The Nigerian National Petroleum Company Limited (NNPCL), on Monday said that the Nigerian government has not resumed payment of subsidy on petrol.
The NNPCL group chief executive officer, Mele Kyari, disclosed this to State House correspondents after a meeting with President Bola Tinubu at the Presidential Villa, Abuja, on Monday.
“No subsidy whatsoever. We are recovering our full cost from the products that we import. We sell to the market and we understand why the marketers are unable to import,” Mr Kyari said.
“We hope that they do it very quickly and these are some of the interventions the government is doing. There is no subsidy.”
Recall that President Tinubu announced the removal of fuel subsidy in his inaugural speech on 29 May.
Following the announcement, the NNPCL directed its outlets nationwide to sell fuel between N480 and N570 per litre, an almost 200 per cent increase from the initial price below N200, leading to a significant increase in transportation fares and prices of goods and services.
Again in July, petrol pump prices rose to N617 per litre at various outlets of the NNPCL in Abuja and other parts of the country.
At the time, the NNPCL attributed the rise in the petroleum pump prices in the country to ‘market forces’.
Mr Kyari noted that with the deregulation of the oil sector, market realities would force the price of petrol up sometimes and at other times force it down.
In August, Mr Tinubu assured Nigerians that there would be no further increase in the pump price of petrol, despite the deregulation of the product.
The Special Adviser to the President on Media and Publicity, Ajuri Ngelale, disclosed this while briefing journalists in Abuja after a closed-door meeting with the president.
“The president wishes to assure Nigerians, following the announcements by the Nigerian National Petroleum Company Limited (NNPC) just yesterday, that there will be no increase in the pump price of petroleum motor spirit anywhere in the country,” the spokesperson said.
“We repeat, the president affirms that there will be no increase in the pump price of petroleum motor spirit.”
Mr Tinubu also acknowledged that there are inefficiencies within the downstream sector that are contributing to the fuel price controversy. He assured that all loopholes associated with the smooth delivery of petroleum products in the country will be addressed immediately.
Last Friday, the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, said the Nigerian government had restored the subsidy on petrol, despite the official government policy of ending the subsidy regime.
Mr Osifo, who is also the president of the Trade Union Congress (TUC), one of Nigeria’s two largest workers union coalitions, while featuring on a Channels Television programme, Politics Today, said due to the cost of crude oil in the international market and the exchange rate, the government still pays subsidies on petrol.
“The government has to come clean. In reality today, there is subsidy because as of when the earlier price was determined, the price of crude in the international market was somewhere around less than $80 to a barrel. But today, it has moved to about $93/94 per barrel for Brent crude. So, because it has moved, then the price (of petrol) also needed to move,” Mr Osifo said.
Speaking on Monday Mr Kyari explained that the government was recovering its full costs from the imported products.
He explained that the occasional queues and lower fuel prices observed in some states were not indicative of a return to the fuel subsidy regime, noting that the full deregulation of the sector had led to competition among marketers, resulting in reduced fuel prices at some stations.
“We have seen in very few states pockets of very low queues. Not unconnected with the road situation that we’re seeing the number of blockades on our road crossing products from the southern depots into the northern part of the country and it takes them a much longer time than they do now.
“They have to reroute the trucks around many, many locations for them to be able to reach and that created delays and some supply gaps. But that has been filled and we do not see any of such problems again. And secondly, because of the full deregulation that we have in this sector, marketers are now competing amongst themselves,” Mr Kyari said.
He argued that some fuel stations will reduce prices “by two Naira and three Naira so customers will naturally run to the places where you have that reduction in prices” and that creates panic because those who don’t know why they are doing it will think that there’s something wrong happening, or there’s an ominous sign of scarcity.
“Otherwise, there is no challenge. Supply is robust. We have over 1.4 billion litres of product in our hands both marine and land. Also, there are no issues around the delivery of those products into the land. So there is no fear, nothing to bother about,” he said.
“But we are also happy that the market forces are now playing out and marketers are competing and of course, there are a few issues we’re engaging them to resolve alongside other agencies of government and critical issues around access to foreign exchange.”
Mr Kyari explained further that the government is doing so much to ensure the supply of FX into the market.
“We know that this FX market will stabilize and the current I&E window is around 770. And we know that with those inputs that are already happening, the inputs of the government today will crystallize and also they will come to an equilibrium position in the FX market and this is a dream of this country.
“So they will have a stable FX market, a stable product market where the prices of products will also speak to prices of other commodities. And this is already manifesting and we think this is the economic revolution that this country needs,” he said.
The NNPCL had last Friday said it has no intention to increase the pump price of petroleum.
The NNPCL made this known in reaction to speculations in the public domain about the company’s plan to raise the petrol pump price from the current N617 per litre to above N700.
“Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our PMS pump prices as widely speculated.
“Please buy the best quality products at the most affordable prices at our NNPC Retail Stations nationwide,” the oil company said.
Ademola Adeleke, governor of Osun, is seeking to pardon Segun Olowookere, who was sentenced to death by hanging for allegedly stealing a fowl and eggs in 2010.
In an interview with Biola Adebayo, a Nigerian actress, the parents of the victim claimed that police officers from the Osun command arrested Olowookere for an offence he did not commit.
Olowookere Olanrewaju, the man’s father, said a divisional police officer (DPO) asked him to pay N30,000 for his son’s release, but N20,000 was all he could raise at the time.
“We are here to beg Nigerians to help us. In 2010, I was at the shop where I was renting out cassettes, and at about 11am, some police officers came around,” he said.
