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Fuel Scarcity: Marketers Finally Hike Petrol Price To N170-N190/litre

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Premium Motor Spirit popularly known as petrol will now be sold between N170/litre and N190/litre in filling stations across the country, following what is believed to be a subtle agreement between Federal Government officials and oil marketers.

Findings on Sunday revealed that the development was the outcome of a meeting between the Nigerian Midstream and Downstream Petroleum Regulatory Authority and oil marketers on Thursday.

Sources privy to the meeting said it was agreed that the pump price of petrol should be increased by N10 per litre.

A market survey on Sunday revealed that price display boards at some petrol stations in Lagos reflected new prices starting between N170 per litre and N175 per litre.

However, some other filling stations sold above these prices, with some selling as high as N185/litre.

Oil marketers denied holding a meeting with the NMDPRA on the subject matter but sources close to the matter confirmed to our correspondent that the meeting actually held.

The officials said the NMDPRA agreed marketers could increase their pump price to N165-N175/litre for filling stations inside towns, and a maximum of N190/litre for those on the outskirts.

“The meeting was held and everybody was told to keep mum. A band of N165-N175/litre was approved for the filling stations inside towns, while N189 was approved for those outside towns,” our source said.

The NMDPRA could not verify this claim as of press time on Sunday.

The spokesman for the NMDPRA, Kimchi Apollo, did not respond to several calls made to his telephone line.

However, marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria confirmed the fuel pump price hike to our correspondent.

The National Operations Controller, IPMAN, Mike Osatuyi, explained the reasons behind the fuel pump price hike.

Osatuyi, who also denied that a meeting held between oil marketers and the Federal Government on Thursday, however, disclosed that there was a fresh increase, describing it as a “market fundamentally determined price.”

“Petrol now sells between N175-N180 per litre depending on the area, ‘’ he said.

“Petrol is now available and as you can see, the queues in Lagos and Abuja have disappeared. We are businessmen and it’s impossible for us to run at a loss. Marketers are allowed to sell at a minimum price of N170 and a maximum of N180. There’s something we call market fundamentals; this is what came into play here. This is because it is impossible to bring the product into your station at N170 and sell at N165,” he added.

When asked if there was a circular from the NMDPRA to the effect, he responded “no”, adding, “there was no meeting but what you saw was simply an increase due to market forces.”

Explaining further, he said the Pipelines and Product Marketing Company’s price template, which has the current official price of N165/litre, was arrived at about 12 ago.

“The template is 12 years old when the dollar was still N175 and diesel was sold at N200/litre. Now, diesel is around N850. Even major oil marketers have changed their price boards to reflect the new band. It’s no more hidden. It is better for fuel to be available at N180 or N185 than buying at N250 from black marketeers. Now, no more boys going around with jerry cans, you can drive in and buy with ease”, he said.

Meanwhile, findings showed on Sunday that fuel queues at petrol stations in Lagos and Abuja, which had lingered since February, suddenly disappeared over the weekend following the latest development.

Meanwhile, economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said that the current price is not sustainable.

According to him, the government is in the best position to control the prices of petrol if it cannot control diesel prices.

He said, “Already, National Bureau of Statistics reports make us understand that except for Lagos, Abuja and other big cities, petrol prices are already above N165/litre. That is the market reality, except the government doesn’t want private entities to get involved in the market because these guys are there to do business and not to run at a loss. These marketers share their figures with everybody. Most of these guys are based in Lagos and they transport their products in trucks that run on diesel. Can the government control the prices of diesel? If they can’t then, they should hand off regulating prices. They should first resolve the surging diesel prices and challenges at the depots before pouncing on marketers. Otherwise, their businesses will close down, and black marketers will take over the business – that’s when we will see more adulterated products capable of burning down houses and cars,” he said.

Also, a former Chairman of the Major Oil Marketers of Nigeria, Tunji Oyebanji, declined to comment on the new price but noted that the Federal Government’s price template was old and needed to be updated.

