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Fuel Subsidy Rises To N500bn, NNPC Rules Out Price Hike In May

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With the Federal Government leaving the pump price of Premium Motor Spirit (petrol) unchanged in the first five months of this year despite the increase in global oil prices, subsidy on the product is estimated to gulp N500bn in the period.

It was reported on January 11 that the sustained increase in global crude oil prices had pushed up the landing cost of imported petrol closer to the current pump prices of the product in Nigeria, and appeared to have triggered a return to the petrol subsidy era.

Going by the petrol pricing template of the Petroleum Products Pricing Regulatory Agency, the landing cost of petrol rose from an average of N143.60 in December to N158.53 per litre on January 7, with the expected open market price (retail price) being N181.53 per litre.

On February 5, when oil price neared $60 per barrel, it was reported that the expected open market price of petrol rose to over N200 per litre, based on the petrol pricing template of the PPPRA.

The pump price of petrol has remained at between N160 and N165 per litre at many filling stations in Lagos since December.

The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, said on March 25 that the Federal Government was subsidising petrol with about N100bn to N120bn monthly.

He said while the actual cost of importation and handling charges amounts to N234 per litre, the government had been selling at N162 per litre, therefore, bearing the difference.

“Today, NNPC is the sole importer of PMS. We are importing at market price and we are selling at N162 per litre today. Looking at the current market situation today, the actual price could have been anywhere between N211 and around N234 per litre,” Kyari said at the time.

Petrol subsidy would gulp N480bn from February to May, based on the monthly figure given by the NNPC boss, while the corporation is estimated to have spent at least N20bn subsidising the product in January.

The National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, said it had become clear that petrol subsidy had reemerged.

“They are no more deceiving us; they have told us the truth that there is a subsidy. So, we will continue to carry the burden until when the infrastructure to cushion the effects of high petrol price is put in place by the government,” he added.

Asked if marketers were comfortable with the return of subsidy, he said, “We have no choice because it is the government that is importing petrol. They have the knife and the yam. So, they are to tell us where to go, and we have no choice but to comply.”

The Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, said the announcement by the NNPC that the ex-depot price of petrol would not change in May meant that subsidy would continue. “It means status quo remains; everything continues as it is,” he added.

For more than three years, NNPC has been the sole importer of petrol into Nigeria, and depot owners, major and independent oil marketers rely on it for the supply of the product.

Meanwhile, the NNPC GMD, Kyari, on Monday announced that there would be no increase in the ex-depot price of PMS in May.

The national oil company has maintained an ex-depot price of N148/litre since February despite the hike in the actual cost of the commodity, hence incurring a subsidy of over N120bn monthly.

Ex-depot price is the cost of petrol at depots, from where filling stations purchase the commodity before dispensing to final consumers.

Kyari also announced on Monday that Petroleum Tanker Drivers had suspended their proposed strike after the intervention of NNPC in the impasse between the PTD and the National Association of Road Transport Owners.

The NNPC tweeted these via its official Twitter handle on Monday.

It said, “Following GMD #NNPC Mallam @MKKyari’s intervention in the National Association of Road Transport Owners/Petroleum Tanker Drivers impasse, PTD has just announced the suspension of its planned strike until the closure of discussion between both parties.

“Also, the GMD announced that there would be no increase in the ex-depot price of Premium Motor Spirit in the month of May 2021.”

In March, the NNPC said it would maintain its ex-depot price for petrol until the conclusion of ongoing engagement with the organised labour and other stakeholders.

It was gathered that the engagement with labour on petrol price had yet to be resolved, hence the continued maintenance of the current ex-depot price despite fluctuations in global oil prices.

BIG STORY

BREAKING: Tinubu Suspends Emergency Rule In Rivers, Asks Fubara To Resume Tomorrow

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President Bola Tinubu has lifted the emergency rule imposed in Rivers State.

In a statement released on Wednesday, the president directed Siminalayi Fubara, the suspended governor, to return to office on Thursday, September 18.

Tinubu also instructed Ngozi Nma Odu, the deputy governor, along with members of the Rivers State House of Assembly, to resume their official responsibilities.

