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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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BREAKING: Obasa’s Son Becomes Agege LG Boss After Chairman’s Resignation

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Abdul-Ganiyu Obasa, son of the Speaker of the Lagos State House of Assembly, Mudasiru Obasa, has been confirmed as the new Chairman of Agege Local Government. His emergence follows the resignation of the former council chairman, Tunde Azeez, who had been on medical leave since the inauguration of the current administration.

In a letter presented by the Leader of the House, Adeshina Haruna, Azeez formally resigned from his position, citing ongoing health issues that had hindered his ability to effectively perform his duties since taking office.

Following the reading and approval of the resignation letter during a council session on Wednesday, lawmakers unanimously voted Abdul-Ganiyu into office as the new Local Government Chairman.

According to the council lawmakers, the unanimous vote in his favour was based on his notable contributions to the development of Agege and the need to prevent a leadership vacuum within the local government.

 

More to come…

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Tinubu Receives Catholic Archbishop Kaigama In Aso Rock [PHOTOS]

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President Bola Tinubu on Tuesday held a meeting with the Catholic Archbishop of Abuja, Ignatius Kaigama, at the Presidential Villa in Abuja.

The purpose of the archbishop’s visit was not immediately disclosed, as officials close to the presidency had yet to comment on the engagement.

The meeting came days after United States President Donald Trump alleged persecution of Christians in Nigeria and threatened possible US military action if the violence continued.

Trump’s genocide allegation sparked public debate, with the Nigerian government rejecting the claims and maintaining that Christians and Muslims live peacefully in the country.

Last Friday, Trump announced that he had redesignated Nigeria as a “country of particular concern (CPC)” over alleged Christian genocide.

He further warned that the Nigerian government must “better move fast” or face the suspension of all US aid to the country.

The US President also threatened to deploy the “department of war” against terrorists “that attack our cherished Christians.”

In response, the Nigerian presidency stated that President Tinubu and Trump would engage on the issue of alleged Christian genocide in Nigeria.

Photographs released after Tuesday’s meeting showed Tinubu receiving Archbishop Kaigama at the Presidential Villa.

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Sowore Still Wanted, We’ll Do Everything To Get Him Arrested — Lagos CP

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The Lagos State Commissioner of Police, Olohundare Jimoh, has reiterated that his declaration of activist Omoyele Sowore as wanted remains valid, stating that the command will pursue all lawful steps to apprehend him.

Jimoh had earlier declared Sowore wanted for allegedly “causing a disturbance of public peace and acts to commit a serious felony by planning to obstruct traffic on the Third Mainland Bridge.”

During an appearance on Channels Television’s Sunrise Daily on Wednesday, the Commissioner disclosed that Sowore had not reported to the police since the declaration, insisting that the law will take its course.

“My declaration that Sowore is wanted is still in force,” CP Jimoh said on the programme.

He noted that Sowore’s lawyer contacted him via text message on Monday while he was attending to a riot situation and that the message was forwarded to the Officer-in-Charge of Legal at the Nigerian Police Force for further action.

“They agreed that Sowore will turn up at the CID because that is where the investigation is being carried out. The normal practice in investigation is to conclude inquiries before going for arrest,” he said.

The CP explained that despite the communication, Sowore did not show up as agreed.

“Throughout yesterday he has failed to report, and we are going to do everything within the ambit of the law to get him arrested, investigated, and prosecuted for these offences,” he added.

Jimoh maintained that he acted within his authority in declaring the activist wanted, stating that anyone who disagrees should seek redress in court.

‘No order to shoot at sight’

Responding to claims by Sowore that the Inspector-General of Police, Kayode Egbetokun, instructed that he be shot on sight, Jimoh dismissed the allegation and described it as “a major misinformation.”

He stressed that the IGP would never issue such a directive and argued that the statement was aimed at inciting unrest.

“I think that is a great misinformation to the general public and to Nigerians at large, which no organisation will take lightly. The Inspector General of the Nigerian Police will never give such an order and has never given such an order,” CP Jimoh said.

“For what reason will he give such an order against anybody across the country? That is where people will know that Sowore, in all ramifications, is planning, and has even begun to put plans in place, to cause mayhem across Lagos. That is why I went all out to declare him wanted.

“So, for him to say that the IGP has ordered that he be shot on sight is a big misinformation and mischievous, which he is known for.”

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