Dangote’s decisions projected to reduce the cost of living in Nigeria

The refinery, on Saturday, disclosed to Nigerians that it had decided to reduce its petrol price from N950 to N890 per liter.

“In a bold move to drive economic relief for Nigerians, Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit, commonly known as petrol, from N950 to N890 per liter, effective from Saturday,” the Group’s Chief Branding and Communications Officer, Anthony Chiejina, stated.

“This price adjustment is in response to favorable developments in the global energy sector and a significant decline in international crude oil prices.

Dangote refinery’s decision reflects its commitment to aligning with market realities and ensuring that consumers benefit from changes in international crude oil prices,” he added.

This as expected has sent shockwaves across the oil market, which currently averages around N970 to N990 as PMS price.

A report by the Punch newspaper highlights this fact, having spoken to some mjaor players in the country’s oil sector.

Marketers told the aforementioned outlet that the Dangote refinery's abrupt price cut was likely brought on by recent warnings that specific marketers were planning on importing PMS if the foreign product remained lower than the ex-depot pricing of locally refined goods.

In response, the Dangote refinery moved to proffer competitive rates.

This, according to marketers could present some challenges as well as opportunities.

IPMAN's opinion on Danagote's price cut

“For instance, maybe a marketer purchased some product on Friday. I am sure the marketer would not have sold it before the new reduction happened.

That is the negative aspect of it. But, we have to abide by it. We have to live with it. That is the beauty of deregulation,” the Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, stated;

“So, we have to be careful when we purchase our product. Where we purchase it from and the price we are getting it. And we must have adequate information on what is going on. So that we will not be losing money every day,” he added.

He also noted that when prices fall, the only alternative for a marketer is to lower the price to liquidate old stockpiles, or they will be left with no buyers.

“When this happens, the only option a marketer has is to bring down the price. Because if you don’t do that, the competition will set in.

Some marketers in your neighborhood might be lucky to get their product tomorrow at N890. So, if you have a N950 product with you, within two to three days, you will not have an option but to bring it down.

That is the situation marketers are facing now, but we have to cope with it. It is the marketer who bears the losses,” he stated.

“I am happy it is happening this way. We believe that how can imported PMS be cheaper than Dangote’s PMS that is refined here locally? We know crude is being purchased here in naira, not in dollars; though we know that it is going to be in the official exchange rate, but we won’t be looking for dollars. The issue of transportation will not be there and some other charges too,” he added.

How Dangote could affect cost of living

Additionally, the National President of the Petroleum Products Retail Outlet Owners Association in Nigeria, relayed that this sort of move could improve the overall quality of life in Nigeria.

“The reduction in PMS ex-depot price is expected to have a far-reaching impact on the lives of Nigerian citizens.

With a decrease in the cost of petrol, the prices of goods and services are likely to decrease, leading to a reduction in the overall cost of living.

This, in turn, will provide relief to households, who will have more disposable income to allocate towards other essential needs,” he said.

“The reduction in PMS price will also have a positive impact on the economy. A decrease in transportation costs will lead to increased economic activity, as businesses will be able to transport goods and services more efficiently and at a lower cost.

Additionally, the reduction in PMS price will lead to an increase in demand for goods and services, which will have a positive impact on economic growth and development,” he added.

By Chinedu Okafor, Business Insider Africa

Tems wins African Music Performance Award at Grammys 2025

Tems has won the African Music Performance Award at this year's Grammys.

The Nigerian singer was honoured for her Afrobeats hit Love Me JeJe, an interpolation of Seyi Sodimu's 1997 song of the same name. She performed the song for the first time during her Coachella set in April, ahead of the release of her debut album Born in the Wild in May.

“My heart is beating so fast. I'm so sorry – I do work out, but it's not showing up right now,” the singer joked in her acceptance speech.

“Dear God, thank you so much for putting me on this stage and bringing me this team. And tomorrow is my mum's birthday. This is her first Grammys. I just want to thank you, Mum, because she's really done a lot for me and my brother. Happy birthday, Mum.”

Tems, 29, now has more Grammy awards than any other Nigerian artist, winning Best Melodic Rap Performance in 2023 for the song Wait For U with American hip-hop stars Future and Drake. Fellow Nigerian artists Burna Boy, Wizkid and Siriku Adepoju each have one Grammy each.

This year Tems overcame competition from a number established artists in the African Music Performance Award category, including Burna Boy, Chris Brown, Davido, Lojay, Asake, Wizkid and Yemi Alade. Apart from the American singer Chris Brown, all other nominated artists are from Nigeria, a sign of the West African country's current dominance in the continent's musical sphere, particularly on the international stage.

