Business

France threatens to cut UK and Jersey energy supply in fishing row

The EU could hit Britain and Jersey’s energy supply over the UK’s failure to provide sufficient fishing licences to French fishers, France’s EU affairs minister has said.

Clément Beaune, who is a close ally of the French president, Emmanuel Macron, said action would be decided on within days and discussions were already in motion.

France’s prime minister, Jean Castex, echoed the sentiment, telling the national assembly that the EU had to be firmer with the UK. “The [European] Commission is moving, it must do more”, he said.

France has been consistently pushing the EU to take a stronger stance against the UK over its concerns that Boris Johnson’s government is acting in breach of its obligations over fishing access to Channel waters.

Last week a third of French boats applying to fish in Jersey’s waters were turned down by the island’s government. The previous week the UK government provided only 12 of 47 French vessels with permits for its coastal waters. The UK and Jersey authorities have said the vessels that had been turned down had failed to provide evidence of operating in the relevant waters.

Beaune said France “would not stand for it”. He said: “Enough already, we have an agreement negotiated by France, by Michel Barnier, and it should be applied 100%. It isn’t being. In the next few days – and I talked to my European counterparts on this subject yesterday – we will take measures at the European level or nationally to apply pressure on the United Kingdom.”

He added: “We defend our interests. We do it nicely, and diplomatically, but when that doesn’t work we take measures. The Channel Islands, the UK, are dependent on us for their energy supply. They think they can live on their own and badmouth Europe as well. And because it doesn’t work, they indulge in one-upmanship, and in an aggressive way.”

The UK is a net importer of energy from French nuclear power stations. Paris has previously suggested it could cut the supply to Jersey, whose energy it provides through undersea cables under a commercial contract between the French company EDF and the Jersey Electricity Company.

Under the post-Brexit trade and cooperation agreement struck on Christmas Eve, in case of a dispute with Jersey the EU can take unilateral measures “proportionate to the alleged failure by the respondent party and the economic and societal impact thereof”.

Unilateral measures affecting the energy supply to the rest of the UK would also theoretically be possible. But France would need to gain the consent of other member states in both cases and the action would need to be proportionate, as the UK would have the right to take the EU to arbitration after any such move.

Castex, talking to the French parliament, suggested that his government would be likely to instead take the option of appealing to an arbitration tribunal in the first instance, an easier sell to the fellow EU member states, or go it alone in suspending bilateral agreements with the UK.

He said: “We will use the arbitration panel of the agreement to force the British to respect their word. We will question all the conditions for the more comprehensive implementation of the agreements concluded under the aegis of the European Union, but also, if necessary, the bilateral cooperation that we have with the United Kingdom in many areas.”

The trade and cooperation agreement also creates a link between continued EU access to British waters until 30 June 2026 and the UK’s access to the bloc’s electrical grid and gas network.

The energy part of the agreement allows the UK virtually unchanged access but that expires on the same date as the deal on access, raising the spectre that this could be used as leverage. The level of fishing quota will be decided by annual negotiations after 2026.

A commission spokesperson sought to play down the row, adding that officials in Brussels were in “constant contact with the UK authorities to ensure that all licence applications are dealt with as soon as possible”.

The spokesperson said: “We took note of last week’s announcements, but regret that with the number of licences granted it still has not been possible to bring this issue to an end now.

“The UK has published their methodology and we are now discussing the differences with the British and Jersey authorities regarding the rights of the boats involved. On our side we will continue to engage in the interest of our fishermen and women so that further licences will be provided.”

Business

CAC threatens to shut down PoS operators as deadline for registration expires

The Corporate Affairs Commission has said it will work with law enforcement agencies and other legal means to shut down recalcitrant Sales Operators who fail to register their businesses as its 60-day deadline lapses.

The Commission disclosed this in a notice Friday on its official X handle.

This comes after CAC on July 7, 2024, issued a 60-day deadline which expired on Thursday, September 5, 2024, for all PoS operators to register their businesses.

CAC noted that there was inadequate compliance with its directive, noting that those who decided not to register may be engaging in unwholesome activities.

“The Commission notes inadequate compliance with the directive for formalization when viewed from the background of the large number of POS operators in the country. Those who have taken steps to formalize in line with the Commission’s directive are commended for their positive attitudes.

“Recalcitrant operators have refused to adhere to the advice for formalization due possibly to engagements in unwholesome activities or for some reasons best known to them.

“We are here to make it clear that the Commission is working with Law Enforcement Agencies and other relevant stakeholders to deploy a comprehensive enforcement and sanction framework that may include not only possible shutdown but other severe legal Consequences.”

Meanwhile, the Association of Mobile Money and Bank Agents in Nigeria, AMMBAN, recently challenged the CAC’s registration directive.

Business

Dangote’s petrol to flood market from Sept 15 — NNPCL

The Nigerian National Petroleum Company Limited (NNPCL) has announced that Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Refinery will begin to flood the market starting on September 15, 2024.

This development follows the refinery’s commencement of petrol refining earlier in the week.

In a statement signed by the NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, on Thursday in Abuja, the company clarified that petrol prices would now be determined by market forces.

The statement addressed speculations about price control, reiterating that the downstream sector had been fully deregulated and that NNPCL would no longer fix fuel prices.

Adedapo Segun, NNPCL’s Executive Vice President of Downstream, emphasised that foreign exchange (forex) illiquidity had been a major factor influencing PMS price fluctuations, which are now regulated by the free market as mandated by the Petroleum Industry Act (PIA).

Segun also noted that the current fuel scarcity should ease within a few days as more filling stations recalibrate their systems and resume selling PMS.

He cited Section 205 of the PIA, which established that petroleum prices are governed by market forces rather than government intervention. The exchange rate, he added, significantly impacts fuel prices.

Regarding the supply of petrol from the Dangote Refinery, Segun stated that NNPCL was preparing for the September 15 timeline when products would be available for distribution.

He assured Nigerians that NNPCL is working closely with fuel marketers to ensure stations remain open and well-stocked to meet demand, while measures are being taken to prevent product diversions.

Segun’s comments come on the heels of the Federal Government’s announcement of an impending boost in petrol supply over the weekend, as vessels had started offloading while reaffirming that PMS prices would not be fixed by the government.

Business

PMS Prices are determined by free market forces—NNPC Ltd

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS), which are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.

Speaking on TVC News’ “Journalists’ Hangout” show on Thursday, the Executive Vice President of Downstream, NNPC Ltd., Mr. Adedapo Segun explained that the current fuel scarcity was expected to “subside in a few days as more stations recalibrate and begin selling PMS.”

He said Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.

According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”

On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd. was awaiting the September 15th timeline provided by the Refinery.

Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd. has nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”

He assured Nigerians: “We are also engaging relevant authorities to ensure products diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”