Olufemi Oluyede, chief of army staff (COAS), has stated that the Nigerian Army does not have the financial capacity to provide accommodation for incoming recruits.

According to Punch, Oluyede made this known on Thursday in Abuja during a visit by the senate committee on army to the army headquarters.

While expressing appreciation to the committee for their support, he pointed out that the current method of funding, particularly the envelope budgeting system, falls short of meeting the army’s operational demands.

He appealed to the committee to consider allocating special funds outside the envelope budgeting model so the army can effectively deliver combat support and provide necessary welfare infrastructure.

“As we speak, the army is still challenged in terms of operational efficiency. This year alone, we are expecting about 13,000 new personnel, but there are no corresponding resources to provide accommodation for them,” the army chief said.

“We still have soldiers not being accommodated, and that number will continue to grow.

“We are not only looking at maybe insecurity within, but what if someday we are challenged from outside?

“So, I want to pray that you please look at that, and at the same time, look at how we can get special funds to provide accommodation for our soldiers. It’s very critical.”

Abdulaziz Yar’Adua, who chairs the senate committee, acknowledged the financial limitations the army faces and assured that the panel would push for enhanced funding.

“The Nigerian Army and Armed Forces should be removed from the envelope budgeting system so they have more funds to carry out their mandate. We’ve seen the need during our oversight visits,” Yar’Adua said.

“We want to assure the chief of army staff of our continued support and collaboration with the executive to ensure the army is adequately funded.”

He added that the committee had been divided into two teams to inspect army bases in Borno, Katsina, Sokoto, Kebbi, and Lagos states.

He explained that the inspection is in accordance with the constitution and senate procedures to guarantee proper use of approved funds.

Dave Umahi, the minister of works, said every part of Nigeria is included in President Bola Tinubu’s infrastructure agenda, and he promised to make public the full list of ongoing projects nationwide.

Umahi made this known in Abuja on Thursday following the weekly federal executive council meeting chaired by Tinubu.

“Mr. President has done extremely, very, very well in both urban and rural infrastructure,” he said.

“I’m going to publish all the projects—over N10 billion—across the entire country. I’m trying to be correct, and that will be next week.”

He explained that 118 km of roads in Abuja cost N286 billion, with N75 billion (30%) already disbursed, and over half the work completed.

The second phase of the project spans 164 km at a cost of N502 billion, with N150 billion (30%) released so far.

For the Abuja–Kano road, covering 72 km and valued at N450 billion, N135 billion (30%) has also been paid to the contractor.

He added that the Abuja County application project, worth $22 billion, had received 30 percent payment for ongoing construction.

Discussing regional infrastructure, Umahi noted that funds were disbursed for all four parts of the Bauchi–Gombe road, and Sukuk bond funding is backing projects in Gombe, which are now underway.

He said the Nembe Bridge project received 30 percent of its N156 billion funding, highlighting that the bridge would eliminate the need for expensive airboat travel to oil rigs.

“I’ve always said that when a road is not connected, you can’t move from one state to the other,” Umahi stated.

“It’s tantamount to being in prison because your movement is restricted… Projects bring down costs; the GDP of states is being improved.”

The minister also mentioned that the Lagos–Calabar coastal highway is 85 percent completed, having positively impacted Lagos’s GDP.

He said the Adamawa project, which was originally awarded in 2020 for 45 km, had now been extended to 61.76 km on the Biu–Newman road.

On the Lagos–Shagamu–Ijebu Ode–Ore road project, which began in 2018 and was revised in 2023, he said it is 25 percent complete and recently received an additional N11.423 billion.

He noted that the Niger State project was adjusted to include a binder crossing and a new bridge, which increased the cost by N8.94 billion.

He stated that the second section of the Sokoto–Badagry corridor was awarded for 228 km of three-lane road construction at N961 billion, with 120 km already completed in Sokoto.

Umahi expressed sorrow over the Keffi Flyover accident, which claimed three lives, saying the government had settled with the victims’ families and reconstruction had started.

He said the bridge remains closed to vehicles and that there are no unresolved legal matters related to the incident.

Umahi reaffirmed that the administration is dedicated to transparency and accountability.

“Anytime, any day, I would like to have a debate with anybody that wants more knowledge in terms of our ongoing infrastructure,” he said.

“That will come next week, and you will be able to see the great things that Mr. President is doing.”

