Oil producers, under the aegis of the Independent Petroleum Producers Group, have warned against being forced to sell crude oil to the Dangote Refinery and other local ones in Nigeria.

The IPPG also called on the Nigerian National Petroleum Company Limited to re-direct its allocated crude oil volumes to Dangote Refinery and other local refineries to mitigate the current crude supply shortage being experienced by the local refiners that is impacting local product availability in many parts of Nigeria.

The Chairman of IPPG, Abdulrazak Isa, in a letter dated August 16, 2024, and addressed to the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, said the NNPC should utilise its allocated 445,000 barrels per day intervention crude oil volume to salvage the current situation as it did in many instances in the past.

Isa said some IPPG members already owned and or were supplying crude oil to local refineries but insisted that the NNPC was in a good position to mitigate the current crude supply shortfall faced by local refiners by leveraging its statutory crude allocation for meeting local domestic consumption.

“Historically, NNPC has always had an intervention crude oil volume (445kbopd) meant to satisfy the nation’s domestic consumption. This volume has always been used, under various swap mechanisms, to import refined products for domestic consumption.

“Since there is now domestic refining capacity to meet consumption, this dedicated volume should be reserved for all domestic refineries under a price hedge mechanism that can be provided by a suitable financial institution such as Afrexim Bank,’’ he stated.

Isa, however, maintained that, “Any national production above this allocated volume should be treated strictly as export volumes, adhering to the willing buyer, willing seller framework of the international market especially since the refiners will need to export excess products that surpass domestic demand thus boosting FX earnings.’’

The group expressed concerns over certain recent developments including the domestic crude oil refining requirements and crude oil production forecast for the second half of 2024, announced by NUPRC, as well as the request to all producing companies for their monthly quotations for crude oil supply to licensed refineries in Nigeria.

Specifically, IPPG said some of its members had received letters from the Dangote Refinery for crude supply nominations for October, and faulted the approach as bringing them under an obligation, saying it conflicted with the spirit of the willing-buyer, willing-seller framework prescribed by the Petroleum Industry Act 2021.

He asserted that the objective of enhancing the country’s petroleum value chain should be done within the confines of the law and existing obligations, expressing the confidence that an amicable solution could be reached by all stakeholders without jeopardising the existing commercial agreements, economic interests and business models of each segment of the oil and gas sector.

“While we fully support and commend the efforts of Nigerian entrepreneurs to enhance domestic refining capacity, it is important that no private sector business is unduly pressured into arrangements that may effectively subsidise another within the oil and gas value chain under any guise whatsoever.

“Under this willing-buyer, willing-seller framework, it is essential for refiners to negotiate and execute long-term crude oil Sales and Purchase Agreements with producers and their marketing agents. These agreements should follow industry best practices, with typical tenures ranging from one to five years,’’ the IPPG chairman said.

He added that some of them had also received allocation letters from NUPRC for the supply of specific volumes of crude oil to the domestic market for the second half of 2024, expressing concerns about its potential implications for the economy, especially the foreign exchange earnings through royalties and taxes.

The group noted, “We understand that the current allocation methodology appears to be based on a matrix of production forecasts by producers, issued technical allowable rates as well as crude oil requirements of domestic refineries, rather than actual local consumption needs. This raises significant concerns as it suggests that allocations are being determined based on the demands of refiners, which may exceed what is needed for domestic consumption.

“Such an approach could lead to inefficiencies and unfairly disadvantage producers. Therefore, it is crucial that refineries with excess capacity beyond local consumption do not exploit the Domestic Crude Oil Supply Obligations to the detriment of oil producers and other stakeholders, including the Government.’’

Isa called for transparency in how the allocations to oil producers were determined and requested NUPRC to provide clear details on the allocation criteria and methodology, while he sought an opportunity for IPPG to make input into the production forecast to ensure it accurately reflects operational realities.

The PUNCH recalls that Dangote and other local refineries have repeatedly accused international oil companies of not selling crude to them.

President Bola Tinubu later directed the NNPC to sell feedstock to the local refineries in naira

On Monday, the Federal Government announced that the deal would commence in October

The Publicity Secretary of the Crude Oil Refiners Association of Nigeria, Eche Idoko, told our correspondent last week that a meeting was held to that effect.

