Business

List of banks excluded from CBN’s retail Dutch Auction

Published

1 month ago

August 11, 2024

Ekwutos Blog

CBN

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The Central Bank of Nigeria (CBN) has announced the successful conclusion of a Retail Dutch Auction System, where it sold a total of $876.26m to 26 qualified banks that participated in the auction.

The CBN had on Tuesday, August 6, 2024, held a Retail Dutch Auction System, during which $876.26m was sold to participating banks with the primary objectives of increasing FX liquidity, easing demand pressure, and promoting price discovery in the market, all of which are in line with the apex bank’s core goals

The CBN made the disclosure in a statement posted on its website signed by Omolara Omofunde Duke, the director, financial markets department.

Commenting on the auction process, the director disclosed that a total of $1.18bn in bids were submitted by 32 authorized dealer banks. Of the total bids, $313.69m from six banks were deemed to be ineligible, leaving a net total of $876.26m to be allotted among the 26 remaining banks who met the qualifying criteria

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The CBN stated, “A total bid valued at US$1.18bn was received from 32 Authorized Dealers Banks, of which, bids valued at US$876.26m from 26 banks qualified, while bids valued at US$313.69m from six banks were disqualified.”

In response to the mounting unmet demand for foreign exchange among end users, the apex bank announced last week its decision to implement a Retail Dutch Auction System. This move is seen as a timely intervention that aims to alleviate the increasing pressure on the FX market, ultimately stabilising the naira’s exchange rate.

In the past months, the naira has traded within the N1,450 and N1,600 range. However, despite the currency’s recent volatility, the Central Bank of Nigeria set a cut-off rate of N1495/$ for the Retail Dutch Auction, providing a brief respite from the currency’s fluctuating exchange rate and creating a much-needed stability in the market.

Business

DANGOTE REFINERY WILL NOT SELL FUEL BELOW MARKET PRICE —TINUBU PRESIDENCY

Published

6 days ago

September 6, 2024

Ekwutos Blog

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The Nigerian Presidency has said that Dangote Refinery will not sell its product including Premium Motor Spirit (PMS) below the official market price.

On Tuesday, Aliko Dangote, the Chairman of the Dangote Group, formally declared the commencement of petroleum production at his highly anticipated refinery. This significant milestone marks a major breakthrough in Nigeria’s energy landscape.

During the announcement, Mr. Dangote revealed that the pricing strategy for the refined petroleum products would be determined through collaborative efforts between the Federal Executive Council (FEC) and the Nigerian National Petroleum Company (NNPC) Limited.

Business

FG to allow Dangote Refinery fix petrol price – Report

Published

7 days ago

September 5, 2024

Ekwutos Blog

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The Federal Government is reportedly set to allow Aliko Dangote’s refinery to fix petrol prices.

This is according to a report from Bloomberg.

Recall that the Dangote Refinery on Tuesday began the production of long-awaited petrol, a development that is a major milestone in Nigeria’s energy sector.

Since then, many Nigerians have been keen to find out the price at which the businessman will sell his petrol.

However, Aliko Dangote has stated that it is not his role to set petrol prices; he will leave that responsibility to the Federal Government.

His primary focus is to ensure that petrol is available.

But Bloomberg reports that the Dangote Refinery, located in Ibeju Lekki, Lagos, with the approval of the Nigerian Government, will begin setting prices for petroleum marketers starting next month (October).

This marks a significant departure from the current practice where the state-owned NNPC Ltd. has been the sole price setter.

Previously, NNPC sold gasoline below market value to mitigate price increases, but it recently raised the price to align more closely with market rates.

Government officials have indicated that Dangote’s refinery will determine its own pricing strategy, and oversight will be limited to ensuring product quality and preventing exploitation.

“Dangote Refinery will certainly not sell their products below market value as a business that was set up to make profit,” a government spokesman Temitope Ajayi told Bloomberg.

“I don’t see how NNPC or the federal government will control price for a private business,” he said.

“Going forward, petrol marketers will be allowed to buy products directly from the Dangote Refinery.” another source said.

The shift comes amid widespread gasoline shortages and substantial debts incurred by NNPC, which has disrupted supply.

The Dangote Refinery is projected to produce around 330,000 barrels of gasoline daily, surpassing 1% of global demand, potentially stabilizing the local market and reducing Nigeria’s dependency on imports.

Business

Federal Government Will Determine Price Of Our Petrol- Dangote

Published

1 week ago

September 4, 2024

Ekwutos Blog

Aliko Dangote

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Federal Government Will Determine Price Of Our Petrol.

“On PMS price, it is an arrangement that is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.

As soon as it is finalized, which is what he is pushing once he finishes with FEC meeting, it can be today or Tomorrow we are ready to roll out in the market”

ALIKO DANGOTE