NOGASA and PETROAN have raised concerns over Dangote Petroleum Refinery’s intention to bypass the traditional distribution framework and supply refined products directly to end users. They warn that this could result in nationwide disruption, long-term shortages, and a breakdown of the current supply chain.

The oil suppliers urged Dangote Refinery to reconsider and engage in further discussions before launching direct distribution. They highlighted the failure of refineries under NNPCL as a precedent and appealed to President Bola Tinubu to step in, emphasizing that Dangote alone cannot manage national distribution sustainably. Bennett Korie, NOGASA’s national president, made this appeal during the group’s Annual General Meeting in Abuja.

In response, a Dangote Group official dismissed the objections, describing them as “anti-Nigeria” and insisting that the plan is intended to eliminate petrol logistics costs nationwide.

Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria, supported NOGASA’s position. He urged Nigerians to be cautious in celebrating Dangote’s announcement.

On Thursday, depot petrol prices jumped from N815 to N870 per litre — a 7% increase — as the rift unfolded.

The $20bn Dangote refinery recently announced plans to deploy 4,000 CNG-powered tankers to deliver petrol and diesel directly to bulk consumers, skipping traditional intermediaries. These trucks are expected to begin operations by August 15. This initiative, backed by a N720bn investment, could save Nigeria N1.7tn annually and support 42 million MSMEs through reduced energy expenses and improved business margins.

Dangote says the programme aligns with its goal to cut logistics costs, improve energy efficiency, and support national economic growth.

Korie warned that if retail outlets are pushed out, reestablishing supply lines during any refinery disruption would be difficult. He noted that bundling refining, distribution, and retail under one entity is risky, citing how NNPCL’s move into direct retailing led to the collapse of its refineries.

He emphasized that NOGASA supports the refinery’s production efforts but sees direct distribution as a serious risk. Korie explained that “You are blending, you are refining, and at the same time operating, and again, add a filling station in your operation. You will have a problem.” He urged Dangote to focus solely on refining and selling to marketers who would then distribute.

Korie reaffirmed NOGASA’s willingness to collaborate with Dangote Refinery for mutual success but warned against monopolistic tendencies. “The entire giant’s indirect distribution of their products with the purchase of 4,000 distribution trucks for nationwide supply makes us worried about staying in the business,” he said, noting that many small suppliers depend on the existing system.

He also pointed out that over 50,000 filling stations and the jobs they provide could be at risk. Korie called for the government to initiate dialogue between Dangote Group and key players in the sector.

Billy Gillis-Harry echoed similar concerns, warning that Dangote’s full control of refining, logistics, and pricing could mirror past outcomes seen in the cement industry. “Because I want to draw your attention to the fact that we also have similar situations in our cement industry,” he noted, pointing to price hikes and loss of competition.

Gillis-Harry reported that retail outlet owners are losing up to N80 per litre, making it difficult to stay in business. He urged authorities to step in with pricing controls, ensure crude access for local refiners, and protect industry jobs.

Dangote reacts

A Dangote Group official expressed disbelief that fuel supply might be disrupted simply because someone aims to “distribute fuel for free.” The official argued that eliminating logistics costs would benefit Nigerians and wondered why this was being opposed.

He questioned the claim that NOGASA members would be displaced, stating that “The market is big enough.”

He pointed out that 4,000 trucks can’t possibly serve 774 LGAs alone and dismissed concerns of monopoly or job loss, adding that “Dangote is not saying, ‘don’t do your business.’”

IPMAN National Vice Chairman, Hammed Fashola, said he was unsure if NOGASA has the strength to disrupt distribution, but acknowledged that players are concerned about their survival.

“Everybody wants to make sure they remain in business,” Fashola said, noting that many in the supply chain might feel threatened. He expressed optimism that dialogue could align all interests.

Depots hike prices

Depot petrol prices surged by 7% from N815 to N870 per litre, following Dangote refinery’s sudden halt in petrol sales at its terminals. This has increased market volatility and added to price pressures.

A memo titled “Important Update on DPRP Collection Account for PMS” instructed marketers to stop payments for loading at the refinery’s gantry until further notice.

Meanwhile, importers have lowered their prices, triggering fresh competition. But depots soon responded by raising prices, citing global crude increases. Data from petroleumprice.ng showed that major depots including NIPCO, Aiteo, Rain Oil, MenJ, Sahara, and Aipec now sell at N870 per litre, while Dangote’s depot offers slightly lower at N865.

Credit: The Punch