The Peoples Democratic Party, PDP, has cautioned the Buhari administration that its deliberate refusal to address the lingering fuel scarcity which has caused citizens untold hardship is akin to kneeling on the necks of Nigerians.
The party also pointed out that there is a limit to what the Nigerians can bear under an administration that remains arrogant, inhumane, unconcerned and insensitive to the peoples’ plights because of its misrule.
In a statement issued by its spokesman, Debo Ologunagba, the PDP slammed the Buhari administration for its inability to address the many challenges facing the nation.
“Is it not an unpardonable dereliction of duty that while the nation is in turmoil and agonizing under a collapsed national grid, protracted fuel crisis, distressed aviation sector, plummeting currency, crippled production and commercial activities, President Muhammadu Buhari remains aloof and absent as always?
“The failure by President Buhari, who also doubles as the Minister of Petroleum Resources to take immediate action, other than the snobbish stance by his Presidency that heavens will not fall because of fuel scarcity amounts to daring Nigerians to do their worse.
“It is often said that when a government abdicates its responsibility to the citizens at whose pleasure it should serve, then that government is complicit in the suffering of its people and a beneficiary of their woes.
“Sadly today, thousands of small and medium scale enterprises; the drivers of the economy are folding up daily, industries are relocating to neighbouring countries, universities are on strike, the aviation sector is on the brink of collapse, our railway is tottering to a halt due to lack of diesel, police are threatening to go on strike, insecurity is on the rise due to the collapse of the informal economic sector, yet Mr President had time to holiday in England!
“If President Buhari could personally communicate on issues that concern his fizzling party, the APC, while in England, it is inconceivable that he failed and neglected, as always, to attend to life discounting experiences and pains encountered by Nigerians daily by the thoughtless and inhumane policies of his government.
“President Buhari needs to be reminded of his duty to Nigerians, to in the least, show some empathy, competence and concern as our country rapidly drifts towards a looming precipice. The frustration in the country is already degenerating into a nationwide restiveness that may result to the breakdown of law and order if allowed to fester.
“With petrol now selling between N400 to N500 per litre, diesel at over N800 per litre, kerosine at over N750 and aviation fuel at N670 per litre, millions of businesses, employments and sources of livelihood have collapsed in both urban and rural areas resulting in acute hardship and widespread social tension across the country.
“Our party fears that the situation is getting to a boiling point and can trigger a nationwide agitation that might be worse than the October 2020 #EndSARS if not addressed immediately.
“President Buhari must take responsibility for the criminal racketeering in his government by APC leaders which has led to the crippling of the economy under his watch.
“He should stop abdicating his duties by sending his aides to issue wild claims, fake promises and non-committal apologies on the abysmal failures of his administration,” the statement read.
The Major Oil Marketers Association of Nigeria (MOMAN) says its members have almost completed the blending of the off-spec Premium Motor Spirit (PMS) popularly called petrol imported into the country.
MOMAN’s Executive Secretary, Mr Clement Isong, confirmed the development on Thursday in Lagos State.
The withdrawal of the imported adulterated PMS from the market created a supply gap which triggered scarcity of the product across the country The product was said to have contained methanol above the specified volume.
The government had set up a technical committee of stakeholders in the downstream petroleum sector, to carry out the blending of the off-spec petrol, to comply with the acceptable standard.
“We are almost done with the blending of the off-spec petrol. For majority of MOMAN members, we have almost finished the blending. We have successfully blended out the methanol and it is now on-spec,” Isong said.
He noted that the lingering scarcity of PMS was triggered by the withdrawal of the off-spec petrol from the market, but had been compounded by other factors.
According to him, these include; the availability of PMS in the international market and the high cost of diesel, which have made transportation of petroleum products expensive for marketers.
He said: “There are other factors that came into play. So, to solve the problem, you need to supply about 150 per cent of your usual supply to the country for the queues to disappear.
“The Nigerian National Petroleum Company Limited has ramped-up supply, and that is why the queues are disappearing.”
On the escalating prices of Automotive Gas Oil (Diesel) and Jet A1 (Aviation fuel) in the country, Isong noted that the ongoing hostilities between Russia and Ukraine and access to forex by marketers were responsible.
