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Fuel Sells At N250/Litre In Abuja, Others, Queues Spread Across More States

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Some filling stations in Lagos, Abuja, Niger, and other states have started selling Premium Motor Spirit (also knowns as Petrol) at between N200/litre to N250/litre on Sunday, higher than the government-approved retail price of N165/litre, as queues for the product extended to more states.

It was gathered that the worsening queues for petrol in Lagos and neighbouring states, as well as its prolonged persistence in Abuja and environs, were due to the insufficient supply of products by the Nigerian National Petroleum Company.

NNPC is the sole importer of petrol into Nigeria for several years running. It often claims to have enough products to keep the country wet for months. It, however, stayed mute on Sunday when contacted.

It was also gathered that some filling stations in Lagos sold petrol to motorists at N200/litre and still had queues, as black marketers dispensed the product at N300/litre.

In Abuja, the Khalif filling station in Kubwa, dispensed the commodity at N250/litre on Sunday but had N165/litre displayed on its pumps. But once a motorist tells the fuel attendant the amount he or she wishes to buy, this would be calculated based on N250/litre.

The queues for petrol in Abuja have never ceased since February this year, but it grew worse in neighbouring states of Nasarawa and Niger on Sunday as motorists search for PMS to move around during the Sallah break.

Oil marketers denied claims of product hoarding or diversion, as they stressed that the insufficient supply of PMS by NNPC and the non-payment of bridging claims for the transportation of petrol were the key reasons for the scarcity.

The President, Petroleum Products Retail Outlets owners Association of Nigeria, Billy Gillis-Harry, told our correspondent that filling stations that had products were dispensing, while those that were shut had no petrol to sell.

He said, “The problem is that every side needs to be transparent. We as retail outlet owners are ready to sell petroleum products to the teeming Nigerian public. We have no reason why we should not sell our products.

“The money used in buying the 45,000 litres of petrol from depots, almost N7m, is borrowed, and time-bound. So every retail outlet owner knows that the wise thing to do in this business is to sell out and try to turn around that sale as many times as possible.

“So with this scenario in view, there is no retail outlet owner that is hoarding product or diverting it. Yes, we know there may be bad eggs among the good bunch, but the fact that we are not having sufficient products is what has remained the cause of fuel scarcity.”

Gillis- Harry added, “In the case of Abuja, it is clear to understand that if the bridging claims are paid to marketers, they will be able to continue their products’ purchase cycle. That is just the reality. So payment of bridging claims is an issue and insufficient supply is also another issue.

“This is because if there is product and there is money for us to buy, then why won’t we buy and sell? What else are we in business for? Are we going to buy products and keep them? The answer is no! So this is the reality.”

On what could be the solution to the current crisis in the downstream oil sector, the PETROAN president stated that everything still boiled down to the need to end the current fuel subsidy regime.

He said, “There is a solution and it is simple. The subsidy that is being paid should be stopped. The money should be channeled to other developmental infrastructures such as health, education, etc.

“And since the refineries have not been fixed by the government, they should either give it wholly to private sector practitioners like PETROAN that own the retail outlets to manage.”

The NNPC stayed mum when asked to react to claims of insufficient supply of petrol by the national oil company. Its spokesperson, Garba-Deen Mohammad, did not answer calls and had yet to respond to a text message sent to him on the matter.

Fuel price hits N200/litre in Lagos, scarcity persists

Further checks show that some filling stations in Lagos and Ogun states sold fuel at N200/litre.

While many stations were under locks and keys despite a promise by the NNPC to keep the country wet, many among the few that had products were seen dispensing above N200/litre.

According to findings, the Federal Government and oil marketers are yet to come to a compromise on how much a litre of petrol should be sold, and marketers are beginning to sell products at prices not approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The continuous rise in prices comes on the heels of the recent threat to withdraw the licenses of marketers that sell above the official price of N165/litre issued by Chief Executive, NMDPRA, Farouk Ahmed.

