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Fuel Scarcity Bites Harder, Marketers Blame NNPCL

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•IPMAN to sell petrol at N270/litre as supply gap widens, lingers

•NNPC GMD defends subsidy, oil production now 1.52mbpd

As the petrol scarcity across the country continues to linger, oil marketers have accused the Nigerian National Petroleum Company Limited of politicising the supply process and making vain promises.

The oil marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria claimed they had gotten fuel, despite the assurances from the Managing Director of the NNPCL Retail, Hubb Stocksman, in December that they would receive direct product supply at the government-regulated price of N148/litre from this month.

“We have yet to see any product supply. Well, the man (Stockman) has been in Nigeria for some time now and is probably beating us to our game. He’s playing politics and we don’t see the situation abating soonest,” the Chairman of Satellite Depot, IPMAN, Akin Akinrinade said.

The IPMAN official said this as fuel queues worsened on Wednesday.

Akinrinade added that marketers as of last Friday bought products from the depots at between N235-N240 per litre, saying there was no way they would sell products below N270/litre even within the Lagos metropolis.

On what could be the lasting solution to fuel scarcity, he advised the Federal Government to revive the refineries to enable local production.

“The lasting solution is for the refineries to start functioning and we begin local refining,” he said.

Also speaking, the National Operations Controller of IPMAN, Mike Osatuyi, told The PUNCH that the removal of fuel subsidy and deregulation was the key to resolving the fuel scarcity menace.

“The permanent solution is to deregulate and remove subsidies. Allow the market to be a free market, where marketers other than the NNPC will be able to bring in products. Since the government said the subsidy would be removed in June, let’s wait and see, but until then, we have to manage,” he told The PUNCH over the phone.

Oil marketers

The Chairman of the Major Oil Marketers Association of Nigeria, Olumide Adeosun, also said the deregulation of the downstream sector would eradicate fuel scarcity.

“Having subsidised PMS for so long, Nigerian institutions now have a diminished capacity to deal with the current local energy crisis. A disruption in any part of the supply chain causes ripple effects and results in queues at stations. As a country, we must begin the process of price deregulation to reduce this inefficient subsidy,” he said.

According to him, if the country wishes to implement a subsidy, it must be in areas targeted to help those it should help such as in agriculture and transportation to reduce food inflation and generate more jobs for Nigerians.

He said, “We must find a way to liberalise supply. We must bring transparency and competition into supply to ensure steadier, more efficient supply at optimum prices. Imported products must compete with locally refined products to find a meeting point between the need for local refining and competitively low but cost-recovered prices for Nigerians for sustainability.

“The exploration, production, refining of crude oil and the distribution of refined products is an international business with ebbs and flows and has specific models, guidelines, rules, and norms designed to protect and sustain consumers of this type of energy and populations impacted by its supply chain. The government and the industry in Nigeria must demonstrably apply this accepted health, safety, environmental protection, and quality norms to be seen to care for its local populations. To cut corners would be irresponsible, unaccountable, and unsustainable.”

Long fuel queues were still seen across Lagos on Wednesday. Some motorists were seen queuing up for N170 per litre of fuel at stations belonging to MOMAN members, but stations belonging to IPMAN members rarely had customers, as those who could afford products sold for N250/litre and above, were seen freely driving in and out of their (IPMAN) stations.

Findings showed that while MOMAN members get fuel directly from NNPCL at a government-deregulated price of N148/litre, IPMAN members patronise private depots where prices are determined by market indices.

The Executive Secretary for the Depot and Petroleum Products Marketers Association of Nigeria, Olufemi Adewole, had told The PUNCH that just like the NNPCL, its members were on a “recover all” regime, adding that its members faced high costs of renting vessels, illegal fees, lack of forex at Central Bank of Nigeria’s official rate among others, as reasons behind increasing prices of products.

The spokesperson for NNPCL, Garba Deen, could not be reached on his official line for his comment on the lingering fuel crises.

NNPC defends subsidy

Meanwhile, the Group Chief Executive Officer of the Nigerian National Petroleum Company, Mele Kyari, on Wednesday said the oil firm was comfortable with the policy of the Federal Government on the subsidy of Premium Motor Spirit, popularly called petrol, despite the trillions of naira being spent subsidising the commodity.

