BIG STORY
NNPCL, Marketers Disagree Over Subsidy, Operators Peg Petrol At N1,200/Litre
Published
11 months agoon
The Nigerian National Petroleum Company Limited (NNPCL) and fuel marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria, on Tuesday, clashed again over the removal of subsidy on petrol.
This occurred against the backdrop of the naira’s decline versus the US dollar in both the official Investors and Exporters Window and the parallel market.
The local currency finished at 998/dollar on Tuesday in the official market, while it traded at 1,225/dollar in the black market.
On the back of the falling naira rate, economists and oil marketers said PMS subsidy was increasing in recent times, but the NNPC quickly countered these positions and declared that it was recovering its full cost on the importation of Premium Motor Spirit, popularly called petrol.
The Chief Executive Officer, of Financial Derivatives Company, Bismarck Rewane, had during a live television programme on ChannelsTV on Sunday, explained that fuel subsidy was not removed but reduced.
Similarly, oil marketers told our correspondent on Tuesday that subsidy on petrol was increasing considering the crash of the naira against the United States dollar and the cost of crude oil, stressing that PMS should sell for N1,200/litre in a free market.
Petrol, which is solely imported into Nigeria by the NNPCL, currently sells for between N617/litre to N660/litre, depending on the location of purchase in Nigeria.
Also speaking on the matter, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said there was partial subsidy on petrol, but noted that the commodity was subsidised by the government for political, social and economic reasons.
- Full cost recovery
But when contacted, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, described the positions of economists and marketers as assumptions, and insisted that the Federal Government had stopped subsidy on petrol.
President Bola Tinubu had during his inaugural speech on May 29, 2023, declared that subsidy on petrol was gone, a declaration that was effectively implemented the next day by NNPCL.
Before Tinubu’s declaration, the pump price of petrol was below N190/litre, but it jumped to over N500/litre after the President’s statement, and moved up again to over N600/litre a few weeks later.
Asked to state if the NNPCL, being Nigeria’s sole importer of petrol, subsidising the commodity as posited by dealers and experts, the oil firm’s CCCO replied, “We prioritise our time on substantive matters rather than responding to assumptions.
“At NNPC Ltd, we prioritise national development through energy security and sustainable growth. We reiterate that the Nigerian government does not pay subsidy on fuel; we recover full costs from our imported products.
“As a global energy company, our focus remains on fostering a vibrant and energy-secure Nigeria.”
- ‘Subsidy reduced’
Rewane had earlier explained that subsidy on petrol was reduced and not removed, while featuring on a live television programme on Sunday evening, as he further highlighted the effects of the reduction in fuel subsidy and how it was affecting salary earners in Nigeria.
He said, “At the inauguration, it was said that (fuel) subsidy was gone but subsidy was actually reduced.”
Buttressing his position, he explained, “There is the convergence of exchange rates and reducing the windows into one. The consequence of that is that money has been transferred from consumers to the government.
“Subsidies are reversed taxes; if you reduce them, you increase the people’s taxes and reduce their income. What has happened is that government revenue has increased by 44 per cent between May and June (2023). Money has been transferred to the government but what is the government doing with it?
“The consumers, on the other hand, had a minimum wage, which in dollar terms was $40 in 2002. In 2019, it was about $70, but it has now been reduced to $24.”
- Marketers project N1,200/litre
The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, stated that subsidy on petrol was rising and that the cost of the commodity should be around N1,200/litre in a free market.
“To be pragmatic in this analysis let’s consider the cost of petrol today in the United States. For premium petrol, it is $2.99, while super petrol sells for $3.15 or $3.10 depending on the part of that country where you are making the purchase.
“Now, $3 in Nigeria is over N3,000, because a dollar in the parallel market is over N1,000. You can also see the cost of diesel, that is over N1,000/litre, and it is important to state that petrol is usually higher in price than diesel in a free market.