Love Me Jeje has found success across the world, earning 150 million streams to date on Spotify. Tems also performed the song on the American late-night talk show The Tonight Show with Jimmy Fallon. She also performed it during her headline set at Dubai's Sole DXB in December.

The song was also nominated for the Afrobeats prize at the 2024 MTV Music Awards and is nominated for Best International Song at the upcoming NCAAP Image Awards, a category that Tems won in 2023 for her song No Woman No Cry from the Black Panther: Wakanda Forever soundtrack and in 2024 for her song Me & U.

This is the second year that the African Music Performance Award category has been included at the Grammys. Both prizes have now been given to women after South African Tyla won for her song Water last year.

By 

William Mullally

, The National

Freight fraud from India to Nigeria

The Cyber Security Bureau in Telangana, a state of India, has launched an investigation into a major fraud scheme involving 18 former Amazon employees who allegedly manipulated the company’s delivery system to claim about $11.8 million in fraudulent transportation reimbursements.

The scheme revolved around falsified delivery trips registered within Amazon’s logistics system. Authorities say the accused, in collaboration with U.S.-based suppliers, created fake delivery records, claiming to have transported goods to customers who were either unavailable or had incorrect addresses. This allowed them to pocket transportation fees without ever completing the deliveries.

Amazon’s internal audit uncovered the scam, prompting a formal complaint. The fraudulent activities reportedly took place at the company’s Relay Operation Center in Hyderabad, the capital of Telangana, which monitors global shipments. Investigators are now scrutinizing the operations of the former employees and their network to understand the full extent of the fraud.

A case has been registered against 22 individuals. As authorities dig deeper, more revelations are expected about how the individuals bypassed Amazon’s security measures.

This case underscores the growing sophistication of fraud in the logistics industry and the need for stringent internal controls, advanced fraud detection systems and continuous monitoring to prevent financial losses.

Nigeria’s cargo tracking woes 🚚

In an effort to curb rampant fraud and illicit activities within its maritime sector, Nigeria is set to implement the International Cargo Tracking Note (ICTN) in Q2 2025. The Nigerian Shippers’ Council (NSC) will oversee the rollout, despite significant opposition from key industry stakeholders.

The ICTN is designed to enhance transparency, security and efficiency in cargo tracking. However, many in the shipping and logistics industry argue that it will lead to increased costs and bureaucratic hurdles, and despite its potential benefits, the initiative has faced multiple setbacks due to internal conflicts, corruption and resistance from industry players.

Nigeria’s maritime sector suffers an estimated $500 million loss annually due to cargo fraud, under-declaration and inefficiencies. Over the past five years, this has amounted to a staggering $2.5 billion in lost revenue.

The implementation of ICTN has sparked strong resistance from shipping lines, importers and logistics operators. The chairman of the Shipping Lines Association of Nigeria, Boma Alabi, has voiced concern that the initiative will function as an additional tax, increasing costs for businesses and consumers. Similarly, Segun Musa, national vice president of air logistics at the National Association of Government Approved Freight Forwarders, labeled ICTN an “intellectual fraud,” arguing that it will lead to double inspections, one at the point of origin and another upon arrival, negating the purpose of Nigeria’s existing inspection policy.

Despite these criticisms, NSC Executive Secretary Pius Akutah has defended the ICTN, emphasizing its potential to boost government revenue and reduce smuggling, including illicit shipments of arms and drugs. The minister of Marine and Blue Economy, Gboyega Oyetola, acknowledged flaws in the past administration’s approval process but stressed the need to implement ICTN as part of the government’s economic diversification strategy.

As Nigeria moves toward ICTN implementation, the freight and logistics industry will closely monitor its impact, particularly in mitigating fraud, improving cargo security and enhancing port efficiency. The coming months will be crucial in determining whether ICTN can be the game-changer the Nigerian maritime sector desperately needs.Check out a past commentary on FreightWaves about the modernization of Africa’s logistics capabilities here.
Kal Freight’s bankruptcy update 💸

Kal Freight’s bankruptcy case continues to unfold, revealing deeper scrutiny into its financial dealings and prospects. The California-based trucking company, which filed for Chapter 11 bankruptcy protection in December amid allegations of fraudulent activity, now faces increased pressure from creditors demanding an independent investigation.

This week, creditors urged a Texas bankruptcy judge to appoint an independent examiner to further investigate allegations of pre-petition fraud and mismanagement. The move signals growing concerns over the company’s financial conduct before its bankruptcy filing, particularly in light of the accusations that Kal Freight fraudulently obtained nearly $17 million from Daimler and engaged in unauthorized asset transfers totaling tens of millions of dollars.