He also announced that Nigeria’s crude oil and condensates production climbed to as high as 1.52 million barrels per day towards the end of December 2022.

 

Credit: The Punch

BIG STORY

Enugu LGA Chairman Appoints Aides On Garden Egg, Pepper, Yam

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Eric Odo, chairman of Igbo Etiti LGA in Enugu state, has appointed Ezeugwu Ogbonna as senior special assistant on agriculture (yam and pepper).

The appointment was formalized in a letter dated November 1, addressed to Ogbonna.

“I am pleased to inform you that the executive chairman Igbo Etiti LGA has approved your appointment as senior special assistant to the local government chairman on agriculture (yam and pepper),” the letter states.

“You should report to the executive chairman Igbo Etiti LGA, Ogbede, for briefing and deployment,” it continues.

“It is pertinent to note that this is not a career civil service appointment but a temporary appointment which you hold at the pleasure of the executive chairman of Igbo Etiti LGA,” the letter further clarifies.

Odo also appointed Nwodo Ugonna as special adviser on garden egg and pepper.

The council chairman did not specify the exact duties of the appointees.

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NNPCL Admits Challenges Delaying Port Harcourt Refinery Take-Off

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Barely two months after the September completion deadline flop, the Nigerian National Petroleum Commission (NNPC) has explained why it could not deliver the much-awaited Port Harcourt Refinery Company.

In an interview (with The Punch) on Monday, the NNPC Chief Corporate Communications Officer, Olufemi Soneye, said the company encountered risks and challenges while carrying out the rehabilitation, being a brownfield project.

He noted that the NNPC began the commissioning of critical equipment and processing units after the mechanical completion in Nigeria.

“You may recall that mechanical completion of the PHRC revamp was successfully achieved several months ago, marking a significant milestone in the project. Following this, we began the commissioning of critical equipment and process units.”

“However, as is common with brownfield projects of this scale and complexity, we encountered unforeseen risks and challenges,” he stated.

Nonetheless, he told (The Punch) that the issues were resolved and commissioning activities have resumed.

Soneye stressed that work is being carried out to ensure the project’s completion.

“These issues have since been effectively resolved, and commissioning activities have resumed.”

“Work is being carried out around the clock to ensure the successful completion of this critical project,” he told our correspondent.

Asked if there is any timeline for the completion of the project, he replied, “Shortly.”

It was observed that the NNPC desisted from giving new deadlines for the delivery of the refinery, having failed to meet its deadlines seven times.

The moribund Port Harcourt refinery is one of three owned by the Federal Government and managed by the NNPC.

Nigerians have been hopeful that the cost of fuel could crash if the country refines its crude and ends the import of refined products.

The NNPC said last week that it would continue to import fuel, saying it was not the sole off-taker of petrol at the Dangote refinery.

The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years.

In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery, but the contractor handling the project has yet to announce its completion.

It was gathered that promises made to Nigerians by the Federal Ministry of Petroleum Resources and the NNPC about the refinery have continued to hit brick walls.

After the failure of the sixth deadline in early August, the then Chief Financial Officer of the NNPC, Umar Ajiya, said the refinery would commence operations in September 2024.

However, September ended without a word from the NNPC about the refinery, and Nigerians have been left in the dark since almost two months ago.

Recall that the contractor overseeing the rehabilitation of the Port Harcourt refinery, Maire Tecnimont SPA, refused to disclose the completion date for the project, despite a formal request from a human rights lawyer, Femi Falana.

Apparently baffled by the delay in the completion of the project, Falana had filed an official request under the Freedom of Information Act, seeking clarity on the date set aside for the project completion.

In response, Maire Tecnimont’s legal representative, Muyiwa Ogungbenro, a partner at Olajide Oyewole LLP, sent a letter to Falana in early October, declining to reveal the information.

Ogungbenro stated that the Managing Director of Maire Tecnimont SPA, as part of an independent private contractor, is not obligated to disclose such information under the FOI Act.

“We are counsel to Maire Tecnimont SpA, and we have our client’s instruction to respond to your letters dated 17 and 24 September 2024 requesting information on the contract between our client and Nigerian National Petroleum Company Ltd.