He said, “Nobody had any meeting with the NMDPRA. The only thing we have continued to say is that N165/litre is not sustainable because the template with which that price was arrived at made all the elements therein fixed and unchanged. Elements such as coastal, NPA, NIMASA jetty throughput, storage, and financing, which were used to arrive at the ex-depot price were all based on the old dollar and old diesel prices.

“All the items on the template have currently gone up because of the exchange rate which impacted our operating costs due to the high cost of diesel. As of the time when the template was done, diesel was N130/litre, now it is N800 which allows for an operating cost of N4.00. That is why N165/litre cannot work. Nobody is saying price should be this or that, but that government should come to our aid.”

According to him, if the price is not increased, marketers will soon go out of business.

Also reacting, a former Group Chairman/Chief Executive Officer, International Energy Services Limited, Dr Diran Fawibe, said, “The whole process is not transparent. If we had allowed market forces to determine prices, we wouldn’t be in the dilemma that we are currently in. Everybody is just throwing up figures and at the end of the day; it’s the consumers that will pay for it.  But as long as the government keeps giving subsidies, marketers will expect subsidies to keep increasing, and until we start to refine products in-country, the whole business will not just be murky but will soon turn into a monkey business.”

Credit: The Punch

BIG STORY

Minimum Wage: Labour, States Hold Last-Minute Talks Ahead Monday Strike

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The remaining states yet to implement the “N70,000” minimum wage for workers are making last-minute efforts to prevent the Nigeria Labour Congress from going on strike on Monday, December 1.

The states yet to approve the monthly wage are Katsina, Cross River, and Zamfara, after the Imo State Government authorized the implementation of the “N70,000” wage on Tuesday.

This means 33 states and the Federal Capital Territory have now complied with the 2024 National Minimum Wage Act.

Several states have agreed to pay above the “N70,000” starting point, with Lagos and Rivers offering the highest pay at “N85,000.”

Lagos also announced that its workers could expect up to “N100,000” monthly starting from the first quarter of 2025.

Workers in Akwa Ibom, Enugu, Oyo, and Niger will earn “N80,000,” while Delta and Ogun states approved “N77,000.”

Ebonyi, Osun, Benue and Kebbi states approved N75,000; Ondo, N73,000; Kogi and Kaduna, N72,000; Kano and Gombe, N71,000.

Abia, Adamawa, Anambra, Jigawa, Borno, Edo, Kwara, Nasarawa, Taraba, Ekiti, Bauchi, Yobe, Imo and Plateau states, as well as the Federal Capital Territory, all settled for N70,000.

But despite the NLC’s warnings, trio Katsina, Zamfara and Cross River have yet to implement the new wage, which could lead to a shutdown of activities in the affected states from Monday.

On Monday, labour unions in Cross River, who are demanding a new wage of N70,000 from the state government, directed state civil servants to embark on a two-day warning strike over the non-implementation of the new minimum wage.

The warning strike was signed by the Nigerian Labour Congress and the Trade Union Congress.

This followed a staged walkout from a scheduled meeting held on November 18 with state government officials, who formed members of the wage implementation committee at the office of the state’s Head of Service, Innocent Eteng, in Calabar, the state capital.

According to the labour leaders, last week, when the committee sat for the first time, the meeting ended in a stalemate when they perceived delayed tactics by the government to postpone the meeting to January.

The state’s civil servants said they were utterly disappointed when Governor Bassey Otu announced a new minimum wage of N40,000 on May 1, during the International Workers Day celebration at the U.J Essueine Stadium in Calabar.

Otu said that due to the state’s lean resources, caused by the statutory federal allocation aggravated by the unfavourable state Gross Domestic Product, the new minimum wage of N40,000 would be in line with realities rather than sentiments.

