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We’ve Saved $1bn on Petrol Imports, Says NNPC GMD, Kyari

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The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, on Wednesday announced that the oil firm saved over $1bn of the cost that would have been built in on the top of petroleum products imports into Nigeria.

NNPC is the country’s sole importer of petrol for more than three years running and it currently subsidises the commodity, dispensing it to marketers at a subsidised rate, while dealers sell at between N162/litre to N165/litre.

Speaking during a live television programme monitored by our correspondent in Abuja, Kyari said NNPC was able to get petrol at the pumps at about N256/litre, whereas the cost of the commodity would have been about N290/litre.

He explained that since the cost of diesel was currently N280/litre, the price of petrol would have been N10 higher than diesel price, but that NNPC had been able to bring it into Nigeria at about N256/litre.

The corporation’s boss, however, noted that despite the fact that NNPC was bringing in the commodity at the N256/litre rate, it had maintained the cost to marketers at about N160/litre.

Kyari said, “Today NNPC is the sole importer of petroleum products. We are proudly saying as a company today that we have saved over $1bn of cost that would have been built in on the top of importing petroleum products into this country.

“And this is by the fact that we have a much more transparent import process and a partnership arrangement that is ensuring that value is returned to the shareholders.”

He added, “That means, instead of having a value beyond N280/litre, we are delivering products to the pump today at N256/litre and this means that we are saving over N30/litre because of the transparency that we have put in place.

“But what we are selling to the market is about N160/litre and these reasons are very obvious.”

He said the cost of petrol would remain at the current rate until the ongoing engagements with labour on the matter were concluded.

On why diesel was higher in price than petrol, he said AGO was fully deregulated in the downstream sector, while NNPC was incurring under-recovery on PMS.

On NNPC’s moves to invest in Dangote Refinery, he said the corporation would go ahead with its plans, adding that it would recover its cost in the refinery in five years.

Kyari again stated that he was unsure if Aliko Dangote would be interested in the proposal of the corporation to buy 20 per cent stake in the private facility.

The Punch

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Economy

Naira Makes More Recovery, Sells at N1,453/$1

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The Naira continued its appreciation at the official market on Thursday, March 21, 2024 to close at N1,453.28/$1, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

This represents an appreciation of N39.33 when compared to the N1,492.61/$1 it closed on Wednesday, March 20, 2024.

The intraday high was N1,598/$1, while the intraday low was N1,300/$1, representing a wide spread of N298/$1.

Similarly, the Naira appreciated against the dollar at the parallel window to trade at N1,500/$1, this represents an appreciation of N20.00 as against the N1,520 /$1 it traded the previous day.

The Naira also appreciated slightly against the British Pound to trade at N2,000/£1 as against the previous trading day’s price of N2,020/£1 representing a gain of N20 for the local currency.

The Canadian dollar, however, closed flat against the naira to trade at N1,270/CA$1 same as the N1,270/CA$1 it traded the previous day representing a decline of N20 in the local currency.

The Naira gained N30 against the Euro to trade at N1,670/€1 as against the previous closing price of N1,700/€1.

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Economy

Naira Gains Against Dollar, Trades at N1,603/$1

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The Naira, Tuesday continued its recovery against the American dollar as it traded at N1,603.38/$1, data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) window has shown.

This represents a gain of N15.48 when compared to the N1,617.96/$1 it closed on, on Monday, March 11, 2024.

The intraday high was N1,637/$1, while the intraday low was N1,425.35/$1, representing a lean spread of N211.65/$1.

Meanwhile, the Naira gained N12 against the dollar at the parallel market as the local currency appreciated to N1,603/$1 as against the N1,615 /$1 it traded the previous day. As it stands, the naira is trading at the same rate at both official and parallel windows.

The Naira, however, slumped against the British Pound to trade at N2,050/£1 as against the previous trading day’s price of N2,030/£1 representing a loss of N20 for the local currency.

After about two weeks of closing flat against the Canadian dollar, the naira slumped massively to trade at N1,300/CA$1 on Tuesday, representing a decline of N150 when compared to the N1,150/CA$1 it traded the previous day.

The Naira lost N35 against the Euro to trade at N1,740/€1 as against the previous closing price of N1,705/€1 representing a loss of N35 for the local currency.

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Economy

Binance to Close Shop in Nigeria, Stops Transaction, Trading in Naira

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By Reuters – Binance will stop all transactions and trading in Nigeria’s local currency after March 8 amid a country-wide crackdown on crypto exchanges that have been blamed by authorities for feeding a black market for foreign exchange.

It will stop supporting withdrawals after Friday and any remaining balances in Nigerian Naira will be automatically converted into Tether – a stablecoin whose value is pegged to the U.S. dollar.

Last week, Nigerian authorities detained two Binance senior executives on undisclosed charges as part of the crackdown.

They were still in custody, their local lawyer said before a parliamentary committee on Monday.

Source: Reuters

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