20 Nov

Daily Watch – Marketers and FG agree to end scarcity, CBN to tighten dollar supply

  • Petroleum product marketers have assured the Federal Government that they will support measures put in place by the Nigerian National Petroleum Corporation (NNPC) to end the scarcity of petrol currently plaguing the country. The resolution between the government and the marketers was reached at a meeting convened by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, to address the fuel supply situation. A statement by the NNPC noted that the leadership of the Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association, and Jetty and Petroleum Tank Farm Owners of Nigeria pledged to end the fuel queues as soon as possible.
  • According to Bloomberg, the CBN may be looking to cut dollar supplies to the market as its reserves run short. Deputy Governor Sarah Alade told bank treasurers at a meeting on November 13 that they should prepare for exchange-rate policies to remain in place for longer and that there are no plans to devalue the naira or to loosen currency-trading restrictions. The report further quotes a source as stating that the central bank will only sell as much dollars as it receives from oil exports, which amount to about $1 billion a month.
  • Meanwhile, the CBN has suspended disbursements of N213 billion in power intervention funds to electricity generation and distribution firms. The Director General, Bureau of Public Enterprises (BPE), Benjamin Dikki, maintained that the embargo on the funds would only be lifted when the crises surrounding tariff adjustment and policy inconsistency are resolved. Dikki noted that the CBN had assured to continue with the scheme only if the government could guarantee a cost reflective tariff, which would in turn enable the operators pay back in due course.
  • A former Governor of Sokoto State, Attahiru Bafarawa, has escaped arrest after a “botched attempt to arrest him” lasted for three hours at his Usuma Street, Abuja residence. As early as 6 am on Thursday, members of the EFCC, supported by armed ani-riot policemen, lined up along the street and surrounded his house.