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Why NNPC May Not Lift Dangote Petrol On Sunday — Report

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Four days before the September 15, 2024, date announced by the Nigerian National Petroleum Company Limited (NNPCL) to start lifting Premium Motor Spirit, popularly called petrol, from the Dangote Refinery, investigations by The Punch show that no commercial agreement has been reached to that effect by both parties.

Multiple sources from NNPC and Dangote confirmed on Tuesday that the two oil firms had yet to reach a deal on the quantity and pricing of PMS to be lifted by the national oil company.

On September 5, 2024, the Executive Vice President of Downstream, NNPC, Adedapo Segun, said during a live television programme that the company would lift Dangote petrol on September 15.

He also outlined factors that would determine the price of the commodity, as he stated that foreign exchange rates and market forces would influence the cost of petrol, stressing that the market had been deregulated.

But on Tuesday, government sources close to the development revealed that no paperwork had been signed by both parties for the lifting of petrol from the $20bn Dangote refinery by NNPC from September 15.

They stated that the terms and conditions required for the deal had not been agreed on, stressing that the national oil company may not lift any petrol from Dangote on the announced date.

When told that September 15, 2024, is around the corner and asked whether plans had been concluded for NNPC to lift Dangote petrol from that day, a senior official at Dangote refinery, who spoke to one of our correspondents in confidence due to lack of authorisation to speak on the matter, said nothing had been agreed on pricing, and petrol lifting, among other things.

“Right now, no documentation from NNPC and NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority) on product lifting. Nobody has spoken to us that they want to pick up PMS on September 15.

“For you to come and pick products in five days there must be discussions on pricing and other things, which is the commercial engagement. Of course, there must be an offer and other things, the lawyers will structure the terms and conditions,” the source stated.

On how PMS lifting from the Dangote refinery could be, the official replied, “It will be through the same way that products are imported and put in terminals before being lifted by marketers for distribution across the country.”

Another official at the Federal Minister of Petroleum Resources, corroborated the position of the Dangote source, stating that “nothing concrete has been agreed on right now in terms of petrol lifting, but I believe the process is still ongoing.”

A seasoned business adviser to several companies in the upstream, midstream, and downstream oil and gas sectors in Nigeria, Mr Dan Kunle, urged President Bola Tinubu to intervene in the matter.

“The President must act now to address the concerns caused by the issues surrounding the supply of petrol and how this has been fueling the socioeconomic crisis across the country,” he advised.

The spokesperson for the NNPC, Olufemi Soneye, had yet to respond to enquiries on the matter up till when this report was filed on Tuesday night.

  • Refiners React

Also on Tuesday, the Crude Oil Refiners Association of Nigeria said the Dangote refinery petrol might be cheaper if it gets the necessary concessions from the Federal Government.

CORAN’s comment is coming amid fears that the Dangote petrol may be more expensive when released into the market.

The refinery has yet to roll out its petrol a week after it was unveiled by the President of the Dangote Group, Aliko Dangote.

Marketers had expressed fears that the product from the Dangote refinery may be as high as N1,000/litre considering the current landing cost of petrol.

However, speaking in an interview with our correspondent on Tuesday, CORAN Publicity Secretary, Eche Idoko, disclosed that there is no way Dangote’s PMS will be more expensive if the government fulfils its promises.

While saying he was not in a position to determine the price, he stated, “There’s no way his fuel will be too expensive if all the other concessions the government has arranged come to bear. So, if those come to bear, definitely his prices will be cheaper.

“The only thing that will make his products more expensive is if he gets the crude on a higher term. That was all we were crying out for the first time. We must have a special pricing arrangement for local refining like it’s done in other places,” he suggested.

The CORAN spokesman advocated that the committee set up by the Federal Government on naira crude sale to local refineries should come up with a report, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority will guide on prices.

He also requested, “For those of us who are local refiners, we must be able to create a special pricing arrangement for both feedstock and the refined product that will satisfy the Nigerian people.”

The position of the association, he said, is to make sure members break even in business while producing the quality specification that best serves Nigerians and delivering it at a reasonable price that will satisfy Nigerians.

He said the group was planning to meet with Dangote on pricing.

“By the time we interact with Dangote on his pricing arrangement, we will be able to address him where we deem it necessary and then we will also come out and publicly address the press on that. At this instance, we are yet to do that,” he said.

On the back and forth between the Dangote refinery and the Nigerian National Petroleum Company Limited, Idoko said refiners were not surprised.