“So if you consider the cost of diesel, dollar and other international factors, the price of petrol in Nigeria should be around N1,200/litre, but the government is subsidising it, which to an extent is understandable,” he stated.
Ukadike noted that he had earlier explained that the government was implementing quasi-subsidy, and by this it means that “the Federal Government, instead of taking out the subsidy by 100 per cent, decides to take out about 50 per cent.”
The IPMAN official, however, expressed optimism again that the cost of refined petroleum products would reduce as soon as the Port Harcourt and Dangote refineries start producing the commodities.
“I also believe that there will be a reduction in the prices of petroleum products this year when you consider what the government is currently doing. The coming onboard of the Port Harcourt refinery and the supply of crude to Dangote refinery are good developments in the sector.
“Their operations will help stabilise the price of PMS and other petroleum products in Nigeria, because it will definitely cut down the importation of products,” Ukadike stated.
- Social, economic reasons
The Centre for the Promotion of Private Enterprise CEO said subsidy was being retained partially because of its economic, social and political implications.
Yusuf said, “To protect the citizens from further hardship is the reason why the government seems to have applied the brakes on subsidy removal. We are all witnesses to the pain and hardship that citizens are going through.
“So when you are adopting some of these policies, especially these liberal economic policies, it comes to a point where you have to moderate your position for social reasons.
“Just as the World Bank said, if we want to leave the price fully to market forces and the liberal economic policies, the fuel price will be above N800/litre. Can any government that is sensitive to the feelings of its citizens allow that to happen?
“Even if economically that is the way to go, there must always be a human face to economics. So what the government has done is to moderate the reform, and that is why I think the government has insisted that the NNPC should still hold the price at the current level.”
Yusuf noted that the government must balance the gains and side effects of subsidy, stressing that economic hardship may worsen should subsidy be removed 100 percent.
“All of us who were saying that they should remove the subsidy, we can see that they have partially removed it now, but look at the consequences. Economically it will sound good, but socially and politically it is very costly.
“So those in government need to balance all those considerations. They need to balance economic, political and social considerations. That is why we find ourselves in a situation where we have partial subsidies, both in petrol and electricity,” he stated.
The World Bank had stated in December that subsidy on petrol was still being implemented by the Federal Government, as it insisted that the cost of PMS should not be less than N750/litre if there was no subsidy.
- Naira at N988/$
The naira closed at N988.46/$ on the first day of official trading on the Investors and Exporters Window on Tuesday.
This is an 8.97 percent decline from the N907.11/$ it closed trading on Friday (the last day of official trading for 2023) according to data from the FMDQ Securities Exchange. This continues a worrying trend for the naira which was one of the worst performing currencies of 2023.
According to Bloomberg, the naira had one of its worst years in 2023, a title that 2024 might usurp. It noted that the national currency lost about 55 percent of its value as of Thursday 28, 2023.
Based on Kyle Chapman, FX markets analyst at London-based Ballinger & Co, the naira was the third worst-performing global currency in 2023 due to a backlog of unsettled forwards, undelivered promises of dollar inflows, and a two-decade peak in inflation.
Chapman said, “The naira’s downward momentum is likely to continue through much of 2024, and its ultimate trajectory will depend on whether the CBN’s rhetoric transforms into concrete policy moves that drive up the flow of US dollars into Nigeria and shore up trust in the official market.
“If the CBN’s promised measures materialise and Tinubu’s government enacts structural changes to increase oil production or to drive foreign investment, there is plenty of opportunity for the naira to lift from its record lows. But a quick fix is unlikely, and further depreciation will come to counteract supply and demand imbalances.”
In its December Nigeria Development Update, the World Bank noted that naira had depreciated against the US dollar by 41 percent in the official market and by 30 percent in the parallel market. It noted that the naira needs increased volume to stabilise in the official market.
It said, “Further monetary policy tightening is expected to help underpin the value of the naira. However, there is also a need to increase FX supply in the market. Facilitating FX flows, especially from all exports, through the NAFEM can help provide additional volumes in the official window that can help provide stability.
