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Cooking Gas: FG Intervenes, Set to Crash Price

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At a meeting in Abuja, Ekpo told the producers that Nigeria has to find a way to surmount the challenges in the country’s domestic market, expressing President Bola Tinubu’s concerns over how unaffordable the product was becoming. The intervention is coming as the National Bureau of Statistics (NBS) in its latest report said in October, LPG prices rose by as much as 14 per cent for a 12.5 kg cylinder.

But a statement by the minister’s media aide Louis Ibah, on Sunday, said the intervention on the LPG issue, better known as cooking gas, followed the rise in recent months in the price of the product per kg from about N700 to above N900 in some parts of the country.Key challenges identified as responsible for LPG price increase, Ekpo said, include FX sourcing for imports and insufficient supply to the domestic market by producers.

The meeting, at the instance of the minister, was held at the NNPC Towers and had in attendance top officials of Chevron Nigeria Limited led by Sansay Narasimi.Others included: The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) led by its Chief Executive Officer, Farouk Ahmed and officials from the Nigerian National Petroleum Company Limited (NNPC).“Ekpo expressed the concerns of President Bola Tinubu over the astronomical increase in the price of cooking gas and the attendant hardship on majority of citizens,” the statement added.

The minister who noted that Nigeria is abundantly endowed with gas reserves, said the situation where some of the multinational firms were more concerned with gas exports without dedicating huge volumes for the domestic market was unacceptable and should be discouraged.

“With the exponential increase in the price of LPG, there is the need for the federal government to intervene and I am representing this at this moment. We acknowledge that some producers are exporting while we are faced with the challenges of importation.

“Public interest is the overriding interest all over the world for the government, the demand for LPG will increase as we approach December…you have a public service obligation to collaborate with the government to ensure security of gas supply.“We need to therefore bend backwards and find solutions, to ensure that we have sufficient supply and stability in-country and that Nigerians have gas,” said Ekpo.

The gas minister thereafter constituted a committee headed by the chief executive of NMDPRA with a mandate to come up with recommendations on how to boost supplies and crash LPG prices within a week.

However, the NBS in its latest report said the average retail price for refilling a 5kg cylinder of cooking gas increased by 8.89 per cent on a month-on-month basis from N4,189.96 recorded in September 2023 to N4,562.51 in October 2023.However, on a year-on-year basis, this increased by 1.76 per cent from N4,483.75 in October 2022, it added.On state profile analysis, Kano recorded the highest average price for refilling a 5kg of LPG, with N5,181.43, followed by Adamawa with N5,142.86, and Ogun with N5,093.75.

On the other hand, Ebonyi recorded the lowest price with N3,971.43, followed by Osun and Edo with N4,000.00 and N4,025.00 respectively.In addition, analysis by zone showed that the North-west recorded the highest average retail price for refilling a 5kg cylinder of LPG, with N4,738.20, followed by the North-central with N4,662.62, while the South-east recorded the lowest with N4,088.65.

Also, the average retail price for refilling a 12.5kg of cooking gas, increased by 14.04 per cent on a month-on-month basis from N9,247.40 in September 2023 to N10,545.87 in October 2023.

On a year-on-year basis, this rose by 4.93 per cent from N10,050.53 in October 2022. On state profile analysis, Edo recorded the highest average retail price for the refilling of a 12.5kg cylinder of cooking gas, with N12,536.88, followed by Jigawa with N12,050.00 and Delta with N11,987.50. Conversely, the lowest average price was recorded in Zamfara with N9,050.00, followed by Lagos and Oyo with N9,071.05 and N9,407.14 respectively.

Analysis by zone showed that the South-south recorded the highest average retail price for refilling a 12.5kg cylinder of cooking gas, with N11,480.60, followed by the North-central with N10,683.97, while the South-east recorded the lowest price with N9,847.42.

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CBN Revokes Heritage Bank Operating Licence

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The Central Bank of Nigeria (CBN), on Monday, announced the revocation of the operating licence of Heritage Bank Plc with immediate effect.

In a statement issued by CBN acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank said the move was in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 (1l of the Banks and Other Financial Act (BOFIA) 2020.

This followed a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

Sidi Ali said, “Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.”

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Naira Appreciates, Trades at N1,339/$ in Official Window

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The Naira has recorded its biggest gain in a couple of weeks against the American dollar to trade at N1, 339/$1, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

At the end of trading on Monday, the Naira gained N143 against the dollar compared to the previous exchange rate of N1,482/$1 on Friday, May 24, 2024.

The intra-day high and low recorded during the day were N1,501/$1 and N1,310/$1 respectively, representing a lean spread of N191/$1.

However, the Naira slumped against the dollar at the parallel section of the market, to trade at N1,520/$1 representing a loss of N10 compared to the N1,510/$1 it traded the previous trading day

Similarly, the Naira slumped against the British Pound to trade at N1,920/£1 as against the previous trading price of N1,900/£1 representing a loss of N20 for the local currency,

The Canadian dollar closed flat against the Naira to trade at N1,200/CA$1, same as the previous trading day rate of N1,200/CA$1.

The Naira also slumped against the Euro to trade at N1,600/€1 as against the rate of N1,580/€1 the previous trading rate, representing a loss of N20 in the local currency.

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CBN Directs BDC Operators to Apply for New Licences

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The Central Bank of Nigeria has directed all existing Bureau De Change Operators to re-apply for new licences in their preferred category.

This was announced on Wednesday in a circular issued by the apex bank which was signed by the Director, Financial Policy and Regulation Department, Haruna Mustafa.

The BDCs were also required to meet the capital requirements for their licence category within six months.

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