Report has it that marketers met with Ahmed in Abuja last week, where he pleaded with them not to increase their pump price.

“The meeting was held with NMDPRA last week, and Mr. Farouk begged marketers not to increase the price. But the long queues you are seeing are due to inadequate supplies. Marketers have also gone ahead to increase prices unofficially due to high operational costs. There was no formal letter to the effect though. It was just a word of mouth agreement to increase price between N175-N180 per litre”, our source said.

He advised the government to issue a statement on the marginal increase in the pump price of petrol.

Executive Secretary of the Major Oil Marketers of Nigeria, MOMAN, Clement Isong, declined to comment on the causes of the rising petrol prices.

It was recently reported that oil marketers were currently pushing for compensation from the Federal Government if petrol would remain at N165 per litre.

Among other things, marketers are lamenting high operational costs due to rising diesel price which is currently being sold above N800/litre at depots. There are fears that diesel prices could hit N1500/litre if nothing is done to tame prices.

The National Operations Controller of Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, however, debunked allegations that NMDPRA and marketers secretly agreed to increase the price.

“That’s not true. There is no letter to that effect from NMDPRA,” he said.

However, when asked why the fuel price was rising, he said it was due to the hike in the price of diesel.

“Those stations you see that sell above N165 do so because they have to recover their costs,” he said.

On when the Federal Government would pay marketers the promised bridging claims, he said the payment process could stretch till July ending.

“Marketers are just submitting their claims and they will be verified first. So payment could be by the end of July,” he said.

Reacting to the continuous price face-off between the Federal Government and marketers, industry analyst and former Group Chairman/CEO, International Energy Services Limited, Dr. Diran Fawibe, said the issue of fuel supply appeared to have defied solutions.

“Everybody is throwing figures about costs and prices to sell and what not to sell. At the end of the day, it’s the consumers that will bear the brunt. What we have noticed is that prices vary from station to station, and from state to state, and obviously, that’s what the bridging payment by the Federal Government was supposed to address”, he said.

On his part, Chief Executive Officer, Centre for the Promotion of Private Enterprise, and former Director-General, Lagos Chamber of Commerce and Industry, said the current price was not sustainable.

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

Meanwhile, findings show that commercial buses have increased transport fares significantly, following the development.

According to residents from the Alagbole-Akute axis of Ogun State, transport fares have increased by 50 percent to 100 percent with bikes and buses becoming scarce. The residents blamed the situation on the fuel scarcity that has begun to manifest as long fuel queues and the reduction in the number of bikes plying the area as a result of the Sallah break.

One resident, who identified himself as Tayo Okediji, said, “Alagbole to Berger was between N200 and N300 today. There are more commuters on the roads because most of the bike operators are observing the Sallah break, and the few available ones have hiked the price. According to them, there is no fuel.”

BIG STORY

Much Ado About Meddlesome Minions, And Messengers Of Misinformation — By Tayo Williams

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There is a growing phalanx of pseudo-intellectuals parading the social media space with faux and fictitious knowledge of the indigenous oil and gas industry, and it is scary because of the grave danger they portend and present for the average Nigerian.

From X (formerly known as Twitter) to Facebook and even the photos and videos-sharing site, Instagram, they abound, in their inglorious number, lending their platforms to deliberately distort facts and spread misinformation especially to favour the narratives propounded by popular Nigerian businessman Aliko Dangote, owner of the Dangote Petroleum Refinery.

Since the refinery began operations earlier in the year, it has been one week, one controversy allegedly orchestrated by Dangote in a brazen attempt to arm-twist the Nigerian National Petroleum Corporation Limited, NNPCL, into playing by his rules.

Those conversant with the modus operandi of Dangote and his refinery say the long-drawn warfare with every institution and individual in the oil and gas value chain is nothing but a self-seeking and mindless profit maximisation tactic.

