Tag: Fuel

How Nigeria have been Feeding west Africa nations with fuel – CEO northwest petroleum

The Managing Director of the Northwest Petroleum & Gas Company Limited, Winifred Akpani has confirmed that Nigeria had been feeding the whole of the West African subregion with subsidized fuel.

Akpani while speaking to newsmen shortly after a solidarity visit to President Bola Tinubu, yesterday at the Presidential villa, Abuja said: “we have been feeding the whole West Africa Sub Saharan Africa, with fuel.

According to her, since last week Monday, it’s difficult to believe that only 10 days of removal of fuel subsidy, all the neighboring countries have all their prices shot up.

She defended the removal of the subsidy, saying that it is all about repositioning the country.

“I think Nigeria has suffered for too long. It’s about putting your money in the right place. “We spent like N4 trillion last year. We have spent N4 trillion this year for the first three, four months already.

“We are at about spending 2.7 trillion in subsidy and by the end of this year, we would have been at over 6.7 trillion. How much of that really goes to the populace?”

The oil marketer’s boss stressed that Nigeria cannot be subsidizing the whole of Africa, especially when the country has a lot of its own problems.

“So we came today to express our support and to see how we can cooperate with government because ultimately, you can’t kill the people you’re trying to save. So we’re not going to sit back and say, hey, yes, you have removed subsidy, so it’s fine. There are a aches, there are pains, what can we all do?”

She said that a lot of suggestions were made to the President on how to move the country forward, adding that over time, Nigeria had depended on PMS because it was cheap, regretting that gas was not developed.

“There’s electricity. So we’ll have alternate sources of energy. It doesn’t have to be PMS.
Now suddenly, we now realize that we have gas in abundance.

“There was no fresh investment. Nobody’s going to invest in an economy that is not free. “You’re going to have restrictions. since maybe July last year, I don’t think NNPC has paid anything into the Federation accounts.

“As a matter of fact, we’re actually going to start billing the Federation because there was spending more on a subsidy than they were earning. So these are the problems and that’s why we said it was important for the government to understand that we do support and we are very willing and able to help Nigeria transit this situation.

“The President did listen to us very graciously. And it was interesting, because we all suddenly remember that he’s an accountant first and foremost.

“He asked and he interjected with very, very intelligent questions, and he understood what we meant by saying we want a complete free market. “Free market to have one exchange rate so people can stop trading in dollars. When there’s free exchange rate then we can compete in importation, have competitive licensing, and having refineries running.

“we have gone through so many years of no fresh investments, all you ever see are new depot being built? Why is that because that’s all it takes. If you do that, then you become a marketer and you can begin to sell fuel but no. And we also try to explain that whereas you were buying 10,000 matrix ton of petrol for N4 billion, today you have to pay N12 billion. So it’s also important to recognize the fact that the pain is not only for the populace, it’s for the marketers, we’re going to see mergers.

“We’re going to have drop off because that’s a lot of money. But that’s also not to say that we’re going to have scarcity No. Finally we’re going to have our real volumes.

“We have stopped feeding most of Africa already, the volumes have dropped. And it’s not only because you’re saying we can’t afford transportation. It’s only the man who has a Jeep that will spend N70,000 now to fuel his car.

“The man who doesn’t have a car doesn’t have to worry about that. All he needs is transportation. And to that extent, we recognize this fact that we have to have an effective mass transit system so that people don’t want to be bothered to drive cars have alternatives, and they’re not going to be stuck at home because they can move.

“So, most of what we talked about is how do we go from here? How can we actually make it work? How can we go back to almost the points where we are before? It’s possible.

“And I say that with all sense of responsibility. And one good thing we also have recognize is the fact that a lot of jobs are going to be created, new businesses are going to come up.

“That’s an adage that says sometimes if you don’t shut a door a window doesn’t open. “And you will find out that maybe that window that opens because of the timing, there’s a lot of opportunity that comes through that.

