Business

Over 200 Illegal Refineries Operating In Nigeria – Kyari

Addressing the Committee chaired by Hon. Abdullahi Gaya, the GMD said though the situation was regrettable, the NNPC was doing something to bring the refineries back to work.

Published

3 years ago

June 29, 2022

Chinedu Nwankwo

The Group Managing Director (GMD) of the Nigerian National Petroleum Company (NNPC) Limited, Mr. Mele Kyari, has lamented that none of the government-owned refineries are presently working, even as he revealed that there were over 200 illegal refineries being operated across the country.

Meanwhile, Kyari, has lamented that none of the government-owned refineries are presently working, even as he revealed that there are over 200 illegal refineries being operated across the country.

The GMD made this known when he appeared before the House of Representatives Joint Committee on Petroleum Resources (Downstream) investigating the increase in prices of diesel and cooking gas.

Addressing the Committee chaired by Hon. Abdullahi Gaya, the GMD said though the situation was regrettable, the NNPC was doing something to bring the refineries back to work.

While noting that a good number of illegal refineries had been taken out, he said the company was in the process of doing a quick fix on the Warri refinery.

On petroleum supply, the GMD stated that no one could guarantee the security of petroleum supply, as countries are preserving excess volume that they have in their kitty.

Kyari blamed the current energy crises on the Ukraine and Russia war which resulted in the increase of petroleum product.

He said the solution was to restore crude oil production, and for the Central Bank of Nigeria (CBN) to create more dollars, adding that there was a massive intervention that was ongoing to see if the issue would be resolved by the end of July.

He explained, “Community members are not the thieves, absolutely not. Everything we are doing is to incorporate the communities into the process of protecting these assets.

“The National Assembly in its wisdom also included Trust Fund for the communities in the Petroleum Industry Act (PIA) so that they become parts and parcel of the system. Criminals in the Niger Delta come from all parts of the country. At these illegal refineries there are people from all works of life there.

“Many of these people are completely armed and the community members cannot even report them, they are helpless because if they report them, they will come after them.

“My suggestion this moment is deliver supply, make sure oil marketers are also able to import, and there’s need to engage the CBN to create more dollars, once we do these, dollars will be allocated for the import of AGO, the will also dampen the effects of going to buy dollar in the open market.

“So you can have cheaper dollar and definitely it will affect the price. Secondly, the regulatory institutions, the authority, Consumer Protection Council and NNPC, I suggest we need to sit jointly to see how arbitrage can be managed so that the end user is not completely exploited.”

Speaking further, Kyari ruled out the possibility of returning to the regime of subsidising diesel and LPG.

“Today countries are toying with subsidy because prices are so high because they don’t think they can manage inflation associated with it,” the GMD added

On his part, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NPRA), Mr. Farouk Ahmed agreed with the GMD that the invasion of Ukraine by Russian contributed to the energy crises, due to fact that Russia is a major producer.

Ahmed also blamed supply disruption, the rise in the barrel of crude oil price to as high as $120 and the prevailing naira exchange rate for the energy crisis in the country.

He opined that the availability of adequate foreign exchange at official rate of N410 to the dollar and the revitalisation of the nation refineries remained the panacea to the energy crisis in the country.

According to him, “it is important to stress that the country has no control over the price of AGO or any other petroleum products at the international market.

“However, countries all over the world are making various efforts at easing the present global high crude oil prices on domestic petroleum products prices. The following are recommended initiatives to address the current high prices of AGO and LPG in the country.

“Required amount of FX for importation of the petroleum products be made available to the genuine importers at CBN official rate; encourage establishment of more local refineries and LPG processing facilities to meet domestic demands, and increase LPG supply from major domestic producers including NLNG, BRT processing, CNL LPG FSO. Consequent upon the foregoing, an extensive consultation is required amongst key Stakeholders, towards lessening the present tension being generated by the global high oil prices.”

In their presentations, some of the oil marketers appealed to the lawmakers to urge the CBN to make FX available to them, in order to make the importation of petrol into the country competitive, reduce the rising cost of the product, and stop the overdependence on NNPC.

Earlier in his remarks, Gaya noted that Nigerian has refining capacity but because none of the refineries were functioning was what placed the country in its sorry state.

He said there was need to find solution to the high cost of diesel and cooking gas in a bid to cushion the effect on the generality of Nigerians.

Business

LAFARGE AFRICA ACHIEVES RECORD SALES OF 697BN; OPERATING PROFIT At 192bN, UP BY 89%; PAT UP BY 96% TO CLOSE AT 100BN

Published

2 weeks ago

February 28, 2025

Seyi Babalola

( Net Sales: FY 2024 up 72% YoY benefiting from improved volume; Q4 2024 up 86% vs PY

( Operating Profit: FY 2024 up 89% YoY; Q4 2024 up 103% vs PY
( Operating Margin: FY 2024 28%, up from 25% PY; Q4 2024 31%, up from 28% PY
( Profit After Tax: FY 2024 up 96% YoY, driven by Topline growth; Q4 2024 up 263% vs PY
( Continued focus on Increased product range, Sustainability and Health & Safety

Lafarge Africa Plc, a leading innovative and sustainable building solutions company and manufacturers of a range of cement brands has released its audited financial statement, recording a revenue of N696.76Billion for the 2024 financial year. The growth in revenue represents an increase of 72% from N405.50 billion that was recorded in the corresponding period in 2023. A breakdown analysis of the audited result also revealed that operating profit for the company in the financial year ended 2024 grew from N102.02billion in the corresponding period in 2023 to N193.01billion, representing an 89% significant rise.