“In addition, clarity on the CBN’s net reserve position, and on the CBN’s continued progress in clearing the FX backlog, would also strengthen market confidence.”
- NNPCL records thefts
Meanwhile, the Nigerian National Petroleum Company Limited, on Tuesday, said a total of 112 cases of crude oil theft were recorded in the Niger Delta in one week.
It said the oil theft incidents occurred between December 23, 2023 and December 29, 2023, adding that in the past week, 42 illegal refineries were discovered in several locations in the oil rich region.
It outlined the locations to include Konsho and Tebidaba in Bayelsa State; Obokofia in Imo State; as well as Ogidigben, Mereje and Obodo Omadina, in Delta state
The oil firm disclosed this in a documentary posted on its official X handle, adding that the “illegal refineries in Umuire, Abia State, and Upata in Rivers State, were also discovered and destroyed.”
It further stated that 14 illegal connections were uncovered in several parts of the Niger Delta, as a tunnel covering an illegal connection was also uncovered in Owaza, Abia State, while 10 cases of vandalism were discovered.
In the two minutes and 44 seconds documentary, the company stated that, “Illegal storage sites were discovered in Ebocha and Ton Kiri in Rivers State where oil pits were found.
“In Ogbia, Bayelsa State, sacks of crude oil were discovered. More illegal storage sites were uncovered in Urhonigbe, in Edo State; Ekuku-Agbor and Bomadi in Delta State.”
According to the firm, 22 wooden boats conveying stolen crude were discovered in Okrika and Tombia in Rivers State as well as Emereje, Delta State.
It stated that during an operation, 11 vehicle arrests were made in Delta State, as eight of these (oil theft) incidents took place in the deep water, 46 in the eastern region, 32 in the central region, while 26 took place in the western region.
“Between the 23rd and 26th of December, 2023, 18 suspects were arrested,” the national oil company stated, adding that it would not back down in the war against crude oil theft.
Nigeria loses billions of naira to oil theft and finds it tough to meet the production quota approved for the country by the Organisation of Petroleum Exporting Countries, due to the menace of oil thieves.
Credit: The Punch
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BIG STORY
Port Harcourt Refinery: Marketers Threaten Boycott As NNPCL Juggles Petrol Price
Published
2 hours agoon
November 28, 2024- Dealers Insist PMS Must Be Cheaper Than Dangote’s.
- NNPCL Delays Price Portal Opening, Restricts Product.
Oil marketers have outlined the conditions under which they would consider patronizing the newly rehabilitated Port Harcourt Refinery Company (PHRC) in Rivers State. They stated that the refinery, managed by the Nigerian National Petroleum Company Limited (NNPCL), must offer its refined petroleum products at prices lower than those set by the Dangote Petroleum Refinery.
In response to claims made on Wednesday that its petrol was being sold at approximately N1,045 per litre, the NNPCL clarified that the refinery had not yet released its prices. According to the company, products from the refinery are currently being supplied only to NNPCL-owned stations.
Olufemi Soneye, the spokesperson for NNPCL, explained that the company is still reviewing its pricing structure and has not yet begun bulk sales, as its purchasing portal remains closed.
In related news, it was reported on Wednesday that oil marketers had imported a total of 105.67 million litres of petrol into the country within a span of five days.
Marketers confirmed that NNPC was selling petrol at N1,045/litre, stressing that they may be compelled to opt for petrol importation as a means of meeting local demands.
According to The Punch, a total sum of 78,800 metric tonnes representing 105.67 million litres of petrol was imported into the country in the last five days spanning November 23 and November 28.
On Tuesday, the 60,000-capacity Port-Harcourt refinery resumed operations after years of inactivity, drawing initial praise from Nigerians and industry stakeholders.
The NNPC said the newly rehabilitated complex of the old Port Harcourt refinery, which had been revamped and upgraded with modern equipment, is operating at a refining capacity of 70 per cent of its installed capacity.
