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Small Businesses Will Be Hit Hard, MAN Warns As Depot Price Hike May Push Petrol To N160

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The acting Director-General, Manufacturing Association of Nigeria, Mr Ambrose Oruche has said the poor and small businesses that depended on the PMS to power their generators would be hard hit as the pump price of the Premium Motor Spirit, also known as petrol, appears set to hit N160 per litre.

Oruche said it was important for the government to introduce measures to cushion the effect of the deregulation in the sector.

In his words, he said “To reduce the impact, the government should do more in ensuring power generation is big and distribution is efficient, and ensure that people get at least 20 hours of light in a day to reduce dependence on the PMS.

“Government should find a way of compensating the SMEs to stay in business through tax rebates or grants to remain in business and stay competitive.”

Recall that the Nigerian National Petroleum Corporation has increased the price at which it sells the product to marketers from N138.62 per litre to N147.67.

The Petroleum Products Marketing Company, a subsidiary of the NNPC, had initially on Wednesday increased the ex-depot price of the PMS to N151.56 per litre, with marketers saying the product would be sold at between N162 and N165 per litre.

The ex-depot price is the price at which the product is sold to marketers at the depots.

The N151.56 ex-depot price was announced in an internal memo to all stakeholders with reference number PPMC/IB/LS/020 dated September 2, 2020, and signed by D.O Abalaka.

The memo, a copy of which was seen by one of our correspondents, said, “Please be informed that a new product price adjustment has been effected on our payment platform.

“To this end, the price of Premium Motor Spirit is now one hundred and fifty-one naira, fifty-six kobo (N151.56k) per litre. This is effective from September 2, 2020.”

But the PPMC, in another internal memo dated September 2, 2020, with reference number PPMC/MOD/Sales/346 and signed by Onya Schola, reduced the ex-depot price to N147.67 per litre.

When the ex-depot price was fixed at N138.62 in August, marketers were selling petrol at between N148 and N150 per litre. With a new ex-depot price of N147.67 per litre, the pump price may be between N157 and N160 per litre.

Amidst the different ex-depot prices, the Managing Director of the PPMC, Musa Lawal, told one of our correspondents that the first ex-depot price was wrong and should be discarded.

He said the company was investigating how the first memo went out, stressing that although it was from the PPMC, the figures were still being computed and had not been concluded.

“That is not authentic. It is wrong and there is a price review which shall be communicated properly, but what came out early today is the wrong one,” Lawal stated.

Asked to provide the correct one, he replied, “The one that I saw today on the website of one of the dailies is the wrong one. As we speak the circumstances under which that happened are being investigated.

“However, I cannot tell you more than this as the PPPRA (Petroleum Products Pricing Regulatory Agency) is the one to fix prices because we sell based on the guiding price from them.”

But the PPPRA on Wednesday decided to stay mute, as it did in August when the ex-depot price for the PMS was released by the PPMC.

Its spokesperson, Kimchi Apollo, did not answer calls nor replied a text on the matter.

The PPPRA’s silence on the petrol price is contrary to what it said in March.

The agency had stated that it would be issuing a monthly guiding price for petrol, but in August it did not issue any and had remained mute since then.

Meanwhile, oil marketers have said that going by the circulating ex-depot prices for petrol, the pump price for the commodity should hit between N160 to N162/litre.

They also stated that loading of products had stopped at some depots, as marketers were confused about which price to either buy or sell the commodity.

Up till 8pm on Wednesday, officials of the Independent Petroleum Marketers Association of Nigeria stated that no authentic communication had been received from either the PPPRA of the PPMC on the pump price or ex-depot price of petrol.

“Loading has stopped in some depots because of this confusion caused by the price modulation of guiding exercise introduced by the PPPRA and up till now we’ve not received any notice on either the ex-depot price or pump price,” the National Public Relations Officer of IPMAN, Ukadike Chinedu, stated.

But the Zonal Chairman, Independent Petroleum Marketers Association of Nigeria, South- West, Mr Dele Tajudeen, told one of our correspondents that the association had decided that the pump price would be N162 per litre when the ex-depot price was increased to N151.56.

Asked what the pump price would be following the reduction of the ex-depot price to N147.67, he said the association would decide on that later on Wednesday if the ex-depot price remained the same.