He said that the attack on Ukraine by Russia had led to an increase in the prices of crude oil and all its derivatives, including diesel and aviation fuel.
“That war that is ongoing has caused crude oil prices to go up worldwide. It has got as high as $130 per barrel. The problem simply is, even if you have the money, it is not so easy to find.
“Marketers are finding it difficult to source for products and import them to the country. Then, there is the issue of accessing forex, which has been a bit challenging for marketers.
“So, when you add these two things together, you will understand why we are having this problem,” Isong said.
Nigerians have been facing scarcity of petrol for weeks, with some filling stations hiking their pump price to N200 per litre.
Also, the price of diesel used by manufacturers to power their generators and the aviation fuel used by aircraft, have gone above N600 per litre in the last few days, due to the scarcity of the products.
At least, for 32 days, Nigerians do not need to worry about fuel, as 1.9 billion litres of petrol is now in stock.
This was disclosed in Abuja, Wednesday, by the Minister of State for Petroleum Resources, Mr Timipre Sylva, while updating the Federal Executive Council in a session presided over by Vice President Yemi Osinbajo.
The Minister was accompanied to the FEC session by the Group Managing Director of the Nigerian National Petroleum Corporation, Mr Mele Kyari.
The Senior Special Assistant to the President, Office of the Vice President, Mr Laolu Akande, told newsmen at the end of the session that NNPC had embarked on 24-hour loading of petrol to ameliorate the long queues at fuel stations.
The minister informed the Council that there is enough stock – in reference to about 1.9 billion litres to last for 32 days.
“There’s a 24-hour loading that is going on at all depots working with the Directorate of State Service and the Independent Petroleum Marketers Association of Nigeria to ensure that the situation improves significantly,’’ he said.
Akande said. Some reports have it that fuel queues have reduced in Abuja, Kaduna and some other cities in the last 48 hours, linked to the fact that a good number of fuel stations have started operating 24-hour services.
A commercial cab driver Adewole Kufuriji, looked both exhausted and worried. He had spent the entire night of Friday, March 4th inside his car parked along the road close to a filling station around Jakande Estate Isolo, Lagos Nigeria, not because he didn’t have a house to retire to or that his vehicle broke down, but because he needed to refill his near-empty fuel tank to guarantee food for himself and his family, and attend to other exigencies.
The many hours he risked on the road in the dead of the night was responsible for his tired look, but his worry was that this effort proved futile, as he was unable to refill his car and could not work to provide for his wife and three children.
“I wasted seven hours in the queue and still could not buy fuel. The stations don’t sell for more than one hour and before it could reach my turn, they stopped selling. I have parked my car at home because to buy from the black market is expensive and passengers will refuse to pay if you increase the price of transport. I don’t know how I will continue to provide for my family,” Kufuriji said.
Happiness Illiya, a young lady in her mid-thirties resides in one-man-village, a settlement in Nasarawa State close to the Federal Capital Territory border. Speaking with our correspondent, she said transport fares have gone up by at least 50 per cent since the fuel scarcity started, and that commuting to her workplace in the Abuja central area has been physically stressful and financially difficult to cope with, considering she earns N40,000.00 monthly.
“In a day, I spend close to N1,000.00 on transport and there has been no plan to cushion the effects of this fuel scarcity. At the end of the month, I would have spent more than half of my income on transport and have little remaining for food and other expenses. Government should do something to help low-income earners in the country,” Illiya appealed.
For Fumilayo Ajao residing in Abeokuta, the Ogun State capital, her worry was about the rising cost of foodstuff and other basic commodities like cooking gas occasioned by the hike in transportation. She said surviving in Nigeria is becoming more and more difficult even for the working class, saying she has had to cut down on some expenses in order to cope with the situation.
Despite reassurances from the government, the fuel scarcity which began about a month ago continues to bite harder, causing physical and economic hardship to the populace. Long queues at filling stations persist across many cities in the country both in the day and at night, causing heavy gridlock, with motorists spending an average of four hours to buy fuel.