He disclosed that CORAN is asking for a crude supply contract with refineries that are operating and a conditional crude supply contract with those who are currently at ATC (Authority To Construct) and construction stages to enable the close out on their final investment decisions and bring their refineries to full operation.

The CORAN spokesperson has earlier stated that the supply of crude to local refineries in naira would bring down the cost of petrol and strengthen the naira against the dollar.

Recently, the management of Dangote Group insisted that the IOCs were still frustrating crude supply to the 650,000-capacity refinery.

In a statement, the group alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents, saying the local price of crude will continue to increase because the trading arms offer cargoes at $2 to $4 per barrel, above NUPRC official price.

The group also alleged that the foreign oil producers seem to be prioritising Asian countries in selling the crude they produce in Nigeria.

The PUNCH also reported two weeks ago that the Dangote refinery engaged in an exchange of words with the NUPRC over the alleged supply of 29 million barrels of crude oil to the refinery.

The Dangote Group had accused the NUPRC of failing to effectively enforce the Domestic Crude Supply Obligations regulations, saying the refinery had yet to get enough crude locally.

Reacting, the NUPRC debunked the claim, stating that it facilitated the supply of over 29 million barrels of crude oil to Dangote from January to June 2024.

The NUPRC argued that it had facilitated the domestic supply of crude oil to Dangote refinery and other refineries using the monthly production curtailment platform.

But in a swift response, the Dangote Group also denied receiving 29 million barrels of crude from any source.

Spokesperson for the Dangote Group, Anthony Chiejina, said, “We received NUPRC’s statement that they have facilitated the allocation of 29 million barrels of crude oil to the Dangote Petroleum Refinery and Petrochemicals, we would like to thank them for this allocation but at the same time, we wish to let them know that we are yet to receive these cargoes.

“Aside from the term supply we bilaterally negotiated with NNPCL, so far NUPRC has only facilitated the purchase of one crude cargo from a domestic producer. The rest of the cargoes we have processed were purchased from international traders.”

Chiejina added that all the refinery was asking for was for refineries in Nigeria to buy crude directly from the companies that produce it in Nigeria rather than from international middlemen

[Punch]

TikTok trends often capture the humor in everyday life, and the “Very Demure, Very Mindful” trend is a perfect example created by a beauty influencer, known as Jools LeBron.

LeBron, in a viral audio clip, humorously contrasted the idea of being “demure” and “mindful”.

In the forty-second TikTok video she shared, she flaunted a polished makeup look and described herself as “very demure, very mindful.”

To Jools, being “demure” means being mindful, modest, and considerate of both oneself and others, presenting herself in a refined and thoughtful way.

The trend quickly caught on as users showcased their clumsy or chaotic moments while the refined voiceover played in the background.

The irony and self-deprecating humor of the trend resonate with many, offering a refreshing break from the often curated perfection on social media.

This trend highlights TikTok’s unique ability to turn simple ideas into viral sensations, encouraging everyone to embrace their imperfections and laugh at life’s less graceful moments.

Who is Jools LeBron, creator of ‘very demure, very mindful trend?

Lebron is a prominent social media influencer renowned for her makeup and beauty tutorials, as well as her popular ‘Get Ready With Me’ videos.

Since 2021, she has also gained attention for her extensive collection of Bratz dolls and her passion for creating wigs.

According to Variety, Lebron has shared that the success of her ‘very demure very mindful’ videos has allowed her to travel internationally for event hosting and to support her transition financially. Lebron identifies as a transgender woman.

Vanguard News

Waiziri Adio, former Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), has asked the Nigerian National Petroleum Corporation Limited (NNPCL) to be transparent in its dealing.

He said this while reacting to the national oil company’s response to reports that President Bola Tinubu had approved payment for subsidy.

Tinubu had directed NNPC to utilise the 2023 final dividends due the federation to pay for subsidy.

But denying the report on subsidy, Umar Ajiya, Chief Financial Officer (CFO) of the NNPCL, said the oil firm is only bearing what he called the “shortfall” and not subsidy.