NNPC added that diesel and Pour Fuel Oil would be the highest output from the refinery, with a daily capacity of 1.5 million litres and 2.1 million litres, respectively.
This is followed by a daily output of Straight-Run Gasoline (Naphtha) blended into 1.4 million litres of Premium Motor Spirit (petrol), 900,000 litres of kerosene, and low-pour fuel oil of 2.1 million litres.
It was stated that about 200 trucks of petrol would be released into the Nigerian market daily.
However, claims that the national oil firm’s PMS price was higher than that of Dangote triggered diverse reactions from marketers.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, told one of our correspondents that though NNPC had yet to release any price for the products from the refurbished Port Harcourt refinery, a high price would discourage marketers.
Dangote currently sells his petrol at N970/litre, while imported petrol is around that price.
Ukadike, however, noted that there was the possibility that the NNPC would review its prices downward when the Port Harcourt refinery comes fully on stream.
He confirmed that the state-owned oil company sells a litre of PMS at N1,040 or N1,045 while the Dangote refinery just reviewed its price from N990 to N970 for marketers buying a minimum of two million litres.
Ukadike did not mince words when he said independent marketers would only buy from the NNPC if its price is cheaper than that of Dangote or vice versa.
“With the Port Harcourt refinery now working, we are anticipating that any moment from now, NNPC will give us its price. Once NNPC releases its price, we will start loading from NNPC. That is subject to if it is cheaper than that of Dangote.
“The last NNPC price was N1,040 and N1,045 per litre. But I know there will be a review of prices because there has been a crash in prices globally. So, we are expecting a review. Once that review is done, I will be able to give you the actual price. I know they are reviewing it. They are on top of the matter,” the IPMAN spokesman said.
The latest development also indicates that oil marketers may commence the importation of fuel if the prices set by both domestic refineries surpass their profit margins, thereby making it more financially viable for them to rely on imported fuel rather than locally produced stock.
The National Public Relations Officer of the Petroleum Products Retail Outlets Owners Association of Nigeria, Dr Joseph Obele, had earlier said NNPC petrol was N75 higher than the N970/litre offered by Dangote refinery.
However, PETROAN’s President, Billy Gillis-Harry, in a statement denied the claim, stressing that no price has been released by the national oil firm.
He explained that members of the association bought PMS based on the old pricing structure and are still waiting for the updated prices.
The statement read, “The National Headquarters of Petroleum Products Retail Outlet Owners Association of Nigeria, PETROAN Abuja would Like to Inform the media and the general public that no new price for PMS has been released by the NNPC port Harcourt refinery.
“Members of PETROAN only bought PMS with the old pricing template awaiting
new prices. We are excited that the production and loading of refined petroleum products have commenced at the Port Harcourt Refinery and we are expectant that soon the price of PMS will be stated by NNPC to the benefit of Nigerians.”
- NNPC Reacts
But in a message sent to journalists on Wednesday night, the NNPC spokesperson said the national oil firm had not started selling its products from the Port Harcourt refinery to other oil marketers.
He was reacting to an earlier claim by the Petroleum Products Retail Outlets Owners Association of Nigeria that the newly rehabilitated Port-Harcourt refinery was selling at N1,045/litre to oil marketers.
He noted that only NNPCL retail stations are receiving products from the refinery.
He said, “We have not yet commenced bulk sales, and we have not yet opened the purchase portal as we are still finalizing the necessary processes.”
He further stated its current stock was procured from the Dangote Refinery and includes fees and levies.
“At present, the products we are selling are what we bought from the Dangote Refinery, which includes NMDPRA fees. The product from PH is currently for our retail stores. Our prices are regularly reviewed and adjusted as required.”
- PMS Imports
Meanwhile, fresh findings (by The Punch) have revealed that a total sum of 78,800 metric tonnes representing 105.67m litres of petrol have been imported into the country in the last five days spanning November 23 and November 28.