“We will add whatever the NNPC has added to our buying price to our selling price,” Tajudeen added.

Petrol price was increased by marketers to between N148 and N150/litre in August from a band of N140.80 to N143.80.

Following the announcement of the new depot price, many filling stations in Ogun and Lagos states were shut on Wednesday as marketers awaited further clarifications from the PPMC.

The Federal Government increased the petrol price a day after power distribution companies hiked electricity tariffs across the country.

The petrol price hike generated angry reactions from the Nigeria Labour Congress, Manufacturers Association of Nigeria and other major groups in the country on Wednesday.

BIG STORY

UBA And Mastercard Introduce Debit Card With Benefits And Discounts To Commemorate UBA’s 75th Anniversary

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Africa’s Global Bank, United Bank for Africa (UBA) Plc, has collaborated with Mastercard to launch a commemorative debit card in celebration of UBA’s 75th anniversary.

This collaboration aims to honor UBA’s long-standing customer relationships and enhance their banking experience with a range of offers and discounts across multiple platforms.

UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who spoke at the unveiling, highlighted that the card comes loaded with certain benefits aimed at rewarding customers, including limited 25% off purchases on Jumia and USD75 cashback on transactions made through AliExpress.

He added that this initiative symbolizes the shared vision between UBA and Mastercard towards empowering Africans by enhancing customer experience through secure and convenient transactions.

“This new card represents the deepening of our relationship and our shared mission to empower millions of Nigerians and Africans, by providing them with access to secure transactions and new opportunities across the continent,” Alawuba said.

The GMD also disclosed the bank’s plans to unveil similar products across all its subsidiaries. “We are proud of this collaboration, and we are confident that Mastercard’s role in Africa will only grow stronger in the coming years,” he added.

Mark Elliott, Division President for Africa, Mastercard, expressed his appreciation for the UBA collaboration, emphasising its significance in supporting Africa’s digital economy. “We are excited to collaborate with UBA to celebrate this milestone and bring more value to customers across Africa. This commemorative card is more than just a product; it reflects our commitment to advancing financial inclusion and supporting Africans in accessing secure, convenient and impactful financial solutions.”

Elliott highlighted the immense opportunities within the African payment ecosystem and shared that Mastercard is eager to explore new opportunities with UBA. “Together with UBA, we are focused on delivering innovation that meet the evolving needs of the region, empowering individuals, and promoting digital growth across the continent,” he stated.

The launch of the commemorative debit card represents a significant step in UBA and Mastercard’s shared journey towards financial empowerment and innovation across Africa.

 

About United Bank for Africa

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

 

About Mastercard

Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we’re building a sustainable economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.

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BIG STORY

19 Of 38 Directors Fail Permanent Secretary Examination

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Nineteen Directors have failed the Permanent Secretary written examinations conducted in Abuja on Monday.

They were among the 38 eligible candidates who sat for the three-stage selection process to fill the vacancies for the retiring permanent secretaries from Abia, Bayelsa, Ebonyi, Enugu, Gombe, Kaduna, Kebbi, and Rivers States.

The Head of Information and Public Relations, Office of the Head of Civil Service of the Federation, Mrs. Eno Olotu, said in a statement on Tuesday that the 19 candidates still in the race will on Wednesday proceed to the second stage of the exercise, which will test their competence in the use of “Information Communication and Technology (ICT)” in conducting government business.

The Office of the Head of Service of the Federation usually follows an established tradition of carrying out a rigorous three-stage exercise that ensures that only the very best among the directors on Grade Level 17 are appointed permanent secretaries and equipped with appropriate and relevant skills to improve and sustain effective delivery of services.

The statement further noted that the successful candidates would then proceed to the final stage, where they would be grilled by a carefully constituted panel of top bureaucrats and representatives of the organised private sector, on Friday, November 15.

Olotu extended the goodwill of the Head of the Civil Service of the Federation, Mrs. Esther Didi Walson-Jack, to all the 38 candidates and appreciated the continued support of the Nigerian public in entrenching “meritocracy” in career progression in the Civil Service.

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BIG STORY

Autonomy: FG, Governors, Local Government Chairmen Sign Implementation Agreement

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The Committee on Local Government Autonomy, set up by the Federal Government, has concluded its meetings and signed the technical document, which is expected to be transmitted to President Bola Tinubu soon.