In a series of tweets on Tuesday, Adio, who is the Executive Director of Agora Policy think-tanka, wondered why NNPC was playing with words.

“NNPCL’s waffling on petrol subsidy is so disingenuous. Oh, it is not subsidy, but a shortfall/PMS fx differential. Same difference. No subsidy was paid to any marketer. Has anyone said NNPCL paid subsidy to marketers and is it even within their remit to pay subsidy to marketers?”

“Former PPPRA was charged with approving subsidy for marketers and NNPC. Ministry of Finance was paying marketers after verification of claims. Only difference with NNPC was that it deducted its subsidy and other claims from money for crude given to it for domestic use (DCA).

“It is not NNPCL’s responsibility, by practice or by law, to pay subsidy to marketers. That answer to a question not asked is at best a hollow attempt at deflection.

“Saying there is no subsidy because selling PMS below landing cost is a transaction between the company and the Federation (repaid or netted off) is a lame play with words that take everyone for a moron. NNPCL can use this free advice: when in a hole, stop digging,” he tweeted.

[DailyTrust]

Nations like Sudan, Zimbabwe, and Nigeria are among the top 5 countries in Africa that have lost the most people to emigration

Across Africa, millions of people are leaving their home countries due to a mix of factors such as economic hardship, political instability, conflict, and a lack of opportunities. The continent has seen a significant outflow of its population, with some countries experiencing particularly high rates of emigration.

Nations like Sudan, Zimbabwe, and Nigeria are among the top 5 African countries that have lost the most people to emigration, per ranking via UN’s World Population Prospects 2024. 

5 countries in Africa with most emigration

1. Sudan

Sudan ranks first among African nations experiencing the highest levels of emigration, with approximately 1.35 million citizens having left the country. This places Sudan in a growing crisis as political instability, economic hardship, and conflict continue to drive people out in search of better living conditions abroad.

Recent statistics highlight the ongoing trend of migration, with many Sudanese seeking refuge in neighboring countries, Europe, and beyond. The loss of this large portion of its population not only strains families but also contributes to a significant brain drain, as skilled workers leave the country. Sudan’s position in this ranking underscores the broader migration challenges facing the African continent.

2. Uganda

Uganda ranks second in African countries experiencing significant emigration, with over 126,000 Ugandans leaving the country in recent years. This wave of migration is attributed to various factors, including economic challenges, political instability, and limited opportunities for growth within the nation.

Many Ugandans have sought refuge and better prospects in countries across Europe, the Middle East, and North America. The continued emigration presents concerns over the loss of talent and labor, which has led to calls for more robust policies aimed at retaining skilled professionals and fostering better economic conditions at home.

3. Zimbabwe

Zimbabwe ranks third among African countries most affected by emigration, with an estimated 97,000 citizens having left the country in recent years. The primary drivers behind this exodus are ongoing economic difficulties, high unemployment rates, and political instability.

Many Zimbabweans are migrating to neighbouring countries like South Africa, as well as further afield to Europe, the UK, and North America, in search of better opportunities. The large-scale emigration is contributing to a significant brain drain, impacting critical sectors such as healthcare and education.

4. Nigeria

Nigeria ranks fourth among African countries experiencing a high rate of emigration, with an estimated 58,000 Nigerians leaving the country in recent years. The trend is driven by a combination of economic challenges, security concerns, and a desire for better educational and employment opportunities abroad.

A significant portion of Nigerian emigrants are heading to Europe, North America, and the Middle East, seeking stable environments and improved living conditions. The outflow has raised concerns over a “brain drain,” particularly in sectors like healthcare and technology, where skilled professionals are increasingly leaving the country.

5. Mali

Mali ranks fifth among African countries experiencing the most significant levels of emigration, with approximately 40,000 Malians having left the country in recent years. This migration is largely driven by persistent insecurity, economic instability, and limited opportunities for advancement.

A considerable number of Malians have migrated to Europe and neighboring West African countries, often risking dangerous journeys in search of better livelihoods. The outflow of people has raised concerns over the loss of talent and labor, particularly among the youth, who are seeking opportunities that are scarce at home.

Vanguard News