Crude oil sale in naira, Emirates flight resumption… business stories to track this week

Here are the seven top business stories you need to track this week — September 30 to October 4.

SALE OF CRUDE OIL TO REFINERIES TO COMMENCE OCTOBER 1

The federal government said the sale of crude oil to the Dangote Petroleum Refinery and other refineries in naira will commence on October 1.

The ministry of finance had said the decision was made at a meeting with the technical implementation committee led by Wale Edun, minister of finance.

On August 15, the federal government inaugurated a technical subcommittee to ensure the smooth implementation of President Bola Tinubu’s directive to sell crude to local refineries in naira.

NIGERIA, UAE AGREE ON RECIPROCAL RIGHTS AS EMIRATES RESUMES FLIGHT OCTOBER 1

Nigeria and the United Arab Emirates (UAE) have agreed on reciprocal rights ahead of the resumption of Emirates Airlines’ flight operations to Nigeria.

Festus Keyamo, minister of aviation and aerospace development, led a Nigerian delegation to the UAE to finalise the negotiations.

The meeting, which took place on September 27, also set the foundation for a new bilateral air service agreement (BASA) between both nations to ensure stronger and mutually beneficial aviation ties.

The minister, accompanied by his technical team, engaged in discussions with UAE aviation authorities, to ensure smooth reintroduction of Emirates Airlines into the Nigerian airspace on October 1.

CBN RAISES INTEREST RATE TO 27.25%

The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) raised the monetary policy rate (MPR), which benchmarks interest rates, from 26.75 percent to 27.25 percent.

Olayemi Cardoso, CBN’s governor, announced the 50 basis points increase at a press conference on Tuesday after the committee’s 297th meeting in Abuja.

Cardoso said the increase was to further tame inflation.

‘IT’S TIME FOR FG TO REMOVE PETROL SUBSIDY’

Aliko Dangote, the founder of Dangote Petroleum Refinery, says this is the right time for the federal government to stop petrol subsidy.

Dangote spoke during an interview with Bloomberg TV on Monday.

“I think it is the right time to (take away subsidy) because all countries have gotten rid of subsidy,” he said.

He said subsidy is a sensitive issue, adding that once a country subsidises the product, people would increase the price.

Dangote said it would lead to the government “paying what they are not supposed to be paying”.

The businessman also said the petrol sold locally by his refinery will be tracked to ensure the consumption rate is accounted for.

FEC APPROVES BILL SEEKING PERSONAL TAX RELIEF FOR WORKERS

The federal executive council (FEC) has approved the economic stabilisation bills seeking amendment of tax policies.

The approval was granted during the FEC meeting presided over by President Bola Tinubu on September 23.

According to Onanuga, the bills seek to amend the income tax laws, promote the export of goods and services, reform the exchange rate regime and unlock foreign exchange liquidity.

He said one of the bills offers tax relief to companies that generate incremental employment while another offers personal income relief to “people in private and public employment from N200,000 to N400,000”.

PETROL PRICES WILL DROP IF DANGOTE REFINERY SELLS DIRECTLY TO US

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says petrol prices will drop once the oil marketers start lifting the products directly from Dangote Petroleum Refinery.

Chinedu Ukadike, spokesperson for IPMAN, spoke on Channels Television on September 24.

Ukadike said marketers are now in talks with the Dangote refinery for the direct lifting of premium motor spirit (PMS), also known as petrol.

However, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) says oil marketers can not buy petrol directly from the Dangote Petroleum Refinery.

Festus Osifo, president of the association, during a press conference in Lagos on September 24, said one of the reasons is that petrol prices will rise beyond the current level, as oil marketers will sell without subsidy.

CONTRACTOR TO PROVIDE UPDATE ON PH REFINERY ‘BEFORE OCTOBER 2’

Maire Tecnimont SpA, the contractor in charge of the Port Harcourt refinery rehabilitation, says it will provide information on the completion date on or before October 2.

The Italian company spoke through Olajide Oyewole LLP, a law firm, in a letter to Femi Falana, a human rights lawyer.

Falana had written to the company, requesting information on the completion date of the rehabilitation.

Responding, Olajide Oyewole LLP said its client has instructed the law firm “to let you know that they have received your letters dated 17 and 24 September 2024 requesting for information on the contract between our client and Nigerian National Petroleum Company Ltd”.