The National President of the National Union of Local Government Employees (NULGE), Hakeem Ambali, made this known in an interview (with The PUNCH) on Tuesday.

In May, the Federal Government, represented by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, filed a lawsuit to challenge the governors’ authority to receive and withhold federal allocations meant for Local Government Areas (LGAs).

The suit sought to prevent state governors from unilaterally dissolving democratically elected local government councils and establishing caretaker committees.

The AGF argued that the constitution mandated a democratically elected local government system and did not allow alternative governance structures.

On July 11, 2024, the Supreme Court gave a landmark judgment affirming the financial autonomy of the 774 LGs in the country, noting that governors could no longer control funds meant for the councils.

The seven-member Supreme Court panel, led by Justice Garba Lawal, ruled that it was illegal and unconstitutional for governors to manage and withhold LG funds.

The apex court also directed the Accountant-General of the Federation to pay LG allocations directly to their accounts, as it declared the non-remittance of funds by the 36 states unconstitutional.

Also, on August 20, the Federal Government instituted a 10-member inter-ministerial committee to implement the Supreme Court’s ruling on local government autonomy.

The committee members include the Minister of Finance & Coordinating Minister of the Economy, Wale Edun; Attorney-General of the Federation & Minister of Justice, Lateef Fagbemi SAN; Minister of Budget & Economic Planning, Abubakar Bagudu; Accountant-General of the Federation, Oluwatoyin Madein; and the Governor of the Central Bank of Nigeria, Olayemi Cardoso.

Others are the Permanent Secretary, Federal Ministry of Finance, Mrs Lydia Jafiya; the Chairman, Revenue Mobilisation Allocation & Fiscal Commission, Mohammed Shehu; and representatives of state governors and the local governments.

The committee’s primary goal is to ensure that local governments are granted full autonomy, allowing them to function effectively without interference from state governments.

Speaking to our correspondent on Tuesday, Ambali said, “The committee has held its final meeting and we have signed the technical document which will be transmitted to Mr President so by November end. It is expected that states will receive their allocations from FAAC. Also, I can tell you that the President is eager to receive that document. The committee worked within the time frame that was provided.”

Meanwhile, the National Union of Teachers (NUT) has expressed fears about the capacity of LGs to pay the N70,000 new minimum wage to primary school teachers.

The NUT’s apprehension is based on the failure of the councils to implement the former N30,000 minimum wage.

Findings by our correspondent show that some LG workers in Nasarawa, Enugu, Zamfara, Borno, Yobe, and Kogi states, among others, have remained on the N18,000 minimum wage, which was approved in 2011.

However, the inability of the councils to implement the minimum wage has been blamed on the failure of the government to fully implement LG autonomy.

Data obtained from the NUT revealed that teachers in LG primary schools were not paid the former minimum wage.

In Enugu State, for instance, LG workers were exempted from benefiting from the minimum wage, even though state workers enjoyed the salary.

Also, Abia, Adamawa, Bauchi, Nasarawa, Kogi, Sokoto, Taraba, Yobe, Zamfara, Imo, and Gombe States did not implement the old minimum wage for teachers at both state and local levels.

Confirming this, the General Secretary of the National Union of Teachers, Dr. Mike Ene, said, “I can tell you that some states didn’t even implement the N18,000 minimum wage for teachers at the local level. Some governors refused to pay, stating that the teachers are under the employment of the local governments.

“There should be no form of segregation when it comes to the implementation of the minimum wage. We all go to the same market. There is no specific market for local government workers. However, we commend all the governors who have come out to say that the minimum wage will be implemented across the board.

“Also, the NLC has vowed to shake the country by December should state governments fail to implement the minimum wage, so I can tell you that the move by the NLC will force things into play.”

But NULGE president Ambali assured that the minimum wage would be implemented across the board when the LG autonomy commences.

“Over the years, governors have had one excuse, and that is the fact that they always claimed that LGs are autonomous so they can’t negotiate minimum wage on behalf of LG workers. But the truth is that LGs were never autonomous during those periods.

“However, during the negotiation of the new minimum wage, the President brought in representatives of ALGON (Association of Local Governments of Nigeria) to also negotiate, and with the LG autonomy coming into play, that will be settled. The NLC has also given an ultimatum of December for all states as regards the payment of the minimum wage,” he added.

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