“We are not surprised at what is happening. Usually, when there is going to be a market shift, the incumbents are bound to react,” he noted.

He stressed that discussions are still ongoing and there is nothing concrete yet.

“Because there is nothing concrete and everything is still based on speculations and bickering from both Dangote and NNPC, we don’t want to take a position until the negotiations are completed, especially with the committee set up by the Federal Government to see to the supply of crude in naira is completed and we are properly briefed, then we can give a position.

“But, by way of summary, our position ultimately will be what would be in the interest of, first, the Nigerian people, and then secondly, we would also throw our weight behind people who are seeking to invest in our economy. Those are the two paramount things.

“We always keep telling the government and telling anybody who cares to listen, that the decisions that have to be reached on local refining shouldn’t be done from the lens of one man alone. Dangote means just one out of many of us.

“So, we want the decision of the government to be palatable to even new entrants. So, in this instance, we want to tell the government to actually look at the broader picture of things and not say, ‘We are doing this because of Dangote’. We are doing it because of new entrants that are coming tomorrow,” he stressed.

According to him, refining locally has its advantage over importing products.

“As Nigerians, we also expect that in the overall pricing, Dangote is going to be circumspect and would look at the interest and purchasing power of Nigerians. Even though we know he’s in the business for gain, we do expect, as the person that he is, that he’s going to look at the interest of Nigerians in arriving at a price.

“We also want to advise NNPC to be very transparent about it and it’s not the time for politics because people are really suffering,” Idoko mentioned.

On the condition of the NNPC that it would only pick Dangote PMS if it is cheaper, Idoko maintained that the intervention of the Federal Government is still being awaited.

“I know if Dangote gets a special arrangement, they will also sell under that special arrangement for that quantity they are going to be refining. So, a lot is still going on right now. And then as an umbrella association, we don’t want to make any statement until we have seen the actual facts.

“But I think whatever you are seeing in the press is the normal thing that happens between the two parties trying to buy. So everything is done to give you a negotiating advantage. And in this case, playing to the people’s sentiments is key.

“But when it comes to pricing, I know that some compromise will be reached sometime, but our position is that whatever the compromise is, it should be in the overriding interest of Nigeria and Nigerians.

“Dangote has not briefed us nor has the committee set up by the Federal Government reverted to us on what had been agreed. We have told them what our intentions are and we have told them what our expectations are and I think Nigerians should just wait patiently for this to be agreed,” he said.

 

Credit: The Punch

BIG STORY

Inside Delta: Police Arrest Man For Allegedly Stabbing Neighbour To Death Over Rice

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The Delta State Police Command confirmed the arrest of 30-year-old Daniel Onyejekwe for allegedly stabbing his neighbor, Christian, to death over a dispute about rice.

The incident occurred on New Year’s Day in the Ogwanja area of Sapele, Delta State.

The Police Public Relations Officer, Delta State Command, SP Bright Edafe, confirmed the development on Thursday, saying, “It is confirmed, and the suspect is in custody.

The two were fighting and injured themselves badly. Unfortunately, one, Christian, died.”

An eyewitness reported that the altercation started when rice was being shared along Boyo Road in Ogwanja.

An argument ensued between Onyejekwe and the deceased, leading to a physical fight.

The eyewitness stated, “Christian and Daniel started dragging the rice, and during the fight, Daniel picked a bottle and stabbed Christian multiple times. The vigilante rushed him to the hospital, but he was confirmed dead on arrival.”

The remains of the deceased have been deposited at a mortuary, while the police have launched an investigation. SP Edafe assured residents that the suspect would be prosecuted after the investigation was concluded.

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Inside Imo: Catholic Priest Allegedly Shoots Boy Dead Over Knockouts During New Year Mass

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A Catholic Reverend Father has allegedly shot a boy dead after the latter set off knockouts within the church premises.

The incident, which happened during the New Year Mass held on January 1, 2025, in Amaimo, Ikeduru Local Government Area of Imo State, has attracted reactions from social media users.

However, the name and parish of the priest and the name of the deceased couldn’t be verified.

In a Facebook post shared via the handle, ‘For The Love Of Anambra,’ on Wednesday, it quoted eyewitness accounts, reporting that after the deceased set off the knockouts, “the priest, whose identity remains undisclosed, picked up a firearm and fatally shot him.”