The hydra-headed reasons for the prolonged fuel scarcity
TNG’s investigation has revealed that the latest fuel scarcity, which was initially thought to be caused by the importation of off-spec gasoline and then panic buying, is now being sustained by a raise in the ex-depot rate from the official N148.77 per litre to as much as N185 by some private depot owners due to prevailing circumstances, including the recent Ship-to-Ship Coordination Charge introduced by the Nigerian National Petroleum Corporation (NNPC) last month.
TNG reports ex-depot price is the price at which depot owners sell the product to retail outlets and fuel marketers across the country. Findings by this newspaper revealed that out of about 130 depots in the country, 21 are owned by the NNPC, with the remaining 109 owned by private entities, and satellite depots, among others.
For about five years running, the NNPC has remained the sole importer of fuel, as most depot operators have been forced out of business due to scarcity of FOREX and the official retail price range of N162-N165, which oil marketers say leaves very little profit margin. So rather than import directly, these oil majors who own private depots buy from the NNPC and resell to retailers.
Petrol import into Nigeria between the 1st quarter of 2018 and the 1st quarter of 2021 (in billion Naira)
Ideally, this should be done at the Corporation’s inland depots to reduce administrative bottlenecks and enable oil majors to sell at the approved N148/litre ex-depot price; but in reality, vessels are discharged at sea and third-party marketers say they incur additional costs such as clearance fees that make it unrealistic to sell petrol at the official ex-depot rate to retailers.
While there have been calls for an upward review of the ex-depot price, the NNPC last month introduced a Ship-to-Ship Coordination Charge of N500,000 for each trans-shipment operation to cover manpower, logistics, among others.
“Please be informed that the NNPC management has directed that effective February 10, 2022, the sum of N500,000 will be charged for STS Coordination fees for each trans-shipment operation involving the NNPC Marine Logistics. A Remita payment request will be generated by our accounts section for each operation to effect necessary payment upon the vessel’s tendering Notice of Readiness,” the letter from NNPC addressed to all oil marketers read in part.
Subsequently, some private depot owners have reflected this additional operational cost in their ex-depot price causing it to soar from the official N148/litre to between N180-N185/litre. In turn, some retailers afraid of being sanctioned for selling above the N165/litre are unable to purchase the product for N180/litre, but in many states like Lagos, Ogun, Delta, Bayelsa, Niger and Nasarawa, some daring retailers have adjusted their pump price to between N200-N250/litre in order to stay afloat, while black marketers sell between N300-N500 per litre.
Meanwhile, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) had threatened that its members would not distribute products for any depot that sells above the official rate, but defending the increased pump price, Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Benin Depot, Douglas Iyike, told the News Agency of Nigeria that the increment was due to a hike in the ex-depot price of petrol and not any fault of the oil retailers.
“We want to place it on record that the increment is not due to any fault of oil marketers because we can only sell based on the price at which we buy petrol from the depots. There has been an increment in the ex-depot price which has left marketers with no option but to increase the pump price of petrol above the official N165 per litre in recent weeks,” Iyike said.
He added: “We believe that addressing the issue of the ex-depot price should be the focus of NUPENG and not attempting to picket petrol stations, which might lead to a breakdown of law and order”.
Sources at the Ministry of Industry Trade and Investment, the regulatory body in charge of ensuring that oil marketers operate within the approved standards told TNG that some oil majors like Total, Oando and Conoil who appear to sell at the official N165/litre, short-change the public by exceeding the tolerable error limit of 300-500 millimetres to above one litre.
“The standard for measurement is 20 litres. So what that means is that for every 20 litres of fuel you pay for, you are getting 19 litres. Total is the worst as they sometimes have up to 2 litres error, depending on the location of the station. It is difficult to enforce sanctions such as sealing of the station or revoking of certificates at a time like this because the consumers are willing to pay for it,” one source said.
In addition to these challenges, there has been an increase in the global cost of crude oil, from a market price of N234 ($0.61) per litre last year, to N310 ($0.74) per litre this month as the market price of a barrel of crude hit $118. Nigeria’s N17.126 trillion budget for 2022 and the supplementary budget of N2.56trillion for subsidy were anchored on an oil price benchmark of $62 per barrel.