“So for us it was a very, very good meeting. And we had an input in which we also were able to discuss about helping the economic team, participating in what they’re doing, because they were the people on the field were the ones doing this distribution. What can we do differently?

“And one thing that the President also stated clearly is that we must minimize frictions in this system. We must have a free market that works. “Whether is licensing if you say you are licensing, how long does it take to license it has to be done promptly.

“So in a nutshell, I think that covers essentially what this meeting was all about. We believe by July, which is only a month away, we’re going to begin to really see what is being put in place to help, to assist and to make sure that people can go back to seamless living.

“And we all collectively agree that we’re going to work at providing real mass transit buses that work, the ones that run on CNG, which is a compressed natural gas and diesel interchangeably, and hopefully we’re going to start with about 50 to 100.”

June 8, 2023
Fuel Hike: FRSC urges Nigerians to readopt the use of bicycle as means of transportation

As the increment of pump price bites harder, the Federal Road Safety Corps (FRSC), has advised Nigerians to readopt the use of bicycle as means of transportation.

The sector commander of FRSC in Bayelsa state , Mr Usman Ibrahim, gave the advice during the awareness ride to commemorate this year’s World Bicycle Day, said it is cheaper and healthy to human benefit.

Ibrahim who was represented by the FRSC Deputy Corps Commander in the state, Oiwoja Alagoa, said it was time to re-adopt the transportation system that assisted human civilisation for ages.

He explained that countries like Denmark, China, Poland and others use bicycle mostly, as the parts of the body are put to use during bicycle ride and burn energy that would have been stored in the body.

The sector commander added that bicycle, apart from being cheaper than vehicles to acquire, it is also cheap to maintain and healthier for physical wellbeing of man and his environment.

“Use of bicycle help in preserving atmosphere, it does not emit or pollute the atmosphere, it’s ensure less congestion on the road. Advanced countries have readopted bicycle transportation system as a matter of public health wellbeing and control of greenhouse effects of carbon emissions.

“We want our people to come back to the basics, cycling is good for the body, environment and it is economical to maintain.

“That is why we are raising the awareness again and calling on the Bayelsa State Government to join us in this campaign to revive the culture of using bicycle as a means of transportation,” he said.

June 3, 2023
Fuel subsidy not budgeted for in 2023 budget – NNPC

Alhaji Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company (NNPC), has said that contrary to speculations, the immediate past government did not make provisions for petroleum subsidy in 2023 budget.

He said this on Thursday in Abuja when he met with the Sen. Abdullahi Adamu-led APC National Working Committee (NWC) at the party’s National Secretariat.

“There was subsidy in 2022 but in 2023, not a single naira was provided for the purpose of financing the subsidy.

“And ultimately while we held back our fiscal obligations, we still have a net balance of over N2.8 trillion that the federation should have given back to the NNPC.

“For any company, when you have negative N2.8 trillion, there is no company in the whole of Africa that will lend to you, you cannot have receivables.

“The provision of subsidy is there, but absolutely there is no funding for it,” Kyari said, adding that it was only on paper and does not exist.

This, he said, was the true situation of things, adding the the Federal Government could no longer bear the burden of fuel subsidy.

“If we continue, we will run into defaults and the defaults of NNPC is the default of Nigeria.

“Once NNPC goes into defaults and liquidity, it affects every borrowing done by the country, even the sub-nationals. Your lenders will come back to you and say your country cannot longer pay,” he said.

The NNPC group chief executive officer added that subsidy constituted a huge amount of money which the country might not be able to survive and pay its debts.

Kyari, while admitting that Nigerians would have problems with the removal of fuel subsidy and that it would impact on inflation, assured that government was working on putting in place palliatives to cushion the effect.

According to him, President Bola Tinubu has directed some engagements and some palliatives will be put in place soon.

Kyari added that the market would stabilise with time following the removal of fuel subsidy and the current pump price when other players came in.

“There is a transition going on now and NNPC cannot continue to be sole importer. So, we know that this is going to vanish, the market will stabalise,” he said.

