The landing cost of petrol is ₦35 higher than the pump price of ₦145 per litre. The Minister of State for Petroleum Resources, Ibe Kachikwu, said that the rise in global crude oil prices after the 2016 hike in petrol price brought back the petrol subsidy. Recalling the experience of 2016, when the government increased petrol price from ₦86.5 to ₦145 after months of severe scarcity, Kachikwu described the petrol subsidy as an emotive issue, and noted that the government had not paid marketers all the outstanding subsidy arrears. The NNPC, which has been the sole importer of petrol into the country for about two years after private oil marketers withdrew from the importation of the product, bears the burden of subsidising the product. As of 20 March, 2018, when the international benchmark price for oil (Brent) was around $66 per barrel, the expected open market price of petrol, according to data obtained from the PPPRA, was around ₦189 per litre. The agency has not released any data since then.
The Federal High Court sitting in Lagos has dismissed a suit by Spectrum Wireless Communications against EMTS, owners of 9mobile. Spectrum Wireless challenged the sale of Etisalat renamed 9mobile. Justice Chukwujekwu Aneke, in a ruling on EMTS’ preliminary objection, held that the plaintiff lacked the locus standi to file the suit numbered FHC/L/CS/153/2018. He held that there was no direct shareholding relationship between Spectrum Wireless and EMTS to vest on Spectrum the right to sue EMTS to protect its alleged shareholding. The court also upheld the defendant’s position that Spectrum is not a shareholder in EMTS and cannot be directly affected by the actions of its shareholders – Mubadala Holdings Cyprus, Myacynth Coperative UA and Etisalat International. The Court therefore dismissed the suit in its entirety. Among other things, the judge added that the concept of “indirect shareholding/economic interest” claimed by Spectrum is unknown to Nigerian law, which only recognises members of a company as those named in its Register of Members. Spectrum Wireless Communications had sued EMTS and 16 others, including United Capital Trustees (the lenders), the CBN and the NCC over the sale of 9mobile. The company had claimed that it acquired indirect holding of 30 percent of EMTS’ shares after a private placement and was allotted 4,041,096 Class A shares of PTHNV, which owns 99 percent of the shares in MyaCynth.
The Federal High Court sitting in Abuja has ordered the arrest of two former ministers and others allegedly connected with illegal payments leading to the 2011 acquisition of an oil field in the country. Justice Danlami Senchi declared former Justice Minister and Attorney General Mohammed Adoke, ex-Oil Minister Dan Etete and five foreigners linked to the acquisition of Malabu’s Oil Prospecting License 245 wanted. In court cases filled in Italy and Nigeria, parties to the transaction including Royal Dutch Shell and Eni, are accused of improperly settling disputes over the oil field. However, both companies deny any wrongdoing. The license had originally been awarded in 1998 by military dictator, Sani Abacha, to Malabu, which his family owned with then-Oil Minister Etete. Under successive governments, the license was canceled, awarded to Shell, and then awarded to Malabu again before the 2011 deal.
The CBN has boosted the interbank segment of the Foreign Exchange Market with $210 million following sales concluded on Tuesday. Authorised dealers in the wholesale segment of the market were offered $100 million, according to the regulator. The Small and Medium Enterprises segment received $55 million, while customers requiring forex for invisibles such as tuition fees, medical payments and Basic Travel Allowance, among others, were also allocated $55 million. CBN spokesman, Isaac Okorafor, said that the effort of the regulator had helped to reduce exchange rate pressures across all segments of the market and maintains the stability of the exchange rate, which underscored the level of confidence investors and the public had in the Naira. The bank, at its last intervention on Friday, injected $247.8 million and CNY34.8 million into the Retail Secondary Market Intervention Sales segment.