The NNPC has been importing fuel at the market price and selling at N162 ($0.42) per litre through a subsidy intervention, but analysts fear that the country could go bankrupt if oil price continues to soar and Major Oil Marketers Association of Nigeria (MOMAN), the IMF and World Bank have advised Nigeria to stop the fuel subsidy scheme to free resources for development.
Reacting to the escalating price of crude oil at the international market, President Muhammadu Buhari said at the opening ceremony of the 5th edition of the Nigeria International Energy Summit (NIES 2022) that the trend presents a unique revenue opportunity that Nigeria must seize.
“Crude oil prices are on the rise again after turning negative in April 2020. It is a great opportunity for us as a country. With the Petroleum Industry Act (PIA) in place, there should be no excuses. The enabling investment environment, which has been the bane of the industry has been taken care of by provisions in the PIA,” Buhari said.
On his part, Chairman of MOMAN Adetunji Oyebanji, explained that: “The benefit of a liberalized downstream is the most visible means of growing the economy in the medium to long term. Nigeria can become the refining hub of West and Central Africa and eventually the whole of Africa if we stick to this path of investing in new refineries, adopting a cost optimization initiative, building an environment that promotes competition and creates a sustainable petroleum sector.
“These actions would lead to increased employment, reduced poverty and reduced social inequity. We must take advantage of the opportunities brought by the African Continental Free Trade Area agreement (AfCFTA) and fully benefit from our barrels of crude, getting the maximum value it can bring Nigeria”.
Promoting Local Refining of Crude Oil through the PIA
Refineries in Nigeria are key national assets, and experts believe it is in the national interest if they are optimally run from a commercial perspective. The NNPC has four refineries – two in Port Harcourt (PHRC) and one each in Kaduna (KRPC) and Warri (WRPC), which together have a combined installed capacity of 445,000 barrels per day.
Despite the fact that the country has expended N1.47 trillion running and maintaining them between January 2015 to June 2020, these facilities have remained largely moribund, as the capacity utilization of the three refineries was put at 4.88 per cent in 2015; 11.92 per cent in 2016; 18.13 per cent in 2017; 10.13 per cent in 2018 and 2.19 per cent in 2019.
The Petroleum Industry Act (PIA) establishes a new reality for Nigeria’s oil and gas industry Section 32 (e, f) empowers the NNPC to provide pricing and tariff frameworks based on a fair market value and not set or dictate prices and tariffs or pay subsidies.
In a bid to implement the Act, the Nigerian government had only provided subsidy for the first half of 2022, but the plan to remove subsidy was met with stiff resistance from labour unions that threatened to ground the country, compelling the government to extend the subsidy to the second half of 2022 through a supplementary budget sent to the National Assembly.
However, oil and gas expert Omowunmi Iledare, said subsidy removal would not only lessen fiscal budget debt financing but will also reduce drastically, FOREX volatility with less pressure from petroleum import demand on FOREX and in the long run encourage competitive pricing at the pump.
“There are those who will argue that if PIA 2021 is implemented within the context of petroleum price deregulation, there is going to be societal misfortunes – diminished energy access and affordability in terms of multi-dimension energy poverty index (MEPI), rising public transport fares, disproportionate income redistribution among the poor, inflation, and public discontentment.
“Nevertheless, the benefits of deregulation far outweigh the highlighted misfortunes in the long run. Political expediency trumping economic efficiency and effectiveness must not render PIA helpless in this debate,” Iledare argued.
The Minister of State for Petroleum Resources, Timipre Sylva, recently decried the huge subsidy spending, as he explained that Nigeria was a net importer of refined petroleum products and that this was counter-productive in terms of the rising prices of crude.
“In Nigeria right now, we are a net importer of petroleum products and when the prices of crude oil go up, they also affect the prices of petroleum products,” Sylva said.
On his part, the Group Managing Director and Chief Executive Officer of NNPC Limited, Mele Kyari, insists that the transition “must have sanity” and guarantee the most-friendly fuel for the country in the short term of 10 years.
To this end, many Nigerians eagerly anticipate the commencement of the Dangote refinery, which is expected to begin processing of crude oil in the third quarter of 2022 at 650,000 barrels per day, equivalent to 102 million litres of oil per day, to meet Nigeria’s current 60 million litres per day consumption level.