On when the country would have all its four refineries working, Kyari said there was an ongoing process of rehabilitation of the refineries.

He added that one of the refineries would come on stream before the end of 2023 while the second one would come on stream in 2024 and the third one would follow there after.

He maintained that the fuel subsidy regime was gone for good because government could no longer sustain it.

“Of course it is very obvious that we can no longer afford it. Subsidy bills have piled up, the country is not able to settle NNPC for the money we are spending on subsidy.

“And therefore, pricing petroleum at the market is the right thing to do at this point in time and I believe that this would benefit the country in the long time,” he said.

June 1, 2023
Why fuel subsidy removal is good for Nigeria – By Felix Ayanruoh

By Felix Ayanruoh

Fuel subsidy is the transfer of economic resources by the government to consumers or producers of a good or service. The resultant incentive is to boost production or consumption of a commodity over what it would otherwise have been. However, critiques of energy subsidies believe otherwise. They say subsidies distort markets and discourage investments. Some have argued that subsidies exist where the Government fails to implement programs to internalize uncontrolled costs in energy markets. Others argue that Government regulation creates a subsidy when it fails to set fuel prices equal to the marginal cost of production.

Like some other countries, Nigeria provides fuel subsidy (explicitly or implicitly), its justification varies from social engineering of the market and economic development to energy security. Fuel subsidy has been a growing liability to Nigeria’s budgetary allocations for almost four decades. I support the recent fuel subsidies removal by President Bola Tinubu – removal of petrol subsidies. When it comes to fuel pricing in our country, politics trumps economics.

In an interview I granted the guardian newspaper on March 23rd, 2014, captioned Fuel Subsidy Lacks Integrity, should be Removed. I highlighted the need for the President Jonathan’s administration to jettison fuel subsidy due to alleged corruption associated with its implementation.

According to the Natural Resource Institute, an independent, non-profit organization, Domestic Crude Allocation (DCA) has become the engine of waste and revenue loss of the Nigeria National Petroleum Corporation (NNPC). The Nigerian Government allocates about 445,000 barrel of crude per day to NNPC, which it in turn sell to derive revenue. The DCA money spent by NNPC delivers poor value for money. A large portion of NNPC’s withholding is spent on fuel subsidy payments, which are vulnerable to misappropriation and excessive spending. KPMG the global audit firm for example found that in three years, NNPC paid itself roughly $6.6 billion to fund the subsidy on 15.6 billion liters of products that “apparently were not available to the Nigerian market.”

It is instructive to note that previous investigations by the government and several petroleum subsidy litigations before our courts have further exposed massive graft by both government officials and private participants in the petroleum industry. Clearly, therefore the removal of fuel subsidy is sine qua non for energy security and economic growth. Take for example, the Mallam Ribadu’s Petroleum Revenue Special Task Force Report, indicated that NNPC withheld N1.983 trillion subsidies between 2006 and 2011. This amount represents almost 40 percent of the 2016 national budget.

Also, the Farouk M. Lawal led House of Representatives Ad hoc Committee on Subsidy Verification concluded that the subsidy regime, as operated between 2009 – 2011, was laden with colossal corruption and entrenched inefficiency. The subsidy claims made were not for consumed fuel. The committee went on to state that, contrary to the earlier official figure of subsidy payment of N1.3 trillion, the Accountant General of the Federation put forward a figure of N1.6 trillion, the Central Bank of Nigeria (CBN) N1.7 trillion while the committee established subsidy payment of N2,587.087 trillion as at 31st December, 2011, amounting to more than 900 percent over the appropriated sum of N245 billion.

Additionally, a subsequent report by the Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments, led by Mr. Aigboje Aig-Imoukhuede, revealed that in 2011, 197 subsidy transactions worth N232bn were illegitimate.

The previously released Forensic Audit of NNPC by Price Waterhouse Coopers showed that fuel subsidy cost Nigeria almost $10 billion between January 2012 and July 2013. Over the years fuel subsidy has been 2 and 5 times the size of the federal education budget and up to7 times the health budget.

