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FG Proposes Two Fuel Pump Prices

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Federal Government is mulling a plural fuel pricing regime, under the arrangement of the Nigeria National Petroleum Corporation (NNPC), that they would sell at N145 while independent marketers would import and dispense at their own rate, making it two different fuel price.

 

Dr. Ibe Kachikwu, minister of State for Petroleum Resources who made the revelation when he appeared before the Senate Committee on Petroleum Downstream also revealed that the current scarcity might linger till June 2019, when government-owned and private refineries would fully come on stream.

 

Other recommendations Kachikwu proffered as possible solution to the fuel crisis, which peaked during the Yuletide included a special foreign exchange price modulation as well as special tax consideration for independent oil marketers to reduce their financial burden.

 

He said if any of the three recommendations was adopted, fuel scarcity would be temporarily handled until refineries come on stream.

 

In addition, Kachikwu also called for a better border policing, arguing that since it was more lucrative to sell PMS in neighbouring countries, marketers will likely divert their products to those places.

 

“What this country needs is to ensure that the refineries work. It is shameful that after more than 50 years, we still do not have working refineries. Selling crude is like selling raw agricultural materials. Once the private refineries start working, this scarcity issue will be behind us. Before we get there, we have 18 months to manage this problem.”

 

Kachikwu who was accompanied by Mr. Maikanti Baru, group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC), and other officials of his ministry, on behalf of President Muhammadu Buhari, apologised to Nigerians for the difficulties they went through  over the fuel scarcity during the festive seasons.

 

“Our sympathies go the Nigerian people. I will not say much,” he stated.

 

While still testifying before the senate committee which cut short its recess to investigate the fuel crisis, Kachikwu added: “All I can say is that there are lots of issues. The major players stopped importation because of the price difference in landing cost. Once that happened, NNPC started providing 100 per cent products to the local market.

 

“There are issues on ground. Some are due to non-payment. Whenever situations like this arise, other issues arise. People moved products to other countries and decided to hide the products. We had to move in and release these products.

 

“What this says, for me, is that the business model of oil is not where it should be. If the prices of refined products escalate internationally, we do not react when we should. When it increases internationally, it has its own effects here. Between now and 2019 when our refineries will start working, we will have to rely on importation,” he added.

 

Speaking on the three recommendations, he said: “During the 18 months emergency period, we need to look at pricing. We need to find a way to get marketers back to importation. Landing cost is about N170-175. We sell at N145. We need to address this problem. There are series of items. But the key item is the international selling price for sale of refined product.

 

“There is a gap. How do we deal with the gap? Whatever we do, we need to free the marketers to do their business.

 

Exchange rate was N145 when price was tagged  in 2015. One model is for the CBN to create a special exchange rate for independent oil marketers to import their products. This will help.

 

“Is there a way to grant tax holiday for them? Government can look into the taxing system. If they do that, marketers will have more funds to import products.  Potential of having a plural pricing system? That is, NNPC outlets can sell at N145, while independent marketers can import at their rate and sell at their own rate. Until we deal with this issue, we will not get out of the problem.

 

“We have not been able to deal with the issue of border policing. It is still more lucrative to sell this product outside the country. I am proposing that trackers be placed on trucks leaving the depots. That is one way to deal with this issue.”


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Microsoft Moves into 5G Race with Azure Cloud for Telecom Operators

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Microsoft Corp unveiled a new cloud platform on Monday aimed at enabling telecom operators to build 5G networks faster, reduce costs and sell customised services to business clients.

After banning China’s Huawei from its telecom network, the U.S. government has been pushing big American companies such as Microsoft to get more involved with 5G – a technology which promises to enable everything from self-driving cars to remote surgery and more automated manufacturing.

The new platform will be on Azure, Microsoft’s flagship cloud computing business, and the company says it will reduce infrastructure costs, give flexibility to add services on demand and use artificial intelligence to automate operations.

Yousef Khalidi, corporate vice president for Azure Networking, told Reuters that it could cut costs by 30%-40% in some cases.

The developer of Windows and Office software entered the 5G arena after its acquisition of cloud networking companies Affirmed Networks and Metaswitch earlier this year.

“The telco DNA was obtained through those acquisitions and we went from a small number of engineers in this space to literally hundreds of engineers,” said Khalidi. “On the other hand, the foundational pieces, including edge compute, we have had in a pipeline for many years.”

The company has already partnered with companies ranging from telecom operators such as Verizon VZ.N and AT&T T.N to network equipment firms such as Samsung 005930.KS and Mavenir to either use or sell the new platform to clients.

Microsoft’s move will increase competition for existing 5G service vendors like Nokia NOKIA.HE and Ericsson ERICb.ST, said CCS Insight analyst Nicholas McQuire.


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Interior Ministry Boosts Digitization Process with New ICT Projects

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Ogbeni Rauf Aregbesola, Minister of Interior, over the weekend commissioned the e-Library, e-Law Library, CCTV Surveillance network services and other projects in his office in Abuja to digitize work processes and procedures in the Ministry.