According to the result released by NGX, the earning per share for the company for the 2024 financial year rose by 96%, moving from 3.17 to 6.22. A statement signed by the Chief Executive Officer, Lafarge Africa, Lolu Alade-Akinyemi noted that despite inflationary pressure on purchasing power which has affected the business, the Nigerian Infrastructure and construction sector has witnessed tremendous growth.

Alade-Akinyemi described the company’s outstanding financial performance as a testament to its strong market positioning, strategic initiatives drive on Volume growth, decarbonizing its environment though emission reduction and converting waste into energy.

We also leveraged on innovation and operational efficiency to deliver strong products and solutions into the building market, drive cost improvement, creating a great environment for our people to thrive and delivering value to our stakeholders.

He explained that despite a challenging business environment, the company remained resilient,
leveraging innovation and green growth in line with its sustainability ambitions, while also delivering value to its stakeholders.

”Lafarge Africa Plc remains committed to strengthening its leadership position in offering environmental friendly building solutions, while driving long-term profitability,” he said.

“We maintain our positive outlook for 2025, with market recovery expected to continue at similar growth with 2024. We will continue to maximize volume opportunities across our markets and actively manage our costs. We remain committed to our sustainability ambitions and strategy of ‘Accelerating Green Growth’ through innovative building solutions and delivery of stakeholder value,” he said.

He expressed appreciation to its esteemed customers, employees and all other stakeholders for their commitment, despite the macroeconomic headwinds being experienced in the industry.

-END-

About Lafarge Africa Plc
Lafarge Africa Plc, a leading Sub-Saharan Africa building solutions company is a member of Holcim Limited, a world leader in building solutions accelerating our world’s green transformation. Listed on the Nigerian Exchange Group, Lafarge Africa is actively participating in the urbanization and economic growth of Nigeria, the largest economy in Africa.

Lafarge Africa has the widest footprint in Nigeria with cement operations in the South West (Ewekoro and Sagamu in Ogun State), North East (Ashaka, in Gombe State), South East (Mfamosing, Cross Rivers State) with Ready-Mix operations in Lagos, Abuja and Port Harcourt. Lafarge Africa has a current installed cement production capacity of 10.5Mtpa.

Lafarge Africa leverages on its innovative expertise to provide value-added products and services solutions in the building and construction industry in Nigeria. Additional information is available on the web site at www.lafarge.com.ng

About Holcim
Holcim is a global leader in innovative and sustainable building solutions with net sales of CHF 27.0 billion in 2023. Our 63,448 employees are driven by our purpose to build progress for people and the planet across our regions to improve living standards for all. We partner with our customers to offer the broadest range of advanced solutions, from sustainable building materials ECOPact and ECOPlanet, to our circular technology ECOCycle®, all the way to Elevate’s advanced roofing and insulation systems.

Business

Maintain status quo on subscription prices – FCCPC tells MultiChoice

Published

2 weeks ago

February 28, 2025

Seyi Babalola

The Federal Competition and Consumer Protection Commission, FCCPC, on Thursday directed MultiChoice Nigeria to maintain its current subscription prices pending the outcome of ongoing investigations.

It should be recalled that the Pay-TV operator had announced a 21 per cent increase in subscription fees for its DStv and GOtv packages, effective from 1st March 2025.

However, on Tuesday, FCCPC vowed to investigate the price hike, summoning the company’s leadership to explain the circumstances behind the proposed increase.

MultiChoice Nigeria subsequently requested an extension of the date for its appearance before the commission.

In response, FCCPC, in a statement issued on Thursday by its Director of Corporate Affairs, Ondaje Ijagwu, said that while the request had been granted, “the company is now required to attend the rescheduled investigative hearing on 6th March 2025, along with all relevant officers and a comprehensive response.”

“Pursuant to this, MultiChoice is expressly instructed to maintain the existing price structure as of 27th February 2025, pending the Commission’s review and final determination on the matter.

“Maintaining the status quo on pricing is essential to prevent any potential consumer harm during this period,” the statement added.

Business

Dangote slashes petrol price to N860 per litre in Lagos

Published

2 weeks ago

February 26, 2025

Seyi Babalola

Dangote Petroleum Refinery has announced a drop in the ex-depot (gantry) price of Premium Motor Spirit (PMS), often known as petrol, by N65.00, from N890 to N825 per litre, effective February 27th, 2025.

Under the new system, purchasers in Lagos will pay N860 per liter at MRS stations.

The price adjustment, according to Dangote was designed to provide essential relief to Nigerians in anticipation of the upcoming Ramadan season, while also supporting President Bola Ahmed Tinubu’s economic recovery policy by alleviating the financial burden on the Nigerian populace.

This marks the second price reduction of PMS in February 2025, following a previous decrease of N60.00 earlier in the month.

Additionally, in December 2024, during the yuletide period, the refinery reduced the price of PMS by N70.50, from N970 to N899.50 per litre, as part of its commitment to easing the cost of living and providing relief to Nigerians during the holiday season.

With the latest reduction, the management of the refinery said Nigerians will be able to purchase the Dangote petrol at the following prices in all our partners’ retail outlets.

“For MRS Holdings stations, it will sell for N860 per litre in Lagos, N870 per litre in the South-West, N880 per litre in the North, and N890 per litre in the South-South and South-East respectively.”

“The same product will also be available at the following prices in AP (Ardova Petroleum) and Heyden stations: N865 per litre in Lagos, N875 per litre in the South-West, N885 per litre in the North, and N895 per litre in the South-South and South-East.”

The company assured the public of a consistent supply of petroleum products, with sufficient reserves to meet domestic demand, as well as a surplus for export to enhance the country’s foreign exchange earnings.

It called on marketers to support this initiative, ensuring that Nigerians remain the primary beneficiaries of this effort.