In February 2014, the CBN informed the Senate Finance Committee that NNPC needed to account for $20 billion, as CBN could only confirm receipt of $47 billion out of the $67 billion revenue between 2012 and July 2013. NNPC submission to the Senate Committee on Finance suggested that almost half of this non-remittance consisted of funds retained by NNPC for subsidy claims on imports of Premium Motor Spirit (PMS) and Dual Purpose Kerosine (DPK)

The Nigeria Extractive Industries Transparency Initiative (NEITI) independent audit report stated that, over 13.697 trillion naira ($74.3862 million) has been paid as subsidy to marketers from 2005-2012. The breakdown of the subsidy shows that N2.197 billion was paid as subsidy in 2006. This rose to N236.64 billion in 2007 and N360.1 billion in 2008. In 2009 the country paid N198.1 billion as subsidy for petroleum products and in 2010 the subsidy payment rose to N416.45 billion. The payments skyrocketed to N1.9 trillion in 2011. Payments of oil subsidies for 2022 have risen to $10 billion. Recent figure released by NNPC stated that it is owed 2.8 trillion naira ($6.1 billion) in outstanding subsidies payment by the government. And that it is spending 400 billion naira ($867 million) monthly on subsidizing petrol prices.

The amount paid out on subsidies from 2005 to 2021 is equivalent to the entire budget for health, education, agriculture, and defense in the last 5 years. The sum also equals the capital expenditure for 10 years between 2011-2020. Subsidy payment reached its peak in 2011 ($ 13.52 Billion or N2.11 trillion).

The removal of subsidy will free allocations which can be channeled to the provision of infrastructure like roads, education, health service, power, security, creation of jobs, development of the downstream sector, improve our GDP growth, clamp down on product theft, pipeline vandalism, environmental pollution, foreign exchange shortages and provision of basic benefits for the “poor in the society.”

It is imperative to note that that the subsidy has failed to help Nigerians buy refined products much lower than the prevailing market price. The most meaningful fundamental of change, powerful enough to confront corruption and mismanagement, may not be so much political, as the economic development and growth associated with the effort to improve it.
Felix Ayanruoh is an Energy, Infrastructure, Project Finance, Commercial and Transactional Attorney based in the US.

May 31, 2023
Fuel scarcity: It’s unfair for taking undue advantage of Nigerians – Sanwo-Olu faults marketers

Following the long queues at some fuel stations on Monday, the Governor of Lagos State Babajide Sanwo-Olu on has faulted fuel marketers for taking undue advantage of Nigerians increasing fuel prices.

Sanwo-Olu expressed his displeasure on Tuesday when he paid a surprise working visit to civil servants at the secretariat in Alausa, Ikeja.

The governor described the sudden hike in petrol price and attendant queues as ‘unfair’, adding that Nigerians need to be sincere enough.

”I think it is so early in the day for people to begin to second-guess our new president.

“This is a pronouncement, and I think it is unfair on all of our major marketers to want to begin to seize opportunity in areas where there is none.

”We all need to be sincere in this country, if we really want to get things done, let us know that we might need to belt up a little bit, but it’s really so that we have a better life down the line.

”There is nothing that has changed in that pronouncement that should have caused the queue. I am sure that the Federal Government that we have would be able to rise up and be able to deal with it.

”I will encourage everyone to be law abiding, to go about their normal business, and things will certainly turn out for the better for us.”

May 31, 2023
Reps throw weight behind President Tinubu on fuel subsidy removal

…begs Nigerians to remain patient, resilient and prayerful

The House of Representatives has resolved to support the decision of President Bola Tinubu on fuel subsidy removal.

This was sequel to the adoption of a motion on urgent public importance, moved by Jimoh Olajide from Lagos State at plenary on Tuesday.

TheNewsGuru.com, (TNG) recall that during his inaugural speech on Monday in Abuja, President Tinubu had announced that fuel subsidy was over.

“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor.

“Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions”, he said.