“We later found out some students from Segun’s school were in their vehicle and they said they were arrested because of the theft of a chicken and eggs.
“Truth be told, Segun does not eat chicken. Because I trained broilers. He refused to run away, telling us that he didn’t know anything about the theft of the chicken.
“They came back around 9pm in the night and he was eventually arrested. It was when I visited the station that I knew who owned the chicken and eggs. He was just like a brother to me.
“I was told by the DPO in charge to bring N30,000 so my son could be released but after running around, all I could raise was N20,000 which he refused to collect.”
Folashade Olowookere, mother of the victim, said her son, who was 17 at the time of his arrest, has now spent over 14 years in prison since he was sentenced.
In a statement on Wednesday, Adeleke directed the attorney-general and commissioner for justice in Osun to commence a full probe into the matter.
“I have received the report of a case of a young man reportedly sentenced to death by hanging in Osun State for stealing a fowl,” the statement reads.
“Consequently, I have directed the Attorney-General and Commissioner for Justice, Osun State to commence full investigation into the matter and initiate processes to grant the prerogative of mercy to the young man.
“Osun is a land of justice and equity and must ensure fairness and protection of the sanctity of lives.
“I assure members of the public that this matter is receiving my direct attention with every sense of urgency also attached to our response to the matter.”
Two students of the Ladoke Akintola University of Technology (LAUTECH) in Ogbomoso, Oyo State, Adekunle Ayomide and Oladeji Oluwashina, have won the 2024 National Orientation Agency (NOA) campus debate competition.
The competition, organized by the NOA, featured two university representatives from each of the six geopolitical zones, debating the topic “Criticising and dissenting peacefully while maintaining love for one’s country.”
The LAUTECH representatives emerged victorious in the debate, receiving a prize of N20 million.
The students were also awarded an additional N1 million from the Nigerian Education Loan Fund (NELFund).
Ahmadu Bello University in Zaria and the University of Ilorin were the first and second runner-ups, winning N750,000 and N500,000, respectively.
Ignatius Ajuru University of Education in Port Harcourt, Gombe State Polytechnic in Bajoga, and the Institute of Management and Technology in Enugu secured the fourth, fifth, and sixth positions, respectively.
Speaking during the event on Tuesday, Lanre Issa-Onilu, the NOA director-general, stated that the debate aims to engage the youth in governance matters.
Issa-Onilu emphasized that while criticism is essential for nation-building and democracy, it must be constructive to ensure peace and development.
He congratulated the participants for their thoughtful strategies in engaging with the government constructively.
“Constructive criticism is not rebellion; it is a cornerstone of democracy and a vital tool for nation-building,” Issa-Onilu said.
“Patriotism is not silence. Loving your country does not mean turning a blind eye to its shortcomings. It means recognizing those shortcomings, speaking up against them constructively, and working together to find solutions.”
Akintunde Sawyerr, managing director of NELFund, reaffirmed the agency’s commitment to ensuring that Nigerian students have access to quality tertiary education through its education loans.
The Lagos Chamber of Commerce and Industry (LCCI) says Nigerian businesses may likely face greater challenges in the new year, urging them to prepare for “more stress.”
In a statement on Monday, Chinyere Almona, LCCI’s director-general, said businesses are likely to face higher interest rates when the next Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting holds.
“The persistent rise in the inflation rate, reaching a 28-year record high of 34.60 in November, continues to fuel a tense business environment as elevated prices constrain various business operations,” Almona said.
“The Lagos Chamber of Commerce and Industry (LCCI) is particularly concerned because, with the persistent and unabated rise in inflation, businesses should prepare for more stress from the burden of higher interest rates as we enter the new year.”
“With the raging inflation rate, the unsuccessful attempt of the Central Bank to reduce the currency in circulation, and approaching a high-spending festive period, we are set to contend with even higher interest rates as the expected outcome from the next decisions by the CBN Monetary Policy Committee (MPC).”
Almona explained that a high inflation rate has significant implications, including reduced consumer spending.
She said it negatively impacts the economy by reducing disposable income, increasing business costs, and discouraging investments, ultimately threatening economic growth.
‘FOREIGN DIRECT INVESTMENT IN NIGERIA DROPPED TO $103.82M IN Q3 2024’
According to the statement, foreign direct investments (FDIs) in Nigeria dropped to $103.82 million in Q3 2024, making the country less attractive to investors.
Almona said interest rates have had limited success in curbing inflation, but reforms aimed at boosting production have shown some promise.
She expressed hope that the reforms would eventually have a stronger impact on key indicators such as inflation, interest rates, and exchange rates.
The director-general said a coordinated effort is required to drive oil production to earn more forex, which is needed to defend the naira in the short term.
“The new investments recently entering the oil fields can be well supported with a sound regulatory environment to sustain and attract more,” she said.
“A disappointing negative record of our capital importation at $1.25bn during the third quarter of 2024 compared with $2.60bn recorded in the preceding second quarter of the year points to an unattractive environment for investors.”
“Foreign Direct Investment, the most critical investment that shows long-term investor confidence, accounted for only $103.82m, or 8.29 percent.”
Almona added that the fight against terrorism and crime must be sustained to ensure the safety of farmlands.
She noted that the rising costs of food, energy, housing, transportation, and services are driving inflation, worsening economic conditions, and reducing both purchasing power and business profitability.
However, Almona stated that the LCCI believes ongoing reforms have the potential to deliver significant benefits, enabling the economy to return to a growth path and achieve positive outcomes for critical economic indicators, provided they are sustained.
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