In the meantime, the PIA stipulates that market forces should determine the price of fuel and many Nigerians view the current situation as a way of “testing the waters” before the total deregulation of the downstream sector; and they are bracing up for the challenges ahead.
The Leader Of INRI Evangelical Spiritual Church, Primate Elijah Ayodele, on Sunday, called for the resignation of President Muhammadu Buhari as the Minister of Petroleum.
Primate Ayodele made the call in reaction to the ongoing fuel scarcity across the country.
In a statement by his media aide, Primate Ayodele said Buhari was not capable of handling the portfolio, especially at a critical period like this.
He noted that the President should honourably resign from the position and hand over to someone who knows the nooks and crannies of Nigeria’s petroleum system.
According to Ayodele: “President Buhari should resign as minister of petroleum and hand over to someone who is capable of managing this crisis.
“This is not a thing to joke with. The economy is biting hard already, we need someone capable, Buhari isn’t capable to be the minister of petroleum. We need the right person who knows everything about our petroleum system.”
Nigerians have been battling with fuel scarcity since February.
The return of long queues at filling stations were linked to adulterated fuel that was circulated.
However, the Federal Government had assured that normalcy would soon be restored across the country.
Peoples Democratic Party (PDP) has stated that President Muhammadu Buhari-led administration has placed Nigeria on auto-pilot as the fuel scarcity lingers on.
The party also declared that the Buhari led administration has failed to deliver on its promise to make life easier for Nigerians.
According to the party, the current petrol scarcity and “widespread uncertainties” show that the country is on auto-pilot.
In a statement issued on Thursday, Debo Ologunagba, PDP’s spokesperson, said the scarcity of petrol has resulted in high cost of living.
“The Peoples Democratic Party (PDP) charges Nigerians to brace up and support one another in the face of abandonment by the All Progressives Congress (APC) administration as all critical indicators show that the APC has abdicated its constitutional duty to guarantee the security and welfare of the people,” the statement reads.
“The prevailing chaotic situation in the country with widespread uncertainties, unabating fuel crisis, piercing economic hardship, sectional agitations, heated industrial unrests, infrastructural stagnation, kidnapping, daily bloodletting and escalated insecurity with gangsters now taking over the streets of major cities further confirms that the APC administration is now on autopilot with its central command structure in disarray.
“While other world leaders are solving problems in their countries, President Buhari, who promised to fix our refineries, abandoned Nigerians to the excruciating fuel crisis caused by the corruption perpetrated by APC leaders in the helm of affairs in the petroleum sector, which has now crippled economic activities in the country.
“Nigerians will recall that after being exposed for importing contaminated fuel with consequential damage to vehicles, machinery and businesses, the APC government had promised to fix the situation. Sadly, several weeks after, the APC Federal Government had failed in its promise as always like in every other aspect of our national life.
“With the corruption and abdication of duty by the APC, our nation is now at the mercy of black-market vendors who charge already overburdened Nigerians as high as N500 per litre of fuel; a development that has resulted in a spiral increase in transport fares, costs of food, medicines and other essential commodities.
“This is in addition to the collapse of many businesses, massive loss of jobs, hunger and starvation, the sudden death of breadwinners with grave economic pressure on millions of families and attendant social consequences to our country.
“By travelling out of the country at the time Nigerians expect him to make himself available and provide leadership to address the agitations by striking university lecturers, President Buhari further exposes APC’s lack of commitment towards the wellbeing and development of Nigerians youths.
“Our Party is concerned that the insensitivity and utter disregard of the APC and its government for the feelings of the people have heightened tension in the country and if not checked could result in widespread restiveness and eventual breakdown of law and order.”
While promising to fix the country after winning the 2023 presidential election, the PDP said “it is clear that the APC has come to the end of the road in governance and has nothing else to offer Nigerians”.
Following fuel scarcity in Nigeria, Edo-born singer, Aituaje Iruobe, (a.k.a. Waje) has promised to marry any man that sends her fuel.
Waje, in an Instagram post, on Friday, updated those seeking her hand in marriage alongside those intending to join the list.
As the fuel scarcity worsens with difficulty biting much harder.
In her post, the 41-year-old vocalist revealed the most important item on her marriage list is 100litres of fuel although her family will gladly accept 25litres at this point.
