Category:

Nigeria Cuts Benchmark Rate as African Peers Tighten Policy

Nigeria’s central bank reduced its benchmark interest rate for the first time in six years, diverging from its counterparts in most of Africa that have tightened monetary policy in the face of weakening currencies. The key rate was cut to 11 percent from a record high of 13 percent, Governor Godwin Emefiele told reporters on Tuesday in Abuja, the capital. None of the 20 economists surveyed by Bloomberg predicted such a large cut, and most expected no change at all. Monetary policy in Nigeria is becoming harder to predict as the central bank turns to unconventional tools to protect its currency and boost economic growth. Emefiele has imposed foreign-exchange restrictions in Nigeria, Africa’s biggest crude producer, to keep the naira stable amid a plunge in oil revenue. “What we’ve decided to do at this meeting is that we must stimulate growth,” Emefiele told reporters after the decision. “We don’t […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: Fuel Scarcity Grounds Businesses in Kaduna

Business activities have drastically slowed down at the popular Gumi market and other business places in Kaduna over fuel scarcity. Most business owners are witnessing low patronage due to the scarcity as fuel is now sold for between 170 and 200 naira per litre and only at the black market. No filling station was selling fuel at the popular Ahmadu Bello way and Constitution road. A shop owner, who gave his name as Alhaji Umar, said, "In just five days, prices of foodstuff have tripled in Kaduna." "Three times I visited the market this week, price of food stuff has risen drastically. "Example, a tin of milk that I sell here for 90 naira is now N120 all in just five days." A resident, who also is a fuel attendant at the Shema filling station, Tudun Wada, told PREMIUM TIMES that the station had been out of fuel since […]

Posted On : Published By : Tom Whipple
Category:

Nigeria: Minister Orders DPR to Distribute Hoarded Fuel Free to Nigerians

The Minister of State for Petroleum Resources, Ibe Kachikwu, on Tuesday directed the Department of Petroleum Resources to seal off fuel stations found to be hoarding petroleum products and dispense the petroleum free to the public. The Minister gave the directive after a working visit to some retail outlets in Abuja. "I have instructed DPR that if they discover any fuel station involved in hoarding, they should sell the products for free to customers around there," he said. "It is not just sealing the station that is the answer. It is penalizing them when they do these things. I hope the message goes out loud and clear." Meanwhile, the Minister has scheduled a session on Wednesday with key operators in the downstream sector of the petroleum industry, namely the Major Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association, as well as Jetty and Tank Farm Owners Associations. […]

Posted On : Published By : Tom Whipple
Category:

Nigeria hit by fresh round of fuel shortages due to payment dispute

* Outstanding subsidy claims still to be approved by Assembly * Fuel marketers being denied credit facilities by banks * Substantial backlog of gasoline offshore WAF Nigeria has been hit by a fresh round of fuel shortages after the country’s main fuel marketers were denied credit facilities by banks, and as a result have had to delay placing orders for clean cargoes of gasoline under the government’s fourth-quarter import program, marketers said Wednesday. Sources said these shortages have risen as the payment of Naira 413 billion ($2.1 billion) to domestic fuel marketers in outstanding subsidy claims for gasoline imports have still not been approved by the central bank. Article continues below… Exchanging value in the oil markets We would like to offer you a free one week subscription to one of the following reports: The government pays a subsidy on gasoline imports, which is the difference between the landing […]

Posted On : Published By : Tom Whipple