The product was conveyed in four vessels with the latest to be received today (Thursday, November 28, 2024), according to documents obtained from the Nigerian Ports Authority on Wednesday.
An analysis of the document showed that 38,500 metric tonnes of petrol imported on Monday, November 25 berthed at the Lagos Apapa port (Bulk Oil Plant).
Similarly, a Bedford ship conveying 10,000mt of PMS will berth at the Ebughu jetty, Calabar port in Cross Rivers on Thursday, November 28.
Two vessels that arrived on Saturday, November 23 is still waiting to berth. The ships are carrying 30,300mt of fuel.
It also revealed that 11,000 metric tonnes of base oil was imported while the 20bn Dangote refinery received crude oil worth 133,986 metric tonnes on Monday, November 27, 2024.
Last week, oil marketers and the NNPCL had stated plans to stop the import of fuel to focus on off-taking from domestic sources.
This was a fallout from a high-level meeting organised by the NNPC Group CEO Mele Kyari, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority. In attendance were representatives of the Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, and key stakeholders from companies such as 11 Plc, Matrix, and AA Rano, among other stakeholders at the NNPCL towers in Abuja.
The meeting was in growing confidence in Dangote Refinery’s ability to meet the nation’s domestic fuel demand and the need to cut fuel imports.
Credit: The Punch
BIG STORY
Reps To Probe N8.4tn Allegedly Withheld By NNPCL
Published
3 hours agoon
November 28, 2024On Wednesday, the House of Representatives instructed its Committees on Finance, Petroleum (Upstream and Downstream) to investigate reports from the Revenue Mobilisation Allocation and Fiscal Responsibility Commission “alleging that the NNPC (now Nigerian National Petroleum Company Limited) withheld N8.48tn as claimed subsidies for petrol.”
The House also emphasized that “the investigation will address the NEITI report stating that NNPC (now NNPCL) failed to remit $2bn (N3.6tn) in taxes to the Federal Government.”
The committees were tasked with verifying the total cumulative amount of unremitted revenue (under-recovery) from the sale of petrol by the NNPC between 2020 and 2023.
Meanwhile, the House approved the 2025-2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) ahead of President Bola Tinubu’s presentation of the 2025 Appropriation Bill to the National Assembly next week.
The MTEF is a multi-year plan for public expenditure that sets targets for budget spending and fiscal policy, ensuring these goals are met throughout the budget process.
The FSP outlines a country’s fiscal policy and medium-term macro-fiscal framework. It is a critical part of the annual budget process and the Medium-Term Budget Framework.
President Tinubu had transmitted the MTEF/FSP to the National Assembly on Tuesday, November 19, 2024, following the approval of the Federal Executive Council.
The Tinubu administration set the oil benchmark for 2025 at $75 per barrel, with oil production projected at 2.06 million barrels per day. The government also pegged exchange rate parameters at N1,400 per dollar, with a projected Gross Domestic Product growth rate of 6.4% per annum.
During the Committee of Supply meeting to consider the report of the Committees on Finance and National Planning and Economic Development, presiding officer and Deputy Speaker Benjamin Kalu expected the usual “carried” chorus from members when he began the clause-by-clause consideration of the 15 recommendations. However, the Minority Leader of the House, Kingsley Chinda, changed the tone of the discussion.
- Oil Benchmark Controversy
Chinda spoke out on the $75 oil benchmark, suggesting that the 2025 figure should reflect the 2024 benchmark, pointing to the higher prices reached in early 2024.
He said, “Because of the importance and sensitivity of MTEF, I will advise that we consider it thoroughly before we pass. This is one of the most important bills this parliament will ever pass. They recommend a $75, $76.2, and $75.3 benchmark per barrel of crude for 2025, 2026, and 2027 respectively.
