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Huge Quantities Of Fuel Smuggled Out Of Nigeria – Customs

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Huge Quantities Of Fuel Smuggled Out Of Nigeria - Customs

Huge quantities of Premium Motor Spirit, popularly known as petrol, are being smuggled out of Nigeria after the product has been subsidised by the Federal Government, the Nigeria Customs Service has said.

According to the border security outfit, the petroleum product is being diverted to as far as Mali.

The Controller-General of the NCS, Col. Hameed Ali, disclosed that the Department of Petroleum Resources had approved the establishment of filling stations along the land borders, while the Nigerian National Petroleum Corporation keeps supplying the commodity to the stations against Customs’ advice.

Ali noted that the situation was responsible for the increasing volume of fuel being released by the NNPC as daily consumption.

READ ALSO: NNPC Records N43.57b Trading Surplus For April 2021

The customs boss stated this in Abuja on Monday at the public hearing organised by the House of Representatives’ Committee on Finance on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper.

The Chairman of the committee, James Faleke, had earlier asked the Minister of Finance, Budget and National Planning, Zainab Ahmed, why the Federal Government has projected crude oil per barrel at $57 for the 2022 budget when the global market prices are now about $70.

Ahmed, however, said the government was using the differentials to pay subsidy on petrol, which is referred to as under-recovery.

The minister had said, “The crude oil price that we propose in the budget is a result of consultations with the NNPC and a review of the research that is done by EIA as well as the World Bank and other institutions. And we normally just take a middle road. We don’t look at the price today; we look at the projections for the price, for 2022, 2023 and 2024.

“Also, fortunately for us, right now, the increase in the price of crude oil should have resulted in more revenue to the federation. But because we are suffering a significant level of under-recovery as a result of fuel subsidies, the impact is not seen.”

READ ALSO: CBN Disburses N791b To Farmers In 36 States

But Ali lamented that apart from spending on subsidies, the subsidised fuel was being smuggled to other West African countries where the pump prices were higher.

The customs boss said: “The issue of smuggling of fuel from Nigeria to the neighbouring countries is simply because of price differential. The prices outside our shores and borders are higher, and that is what attracts people to move this product outside. And this product is not only limited to Benin, Niger or Chad, it goes up to Mali,” he added.

 

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BREAKING: CBN Speaks On Devaluation Of Naira To N630/$1

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BREAKING: Old Naira Notes Deadline Stays - Emefiele
CBN Governor Godwin Emefiele

The Central Bank of Nigeria ( CBN) on Thursday denied devaluing the naira .

This clarification came from the
Acting Director, Corporate Communication, Dr. Isa AbdulMumin, in a statement titled, “CBN Has Not Devalued the Naira”.

He said: “The attention of the Central Bank of Nigeria (CBN) has been drawn to a news report… titled “CBN Devalues Naira To 630/31”.

“We wish to state categorically that this news report, which in the imagination of the newspaper is exclusive, is replete with outright FALSEHOODS and destabilizing innuendos, reflecting potentially willful ignorance of the said medium as to the workings of the Nigerian Foreign Exchange Market.

“For the avoidance of doubt, the exchange rate at the Investors’ & Exporters’ (I&E) window traded this moming (June 1, 2023) at N465/US$1 and has been stable around this rate for a while.”

The bank advised the public to ignore the news report in its entirety, saying it’s speculative and calculated at causing panic in the market.

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BREAKING: After Subsidy Removal, NNPC Increases Petrol Price To Over N500

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Senator Withdraws Support For Tinubu Over Choice Of Muslim Running Mate
President Tinubu

The Nigerian National Petroleum Company Limited (NNPC) on Wednesday adjusted the pump price of petrol by over 100% to between N488 and N557.

The development followed the announcement by President Bola Tinubu during his inaugural address on Monday that fuel subsidy was ‘gone’.

However, it was learnt that the president will meet with organised labour from 2pm Thursday (today) afternoon.

The prices have now been adjusted upward from between N189 to N194 to N537 per litre in Abuja and other North-central States.

For Lagos and other South-west states, a litre of fuel now sells for between N488 and N500 per litre.

In the South-east, the price will range from N515 to N520, while in the North-west, the price of the product was raised to N540. In the North-east, it moved from N199 to N557 per litre.

For the South-south, it is now from N511 to N525 per litre. Nigeria’s subsidy budget of N3.6 trillion for this year, expires in June, 2023.

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BREAKING: FCMB Founder Olasubomi Balogun Dies

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Olasubomi Balogun

Theo Founderf First City Monument Bank (FCMB), Otunba Michael Olasubomi Balogun, is dead.

According to reports, family sources revealed that Balogun died in London Friday morning at the age of 89.

He was Otunba Tunwase of Ijebuland before his death.

As a ranking Ijebu Chief, his death will, however, only be officially announced in line with tradition.

 

 

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