The Dangote refinery in Nigeria has marked a significant milestone by exporting its first jet fuel cargo to Europe.

This milestone is pivotal in the global energy market, underscoring the rapid expansion of the facility’s operations.

On Friday, S&P Global Commodity Insights reported that BP is moving 45,000 metric tons of jet fuel from the Dangote refinery to Rotterdam via the Doric Breeze.

This export marks the refinery’s debut in the European market, following a substantial 120,000 metric ton tender.

According to PUNCH Online, “BP cargo” denotes the jet fuel shipment acquired and currently being transported by British Petroleum (BP).

This groundbreaking development involves BP leading the transportation of 45,000 metric tons of jet fuel to Rotterdam, signifying a pivotal moment for the new 650,000 b/d complex and potentially reshaping global energy dynamics.

The shipment, loaded from Lekki on May 27, highlights the refinery’s swift increase in production and its compliance with European jet A1 standards, potentially altering West African trade flows.

“Two sources confirmed that the Doric Breeze ship marked the inaugural BP cargo, loading 45,000 mt of supply from Lekki May 27, according to S&P Global Commodities at Sea data.

“Cepsa also secured part of the tender, with the Spanish refiner expected to deliver supply to the continent imminently, traders said.

“Neither of the companies were available for comments on purchases of jet fuel from the refinery, while a representative from Dangote previously confirmed to S&P Global Commodity Insights that the refinery has complied with European jet A1 standards since the product first started being shipped within Africa in April.

“The inaugural European shipment demonstrates the growing reach of products from the 650,000 b/d Dangote refinery as it has rapidly ramped up operations and aims to shake up established West African trade flows.

“Dangote has exported six jet fuel/kerosene cargoes starting April 8, with all material delivered to Senegal, Togo or Ghana, according to CAS data. BP is also expected to continue supplying jet fuel to the West African market with product from the refinery,” sources said.

European traders cautioned that the influx of fresh jet fuel flows from Nigeria could worsen existing market weakness due to oversupply.

The Central Bank of Nigeria on Friday, announced that international oil companies can sell their retained 50 per cent of repatriated export proceeds in the Nigerian Foreign Exchange Market.

This decision comes after the CBN placed limits on the transfer of crude export proceeds by IOCs to offshore parent company accounts on February 14.

The apex bank noted that these transfers affected domestic foreign exchange market liquidity and sought to reverse the trend through ongoing reforms.

According to a circular signed by the Director of Trade and Exchange Department, W.J. Kanya, banks can only transfer 50 per cent of repatriated export proceeds to IOCs’ offshore parent company accounts, with the remaining 50 per cent repatriated after 90 days.

However, on May 6, the CBN reviewed this directive, allowing IOCs to repatriate 50 per cent of their export proceeds immediately or as needed, while the remaining 50 per cent can be used to settle financial obligations in Nigeria.

This move aims to balance the needs of IOCs with the need to maintain liquidity in the domestic foreign exchange market.


By allowing IOCs to sell their retained proceeds in the Nigerian market, the CBN seeks to boost liquidity and promote economic growth.


However, in a new development, CBN said following the release of the circular “dated May 06, 2024, referenced TED/FEM/PUB/FPC/001/008, in respect of Cash Pooling by banks on behalf of IOCs, we received several requests for clarification on item No 3 ( on forex sales at the Nigeria Foreign Exchange Market”.

Providing more clarifications, the apex bank said the “50% balance of the repatriated export proceeds may be sold to Authorized Dealers or eligible users of foreign exchange with eligible transactions”.

“If the IOC does not have any financial obligation to settle with the funds during or after the 90-day retention period, the 50% balance may also be sold wholly as stated in (1) above,” CBN said.

Some of the financial obligations mentioned by the CBN are the balance for cash calls, domestic loan principal and interest payments, transaction taxes (including the Nigerian Content Development Levy) and education tax

1. I have instructions of the President of the All-Africa Students’ Union – HE Osisiogu Osikenyi Enyinnaya to convey the Union’s condemnation of recent spree of attacks on Military Personnel in Nigeria especially the one in his hometown – Aba.

2. To this end, we have learnt with great chagrin, yet another dastardly, unwarranted, outrageous, cruel, and totally condemnable attack on military personnel at a military checkpoint at Obikabia Junction in the Ogbor Hill area of Aba, Abia State – Nigeria, on Thursday, May 30, 2024 which left five soldiers who were carrying out their lawful duties dead. Sadly, similar situations have been witnessed in recent times in Delta State, Anambra State, FCT, and other parts of Nigeria.

3. The President – HE Osisiogu Osikenyi Enyinnaya at this point wishes to join prominent Africans in condoling the Nigerian Military and the families of soldiers, who lost their lives in the unfortunate incident; and condemn the clandestine act of attack on Soldiers under any guise; while aligning with Statements of the Governor of Abia State HE Alex Otti; Chairman of South East Governors Forum HE Hope Uzodinma; Deputy Speaker of the Federal House of Representatives Rt Hon Benjamin Kalu; former Minority Leader of the Senate – Senator Enyinnaya Abaribe and others.

