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Fuel Consumption Hits 80million Litres Daily, Subsidy Skyrockets

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The consumption of Premium Motor Spirit, popularly called petrol, has risen to about 80 million litres daily, pushing up subsidy on the commodity to an estimated N484bn monthly, going by latest figures from the Nigerian National Petroleum Company Limited.

An analysis of PMS weekly evacuation/dispatch data from March 4 – 10, 2023, obtained from NNPCL on Wednesday, indicated that a total of 558.83 million litres of petrol was evacuated during the period, translating to an average daily consumption of 79.83 million litres.

Around mid-last month, the Group Chief Executive, NNPCL, Mele Kyari, said about 66 million litres of petrol was pumped daily into the market by the oil firm, as the company was spending about N202 on every litre of PMS consumed across the country.

“Today, by law and the provisions of the Appropriation Act, there is a subsidy on the supply of petroleum products, particularly PMS imports into our country. In current data terms, three days ago, the landing cost was around N315/litre.

“Our customers are here; we are transferring to each of them at N113/litre. That means there is a difference of close to N202 for every litre of PMS we import into this country. In computation, N202 multiplied by 66.5 million litres, multiplied by 30 will give you over N400bn of subsidy every month,” the GCEO had stated.

Since January till date, the cost of crude oil has revolved around $83/barrel, while the official exchange rate has been about N460/$. Crude oil price and foreign exchange rate are the major determinants of refined petroleum products’ cost, according to operators.

Going by NNPCL’s latest fuel consumption figure of 79.83 million litres daily, and a subsidy of about N202/litre, it implies that the oil company would be spending an estimated N483.8bn to subsidise the commodity monthly.

NNPCL is the sole importer of petrol into Nigeria and has maintained this for several years. Other marketers of the commodity stopped its imports due to the difficulty in accessing foreign exchange required for PMS purchase.

NNPCL, however, has been lamenting the huge burden of PMS subsidy, as Kyari pointed out in February that this had been a drain on the cash-flow of the national oil firm.

He explained that the continuous funding of petrol subsidy by NNPCL had been ongoing without refunds from the Federal Ministry of Finance, Budget and National Planning, despite the fact that subsidy had been budgeted for in the Appropriation Act.

“But there is a budget provision for it (subsidy). Our country has decided to do this. So, we are happy to deliver this, but it is also a drain on our cash flow, and I must emphasize this.

“For as we continue to support this, you will agree with me that it will be extremely challenging for us to continue to fund this from the cash flow of the company when you do not get refunds from the Ministry of Finance,” Kyari had stated in Abuja.

Fuel subsidy is a topical issue in Nigeria. Many experts, local and international institutions have called for a halt in petrol subsidy. However, labour unions had kicked against an outright subsidy halt, on the grounds that the Federal Government must fix Nigeria’s refineries first.

Analysts at Centre for the Promotion of Private Enterprise recently explained that Nigeria would save about N10tn annually by the elimination of subsidies on PMS and foreign exchange.

They said the country would save about N7tn annually by halting subsidy on petrol, while an estimated N3tn would be unlocked when the Central Bank of Nigeria eventually halts subsidy on foreign exchange.

“Elimination of fuel subsidy to save an estimated N7tn annually. Elimination of foreign exchange subsidy to unlock a minimum of N3tn revenue annually from the sale of CBN forex to the official foreign exchange window,” the centre stated.

BIG STORY

Delta Man Nabbed For Allegedly Defiling 13Yr-Old Girl

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The Delta State Police Command arrested Ezekiel Elijah for allegedly defiling a 13-year-old girl in Aviara, Isoko area of the state. Police Public Relations Officer Bright Edafe disclosed this on (link unavailable) on Sunday.

Edafe stated that Elijah lured the minor into his room and defiled her. He also accused Elijah of taking advantage of the victim, who has a “hearing impairment.”

Edafe wrote, “Rape is different from defilement. For defilement, the consent of the underage girl is immaterial (which means, you can’t say she is my girlfriend).” He added that the 13-year-old girl Elijah defiled is “physically impaired.” Edafe said, “He took advantage of this child, lured her to his room and defiled her. May God help us.”

In a video, Elijah said he met the victim on his street and invited her to his house. He stated, “I knew her on the street. She was going out with her friend when I called both of them. She was the one who later answered me, and I asked her to follow me to my house. That was when I requested sex from her.”

Elijah claimed he didn’t know the girl was 13 years old. Edafe insisted that Elijah took advantage of the girl’s vulnerability, saying, “The offence of defilement is a clear one. She has not got to the age where she can decide for herself whether she wants to sleep with a man or not.”

Edafe disclosed that Elijah would be arraigned in court.

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BIG STORY

Former US President Jimmy Carter Dies At 100

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Jimmy Carter, a former president of the United States, has died.

The Democrat, who served as president from 1977 to 1981, passed away at the age of 100.

The Carter Centre announced that the 39th president of the US died on Sunday afternoon at his home in Plains, Georgia, surrounded by his family.

He is survived by four children, 11 grandchildren, and 14 great-grandchildren.

Carter became the first ex-US president to reach 100 years on October 1, 2024.

He lost his re-election bid to Ronald Reagan in 1981 and left the White House with low approval ratings amid economic turmoil.

Following his presidency, he dedicated himself to humanitarian work, which earned him the Nobel Peace Prize in 2002.

Rosalynn, Carter’s wife of 77 years, passed away in November 2023.

“My father was a hero, not only to me but to everyone who believes in peace, human rights, and unselfish love,” Chip Carter, his son, said in a statement after his passing.

“The world is our family because of the way he brought people together, and we thank you for honoring his memory by continuing to live these shared beliefs.”

Carter was the first US president to embark on a state visit to sub-Saharan Africa when he arrived in Lagos, Nigeria on March 31, 1978, with Olusegun Obasanjo, then military ruler, on hand to receive him.

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We Spend N204m Monthly To Keep Kaduna Clean — Environment Commissioner Buba

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Abubakar Buba, commissioner for environment in Kaduna, has stated that the state government spends N204 million monthly to maintain cleanliness in the state.

Buba made the comment in response to a recent report by State of the Nigerian Environment (STONE), which ranked Kaduna as the cleanest state in the north-west.

In a statement issued on Sunday, Buba explained that this investment is driven by Uba Sani, the state governor, who believes that “a clean environment is the foundation of a good healthcare system.”

The commissioner noted that the significant financial commitment is beginning to show results, describing the ranking as a true reflection of the sanitary condition of the state.

He further mentioned that the Sani administration has engaged 2,400 street sweepers who ensure that major cities are swept every day.

Buba clarified that the cost is shared by both the state and local governments.

“The Senator Uba Sani Government is doing a lot toward ensuring the recycling of waste to wealth. In the near future, Kaduna State government will be generating revenue from waste instead. We are currently working with investors in this area,” Buba added.

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