Debating the motion, Hon. Olajide commended the President for the courage to end fuel subsidy and asked Nigerians to be patient with the new administration.

According to the lawmaker, President Tinubu is a concern senior citizen whose agenda is to favour the down trodden for the purpose of humanity.

He stated: “Aware that there is no provision for fuel subsidy in the 2023 Appropriation Act; the current 9th Assembly and the past administration had given it a legal backing.

“Convinced that further legislative actions in supporting Mr President in delivering dividends of democracy will go along way in enhancing development because he asked for it, he campaigned for it! And he is ready for the task ahead.

“Convinced that president Bola Ahmed Tinubu, the tutor-general of Nigerian politics is concern about the masses and has meaningful objective to utilise Nigeria funds appropriately with budgetary reforms agenda on education, health, infrastructure, agriculture ,food, security and above all security of lives and property as embedded in the constitution”.

The House adopted the motion and congratulated Tinubu for his readiness for national task ahead and service to humanity and appealed to Nigerians to remain patient, resilient and prayerful so that the President can deliver on his promises.

May 30, 2023
[VIDEO] Fuel queues welcome Tinubu’s announcement of end to subsidy

Fuel queues are back in Lagos as hours after newly sworn-in President Ahmed Tinubu announced fuel subsidy withdrawal.

TheNewsGuru.com, (TNG) reports barely 2 hours after President Tinubu announced fuel subsidy withdrawal, long queues are back in the former capital of Nigeria, Lagos.

As captured on camera by TNG the queues are gradually building up indicating the hardship ahead fuel subsidy withdrawal.

See video below:

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May 29, 2023
NNPCL attributes fuel queues to movement restrictions for elections

The Nigerian National Petroleum Company Ltd. (NNPCL) has attributed fuel queues in Abuja and some parts of the country to restrictions of businesses and movement during the presidential and National Assembly elections.

The NNPCL said operations had resumed at the depots and trucks were being dispatched to various parts of the country.

Mr Garba Deen Muhammad, the Chief Corporate Communications Officer, NNPCL, in a statement said its latest updates released on Saturday showed a total of 2.1 billion litres of Premium Motor Spirit (PMS) stock.

Muhammad said this represented 0.9 billion litres in all the land depots nationwide and 1.2 billion litres on marine vessels.

This, he said, was equivalent to 35 days sufficiency as of March 4.

Muhammad, while reassuring Nigerians of a robust supply of PMS, said the NNPCL planned to close the month of March with about 2.8 billion litres, equivalent to 47 days of sufficiency.

“The appearance of pockets of queues in Abuja and some parts of the country, is largely due to restrictions in businesses and movement, to allow for the conduct of the presidential and NASS elections to enable Nigerians to exercise their civic right.

“However, operations have now resumed at the depots and trucks are being dispatched to various parts of the country.

“We expect normalcy to be restored in the next few days.

“NNPC Ltd. and all its partners and stakeholders will continue to work together to ensure seamless distribution of petroleum products around the gubernatorial and State Assembly elections.

“We, therefore, enjoin Nigerians not to engage in panic buying,” he said.

March 5, 2023
Protests rock Ibadan over naira, fuel scarcity

Protesters, in their thousands, on Wednesday, blocked major roads within Ibadan metropolis over the scarcity of fuel, new naira notes and the rejection of the old notes by commercial banks and commercial outlets.

The protests, which were still spreading, affected some areas like Iwo Road, Bodija, Mokola, Eleyele/Eruwa Road, Gbopa, Ologuneru, Apete, Challenge and Orita roads.

According to reports, the protests resulted in traffic gridlocks in the affected areas, forcing commuters to take to their legs and drivers seeking alternative roads to their destinations.

The protesters, who were mostly youths, were seen burning tyres on the roads, while motorists were hurriedly making u-turns to avoid being caught up in the protest.

Most of the motorists plying the roads in the affected areas were seen displaying leaves conspicuously in front of their vehicles as a show of solidarity with the protesters.