Whilst nobody begrudges Dangote’s drive for profit as a businessman, perhaps he needs to be reminded that the NNPC has a mandate to ensure and provide energy security in a way that is affordable and sustainable for the generality of Nigerians. And, the NNPCL management has declared in very unambiguous terms that it would not pander to the din of the market whether orchestrated by Dangote, his rampaging minions or anyone else.

The truth, however, is that there is an increasing army of vacuous, vicious, and vile individuals strutting the social media space defending and propagating outright and outlandish falsehoods. Of particular concern is one Kelvin Emmanuel who has become the unofficial mouthpiece of the Dangote Refinery. Going from one media house to the other, he pulls figures out of the air and projects obnoxious untruths on hapless Nigerians. With the backing of his paymaster’s billions, it is no surprise that this otherwise irrelevant and fatuous character now commands appearances on major television stations.

But it is on X that he has made lying glibly and gratuitously the Holy Grail. He once premised Dangote’s inability to secure feedstock for his refinery on the government and the NNPCL. While peddling this untruth, he conveniently forgets that the refinery had a seven-year window, during its construction phase, to lock in feedstock supplies that could last a minimum of five years. Dangote did none of that. As it would later unfold, his game plan, which Emmanuel glossed over, was to monopolise equity oil and production quotas to serve his business interests.

Another deliberate misinformation from the Dangote camp was the allegation that International Oil Companies (IOCs) and other industry players were trying to sabotage his interests. Apart from being an investor in the Dangote Refinery, the NNPC still supplies gas to various Dangote companies across Nigeria. How can anyone or any institution jeopardise their investment? What further proof of faith does Dangote and his minions need to know that the NNPC is their cheerleader, and is here to make operating in the industry seamless and a win-win for all?

Echoing Dangote’s baseless stance, Emmanuel also called for the sack of Mr. Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), regulators of Nigeria’s midstream and downstream value chain. By Emmanuel’s warped reckoning, Ahmed had no locus to speak against Dangote or his enterprise because the latter questioned the quality of the product from Dangote Refinery and other local refineries in comparison with imported ones. Of course, Emmanuel’s was a lone voice in the wilderness because those who understand the invaluable role that the NMDPRA plays in the industry did not as much as dignify his tirade with a glance.

In a robust response to Emmanuel’s groundswell of egregious lies, Ibrahim Y. Kabo, a petroleum engineer based in Abuja, described him as “Someone who has not seen the inside of a refinery before Dangote built one, let alone understood the mechanism of the energy industry, …(yet) assuming the role of an authority in oil and gas matters.”

He went further to lampoon Emmanuel for stating that only Dangote Refinery’s products meet specifications while others are all sub-standard. “The obvious question is: whose specifications? For a refinery that has barely made four of seven pre-inauguration certifications, it sounds somehow laughable to suddenly assume the role of regulator in an industry you’ve barely entered,” Kabo said.

In the article, entitled, “The Hand of Aliko, the Voice of Kelvin: Inside Dangote Refinery’s Media Stunt Lab”, Kabo declared that from all Emmanuel’s interviews and pretensions to be an industry expert, one thing is obvious: “He lacks an understanding of both the mandate and the reach of NNPC as a national oil company.”

Kabo adds that, “Downstream is the least of NNPC’s business interests. The mandate, as per PIA (Petroleum Industry Act), is to facilitate both the extraction and commercialization of Nigeria’s oil and gas resources. 20 billion dollars may be a lot, but NNPC and industry regulators routinely handle projects of that magnitude. At best, Dangote and (Emmanuel’s) ranting are an irritation. I believe that’s why NNPC openly declared it was not interested in being Dangote’s off-taker.”

Like the Yoruba saying goes, derision does not stop the sweetness of the honey. The meddlesome minions and messengers of misinformation can continue dancing naked in the marketplace, but what is most important is that the NNPCL has assured that it will not cease doing everything in its capacity “to harness the possibilities of oil and gas, address energy demand and drive the national economy, and become the number one oil producer and supplier in Africa.”