“The incident has left the community in shock and mourning, with residents expressing outrage and demanding a thorough investigation to uncover the facts behind the unfortunate event.”

When contacted (by The Punch’s correspondent) on Thursday, the spokesperson for the Imo State Police Command, Henry Okoye, stated that the command is already aware of the incident.

Okoye added that an investigation has been launched into the incident.

“We have launched a detailed investigation to ascertain the remote facts surrounding the incident.

“Further development on the case will be communicated in due course, please,” the police spokesperson stated in a message.

Reacting to the incident, a Facebook user, Malachy Chukwunyereugo, wrote, “He will spend the rest of his life in prison.”

Another Facebook user, Lyn Chy, lamented, “The fact that a Reverend father owns a gun it’s somehow [sic].”

Another user, Peace Ijeoma, wrote, “It’s disheartening to see how religious bigots are defending the priest. May we try to be lovers of God and not lovers of the men of God this 2025. Rip to the boy.”

On X, a tweep identified as Bloc Chief, with the username #blochief, shared his amusement.

He tweeted, “I thought this happens in the USA? How can this happen in Imo? Mehn.”

Another tweep, identified as Rise above hat, but tweeting as #asababoi2man, wrote, “Maybe he has [been] abducted before by gunmen… so he felt the men are back.. only God knows what he was thinking.”

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ASUU Declares 2025 “Year Of Long Battle With Federal Government”

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The Academic Staff Union of Universities has warned that “in the absence of visible and concrete efforts at addressing pending issues and meeting its expectations, 2025 will be a year of long-drawn confrontation between the union and the Federal Government.”

Describing efforts made by the Federal Government to address its issues last year as window-dressing and cosmetic, ASUU said the FG made no major difference in the university education sector, continued its neglect of the university system, and failed to satisfactorily resolve its issues in the year 2024.

According to the Chairman of ASUU, Ibadan chapter, Prof. Ayo Akinwole, in a statement on Wednesday, the uninterrupted academic calendar in 2024 was a result of the sacrifice of the union, not that the government had addressed its impending issues.

The union flayed the FG over policy summersault in the 18 years benchmark for admission into tertiary education and asked the President Bola Tinubu government to, instead of embarking on a fresh renegotiation of the agreement, set in motion a process that will lead to the review and signing of the Nimi Briggs-led renegotiated draft agreement.

The ASUU chairman said the FG continuously failed to put machinery in motion to address its long-drawn issues of “non-provision of funding for the revitalization of public universities based on the FGN-ASUU MoU of 2012, 2013, and the MoA of 2017; non-release of the three and a half months of the withheld salaries; non-release of third-party deductions like scheduled loans repayments, personal savings to retirement schemes and cooperative contributions.”

The union listed other pending issues as non-release and payment of arrears of Earned Academic Allowance (EAA); the creeping fascism in some Nigerian universities; the problem associated with the proliferation of public universities; non-implementation of the reports of the Visitation Panels; non-implementation of UTAS in place of IPPIS and non-renegotiation of 2009 FGN/ASUU Agreement.

“These pending issues were yet to be satisfactorily resolved in 2024 and will, no doubt, define the trajectories of the relationships between our Union and the Federal Government in 2025. Having reviewed the state of education in Nigeria in 2024, it is time to set an agenda for 2025.

“Fellow Nigerians, given the usual adamant posture of the Federal Government to satisfactorily address the pending issues concerning the education sector in general and the university system in particular, we expect that the year 2025 may, if care is not taken, be a year of another challenge and struggle.

“In the absence of visible and concrete efforts at addressing the pending issues and meeting our expectations, there is likely to be a long-drawn confrontation between our Union and the Federal Government, which will probably lead to another round of untold avoidable crisis in the university system in Nigeria.

“Given the important role of education in national development, it is expected that the Government should show a sincere commitment to reversing the downward trend in basic education by engaging in a total overhaul of the sector through the provision of basic facilities, such as good classrooms, desks, and chairs which will address the issues of over-crowding and dilapidation.

“The remuneration of the teachers should be reviewed to attract and recruit qualified teachers. Critical and concerted efforts should be deployed to tackle the high rate of out-of-school children in Nigeria, considering that education is the fundamental right of every Nigerian child.

“We also expect that the withheld three and a half months’ salaries and third-party deductions owed our members should be paid forthwith. We also expect that the Earned Academic Allowances (EAA) should be released, just as we expect that the funding for the revitalisation of the universities should be released by the FGN-ASUU MoU of 2012, 2013, and the MoA of 2017.