While giving instances of Edo, Lagos, Rivers and other governors, the workers said they were of high hope before the unexpected announcement of N40,000.

The strike action, which was signed by the Nigerian Labour Congress and the Trade Union Congress, was set to commence from November 24 midnight to 26, 2024.

  • ‘No Going Back’

The Cross River State Chairman, Nigeria Labour Congress, Gregory Ulayi, toild said that the union would embark on an indefinite strike if the state government failed to implement the new minimum wage for the workers.

He noted that the two-day warning strike was embarked upon by workers in the state between Monday and Tuesday, which he described as a call to action to the government.

Ulayi said that after the two-day warning strike, all workers were mandated to return to work as they waited to hear from the state government.

“If the government does not negotiate and do the needful, we will embark on a total strike because it is a directive across the country,” Ulayi said.

However, the Chief Press Secretary to Governor Otu, Nsa Gill, said that the state government had set up a committee to negotiate with the labour leaders, as part of last-ditch efforts to prevent the looming strike on Monday.

He said that despite the nationwide deadline for the implementation of the minimum wage, the Otu-led government was working to ensure payment of a minimum wage of N70,000 or even above.

“The state government has a negotiating team and they are at work. Though, they are yet to reach an agreement as at today (Thursday). The government is ready to pay the N70,000 new minimum wage, if not beyond,” he stated.

“We recognise the fact that there is a national deadline from the labour union, which is slated for December 1, 2024, for all the states to pay the new minimum wage.

“We are trying to see how to build a stronger economic foundation that can make us pay a living wage to our civil servants. Until the team finishes the negotiation, the amount will not be announced. Right now, they are still on the negotiation table for an amicable resolution.”

Katsina State is also likely to face labour’s wrath after its failure to implement the compulsory new wage bill for the state workers.

Multiple sources in the NLC secretariat in Katsina, the state capital, on Thursday, said that the state was yet to approve the payment.

Earlier report had it that the Katsina State Government inaugurated a 15-member committee to guide the implementation of a new minimum wage of N70,000.

Deputy Governor Faruk Lawal, while inaugurating the committee, said the government was aware of the hardship being faced by civil servants in the state.

“You are all aware that His Excellency, the Governor, Mallam Dikko Umar Radda, has set up a committee to implement the N70,000 minimum wage consequential adjustment to all categories of workers in the state.

“This includes the state civil servants, the Local Government employees and other categories of workers. The government is aware of the hardship being encountered by the civil servants,” he stated.

Led by Secretary to the State Government, Abdullahi Faskari, the committee was given three weeks to present strategies and recommendations, including the consequential adjustments for all categories of workers.

The committee includes prominent state officials such as the Head of Civil Service, Falalu Bawale; the state Commissioners for Finance, Budget and Economic Planning, and Local Government and Chieftaincy Affairs.

Others are the Special Adviser to the Governor on Labor Matters; as well as representatives from the Nigeria Labour Congress and the Trade Union Congress, among others.

However, the latest reports suggest the committee has not been able to approve the wage.

“Katsina State is yet to implement the new minimum wage though the state has set up a committee in that regard,” a top NLC official, who spoke on condition of anonymity said.

“Negotiation between the labour unions and the government committee members are still ongoing. Anything can happen between now and in four days to come (as at Thursday), which is the December 1 deadline.”

Meanwhile, the Zamfara state Government says it has concluded arrangements for the implementation of the new minimum wage adding that it had been talking with the labour leaders in the state.

Speaking (to The Punch), the Senior Special Assistant to Governor Dauda Lawal on Media and Communications, Mustafa Jafaru Kaura, said the state government would implement the new wage as soon as possible.

He said, “The state government has already set up a committee to work out modalities for the implementation of the new minimum wage of N70,000.”

He stated that the state government wanted to know the exact number of its civil servants and the amount involved before settling the new wage.

Kaura added, “The committee has gone far in its assignment and I am telling you that as soon as the committee finishes its assignment, Governor Lawal will surely implement the new wage.”