At Iwo road, some suspected hoodlums were seen harassing motorists, tricycle and motorcycle riders as well as passers-by, while traders hurriedly closed their shops to prevent looting.

Sources said that the protests around Eleyele/Ologuneru axis of the capital city were led by transporters.

Witnesses at the scenes said that the transporters were obstructing free flow of vehicular and pedestrian movements around the axis.

Some of the transporters said that they were out to protest the non-availability of cash as well as the rejection of the old N200, N500 and N1,000 notes by passengers and filling stations.

The protesters called on the Federal Government and the Central Bank of Nigeria (CBN) to urgently address the situation, as they could no longer stand watching their livelihood being threatened.

However, men of the Nigeria Police Force, Amotekun and other security agencies were seen stationed at different strategic locations of the metropolis to prevent breakdown of law and order.

NAN

February 15, 2023
Saboteurs behind naira, fuel crises – Gbajabiamila

Speaker of the House of Representatives, Mr. Femi Gbajabiamila, has attributed the current hardship occasioned by fuel and naira scarcity to the activities of saboteurs.

Gbajabiamila made this known in Lagos on Tuesday, during the launching of the second phase of a transport initiative called “Gbaja Ride”, designed to empower his Surulere constituents.

35 low-fare buses that would ply different routes in Surulere and its environs were inaugurated.

He said the fuel crisis and the lingering scarcity of naira notes were carefully contrived by some elements to derail the successes of President Muhammadu Buhari-led administration to achieve political motive.

He said the House of Representatives was working hard to rescue citizens from the current hardships towards bringing relief as soon as possible.

“As your representative and Speaker, I have a good understanding of the current hardships and discomfort being faced by many Nigerians, without exception to my constituents.

“The lower legislative chamber under my leadership has been on the side of the people, working tirelessly to rescue them from these difficulties.

“I am glad that the judiciary has also confirmed our position on the implementation of the policy of naira redesign ”

He said the naira swap policy was a well-thought-out one, which had unfortunately been hijacked and politicised.

He alleged that some elements had created crisis around the policy just to stop the All Progressives Congress(APC ) presidential candidate, Bola Tinubu, from winning the presidential election.

He said the plot seemed to be failing as Nigerians were still keeping faith with the APC and Tinubu in spite of what they were going through.

“Nobody can convince me that it is not a plot to stop Asiwaju from becoming the president of this country.

“But I am glad that our God is a wonderful being, as the plot these people sat together to hatch he has intervened.

“I have followed the campaign team to the East, North and everywhere with Asiwaju and I doff my hat for Nigerians.”

Gbajabiamila urged Nigerians to cast their votes for Tinubu on Feb.25, saying he would not disappoint Nigerians if elected.

He said none of the candidates vying for the presidency had the capacity or competence to lead the country, except Tinubu.

Speaking on the “Gbaja ride”, the Speaker said the first edition kicked off in June 2018 with 30 new buses,160 motorcycles, and 25 tricycles.

it was designed to empower the constituents and ease movements.

He said the second phase had been better structured to offer better bus services to the people of Surulere at very low fares.

Gbajabiamila said the new 35 buses would be run in partnership with members of Lagos State Park and Garages Administrators and that many routes would be covered by the buses.

He, however, said the buses would offer free rides to teachers, students, and residents who are above 70 years.

He explained that the scheme was one of his many interventions geared toward improving the lot of the people of the constituency

Earlier, Mr. Sulaiman Yusuf, Chairman, Surulere Local Government, commended Gbajabiamila for the initiative.

He said the scheme was another proof that the Speaker was committed to the wellbeing of the people of his constituency.

“This is another proof that the Speaker cares .He has done so much for the people of Surulere and we are so proud of him.

Mr. Fouad Laguda, APC Chairman in the area, also thanked Gbajabiamila for the initiative, saying it would ease the movements of people in the area as well as provide job opportunities

He urged the people of the area to continue to keep faith with APC and vote for all the party’s candidates on Feb.25.

February 15, 2023