Energy
Niger Coup responsible for decline in Nigeria’s petrol market
By Akinyemi Precious
The Niger coup which has forced the shuttering of borders has ended planned exports of Nigerian petrol across the continent.
This is as a result of decrease in demand at home.
The Nigerian government had ended subsidies on petrol before Niger’s crisis , dismissing concerns about petrol smuggling. Meanwhile, the demand at home was declining and was at N600 per petrol and petrol consumption had fallen over 30 per cent since the subsidy on petrol was removed and this is impacting even European refiners.
According to research, European exports to Nigeria decreased by around 160,000 bpd in July compared to May.
Nigeria’s daily consumption has declined to 38.33 million litres from 65 million litres.
“We have always known a lot of subsidised petrol was smuggled out of Nigeria to its neighbours … but this is hinting the figure could be truly massive, at 30 per cent.
“If sustained, ending the subsidy might be thrice more important for Nigeria’s economy than Dangote’s refinery,” head of macro-strategy at FIM Partners, Charlie Robertson said.
One consequence of the declining demand for petrol is that marketers are downsizing and shuttering petrol stations where demand has fallen. However, some outlets are merging already.
The closure of borders between the two countries is a double-edged sword. It would add end the smuggling of products and also prevent the growth of legal trade outlets.
It is worthy of note that Seven states in Nigeria – Sokoto, Kebbi, Katsina, Zamfara, Jigawa, Yobe, and Borno – share borders with Niger, making it a hub for illegal fuel trafficking to neighbours in the Sahel region.
The United Nations Office on Drugs and Crime (UNODC) Fuel research of 2022 titled Transnational Organized Crime Threat Assessment – Trafficking in the Sahel – also disclosed that Nigeria via Niger to Mali is one of the four major fuel trafficking routes into the Sahel countries.
Others include Nigeria via Benin to Burkina Faso and Mali; from Algeria to Mali; and from Libya to Niger and Chad, indicating that two routes depend on Nigeria for illegal activity.
According to the report, low fuel prices in Nigeria, Algeria and Libya are the main drivers of fuel trafficking into the Sahel and most of the fuel trafficked is government-subsidised official fuel from those three countries. But the Federal Government’s deregulation policy is expected to control the flow.
“If the Federal Government operates in line with sections 205(1) of the Petroleum Industry Act, prices will continue to adjust to reflect prevailing market conditions; market conditions being the price of feedstock and the exchange rate.
“This means that if prices keep rising from the current 78 cents per litre we currently have to the benchmark price of $1.10-1.30 per litre, there will be no incentive for smuggling, and the true North for daily consumption in Nigeria will continue the trend down.”
Energy
Synergy, commitment crucial to clean energy transition, sustainability in Africa — CEO, Egbin Power
As carbon emissions reduction and energy security remain a crucial focus in the global sustainability agenda, shared commitment, synergy and decisive actions are the cornerstone of accelerating the transition to cleaner energy and achieving a sustainable environment.
Having analysed the percentage of global greenhouse emissions attributed to sectors including electricity/heat production, agriculture/forestry and land use, transportation, industry and others, the Chief Executive Officer, Egbin Power, Mokhtar Bounour, charged for synergy and renewed commitment among stakeholders.
He made this known at the maiden edition of Asharami Square, a Sahara Group initiative aimed at amplifying the discourse on sustainability through impactful media advocacy.
While highlighting Egbin Power’s unwavering commitment to reducing carbon emissions and promoting sustainable energy sources, Bounour further stressed the need for deepened engagement and advocacy to further prioritise sustainability.
Bounour outlined Egbin Power’s comprehensive approach to sustainability, which includes an array of pragmatic initiatives such as obsolescence management, asset upgrades, energy efficiency improvement, sustainability and environmental impact management, and fugitive emissions minimization.
These programs are strategically designed to effectively address carbon emissions and promote cleaner energy initiatives.
According to him, Egbin Power drives sustainability through afforestation, adoption and enforcement of ANSI Lighting Design Standards for the Egbin built environment, a gradual switch from Internal Combustion Engines (ICEs) to Compressed Natural Gas (CNG) and the integration of Electric Vehicles (EVs) into the company’s operations, among other interventions.
“These actions demonstrate Egbin Power’s commitment to thinking globally and acting locally, ensuring that deliberate and impactful steps are taken to promote sustainability and environmental consciousness actively.
“As a responsible organisation Egbin Power is steadfast in its commitment to promoting sustainability.
“Our roadmap and initiatives are designed to align with global sustainable development goals and to ensure that we contribute to a cleaner and more sustainable energy landscape in Africa.
“Our pragmatic initiatives which include obsolescence management, asset upgrades and overhauls, energy efficiency improvement, sustainability and environmental impact management, and fugitive emissions minimization as part of programs designed to address carbon emissions.
“We are committed to treating the environment with the utmost care, knowing well that every activity we engage in – either as an individual or collectively as an organisation has an impact on the ecosystem,” Bounour explained.
By Esther Agbo
NNPC Retail Limited has swiftly responded to allegations circulating on social media regarding coercive practices at one of its filling stations.
A video clip surfaced on social media, X (formerly Twitter) precisely, purportedly showing customers being pressured to purchase lubricants or engine oil in order to obtain Premium Motor Spirit (PMS), commonly known as petrol. The attendant in the video claimed that this directive originated from NNPC Retail Management.
In a statement issued, NNPC Retail categorically refuted the allegations, asserting that such practices are entirely false and do not align with the company’s Customer Service Charter. According to NNPC Retail, customers visiting any of their filling stations are under no obligation to purchase additional products as a condition for buying petrol.
Managing Director of NNPC Retail Ltd, Mr. Huub Stokman, emphasised the company’s commitment to transparent and quality service delivery.
He stated, “We are dedicated to providing clear, transparent and quality service to all our customers, guaranteeing that their needs are met without any recourse to unnecessary and unscrupulous conditionalities.”
In response to the incident, NNPC Retail Limited has initiated an investigation to ascertain the facts surrounding the video. The company has assured the public that appropriate disciplinary measures will be taken against any individuals found responsible for misconduct.
“The public is hereby advised to disregard the information in its entirety and report any such occurrences to the appropriate authority.
“In the meantime, NNPC Retail Limited has launched an investigation into the unfortunate incident and assures that appropriate disciplinary action will be taken against the culprit (s).”
In line with the Electricity Act 2023, the Nigerian Electricity Regulatory Commission, NERC, issued an order transferring regulatory oversight of the electricity market in Imo to the Imo State Electricity Regulatory Commission.
This was contained in a recent order signed by NERC Chairman Sanusi Garba.
The order shall take effect on July 1, 2024.
The implication is that Imo State will be responsible for the complete regulation of its electricity market.
The order stated: “Section 230 (3) of the Act mandates the commission to develop a transition plan and timeline for the transfer of regulatory oversight of the intrastate electricity market from NERC to ISERC upon receipt of formal notification from the State
“EEDC shall complete the incorporation of EEDC SubCo within 60 days from the effective date of this Order and, EEDC SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from ISERC.
“EEDC shall identify the actual geographic boundaries of Imo State and carve out its network in Imo State as a standalone network with the installation of boundary meters at all border points where the network crosses from Imo State into another state.”
With the development, Imo becomes the fourth state to get electricity regulatory authority after Enugu, Ondo and Ekiti states.
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