Waje also highlighted all the lucky man stands to gain if he’s able to come through with the ‘fuel.
She wrote: “I’ll marry any man that sends me Fuel. Seriously. For those asking for my hand in marriage, the most important item on the list is 100 liters of fuel.
“I can manage 50………In short my family will accept 25 sef.Even if you did not ask, because of Fuel (what you have in your hand! Holy!) you’ll gain a God fearing, demon chasing, heaven awaiting spouse. HELP!”
On-going fuel scarcity across the country has led to the death of an illegal petrol marketer and his wife in Jos.
The couple was killed on Thursday when fire erupted from the kitchen where Mr Gideon Pam hoarded petrol at their residence in Zawan community of Jos South Local Government Area of Plateau.
An eye witness and neighbour, Miss Shantel Alphonsus confirmed that “Pam runs an illegal petrol business at Zawan Junction.
“In the morning, he was called upon to get more supply from a fuel station, so he rushed back home to get some empty gallons to hoard scarce petrol.
“In a bid to empty some of the gallons that had fuel in them, suddenly there was fire outburst in the kitchen were the gallons were kept and Pam was trapped.
“His wife, Mercy, who had gone out earlier returned and saw smoke emitting from the house.
“She went into the house to save her husband, but was equally trapped in the inferno,’’ Alphonsus said.
She added that the couple left a four-month-old baby who had earlier been taken away by Pam’s mother at an earlier visit.
Mr Caleb Polit, Director, Plateau Fire Service, confirmed the incident and expressed regret that the couple was burnt beyond recognition and the house razed before firemen could reach the scene.
Special Adviser to President Muhammadu Buhari on Media and Publicity, Femi Adesina has said Nigerians would survive the current fuel scarcity.
Adesina said heavens would not fall over the current fuel scarcity and Nigerians will survive like always.
He stated this in his latest weekly article on Thursday titled “KNOCK, KNOCK. WHO’S THERE?”
The presidential aide recalled that Nigerians had experienced a similar situation in the past and they survived.
Adesina’s article reads partly: “It’s obviously not the easiest of times in our country currently, what with severe fuel scarcity exacerbating the other existential challenges we have been coping with.
“In some areas, there’s no fuel, no electricity, thus translating to a severe energy crisis
“There were cases of bad fuel before in this country. We slept for days, weeks on end at petrol stations, queuing for fuel. We survived. We will survive again. Las las.”
Nigerians have been battling with fuel scarcity since February.
The scarcity is said to have been caused by the importation of adulterated fuel.
However, the Federal Government had assured Nigerians that normalcy would soon return because it has enough fuel.
The Minister of State, Petroleum Resources, Chief Timipre Sylva, says the Federal Government and regulatory authorities are making efforts to address fuel scarcity by ensuring that supply disruption is overcome.
The minister made this known to newsmen on Thursday in Abuja after a meeting with some key leaders in the petroleum industry.
Sylva spoke shortly after meeting with Malam Mele Kyari, Group Managing Director, NNPC Ltd. and Mr Farouk Ahmed, Chief Executive Officer, Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), among others.
“This kind of supply disruptions are like accidents, they are not desirable, we do not expect them to happen but they happened once in a while.
“This administration has done well as far as fuel supply is concern. I am quite happy to hear from the NNPC GMD and CEO of NMDPRA on all they have been doing to ensure the scarcity is controlled.
“From what they have told me, in few days there will normalcy, everybody is putting efforts to ensure that supply disruption is overcome.
“On my part as Minister of State, I share their commitment to ensure that this problem is totally overcome.
“From all the figures shown to me the supply is there, so why are they hoarding it, in the next few days we will be able to overcome those unscrupulous elements and make sure products get to Nigerians,” he said.
On black marketers, he said it was caused by unscrupulous elements, who chose to take advantage of the situation, thereby calling on them to sell rightly.
According to Kyari, as of this evening, NNPC has up to 1.79 billion litres of Motor Spirit (PMS) on ground and is still continuing 24 hours loading at the depots and selling.
“We are working with the Premium e regulatory authorities, particularly the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure normalcy,” he assured.