“We are aware that for 2024, what we recommended was $77.96, which is the current budget. Today, it is about $85 per barrel. That is, in the first quarter of 2024, we achieved $85 and it increased further. If we are recommending $75 for next year, which is one month away, against the $77 we recommended for this year, I will advise that we retain the minimum we adopted for this year.
“Rather than increasing, we are reducing. I am not unaware of the issue of moving to gas-propelled vehicles, leaving fossil fuel. I am aware that the world is moving that way, and reliance on crude may be a bit reduced, but going for $75 might be a bit too low,” he said.
In response, the Chairman of the House Committee on Finance, Abiodun Faleke, defended the $75 per barrel benchmark as “responsible.”
He stated, “Crude oil prices in the international market are not controlled by any country. In 2024, we were fortunate that crises in some oil-producing countries led to higher prices. In 2025, there is likely to be more stability. If you set the benchmark too high, it bloats expectations. Today, the price has crashed to $74. I think our benchmark is reasonable.”
Ibrahim Isiaka, the member representing Ifo/Ewekoro Federal Constituency, Ogun State, supported this view, saying, “If we pass this MTEF today and there is a need for amendment, this House can sit and do the necessary review. There was a time when crude sold for $120 per barrel and a time it sold for $20. Let us see this as a working document subject to review.”
At the conclusion of the debate, the $75 benchmark was adopted.
- Oil Production
Another contentious point was the significant increase in domestic crude oil production, projected to rise from 1.78mbdp in 2024 to 2.06mbdp, 2.10mbdp, and 2.35mbdp in 2025, 2026, and 2027, respectively.
Chinda questioned the rationale behind the 2025 projection of 2.06mbpd, saying, “We are making projections for domestic crude oil production from 1.78mbpd in 2024 to 2.06, 2.10, and 2.35mbdp for 2025, 2026, and 2027. If you look particularly at the social media, they will tell you that we are producing about 2mbpd, but the truth is, we are not. Although there is improvement, as of yesterday, the volume was 1.05mbpd.
“These are the things that will help us in proper planning so that the government does not have to always come to the National Assembly for borrowing, which also exposes us further to criticisms by Nigerians.
“We must be critical about how we set our benchmark. Our target has always been to produce 2mbpd. OPEC’s quota for us is 1.8mbpd. Putting this ambitious target of 2.06mbpd and 2.35mbpd, we might not really achieve it. If we don’t achieve it, we know we will be tightening our belts. We are already projecting that we will sell 2.06 million barrels, and if we sell less, we will get less funds. Let us reduce our target rate to 2 million barrels per day, which has always been our target,” Chinda argued.
Faleke defended the recommendation, stating, “As of today, production is close to 2mbpd. It is getting better. Operators of NUPRC gave us the details. If you put a lower projection, you are indirectly telling the operators not to work hard. Let us push them to work harder and get more funding for our country. There was a time during the era of Goodluck Jonathan when we were around 2.5mbpd. Mind you, this 2.06 projection includes all the concentrates. It is not just crude oil alone.”
Regarding the proposed exchange rate of N1,400 to the dollar for the next three years, a lawmaker from Nasarawa State, Gbefwi Gaza, said, “In the past few years, we have seen the volatility in our currency. In this country, virtually everything we do is pegged to the dollar. If we don’t have a very good proposed rate, what that means is that we have to increase our borrowing for any deficit.
“What do we have on the ground to make the naira stronger and make the dollar weaker? Yes, we have the Dangote Refinery, but we are in a phase of energy transition. We are going to the era of using more batteries and fewer fossil fuels; yet, fossil remains our main source of income.”
The House also adopted inflation rate projections of 15.75%, 14.21%, and 10.04% for 2025, 2026, and 2027, respectively.
Additionally, the House agreed that “The 2025 Federal Government of Nigeria budget proposed spending of N47.9tn, of which N34.82tn was retained. New borrowings stood at N9.22tn, made up of both domestic and foreign borrowings.”
