The Group Managing Director of Nigeria National Petroleum Corporation NNPC, Mele Kyari, says the corporation can no longer bear the over N120 billion monthly subsidy for Premium Motor Spirit (PMS).
This was disclosed, during the weekly media briefing organized by the Presidential Communication Team at the State House, Abuja, on Thursday.
According to the GMD, the actual cost of importation and handling charges amounts to N234 per litre, while the government is selling at N162 per litre.
He also stated that the NNPC absorbs the cost differential which is recorded in its financial books. Kyari, however, said that since NNPC could no longer bear the cost, sooner or later Nigerians would have to pay the actual cost for the commodity.
According to the GMD, the NNPC pays between N100 billion and N120 billion a month to keep the pump price at the current levels. He said that market forces must be allowed to determine the pump price of petrol in the country.
“Our current consumption (evacuation) from our depots is about 60million litres per day. We are selling at N162 a litre. Current market price is 234, actual market price today.
“The difference between the two, multiply by 60million, times thirty, will give you per month.
“This is a simple calculation you do. If you want exact figures from our book, I do not have it from this moment but it’s between N100billion and N120billion per month.
“We are putting the difference in the books of NNPC and we cannot continue to bear,’’ he said.
The Minister of State for Petroleum Resources, Timipre Sylva, who also spoke at the event, expressed the hope that the Petroleum Industry Bill (PIB) would be passed into law in April.
According to him, efforts are being made by the legislators to complete work on the bill and pass it, in line with the aspirations of critical stakeholders in the petroleum sector.
“The National Assembly has expressed the intent to pass the PIB into law by April 2021, every effort is being made to support the National Assembly to meet this target,” he said.
While enumerating the gains of the PIB to Nigerians, the minister said it would create additional infrastructure across petroleum value chain. He added that it would increase petroleum activities as well as enhance the livelihood of inhabitants of oil producing communities.
He said the bill would create additional infrastructure across the petroleum value chain especially from mid-stream and down-stream. He added that critical infrastructure would also be developed, while utilising the incremental revenue from increased petroleum activities.
Sylva said it would also provide additional infrastructure in the host communities arising from the host community trust. The minister further stated that more businesses would be set up to support increased activities within the petroleum value chain.
“Greater confidence would be engendered with certainty in the petroleum industry, which will lead to increased investments.
“Nigeria will occupy its place among commits of nations who have updated their petroleum industry laws in line with current realities.
“The bill will also enable a structured monetisation of fossil fuel resources before the whole world turns to renewables.
BoI Records N35.5bn Profit As Assets reaches N1.86trn
The Bank of Industry – BoI has said it recorded a profit after tax of N35.54 billion for the financial year ended Dec. 31, 2020, as its total assets hit N1.86 trillion.
The Managing director, BoI, Mr Olukayode Pitan, in a statement, yesterday, said that the performance demonstrates resilience and strength and also indicates synergy with the various interventions developed by both the federal government, the Central Bank of Nigeria (CBN) as well as other strategic partners, despite the significant challenges in the operating environment on account of the impact of the COVID-19 pandemic.
The group’s total assets grew from 1.04 trillion to 1.86 trillion between 2019 and 2020, driven by the successful debt syndication of €1 billion and $1 billion that were concluded in March and December 2020 respectively.
The group’s total equity increased by 14.8% from 293.08 in the previous year to 336.48 billion in 2020. Loans and advances grew marginally in 2020 by 1.3% to 749.84 bn from the 2019 position, a reflection of the adverse impact of the challenging operating environment on growth of new loans.
Profit before tax fell by 9.6% from 39.34 billion in 2019 to 35.54 billion, attributable to the economic slowdown in the year as well as the various interventions and support initiated by the bank for its customers were responsible for this result.
Pitan explained that the bank, in line with CBN directive, also reviewed and restructured all its managed projects under the CBN intervention programme with interest rate reduction from 9% to 5% per annum for a period of one year and moratorium extension of 3 months (with a possible extension up to 12 months).
Get On the Central Credit Management Platform – CBN to Banks
The Central Bank of Nigeria (CBN) has mandated all development finance institutions (DFIs), microfinance banks (MFBs), primary mortgage banks (PMBs) and finance companies (FCs) operating in the country to enrol on its credit risk management system (CRMS).
This was disclosed on Monday, in a circular, stating that the move was part of efforts to promote a safe and sound financial system in Nigeria.
The CRMS was introduced to improve credit risk management in commercial, merchant and non-interest banks as well as to prevent predatory borrowers from undermining the banking system.
“With the successful implementation of the CRMS in deposit money banks, it has become expedient to commence the enrollment of Other Financial Institutions (OFIs) on the CRMS Platform,” the CBN said in the circular that was signed by its director, financial policy and regulation department, Kevin Amugo.
Based on the memo, Dr Amugo said all DFls, MFBs, PMBs and FCs are required to report all credit facilities (principal and interest) to the CRMS and to update same on monthly basis. The bank said Bank Verification Numbers (BVN) and Tax Identification Numbers (TIN) are the only basis for regulatory renditions.
“To ensure full compliance, OFls are reminded to conclude the tagging of ALL live credit files for ALL individual and non-individual borrowers with BVN and TIN respectively by May 14, 2021,” Amugo said.
He further advised the concerned OFls to acquaint themselves with the regulatory guidelines for the operations of the redesigned CRMS for commercial, merchant and non-interest banks in Nigeria (February 2017) and the additional regulatory guidelines of September 2017.
“Kindly note that the CBN will monitor compliance with the requirements of this circular and non-compliance will attract appropriate sanctions,” he stated.
We’re not aware of currency printing – Finance ministry CBN
The Central Bank of Nigeria – CBN, has denied knowledge of claim that Nigeria printed billions of naira last month to cushion its financial trouble.
This came, after the Edo State Governor, Godwin Obaseki, alleged that Nigeria printed Sixty Billion Naira, N60bn to augment what the three tiers of government shared in March.
Obaseki reportedly stated on Thursday that Nigeria was in a huge financial trouble, alleging that the Federal Government printed N60bn in March as part of federal allocation last month.
The Edo governor also expressed worry over the country’s increased borrowing, saying it was wrong to continue borrowing without a tangible plan for debt repayment.
When contacted to comment on the development, the spokesperson of CBN, Osita Nwanisobi, told one of our correspondents that he was not aware of any N60bn that was printed.
“I am not aware of that (N60bn printed by government,” he told our correspondent on Saturday.
Similarly, when contacted to speak on the N60bn that was allegedly printed in March 2021, the Federal Ministry of Finance, Budget and National Planning said enquiries on the matter should be directed to the governor who made the allegation.
The media aide to the finance minister, Yunusa Abdullahi, said the Edo State governor or the CBN should be contacted.
“Please direct your questions to the governor who made the claim or the CBN,” he told our correspondent.
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