Kaura stated that members of the committee included labour leaders and other stakeholders who were given the responsibility to work out the modalities on how best to implement the new wage.

He stressed that the state government would never fail the civil servants, adding that “Governor Dauda Lawal is one of the civil servants’ friendly governors in the country.”

“Zamfara workers will never be left out in terms of the new minimum wage,” he added.

“I want you to remember that when he assumed office as the Governor of the state, he met the state’s civil servants collecting N18,000 as minimum wage.”

“He quickly directed the state’s ministry of finance to start implementing the N30,000 minimum wage which was done.’’

“So, I am assuring you that, the Governor will soon implement the new minimum wage for N70,000,” Kaura said.

Earlier in November, Governor Lawal reiterated his government’s resolve to pay the minimum wage after working out all necessary modalities.

He said, “We have to know what comes in, the number of our workforce, and what we will pay as minimum wage,” adding, “The welfare of my workforce has been my priority since I assumed office.”

“When we came on board, for four months workers of the state had not been paid their salaries, and the first thing I did was to pay the workers.

“Today, as from the 25th of every month, I make sure that workers are paid. So, in other words, I spend about N5bn on wages every month. I paid my workers. I improved the salaries of local government staff as well as paid pensioners.

“So every month, I boost the state’s economy. If you go around, you will see how small traders are making brisk business from the goods they display in markets and streets.”

Commenting on the backlog of pension arrears he inherited from previous administrations, he said that out of the N13bn pension liabilities, he was able to settle over N11bn.

 

Credit: The Punch

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UBA Group To Commence Full Banking Operations In France

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As part of President Bola Ahmed Tinubu’s state visit to France, the Chairman of UBA Group, Tony Elumelu in the presence of President Tinubu and the President of France, Emmanuel Macron, signed a landmark business cooperation agreement with the French Finance Minister, Antoine Armand.

The agreement is a significant indication of support by the French Government for the development of UBA’s full banking operations in France.

Speaking at the signing ceremony, Tony Elumelu, the Chairman of UBA Group commented:
”This partnership reinforces our commitment to seamless international banking services for our customers, not just across the 11 Francophone African countries we serve, but Africa as a whole; and French and European customers transacting with Africa.

Expanding into France is a natural progression, with Paris serving as our European Union hub, as we continue to bring Africa and the world together, through innovative financial solutions. Paris will join London, New York and Dubai, as a critical component of our unique global network.”

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally.

Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.

 

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BIG STORY

RAPE: Appeal Court Decides Convicted Doctor Olufemi’s Appeal Today

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The Lagos Division of the Court of Appeal is set to rule on the appeal filed by Dr. Olufemi Olaleye, the Medical Director of Optimal Cancer Care Foundation, who was convicted of “rape.”

Olaleye allegedly “raped” his wife’s teenage niece and was sentenced to life imprisonment.

He was convicted in October 2023 by Justice Rahman Oshodi of the Lagos State Sexual Offences and Domestic Violence Court. The judge found the case presented by the prosecution “compelling.”

However, Olaleye’s lawyer, Kemi Pinheiro (SAN), filed an appeal in November 2023, arguing that there was no direct evidence to confirm the alleged victim’s age.

Pinheiro added that the prosecution failed to provide documentation to support its claim that she was 16 years old as of the time of the offence.

The defence also contended that the alleged victim’s testimony was “inconsistent,” noting that she did not initially accuse Olaleye of “rape” when making her statement to the police.

In response, the prosecution maintained that it had established the offences of “defilement” and “sexual assault by penetration” beyond a reasonable doubt, which justified the conviction.

The appellate panel, comprising Justice Olukayode Bada, Justice Mohammad Sirajo, and Justice Folasade Ojo, has reserved its judgment after listening to arguments from both sides.

The ruling is expected to be delivered today, Friday, November 29.

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