi Arabia and Libya, while production in Nigeria and Equatorial Guinea declined.
It further explained that Saudi Arabia is on top of the list as the highest producer with 10.225mb/d exceeding the 10mb/d that the Organization approved for it in the month under review.
Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari, had blamed the country’s inability to meet its OPEC quota on lack of funding.
The newspaper says that the Executive Director of the Nigerian Export Promotion Council (NEPC) Dr. Ezra Yakusak yesterday said that the country exported non-oil products worth $3.455 billion in the 2021 fiscal year.
Yakusak, who said this while speaking at a seminar organised by the Council in Owerri, the Imo capital, added that it was a record increase from $2.210 billion generated in year 2020.
Yakusak, who was represented by NEPC’s Trade Promotion Advisor in Imo, Anthony Ajuruchi, said that the Council was able to achieve this as a result of the implementation of its current mantra, ‘Export for Survival’.
He also commended exporters in Imo for manufacturing products worth over $2.3million from year 2016 to 2021 and exporting same to countries such as Poland, USA, Dubai, Italy and Australia.
“As a stakeholder, NEPC has been working assiduously with other relevant government institutions handling the African Continental Free Trade Area agreement to ensure seamless implementation and gainful participation
GIK/APA