• Wednesday, May 29, 2024
businessday logo


Five things to know to start your Monday


NNPCL swaps N2.6tn crude for refined products in 2021 amid refinery woes

The Nigerian National Petroleum Company Limited (NNPCL) conducted a significant exchange in 2021, swapping crude oil valued at N2.6tn for refined petroleum products, according to data from the Nigeria Extractive Industries Transparency Initiative (NEITI).

Interestingly, NNPCL did not supply any crude oil to Nigeria’s refineries during this period, possibly due to their non-operational status.

The refineries in Port Harcourt, Kaduna, and Warri have long been dormant, although rehabilitation efforts are underway.

NEITI’s report highlighted that NNPCL carried out these exchanges under the Direct Sale Direct Purchase (DSDP) program, resulting in crude oil sales receipts of N2.23tn for 2021.

The report also noted that no crude was delivered to local refineries in 2021, primarily due to their inactivity.

Concrete road plan threatens cement price surge to N9,000 says cement producers

The Cement Producers Association of Nigeria has cautioned that the government’s plan to implement concrete roads could raise cement prices from the current N5,000 per bag to N9,000 per bag.

They urged the government to address the persistent cement price hikes by promoting increased participation in the cement industry, emphasising the need for Nigerians to purchase cement at no more than N5,600 per bag.

While supporting the concept of cement-made roads, they highlighted potential consequences without proper supply-side management.

The association suggested a road design allowing both cement technology and asphalt pavement and a gradual transition to avoid price spikes and infrastructure challenges.

40 mllion children in extreme poverty, most in middle-income nations says World Bank

The World Bank revealed that 40 million children are currently living in extreme poverty, primarily in middle-income nations.

In total, 179.4 million children face poverty, with 52.2 million in India and 40 million in Nigeria living in extremely poor households.

This data comes from the “Global Trends in Child Monetary Poverty According to International Poverty Lines” report, jointly published by the World Bank and UNICEF.

Notably, extreme child poverty is more widespread in conflict-prone areas, affecting 38.6 percent of children in such regions.

While there was a decrease in child poverty from 2013 to 2019, population growth in Sub-Saharan Africa slowed the progress.

SERAP calls for probe into missing $15bn oil revenues

The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to investigate alleged misappropriation of over $15 billion in oil revenues and N200 billion designated for refinery repairs from 2020 to 2021.

These claims were disclosed in the 2021 report by the Nigeria Extractive Industries Transparency Initiative (NEITI).

The report alleges that government agencies, including the Nigerian Petroleum Development Company Limited and the Nigerian Upstream Petroleum Regulatory Commission, failed to remit $13.591 million and $8.251 billion to the public treasury.

SERAP insists on identifying and prosecuting those involved while recovering ill-gotten gains, emphasising the importance of justice, accountability, and economic stability.

Oil prices rises on Russian export ban

Oil prices rallied on Monday, driven by concerns of tighter supply as Moscow imposed a temporary ban on fuel exports.

Brent crude futures increased by 0.5 percent to $93.75 a barrel, rebounding from a minor dip on Friday. Meanwhile, U.S. West Texas Intermediate crude futures continued their upward trend, reaching $90.53 per barrel, up 0.6 percent.

This rise reflects the market’s response to Russia’s export restrictions in an already constrained supply landscape, although investors remain cautious about the potential impact of further interest rate hikes on oil demand, as indicated by the Federal Reserve’s hawkish stance.