The state had been under emergency rule for the past six months.

More to come…

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BIG STORY

Elumelu Mourns Colleagues Who Died In Afriland Fire Incident, Cuts Short US Trip

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Chairman’s Speech

I am shattered by yesterday’s devastating incident at Afriland Towers that took the lives of our dear colleagues.

No words can capture the magnitude of this loss — not for their families who loved them, not for the friends who valued them, and not for those of us who worked beside them.

Yesterday was a stark reminder of what truly matters: our irreplaceable people, those who walk through our doors each day and share our mission.

I learnt of this on my way to the US, enroute to New York for UNGA. I have cut short my trip to return to Lagos as a mark of respect to our lost colleagues.

As we navigate this grief, I urge you all to reach out to those who are receiving care.

In the coming days, we will convene colleagues in a memorial to honour the memories of the departed, as we provide support to their families.

I also want to thank all those who supported in one way or the other, from emergency responders and first aid workers to members of the public who showed courage and compassion.

A minute’s silence will be observed today at12:00 noon, WAT, across all our group companies.

May this never happen again in our Group. May the souls of the departed rest in perfect peace.

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BIG STORY

Saudi Arabia Frees Three Nigerian Pilgrims Detained For Alleged Drug Trafficking After FG Intervention

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Three Nigerian pilgrims arrested in Saudi Arabia over alleged drug trafficking have been released following high-level intervention by Nigerian authorities.

The National Drug Law Enforcement Agency (NDLEA) confirmed their release at a press briefing on Wednesday.

Femi Babafemi, NDLEA’s Director of Media and Advocacy, said the freedom of the detainees came after engagements between the agency and Saudi authorities. He disclosed that the pilgrims — Mrs Maryam Hussain Abdullahi, Mrs Abdullahi Bahijja Aminu, and Mr Abdulhamid Saddieq — were held in Jeddah for four weeks before being cleared.

Babafemi advised passengers to ensure proper luggage tagging to avoid falling victim to drug trafficking syndicates that manipulate baggage handling systems.

In August, the NDLEA had arrested a suspected drug kingpin, Mohammed Abubakar, also known as Bello Karama, and five members of his syndicate, accused of planting narcotics in the luggage of unsuspecting pilgrims at the Malam Aminu Kano International Airport (MAKIA).

According to investigations, the syndicate — in collusion with staff of the Skyway Aviation Handling Company (SAHCOL) — secretly tagged six additional bags to the names of the pilgrims, three of which contained illicit substances.

While the suspects checked in the drug-laden luggage on Ethiopian Airlines flight ET940 from Kano to Jeddah via Addis Ababa, Karama himself travelled separately on Egypt Air. Other accomplices identified include Abdulbasit Adamu, Murtala Olalekan, Celestina Yayock, and Jazuli Kabir. NDLEA said evidence of payments linked to the scheme had been traced to them.

Babafemi noted that NDLEA Chairman, Brig Gen. Buba Marwa (rtd.), personally engaged officials of Saudi Arabia’s General Directorate of Narcotics Control (GDNC), armed with Nigeria’s investigation report and charges filed against the syndicate. The discussions, he said, were held at multiple levels, both in Nigeria and Saudi Arabia, in line with President Bola Tinubu’s directive that no Nigerian should suffer unjustly abroad.

“One of the pilgrims was freed on September 14, and the remaining two were released on September 15, 2025,” Babafemi said.

Marwa expressed gratitude to Saudi authorities for their cooperation, stressing that the release reflected the spirit of the Memorandum of Understanding (MoU) between NDLEA and the GDNC. He also commended President Tinubu for backing the efforts, alongside Attorney General Lateef Fagbemi, Foreign Affairs Minister Yusuf Tuggar, Aviation Minister Festus Keyamo, and National Security Adviser Nuhu Ribadu.

He said: “The biggest support came from President Tinubu, who is committed to ensuring that every Nigerian receives fair treatment globally. This case demonstrates that no Nigerian will be unjustly punished for crimes they know nothing about.”

The incident, however, reignited concerns about airport security in Nigeria, with authorities pledging stricter checks at Kano airport to curb similar criminal practices.

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