Nigeria Times

Aliko Dangote, Chairman of the Dangote Group, has urged petroleum marketers and the Nigerian National Petroleum Company Limited (NNPCL) to source fuel directly from his refinery to address Nigeria’s fuel demands. This announcement followed a meeting with President Bola Tinubu and key officials at the Presidential Villa in Abuja on Tuesday, October 30, 2024.

According to data from the Nigerian Ports Authority (NPA), a vessel carrying over 20 million liters of Premium Motor Spirit (PMS) is expected at Lagos’s Tincan Island Port. Amid rising fuel prices and supply concerns, Dangote confirmed the refinery’s capacity to meet local needs, with a daily production potential of over 30 million liters and a 500-million-liter reserve.

During the closed-door meeting with Tinubu, the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency, chaired by Finance Minister Wale Edun, provided updates on the government’s strategy to supply crude to local refineries in naira. This plan aims to stabilize domestic fuel prices and reduce reliance on imports.

“We have enough fuel, and our refinery is ready to supply the country’s needs,” Dangote emphasized, adding that marketers should source from his refinery rather than importing. He noted the current stock could supply Nigeria for 12 days without additional imports and called on NNPC and other marketers to prioritize local sourcing to reduce wait times and black market dependence.

The Tinubu administration has mandated the adoption of a market-driven exchange rate and competitive crude pricing for local fuel sales. Afreximbank will facilitate settlements in this system, ensuring financial stability for both the NNPC and marketers. Finance Minister Edun explained that aligning fuel prices with market rates strengthens NNPC’s finances, aiding public services and infrastructure funding across federal, state, and local governments.

In addition, the NPA reported the arrival of several vessels this week, carrying fuel, vehicles, and other consignments, to various Lagos terminals. The agency confirmed that shipments would continue through early November, ensuring steady fuel supplies and reducing shortages across the country.

The Nigerian National Petroleum Company Limited (NNPCL) has increased the price of Premium Motor Spirit (PMS), or petrol, to ₦1,025 per litre in Lagos and ₦1,060 per litre in Abuja—marking the third price hike within two months.

This adjustment comes as the price of Nigeria’s Bonny Light crude drops from $75 to $72 per barrel, falling below the 2024 budget benchmark of $77.96. The lower crude prices, along with Nigeria’s ongoing deregulation policies, have contributed to these increases.

In response, fuel stations in Lagos quickly updated their rates, while some in Abuja temporarily paused operations to adjust meters. Independent stations, like Ardova Plc, continued selling at previous rates, further fueling a rush among consumers to purchase before new prices take effect.

This ongoing rise in fuel costs, largely driven by currency depreciation and the deregulation of the petroleum sector, has added to the economic strain on Nigerians, with many feeling the impact of escalating living expenses.

New Petrol Prices Across Nigeria

The Nigerian National Petroleum Company Limited (NNPCL) has announced an increase in petrol prices amid ongoing economic challenges. Fuel prices in Lagos have risen to N1,025 per liter, while Abuja residents now pay N1,060 per liter. This adjustment, confirmed at NNPCL stations, has placed additional pressure on citizens already coping with high living costs.

Since the end of fuel subsidies in May 2023 under President Bola Tinubu’s administration, petrol prices have surged from N145 to over N1,000 per liter, heightening financial strain nationwide.

Tinubu Meets Key Stakeholders to Discuss Local Currency Oil Sales

President Tinubu held a strategic meeting with Finance Minister Wale Edun, Dangote Group Chairman Aliko Dangote, and NNPC’s Group CEO Mele Kyari. This session, held at Aso Rock, focused on implementing a policy shift allowing crude oil sales in naira, aiming to stabilize fuel prices and strengthen the naira. The policy will initially be piloted at the Dangote Refinery, with hopes of reducing Nigeria’s reliance on dollar-based transactions.

Ghana Explores Petroleum Imports from Dangote Refinery to Lower Costs

Ghana’s National Petroleum Authority (NPA) announced it is exploring options to import petroleum products from Nigeria’s Dangote Refinery, aiming to cut reliance on costlier European imports. NPA Chairman Mustapha Abdul-Hamid indicated that sourcing from Dangote’s facility, which has a capacity of 650,000 barrels per day, could lower Ghana’s monthly import costs and reduce freight expenses. He also suggested that a unified African currency could further stabilize regional trade by reducing dependence on the dollar.

Dollar to Naira Exchange Rate Today

What is today’s Dollar to Naira exchange rate on the black market, also known as the parallel market (Aboki FX)? Here’s a look at the black market rate for October 30, 2024, along with the official rates from the Central Bank of Nigeria (CBN).

Black Market Dollar to Naira Exchange Rate (Aboki Dollar Rate)
At the Lagos Parallel Market, players are buying dollars at N1743 and selling at N1748, according to Bureau De Change (BDC) sources. Please note, however, that the Central Bank of Nigeria does not recognize these parallel market rates and encourages individuals to use official banking channels for forex transactions.

Dollar to Naira (USD to NGN)	Black Market Rate Today
Buying Rate	N1743
Selling Rate	N1748

CBN Dollar to Naira Exchange Rate

Dollar to Naira (USD to NGN)	CBN Rate Today
Buying Rate	N1664
Selling Rate	N1665

Keep in mind that the actual rates for buying and selling forex may differ due to market fluctuations.

Nigeria’s Oil Price and Production Update
Nigeria’s crude oil prices dropped by 7%, reaching $72 per barrel—a decrease from $75 and below the 2024 budget benchmark of $77.96. Market reports suggest this decline is partly due to a tempered response from Israel to Iran’s recent missile attack, which initially stirred supply concerns.

The Organisation of Petroleum Exporting Countries (OPEC) reported a drop in Nigeria’s oil production to 1.324 million barrels per day (bpd) in September, down 2% from August’s 1.352 million bpd. Additionally, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicated that total oil output, including condensate, was at 1.544 million bpd in September, down from August’s 1.570 million bpd—a 1.7% monthly decrease.

These developments raise concerns about Nigeria’s ability to meet its 2024 budget projections amid falling oil prices and production challenges.

The 19 governors from Northern Nigeria have voiced strong opposition to the Federal Government’s Tax Reform Bill, recently submitted to the National Assembly. At the heart of their concerns is a proposed shift to a Derivation-based Model for distributing Value Added Tax (VAT), which they argue would disadvantage northern and less industrial regions.

Meeting in Kaduna under the Northern States Governors’ Forum (NSGF), the governors, led by Gombe State’s Muhammad Yahaya, issued a communique expressing their objections. They were joined by northern traditional rulers, the Chief of Defence Staff, General Christopher Musa, and other stakeholders.

The proposed reform, developed by a panel led by Taiwo Oyedele, would adjust the distribution of VAT revenue to favor the locations where goods and services are consumed, as opposed to the current system, which allocates VAT based on company headquarters. Northern states, many of which prohibit the sale of alcohol under Sharia law, currently benefit from VAT collected on alcohol sales nationwide, a practice the reform would end.

The communique argued that the shift would negatively impact the Federal Accounts Allocation Committee’s revenue distribution. The governors urged Northern representatives in the National Assembly to reject the bill, stating, “The contents of the reforms are against the interest of the North and other sub-nationals.”

While the governors emphasized their support for policies that encourage growth, they called for “fairness in the implementation of national policies,” to ensure equitable treatment across geopolitical zones. They also appealed for patience from Nigerians, assuring citizens that measures to ease economic hardship are underway.