4. In addition to being the commercial nerve Centre of Nigeria; Aba City also plays host to major Institutions of Learning such as National Institute for Nigerian Languages (NINLAN), Abia State Polytechnic, Havard Wilson College of Education, Nigerian British University among other Vocational Skills Acquisition Centres located at nooks and crannies of the City.

5. Hence we wish to appeal to President Bola Ahmed Tinubu; Chief of Defense Staff - General Christopher Gwabin Musa OFR; Chief of Army Staff, Lieutenant General Taoreed Lagbaja to consider disappointing prophets of doom by not unleashing excruciating military action on the thriving commercial city especially in considering high population of formal and informal student in the Aba and environs.

6. Recalling that the Armed Forces of Nigeria is committed to the security of schoolchildren and other learning institutions against attacks within the ambit of Nigeria’s constitution; I trust that safety of students/schools and other innocent civilians will be compromised as seen in other parts of Africa such as Tigray(Ethiopia); Amhara(Ethiopia); Khartoum(Sudan); Mogadishu(Somalia) where even campuses are used as military concentration camps – a situation we always find disturbing.

7. The Union under the leadership of The President – HE Osisiogu Osikenyi Enyinnaya condemns these attacks and calls on the Nigerian Military to consider exercising retrain to guarantee safety of law abiding while also dealing with culprits decisively and professionally.

SIGNED:
Abrhaley Arefaine Hailenchael
Executive Director to the presidency, All-Africa Students' Union (AASU);
Suite 304, 3rd floor Guji Complex, Bole - Addis Ababa, Ethiopia

The organized private sector has accepted the Federal Government’s proposal for a new minimum wage of ₦60,000.

The Director-General of the Manufacturing Association of Nigeria, Ajayi Kadri, confirmed this development during a recent interview, stressing that the private sector is constrained by microeconomic, infrastructure and security challenges and that anything more than the federal government’s proposed minimum wage is not feasible for the sector at the moment.

Ajayi emphasized that the ongoing negotiations between the government, private sector, and labour primarily focus on establishing a minimum wage rather than a living wage, representing the lowest possible payment for any worker in the country.

He further highlighted the significant economic challenges faced by both labour and private businesses, making it exceedingly difficult to meet the wage demands of labour unions.

“To start with, this is a very difficult time for anyone to negotiate minimum wage. From the perspective of government, labour and organized private sector, we operate in an environment where there is general acceptance of the fact that the macroeconomics are not right, even the global economy is experiencing a lot of shakeups and the aftermath of government necessary reforms.

“From the beginning of the negotiations of the minimum wage, it’s evident to the tripartite— that is, the government, labour, and organized private sector— that we are going to operate in a difficult terrain.

“Incidentally, the organized private sector and government have offered ₦60,000 as the minimum wage and I think it is very important for us to understand that what we are talking about is the minimum wage. That is what some people have called the walk-in wage. That is the amount we will pay the least workers in the country. It is the minimum wage we are negotiating, not a living wage,” Ajayi while on a Channels Television programme on Saturday.

Ajayi revealed that significant obstacles are being faced by both the government and the private sector in meeting the proposed N419,000 living wage demand.

He pointed out that the private sector, particularly, is struggling with economic difficulties and inflation, making it unfeasible to meet such a high wage.

Furthermore, he emphasized that the current period is not conducive for organized labour to engage in discussions regarding a new minimum wage. Rather, they should work together with other parties to bolster the economy.

“All of us in the tripartite— the government, the labour, and the private sector — we all knew that we were operating in a very difficult environment. The government itself realized that it had limited capacity to pay. The private sector is constrained by microeconomic, infrastructure and security challenges. So, we are also constrained to pay.

“Labour, on its part, is under intense pressure from its constituencies to ask for a higher wage because inflation has hit the roof and the operating environment is tough.

“Throughout the negotiation process, we made it known that this is not the best time to negotiate minimum wage. This is the time for us to agree, the crew behind the government, and grow the economy in such that we will bake a bigger cake, and then we’ll be able to share,” the director general added.

He urged the organized labour to rethink their choice of initiating a nationwide strike, emphasizing that leaving negotiations and resorting to strike action would not be beneficial.

He emphasized the importance of organized labour reconsidering their decision to go on a nationwide strike, highlighting that rejecting the N60,000 offer from the government and private sector was regrettable.

“We cannot afford to cripple the economy when all we needed to do was continue to build it. I think President Tinubu was very clear when he emerged as president that these are not going to be easy times, and I think we needed to tighten our belts to deliver on economy that we know has been seriously battered,” Ajayi-Kadir said.

He added: “Of course, the government on its own side has to demonstrate leadership, sensitivity and sense and sense of mind as well as the sense of occasion of the period that we are in. So, government expenditure, government choices of what needs to be done, how much to be spent, the cost of governance itself, all of it has to come to the table.

“I think what labour is actually worried about is that they appear to be the ones on the brunt of it but we needed to be able to engage, walking out on the process and declaring a strike, I do not think that that is what is going to solve this issue.”

Naija News reported earlier that the labour unions, on Friday, announced a nationwide strike without a specified end date due to the Federal Government’s rejection of increasing the proposed minimum wage of N60,000.

They asserted that the strike was initiated after the previous appeal to the Federal Government to finalize all discussions regarding a new minimum wage by the end of May had expired.