Capital expenditure is projected at N16.48tn, with statutory transfers at N4.26tn and sinking funds at N430.27bn.
BIG STORY
30-Year Experience Prepared Me For COAS Job — Olufemi Oluyede
Published
4 hours agoon
November 28, 2024The acting Chief of Army Staff, Lt. Gen. Olufemi Oluyede, appeared before the two chambers of the National Assembly on Wednesday for screening, asserting that he is well-experienced and qualified to lead the Nigerian Army. While the Senate conducted the screening behind closed doors, the House of Representatives held the exercise in an open session.
President Bola Tinubu appointed Oluyede as acting COAS following the passing of the late Lt. Gen. Taoreed Lagbaja, who died recently.
Addressing the House of Representatives Joint Committee on Defence and Army, Oluyede said, “I humbly appear before you today to be confirmed as the 24th Chief of Army Staff of the Nigerian Army simply because tragedy befell our Army and the Armed Force when the 23rd Chief of Army Staff, Lt. Gen. Taoreed Lagbaja, passed after a brief illness.”
Reflecting on his military career, Oluyede spoke about his extensive experience. “I have served this great nation as an officer of the Nigerian Army for over 30 years. My exposure to national security issues at the junior, middle, and senior cadres of the military profession has prepared me adequately for the assignment I am being screened for here today.”
He continued, “In the past five years or thereabouts, I have operated at the senior operational and management levels of the Nigerian Army, and I have somewhat been part of the running of the service in its entirety. Thus, I cannot completely distance myself from the successes or setbacks of our great Army in the past couple of years. However, I see my nomination as the Chief of Army Staff as a privileged opportunity to be in the driver’s seat and bring about more positive changes to the Nigerian Army to enable it to fulfil its constitutional responsibilities.”
“If confirmed by this joint committee and given the common mandate to lead the Nigerian Army during this period, I promise to do my best to justify the confidence reposed in me by the appointing authority, which is His Excellency Asiwaju Bola Tinubu, the confirming authority which is you members of the National Assembly and the generality of Nigerians,” Oluyede added.
He emphasized the need for aircraft to support the Army’s operations in addressing security challenges. “The Nigerian Army requires aircraft for its operations to combat the challenges of insecurity,” Oluyede stated.
The Chairman of the House Committee on Defence, Babajimi Benson, affirmed that Nigeria had the resources to tackle its security challenges.
Meanwhile, the Senate Committee on Army, chaired by Senator Abdulaziz Yar’Adua, conducted Oluyede’s screening in a closed session in Room 211 of the Senate New Building at the National Assembly Complex.
In his opening remarks, Senator Yar’Adua welcomed committee members and stakeholders, emphasizing the importance of the screening as a critical legislative function. He referenced the letter from President Bola Tinubu, Commander-in-Chief of the Armed Forces, nominating Oluyede for confirmation as Chief of Army Staff.
“The nomination complies with Section 18(1) of the Armed Forces Act, Cap A20, Laws of the Federation of Nigeria, 2004,” Yar’Adua said.
He further explained, “The National Assembly is constitutionally vested with the power to ensure peace, order, and good governance of the country. This screening exercise is a demonstration of our commitment to upholding the laws of the federation and the constitutional principles guiding national security.”
Highlighting the nation’s security challenges, Yar’Adua acknowledged the ongoing threats, including terrorism and criminal activities, and commended the armed forces for their efforts in combating these threats.
“This screening aims to evaluate the nominee’s professional skills, strategic security vision, and ability to address the country’s pressing security issues. We will also assess his proposals for improving military funding and the welfare of personnel,” Yar’Adua noted.
Due to the sensitive nature of the proceedings, Yar’Adua explained that the screening would be conducted behind closed doors. He encouraged Oluyede to share his vision for strengthening Nigeria’s security sector and addressing both internal and external threats.
The committee then moved into a closed-door session for the screening. The committee is expected to submit its report and recommendations to the Senate after deliberations.
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