Represented by the Permanent Secretary, Georgina Ekeoma Ehuriah, Ogbeni Rauf Aregbesola said that the projects were part of President Muhammadu Buhari’s efforts at repositioning the Ministry for better performance in line with its mandate of providing internal security and citizenship integrity for Nigerians and foreigners alike.

According to him, the e-Library will avail officers the opportunity to access the right information, in the right form and time.

“The e-Library gives our legal and other officers 24/7 access to a wide range of online resources, which can be updated in real time and we believe this will enhance the quality of their work to the benefit of the Ministry”, he said.

The Minister further assured of government’s commitment to putting in place measures that will boost staff capacity and also ensure self-development, with a view to ensuring proper implementation of projects, policies and programmes that will improve the lives of Nigerians which would lead to economic transformation in line with the present Administration’s policy thrust.

Aregbesola emphasized that crime and criminality has become complex to handle, the world over, hence the need to deploy modern technology to fight it.

He therefore called on staff to see the projects as morale booster for self-development and urged them to continue to support the efforts of government towards improving the lives of its citizens.

Earlier, Lanre Adesuyi, the Chief Executive Officer, Havillah Merchants Limited, thanked the Minister for giving them the opportunity to provide workers with state of the art equipment for efficient service delivery.

On his own part, Mr. Mohammed Mustapha, the Managing Director, Aliph Technologies, called on government at all levels to see the deployment of modern technology as one of the best ways to tackle security challenges in the contemporary world.


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Heritage Bank, PWC, Deloitte Canvass Use of Tech to Tackle Fraud & Rescind Effects of Covid-19

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Heritage Bank Plc, Nigeria’s Most Innovative Banking Service provider has called on internal auditors of banks to adopt the various digital technologies to prevent fraud and annul the adverse impact of Covid-19 on the financial ecosystem.

Ifie Sekibo, managing director/CEO of Heritage Bank, speaking at the just concluded 47th Quarterly Meeting of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN), disclosed that for improved banking operations and safer financial system for stakeholders, internal auditors must be dynamic and quick to adopt various digital measures.

Raising the alarming impact of fraudulent activities in the banking sector, Sekibo quoted PricewaterhouseCoopers’ (PWC’s) Global Economic Crime and Fraud Survey 2020, revealing that that the total cost of cybercrimes is worth an eye-watering $42 billion, which was cash taken straight off companies’ bottom line, whilst 13% of those who had experienced  fraud said they had lost $50 million-plus.

Sekibo, who spoke on the theme, “Elevating Internal Audit’s Role in the Face of Emerging Risks and Opportunities” organised virtually and hosted by the Heritage Bank, urged, “While it was sufficient for yesterday’s auditor to understand regular and routine banking practices such as credit, treasury, etc in his traditional assurance role, for him to be relevant in harnessing the opportunities in today’s business world, he must become versed in cybersecurity, artificial intelligence, data analytics, fraud management, regulatory pronouncements, forensics etc and having equipped himself, present balanced, objective audit reports to Executive Management while striking the right balance between the assurance and consulting responsibilities.”

In her keynote address, titled, “Elevating Internal Audit Role In The Face Of Emerging Risks and Opportunities,” Ibukun Beecroft, Partner Risk Advisory at Deloitte, noted that the banking industry in Nigeria today has adopted various digital measures to keep the business running and delivering services to the customers but there was need for Internal Audit (IA) positioned to provide the required assurance and consulting services in the face of the changes and attendant risk, particularly increased cyber-risks.

Quoting 2018 Financial Stability Report by the Central Bank of Nigeria, she stated that Banks recorded 25,029 confirmed cases of fraud and this resulted in a loss of N2.21 billion. More than 90% of fraud cases in 2018 were perpetrated via technologically driven channels.

“As Internal Auditors, the knowledge of technology would enable us identify gaps in our core banking applications and other applications and provide relevant recommendations to eliminating loopholes that may serve as an avenue for potential fraud.

She, however, advised auditors on the need to focus on advanced technologies and risk management operations as reflected around the Three Lines of Defense (3LOD) churned out by the Institute of Internal Auditors, which create opportunities for IA and its future role.

Beecroft warned that the ever-changing landscape and evolving risks in the banking industry could render the current internal audit plan obsolete.

According to her, internal auditors should reprioritise the audit plan as soon as possible to provide assurance over the most consequential risks while being cognisant of the impact on operations.

“To take advantage of these changes and disruptions, auditors need to rethink their role by adapting to and embracing change, enabling the IA function to become more agile, nimble, and forward-looking, thus driving change through the 3LOD,” Beecroft stated.

Yetunde Oladeji, director Internal Audit Services at PricewaterhouseCoopers Limited (PWC), who spoke on the theme, “Elevating IA’s role to meet today’s emerging risks,” advised that the banking sector should be dynamic, prioritse digitization and flexibible workforce strategies as these would determine its ability to adapt to rapidly changing circumstances to survive and thrive.


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