google.com, pub-4193898553882182, DIRECT, f08c47fec0942fa0
Connect with us

News

CBN Governor Foresees Petrol Price Crash: Refinery Operations Set to Transform Fuel Costs and Forex Stability

Published

on

In a bold proclamation poised to reshape Nigeria’s economic landscape, Central Bank of Nigeria (CBN) Governor Olayemi (Yemi) Cardoso has predicted a significant drop in the pump prices of Premium Motor Spirit (PMS), commonly known as petrol, as government-owned and private refineries prepare to kick-start operations. The announcement was made at the launch of the Nigerian Economic Summit Group (NESG) 2024 Macroeconomic Outlook Report in Lagos on Wednesday, January 24, 2024.

 

Governor Cardoso’s optimistic remarks follow closely on the heels of the commencement of diesel and aviation fuel production at the Dangote Refinery, with petrol production scheduled to follow suit. The government-owned Port Harcourt refinery is also anticipated to resume production, marking a pivotal moment after the completion of the first phase of rehabilitation in December 2023.

 

In his address, Governor Cardoso emphasized the potential far-reaching implications of the expected stabilisation or reduction in fuel costs, noting its significance in enhancing overall economic efficiency and resilience across various sectors. The prospect of reduced petroleum products imports is anticipated to contribute to stability in the foreign exchange market, fostering a positive economic outlook for the year.

 

The CBN governor pledged collaboration with key stakeholders, including the Nigerian National Petroleum Company Limited (NNPCL) and the Ministry of Finance, to ensure that all forex inflows are redirected to the apex bank to bolster reserves accretion. Highlighting the coordinated efforts, Governor Cardoso affirmed, “These efforts will greatly enhance the bank’s FX inflows and contribute to the appreciation of reserves.”

 

The anticipated stability in the foreign exchange market for 2024 is attributed to the reduction in petroleum products imports and the recent implementation of a market-determined foreign exchange rate policy by the CBN. This reform aims to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage in the forex market.

 

Governor Cardoso, however, asserted that the current exchange rate, with the naira trading around ₦1,370 to the dollar in the parallel market, is undervalued. In his assessment, he stated, “We believe that the naira is currently undervalued, and, coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term.”

 

As Nigeria stands at the threshold of potential economic transformation, Governor Cardoso’s projections signal a positive outlook for consumers, businesses, and the overall economic health of the nation. The impending reduction in petrol prices, coupled with efforts to fortify foreign exchange reserves, sets the stage for a promising chapter in Nigeria’s economic journey, offering a glimpse of stability and resilience in the face of global economic dynamics.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

EFCC, NUPENG Join forces against oil theft

Published

on

The National Union of Petroleum and Natural Gas Workers, (NUPENG)is seeking a collaboration with the Economic and Financial Crimes Commission, (EFCC)to fight the scourge of illegal oil bunkering in the country.

 

 

The President of the Union, William Akporeha made the request when he led members of his executive to the corporate headquarters of the EFCC in Abuja.

 

 

 

Akporeha, who commended the EFCC boss for repositioning the anti-graft agency on the path of professionalism and rule of law, stressed the need to sanitise the oil and gas industry.

 

 

Akporeha itemised some of the challenges involved in the movement of petroleum products across the country, pleading with the EFCC to always come to the aid of truck drivers experiencing difficulties in the course of their works.

 

 

 

In his response, Olukoyede said it is important that major players in the oil and gas sector collaborated with the EFCC to confront the National Economic sabotage in the sector.

 

 

 

He assured members of the union that the Commission would not arrest or detain any truck or driver who did not dabble into shady deals, noting that the process of profiling suspected oil thieves and evaluation of petroleum products involved are often long drawn.

 

 

Olukoyede promises to continue to work with every stakeholder in the oil and gas sector to ensure sanity in their operations.

Continue Reading

News

Kidnap kingpin, Boderi, feared killed as troops battle terrorists in Kaduna

Published

on

Troops of the Nigerian Army operating in 1 Division area of responsibility have neutralised some insurgents and recovered more firearms and ammunition in encounters with the criminals in the General area of Igabi, Giwa and Birnin Gwari Local Government Areas of Kaduna State.

 

A Statement by the Army spokeperson, Major General Onyema Nwachukwu said a notorious terrorist, Boderi, who orchestrated many high profile kidnappings including those of the Yauri school girls, Greenfield University students and the Nigerian Defence Academy attack may have been killed alongside another kingpin, Bodejo in the ambush.

 

The statement said while on a fighting patrol along Maganda-Dausayi – Mugaba axis, troops came under fire from insurgents who employed rustled herds of cattle as shields while they engaged the troops with direct fire. Two of the terrorists were killed in the process and arms as well as other items including 1 Techno phone, 3 Hilux vehicles and motorcycle keys, wraps of substance suspected to be marijuana, tramadol tablets and the sum of 13,200 Naira only, were recovered.

 

Also, during the encounter, some of the rustled livestock used as shield by the insurgents were caught in the crossfire. Troops are still on the trail of the fleeing insurgents and remain resolute on ridding the area of armed violence according to the army.

 

In a separate operation, conducted by troops of 1 Division of the Nigerian Army on Wednesday 22 February 2024, the troops successfully ambushed marauding insurgents along the Bada – Riyawa axis on the Kaduna – Birnin Gwari Road. In the encounter, troops killed 6 insurgents and recovered arms and 19 motorcycles which were destroyed.

Continue Reading

News

Senate confirms Cardoso Chairman, CBN’s Monetary Policy Committee, 11 others as members

Published

on

The Nigerian Senate has confirmed the appointment of Governor of the Central Bank of Nigeria, Olayemi Cardoso, as Chairman of the Monetary Policy Committee alongside eleven others.

 

 

The confirmation follows the adoption of a report of the committee on Banking and other Financial Institutions presented by its chairman Adetokunbo Abiru (APC Lagos East).

 

 

Abiru, in his presentation, said the nominees possess the academic qualifications, technical knowledge and professional experience to be members of the Monetary Policy Committee.

 

 

Abiru further stated that the Senate Committee on Banking did not receive any petition against the nominees.

 

 

He added that the nominees were all cleared by the Nigeria Police Force and the State Security Services and possessed the Code of Conduct Bureau acknowledgment slip.

 

 

 

Other lawmakers in their submission charged the newly confirmed Members of the MPC to come up with proper economic policies to salvage the current situation in the country.

 

 

Those confirmed are CBN Deputy Governors, Mohamed Sani Abdullahi , Bala Bello, Emem Usoro and Philip Ikeazor.

 

 

Others are the Director General, Security and Exchange Commission (SEC), Lamido Yuguda, Permanent Secretary Ministry of Finance, Jafiya Shehu, murtala Sabo Sagagi, Aloysius Uche, Aku Paulin, Mustapha Akinwumi and Bandele Amon.

Continue Reading

Trending