“Our client is a private company. Being a private independent contractor, our client is not a company in which any government has a controlling interest, and does not provide public services, functions or utilise public funds for them to be bound by the obligations in the Freedom of Information Act.

“On this ground, our client regrettably cannot provide the information you have requested,” Ogungbenro declared.

Since then, information about the refinery has been kept from the public, whose hope for cheaper petrol lies in the facility.

From December 2023, NNPC had been giving Nigerians different dates, assuring them that the refinery would begin the sale of refined products soon, having attained mechanical completion.

In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated categorically that the refinery would come into operation in early August. He had said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former President Muhammadu Buhari’s administration last year.

When he appeared before the Senate in July, Kyari boasted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.

“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna; but that of Port Harcourt will commence production early August this year.”

However, the promise was not fulfilled in August which was the sixth postponement.

Though the NNPC said it was on course, the refinery has yet to commence operations even as the fourth quarter of the year nears the end.

Recall that the 210,000 barrels per day refinery was said to have reached what the NNPC called mechanical completion of rehabilitation work in December. It stated that the facility would start refining 60,000 barrels of crude oil daily after last year’s Christmas break.

Later in January, Kyari said the refinery was being tested and would be ready by the end of the first month.

During the second month of the year, the Shell Petroleum Development Company of Nigeria Limited completed the supply of 475,000 barrels of crude oil to the facility, raising the expectations of marketers that production would soon start.

This came a few weeks after the NNPC said in January that it was seeking to engage reputable and credible operations and maintenance companies to run the refinery.

In mid-March, Kyari said the Port Harcourt refinery would commence operations in two weeks, April.

“We are serving this country with honour and dignity. And we will make sure that the promises we make on the rehabilitation of these refineries will take place,” Kyari stated after he appeared before the Senate Ad-hoc Committee investigating the various turnaround maintenance projects of the country’s refineries.

As the April deadline elapsed, independent petroleum marketers told (The Punch) that the facility would begin production by the end of July.

Commenting on this then, NNPC’s spokesman, Soneye, said that regulatory approvals from international bodies were the only impediment stalling the operational commencement of the refinery.

 

Credit: The Punch

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BIG STORY

I Was Tinubu’s Aide For Only Six Months, And I Worked For Free — Fela Durotoye

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Fela Durotoye, a Nigerian public speaker, says he worked in the administration of President Bola Tinubu for just six months without receiving a salary.

In October 2023, Tinubu appointed Durotoye as senior special assistant on national values and social justice.

Following Tinubu’s appointment of Daniel Bwala as special adviser on public communications and media, some Nigerians on social media criticised the president for appointing a plethora of media aides without considering the cost of governance.

In a 13-man list that went viral on social media, Durotoye was named as one of the media aides to the president.

In an opinion piece published on Monday, Durotoye clarified that his appointment as aide to the president ended in March 2024.

He added that throughout the six months of his appointment, he didn’t receive any salary, allowance, or upkeep as a government official.

“Like many other issues in the public discourse, social commentary often has the tendency to overgeneralise; and broad assumptions may sometimes lead to errors of misconceptions, misstatements and misinformation,” Durotoye said.

“One of such errors is in a recent case study that went viral on social media regarding the current media team of the president, where my name was listed as one of the president’s media aides. Unfortunately, this statement needs to be updated to accurately reflect the current media team of the president.”

“For clarity, I served briefly in the role of Senior Special Assistant to the President on National Values and Social Justice (SSA-NVSJ) for a tenure of six months, from October 2023 to March 2024.”

“When I was invited to serve in this administration, I expressed, as a condition for accepting the call, my desire to NOT receive a salary from the government, as I considered this to be my service to my nation.”

“When I finally accepted the role in October 2023, it was on the condition that I would not receive any salary or allowances. During my six-month tenure, I did not accept any government funds for my service, expenses, or upkeep.”

“I rented my apartment and took my personal car to Abuja. My utility cost, fuel cost and upkeep were all borne by me and I never requested a reimbursement from the government for any expenses I incurred. Everything I contributed—time, effort, and resources—was paid for by me and my family.”

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