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Marketers Struggle To Raise N10bn For New Petrol Orders

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Many depot owners may soon shut down their facilities due to the inability to meet the new financial requirement of about N10bn by the Nigerian National Petroleum Company Limited as the cost of lifting fuel from its ships.

Many filling stations in Lagos State were not selling products to the public.

Sources at the depots told The PUNCH that depot owners were struggling to raise between N5b-N10bn to make new orders from the NNPCL.

“NNPCL has enough stock in-country and we still buy from them pending when arrangements would be made for us to start ordering our products ourselves. Now, we have to raise about N10bn, some N5bn depending on the volume of the order to be able to access new products,” the sources said.

He added that the amount was in addition to the payment already made before the increase in the price of petrol.

The National Controller, Operations of the Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, told The PUNCH that the affected stations did not have products due to the increase in the prices of products at the depots.

According to him, filling station owners are currently required to have between N22.5m and N23m to buy a truck of petrol, adding that one truck was sold for N8m before May 29.

A former Chairman of the Major Oil Marketers Association of Nigeria, Tunji Oyebanji, also told The PUNCH that 33, 000 metric tonnes of petrol at depots had shut up to as high as N21m.

The PUNCH learnt that many depot owners currently do not have stock as they had exhausted their stocks before President Bola Tinubu announced the removal of the petrol subsidy on May 29.

“Many depot owners would not be able to access funds because banks are skeptical of granting loans to the downstream sector,” a source added.

The pump price of petrol, which was between N179 and N200 per litre before subsidy removal, has skyrocketed to over N500 per litre after the President’s pronouncement.

Oyebanji told The PUNCH that many smaller firms in the downstream sector would be forced to shut down operations and may be bought over by bigger ones due to their inability to meet up with the huge financial obligations to secure new products from the NNPCL.

Sources at the NNPCL told The PUNCH that the company had been having challenges accessing forex from the Central Bank of Nigeria, since the removal of petrol subsidy.

“Since full deregulation started, CBN has stopped giving us forex. We also have to source for dollars just like every other player in the downstream sector. So, depending on the dollar rates and other market indices, we import and have to also factor other costs before we sell to marketers,” the sources noted.

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I Still Get Attacked By People – Yakubu Aiyegbeni Reveals

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In a recent interview, former Nigerian football star Yakubu Aiyegbeni has revealed that he continues to receive messages and criticisms from fans, years after his infamous miss during the 2010 FIFA World Cup match against South Korea.

The moment, etched into football history, occurred during Nigeria’s crucial group stage game against South Korea. With the score tied at 2-2 and a spot in the knockout stages on the line, Aiyegbeni found himself with what seemed like an open goal opportunity. However, to the shock of fans worldwide, he missed the chance, leaving Nigeria unable to secure the much-needed victory.

Despite this moment happening over a decade ago, Aiyegbeni expressed his surprise at the ongoing messages he receives about the miss. “I still get messages from people, different messages,” he stated in the interview. “It’s surprising how that moment still sticks with people, even after all these years.”

The striker, who had a successful career playing for clubs like Everton and Portsmouth in the English Premier League, admitted that the miss was a tough moment in his career. “Of course, it was a big moment, and I wish it had gone differently. But in football, you have highs and lows,” he remarked.

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Job Losses, Factory Closures Loom As Unsold Goods Pile Up — MAN

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AGAINST the backdrop of sustained pressure in the foreign exchange market and high cost of production, the Manufacturers Association of Nigeria, MAN has indicated that inventory of unsold goods is escalating to levels now threatening the existence of companies operating in the production sector of the economy with attendant job losses.

Findings show that as of the weekend the foreign exchange market had recorded over 254 per cent plunge in the value of the naira since flotation of the currency by the Central Bank of Nigeria (CBN) in June 2023.

Recall that the naira traded for N471 per dollar in the official I&E market on June 13, 2023 before the floatation of the currency, but exchanged for N1,665.50 to a dollar as at February 23, 2024 on the Nigerian Foreign Exchange Market (NAFEM), indicating a depreciation of more than 253.6 per cent over the eight-month period. The forex crisis is also stoking inflation, and coupled with high energy costs, purchasing power has continued plummet, stifling demand for goods.

Speaking on the impact of this development on the manufacturing sector, Director General, MAN, Segun Ajayi-Kadir, said: “There are reports that across the board, many warehouses and plants of many manufacturing firms are stockpiled with unsold goods manufactured last year. “The development is as a result of the devastating effects of the exchange rate crisis, inflation, fake and sub-standard goods, smuggling and other macro-economics challenges.”

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