“The welfare of workers in the education sector and Nigerian workers is paramount, considering the state of the national economy and high cost of living, which has deepened the erosion of the conditions of service of our members.

“We, therefore, expect that the Nimi Briggs-led renegotiated draft agreement should be quickly reviewed in line with current economic indices and signed and that the university lecturers’ salaries should be restored to the African average which was the spirit of the 2009 Agreement, leading to the pegging of the professorial salaries at $3,000, which, in 2025, has amounted to paltry $200 due to the deterioration of the Nigerian Naira against the US dollar.

“It is also our expectation that the attack on TETFund should cease and the idea of commodifying university education in Nigeria should be dropped. Instead of borrowing bad examples from Britain and other capitalist countries, we should, as a developing country, borrow from countries like Germany, where education at all levels is free and properly funded.

“The welfare of workers in the education sector and Nigerian workers is paramount, considering the state of the national economy and high cost of living, which has deepened the erosion of the conditions of service of our members.

“We, therefore, expect that the Nimi Briggs-led renegotiated draft agreement should be quickly reviewed in line with current economic indices and signed and that the university lecturers’ salaries should be restored to the African average which was the spirit of the 2009 Agreement, leading to the pegging of the professorial salaries at $3,000, which, in 2025, has amounted to paltry $200 due to the deterioration of the Nigerian Naira against the US dollar.

“It is also our expectation that the attack on TETFund should cease and the idea of commodifying university education in Nigeria should be dropped. Instead of borrowing bad examples from Britain and other capitalist countries, we should, as a developing country, borrow from countries like Germany, where education at all levels is free and properly funded.

“Part of our expectations is that the long-standing challenges associated with the payment mode should be laid to rest in 2025 by the implementation of UTAS.

“Government as a matter of urgency should reverse the downward trend of public universities by deliberately restoring true hope for the children of the people who do not have any option of private university or overseas studies.

“Comrades, in this new year, let us summon more courage to act against the threat to knowledge and human dignity. Consequently, we advise our members to continue to remain vigilant and continue their support to the leadership of the Union at all levels. Let’s brace up for the crisis that may arise should our expectations not be satisfactorily met in 2025. For a people United Can Never Be Defeated,” the statement read.

The ASUU also rejected the tax reform bills as an attempt to an attempt to destroy the major source of infrastructural funding for already struggling public tertiary institutions, and “commodify university education in Nigeria.”

Akinwole held that the education tax to be replaced by a “development levy,” would disrupt the revenue stream of the Tertiary Education Trust Fund, which has been a major source of funding for infrastructure development in many public tertiary institutions.

The ASUU chairman also described the 2025 budgetary allocation to education as inadequate and below the expected 15 per cent to 20 percent internationally-advised benchmark.

Similarly, in October 2024, President Bola Tinubu asked the National Assembly to consider and pass four tax reform bills. The bills include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. A part of the tax administration bill proposes eliminating the education tax, to be replaced by a “development levy.”

“This would effectively disrupt the revenue stream of the Tertiary Education Trust Fund (TETFund), an agency set up as a product of the ingenuity and struggles of ASUU, that has been the major source of funding for infrastructure development in many public tertiary institutions over the last decade. Since its establishment in 2011, TETFund has monitored the disbursement of education tax to public tertiary institutions in Nigeria.

“However, with this new bill, only 50 per cent of the monies accruing to the levy would go to TETFund in 2025 and 2026. TETFund’s share will be upped to 66 per cent in 2027, 2028, and 2029. Then, the agency would cease to get any revenue from 2030. From 2030, the development levy will be solely meant to fund the federal government’s student loan scheme. What this means is that the agency that funds infrastructural development in Nigerian tertiary institutions is under the threat of extinction by 2030. This misbegotten policy will have huge and adverse implications for the university system in Nigeria.

“This is, no doubt, an attempt to destroy the major source of infrastructural funding for already struggling public tertiary institutions. It is also an attempt to commodify university education in Nigeria.

“Recently, the president presented the 2025 proposed budget of N47.90 trillion before the 10th National Assembly, out of which N3.52 trillion was earmarked for the education sector. This is roughly 7% of the total budget, which falls far below the benchmark of 15%-20% educational budget for underdeveloped countries like Nigeria, specified by both UNESCO and the United Nations Fund for Population Activities (UNFPA), which has been advocated by our Union,” Akinwole said.

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