Kal Freight is now working on a Chapter 11 reorganization plan, expected to be filed in February. The plan may take one of two paths: a sale of the business or a restructuring aimed at keeping the company operational.

More developments are anticipated in the coming weeks as Kal Freight’s bankruptcy proceedings continue to evolve.

By Grace Sharkey, Freight Waves

Nigeria's Grammy-winning Tems cancels Kigali concert amid Rwanda-DRC tensions

Nigeria's Grammy-winning singer Tems announced on Thursday she was cancelling an upcoming concert in Kigali over Rwanda's support of the M23 armed group waging an offensive in eastern DR Congo.

The announcement came amid international condemnation of Rwanda's backing of the M23 group, which seized control of the city of Goma this week in the Democratic Republic of Congo's mineral-rich east.

Tems, whose real name is Temilade Openiyi, revealed in a post on X that she was cancelling a concert at BK Arena in the Rwandan capital on 22 March.

"So I recently promoted my show in Rwanda without realising that there is ongoing conflict between Rwanda and Congo," she wrote.

"I never ever intend to be insensitive to real-world issues, and I sincerely apologise if this came across that way," said Tems, who became the first Nigerian singer to win a Grammy in 2023.

"I simply had no idea this was going on. My heart goes out to those affected."

So I recently promoted my show in Rwanda without realising that there is ongoing conflict between Rwanda and Congo. I never ever intend to be insensitive to real-world issues, and I sincerely apologize if this came across that way. I simply had no idea this was going on. My heart…

— TEMS (@temsbaby) January 30, 2025

The post came hours after M23 leaders vowed to "continue the march of liberation all the way" to the DR Congo capital Kinshasa.

The UK government said on Thursday it was considering reviewing British aid to Rwanda over its involvement in the crisis.

DR Congo has accused Rwanda of waging an offensive to profit from the region's mineral wealth. A report by UN experts in July supported these claims, finding that Rwanda has thousands of troops in eastern DR Congo - and holds "de facto control" over the M23.

Rwanda has denied the accusations.

President Paul Kagame has never admitted military involvement but has maintained the fighting cannot end until a DRC-based armed group, the FDLR, created by former Hutu leaders who massacred Tutsis during the 1994 Rwandan genocide, is eliminated.

Tems will perform in Johannesburg on 20 March 2025 at The Dome, Nasrec, which opens in January 2025, this will be her first South African concert.

AFP

Nigeria Needs Much Higher Power Prices, President's Adviser Says

Nigeria’s power prices need to rise by about two thirds for many customers to reflect the cost of supplying it and an increase can be expected within months, President Bola Tinubu’s special adviser on energy said.

Higher electricity tariffs, which need to be balanced by subsidies for less-affluent consumers, are required to fund the maintenance needed to improve reliability and to attract private investors into power generation and transmission, said the adviser, Olu Verheijen.

“One of the key challenges we’re looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff,” Verheijen said in an interview in Dar es Salaam, Tanzania, this week. This is needed “so the sector generates revenue required to attract private capital, while also protecting the poor and vulnerable,” she said.

Tinubu has already taken a number of steps to ease the burden on state finances and encourage private investment since taking office in May 2023, including removing subsidies on motor fuel. Power prices were already tripled for some customers last year.

While Nigeria, a nation of about 237 million people, has an electricity access rate of around 62%, an erratic grid supply limits productivity and disrupts daily life.

The move to raise tariffs comes amid mounting pressure from Nigeria’s debt-burdened electricity distribution companies for tariffs to be cost-reflective so they can improve their finances.

The country privatized generation and distribution in 2013, yet prices set by the government’s Nigeria Electricity Regulatory Commission don’t cover the suppliers’ costs. Government subsidies cover some of the difference, but profitability is hard to achieve.

Verheijen was in Tanzania attending a World Bank-backed conference where Nigeria presented a $32 billion plan to boost electricity connections by 2030. Private investors are expected to contribute $15.5 billion and the rest will come from public sources, including the World Bank and African Development Bank.

Nigeria’s power industry needs significant investment to achieve its development aims, Verheijen said. Of the country’s 14 gigawatts of installed power, only 8 gigawatts can be transmitted around the country and just four or five gigawatts can be directly delived to homes and businesses, she said.

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Siemens AG is working with the government on a $2.3 billion project to improve transmission and distribution, while more than 7 million Nigerians in rural areas have been given access to power via decentralized renewable projects.

“Your energy policies have to be closely linked with your own ambition for your country,” Verheijen said.“ Our own ambition is to be a $1 trillion economy in five years and to move to an upper-middle income country in 25 years.”

Nigeria’s gross domestic product is currently just under $200 billion, according to the International Monetary Fund.

By Antony Sguazzin, Bloomberg