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N145 Fuel Price: VP Osinbajo Clears Air, Explains Reason For the Hike [MUST READ]

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VP Osinbajo Speaks

Vice President, Yemi Osinbajo, has broken the silence on the new fuel price debate.

The Vice-President, in a press release signed by him, said the issue here is not about subsidy removal but foreign exchange problem.

Read The Official Release Below:

Fellow Citizens:

I have read the various observations about the fuel pricing regime and the attendant issues generated. All certainly have strong points.

The most important issue of course is how to shield the poor from the worst effects of the policy. I will hopefully address that in another note.

Permit me an explanation of the policy. First, the real issue is not a removal of subsidy. At $40 a barrel there isn’t much of a subsidy to remove.

In any event, the President is probably one of the most convinced pro-subsidy advocates.

What happened is as follows: our local consumption of fuel is almost entirely imported. The NNPC exchanges crude from its joint venture share to provide about 50% of local fuel consumption. The remaining 50% is imported by major and independent marketers.

These marketers up until three months ago sourced their foreign exchange from the Central Bank of Nigeria at the official rate. However, since late last year, independent marketers have brought in little or no fuel because they have been unable to get foreign exchange from the CBN. The CBN simply did not have enough. (In April, oil earnings dipped to $550 million. The amount required for fuel importation alone is about $225million!) .

Meanwhile, NNPC tried to cover the 50% shortfall by dedicating more export crude for domestic consumption. Besides the short term depletion of the Federation Account, which is where the FG and States are paid from, and further cash-call debts pilling up, NNPC also lacked the capacity to distribute 100% of local consumption around the country. Previously, they were responsible for only about 50%. (Partly the reason for the lingering scarcity).

We realised that we were left with only one option. This was to allow independent marketers and any Nigerian entity to source their own foreign exchange and import fuel. We expect that foreign exchange will be sourced at an average of about N285 to the dollar, (current interbank rate). They would then be restricted to selling at a price between N135 and N145 per litre.

We expect that with competition, more private refineries, and NNPC refineries working at full capacity, prices will drop considerably. Our target is that by Q4 2018 we should be producing 70% of our fuel needs locally. At the moment even if all the refineries are working optimally they will produce just about 40% of our domestic fuel needs.

You will notice that I have not mentioned other details of the PPRA cost template. I wanted to focus on the cost component largely responsible for the substantial rise, namely foreign exchange. This is therefore not a subsidy removal issue but a foreign exchange problem, in the face of dwindling earnings.

Thank you all.

VICE PRESIDENT YEMI OSINBAJO, SAN
May 13, 2016

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JUST IN: Explosion Rocks Rivers APC Secretariat As Local Government Poll Holds

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An explosion occurred at the Tony Okocha-led secretariat of the All Progressives Congress (APC) in Rivers State, located along Aba Road, Port Harcourt, on Saturday, October 5, 2024, during the local government election.

The explosion damaged the gate and doors of the secretariat, along with other property. According to Tony Okocha, Chairman of the APC faction in Rivers State, “About 3:20am some gun-trotting young men with their explosives and all that, came here and dropped the first explosive,” but when it did not detonate, “they came back the second time to burn the structure – look at the security house is gone.”

Okocha alleged that the attack was politically motivated, accusing Governor Siminalayi Fubara of responsibility. He stated, “It was deliberate to see how they can annihilate us, it is deliberate to see how they can embarrass us, it is deliberate to see how they can decimate us.”

Despite the incident, accreditation and voting have commenced in several polling centres around Port Harcourt City.

More to come…

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Osun State Vs Segilola: Ministry Of Solid Minerals Development Probe Claims, Cautions Against Divestment

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The Ministry of Solid Minerals Development is probing the claims and counter-claims of Osun State Government and Thor Explorations Limited, owners of the Segilola Resources Operating Limited over taxation and operational matters.

The Minister of Solid Minerals Development, Dr. Dele Alake announced today that a fact-finding team has been set up to engage both parties towards resolving the dispute and restoring industrial harmony.

Led by Dr. Mary Ogbe, the Permanent Secretary, Ministry of Solid Minerals Development (MSMD), the committee will include representatives of the Federal Inland Revenue Service (FIRS), Ministry of Labour and Employment and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

The Minister observed that the Federal Government has been marketing opportunities for investments in the solid minerals sector across the world and cautioned that closure of mining operations by subnationals could abort efforts to attract Foreign Direct Investments (FDI) and provoke divestment.

“ Indiscriminate closures of mining operations by subnationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies. Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken.” Dr. Alake asserted.

The Minister reiterated the Federal Government’s interest in raising the tempo of productive activities nationwide to boost economic growth, increase employment and community development.

Dr. Alake stressed that any cessation of industrial production will undermine the goals of economic prosperity, deny workers the opportunity to earn income, and further contribute to adversity.

Alake called on both parties to co-operate with the fact-finding team and allow production to continue while the issues are resolved.

“ I hereby call on His Excellency, the Governor of Osun State, Sen. Ademola Adeleke and the management of Thor Exploration Limited to sue for peace and industrial harmony in the interest of the workers and their dependents who may be adversely affected by closure of operations at the factory.” he added.

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Lagos To Ban Single-Use Plastics, Sachet Water From January 2025

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The Lagos State Government has announced plans to ban the use of single-use plastics and sachet water starting from January 2025.

Confirming the ban during a stakeholders’ workshop on the implementation of the ban on Styrofoam and SUPs for packaging in Lagos, the Commissioner for the Environment and Water Resources, Tokunbo Wahab, explained that the ban, set to begin in January 2025, is part of the government’s efforts to establish policy guidelines for plastic use, ensuring “sustainable management of plastic waste” and promoting a healthy and safe environment.

It was reported that in January 2024, the state government banned the use of Styrofoam in all government establishments and across Lagos due to the increasing levels of plastic waste and its adverse environmental effects.

However, industry stakeholders have urged the government to implement the ban in phases rather than enforcing it outright to ensure effective compliance and consider the current economic challenges.

Speaking on behalf of the industry, the Lagos chairperson of the Association for Table Water Producers of Nigeria (ATWAP), Mosaku Ololade, said, “We have been engaging Lagos State Government on the way forward and we have been sensitising our members on the planned ban.

“We want the government to continue to engage us. We are a responsible association. We are ready to work with the government.

“We have over 2,000 members in Lagos alone with over 10,000 workers. We hereby implore the government to implement the ban in phases to allow our members ample opportunity for compliance.

“There are a lot of things to be put in place before coming up with total enforcement,” Ololade said.

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