 

Tayo Williams is a Lagos-based media executive

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BIG STORY

We’ll Reintroduce Bill Seeking 6-Year Single Term For President, Governors Despite Rejection — Rep

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Ikeagwuonu Ugochinyere, a member of the House of Representatives, says the push for a six-year single term for president and governors will continue despite the bill’s rejection.

The bill, which was slated for a second reading during Thursday’s plenary session, was rejected by lawmakers in the Green Chamber.

Sponsored by Ikeagwuonu from Imo State and 33 other lawmakers, the bill also sought to amend Section 3 of the Constitution to recognize the division of Nigeria into six geopolitical zones.

Briefing journalists on Thursday evening, the lawmaker described the rejection of the bill as a “temporary setback.”

“The struggle to reform our constitutional democracy to be all-inclusive and provide an avenue for justice, equity, and fairness has not been lost,” he said.

The lawmaker added that voting against the bill by the parliament “does not put an end to agitation and hope that we will realise this objective.”

“This is a temporary setback which does not affect the campaign for an inclusive democratic process,” he said.

The Imo lawmaker stated that the sponsors of the bill will review the decision of the House and “find possible ways of reintroducing it after following due legislative procedures.”

“All I can tell Nigerians is that we will continue the advocacy and convince our colleagues to see reason with us. If elections are held in one day, it will reduce cost and rigging,” he said.

“If power rotates, it will help deescalate political tensions, and a six-year single term will go a long way in helping elective leaders focus on delivering their democratic mandate.”

“All hope is not lost, we will continue the advocacy, and we hope that when reintroduced, our colleagues will support it.”

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BIG STORY

65% Of Nigerian Households Can’t Afford Healthy Meals — NBS

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The National Bureau of Statistics (NBS) reports that food scarcity, insecurity, and high prices have led Nigerian households to reduce consumption, with 65 percent unable to afford healthy meals due to financial constraints.

These findings were released in the NBS’s latest General Household Survey Panel (Wave 5) report, conducted in partnership with the World Bank.

The report reveals that 71 percent of households were affected by rising prices of major food items, while food shortages impacted more than a third of households over the past year. These shortages were particularly severe in June, July, and August, worsening the food insecurity crisis.

As a result, 48.8 percent of households reported cutting back on food consumption, according to the NBS data.

“In the past 12 months, more than one-third of households faced food shortages, which occurred more frequently in the months of June, July, and August,” the report states.

“Price increases on major food items were the most prevalent shock reported by households, affecting 71.0 percent of surveyed households.”

“Households’ main reported mechanism for coping with shocks was reducing food consumption (48.8 percent).”

  • ‘62.4% Nigerian Households Secured Less Food’

The report also notes a significant increase in the number of households concerned about not having enough food to eat, with the figure rising from 36.9 percent in Wave 4 (conducted in 2019) to 62.4 percent in Wave 5.

According to the NBS, this surge reflects a rise in food insecurity, with more than half of Nigerian families struggling to meet their dietary needs.

“Approximately two out of three households (65.8 percent) reported being unable to eat healthy, nutritious, or preferred foods because of lack of money in the last 30 days. 63.8 percent of households ate only a few kinds of food due to lack of money, 62.4 percent were worried about not having enough food to eat, and 60.5 percent ate less than they thought they should,” the report adds.

“Furthermore, 12.3 percent reported that at least one person in the household went without eating for a whole day, and 20.8 percent of households had to borrow food or rely on help from friends or relatives.”

“In general, households in the southern zones report more incidents related to food security than those in northern zones.”

“For example, in the southern zones, the proportion of households reporting that they had to skip a meal ranged from 50.1 percent in South West to 62.4 percent in South East, while in the northern zones this share varied from 34.0 percent in North Central to 48.3 percent in North East.”

The report further highlights that residents in the south-south zone experienced the highest rates of food insecurity across five out of eight indicators. In contrast, the north-central zone had the lowest rates in six of the eight indicators.

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