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BIG STORY

Petrol Landing Cost Hits N232, Subsidy Rises To N5.58bn Daily

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The landing cost of Premium Motor Spirit being imported into Nigeria surged by more than 60 per cent between December 2020 and mid-June this year, although the pump price of the product remained unchanged.

From an average of N143.60 per litre in December, the landing cost of petrol rose to N231.98 per litre on June 16 this year on the back of the rally in global oil prices and the depreciation of the naira against the dollar.

The Petroleum Products Pricing Regulatory Agency had in March this year released a pricing template that indicated the guiding prices for the month.

The template, which showed that the petrol pump price was expected to range from N209.61 to N212.61 per litre, was greeted with widespread public outcry and was later deleted by the agency from its website.

The pump price of petrol has remained at between N162 and N165 per litre at many filling stations in Lagos since December.

The template, which was based on an average oil price of $62.22 per barrel for February and an exchange rate of N403.80 to a dollar, showed that the landing cost of petrol was N189.61 per litre.

Last month, the Central Bank of Nigeria devalued the naira as it adopted the NAFEX exchange rate of N410.25 per dollar as its official exchange rate, days after removing the N379/$ rate from its website.

The price of crude oil, which accounts for a large chunk of the final cost of petrol, has continued to rise in recent months, with Brent, the international oil benchmark, closing at a record high of $76.18 per barrel last Friday, up from $73.88 per litre on June 16.

The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, said on March 25 that with the current market situation, the actual price of petrol could have been anywhere between N211 and N234 per litre.

He said the Federal Government was subsidising petrol with about N100bn to N120bn monthly (N3.3bn-N4bn daily) as it was being sold for N162 per litre.

It was reported on April 20, 2021, that the estimated subsidy on petrol would gulp N500bn in the first five months of this year as the Federal Government decided to leave the pump price of petrol unchanged in the period despite the increase in global oil prices.

Based on the PPPRA template and Platts data, the expected pump price of the product stood at N254.90 per litre as of June 16, up from N239.31 per litre on April 16.

The expected retail price of N254.90 per litre and the current pump price of N162 per litre indicate a subsidy of N92.98 per litre as of June 16, compared to N77.31 per litre on April 16.

With daily petrol consumption put at about 60 million litres by the NNPC and a subsidy of N92.98 per litre, daily subsidy increased to N5.58bn on June 16 from N4.64bn on April 16.

The rising price of crude oil pushed the cost of petrol quoted on Platts to $691.25 per metric tonne (N211.47 per litre) on June 16 from $642.25 (N193.39 per litre) on April 16.

The PPPRA, in its March template, used an average cost of $561.96 per MT (N169.22 per litre) and an average freight rate of $21.63 per MT (N6.62 per litre).

Other cost elements that make up the landing cost include lightering expenses (N4.81), Nigerian Ports Authority charge (N2.49), Nigerian Maritime Administration and Safety Agency charge (N0.23), jetty throughput charge (N1.61), storage charge (N2.58), and financing (N2.17).

The pump price is the sum of the landing cost, wholesaler margin (N4.03), admin charge (N1.23), transporters allowance (N3.89), bridging fund (N7.51), marine transport average (N0.15), and retailer margin (N6.19).

The NNPC, which has been the sole importer of petrol into the country in recent years, is still being relied upon by marketers for the supply of the product despite the deregulation of the downstream petroleum sector.

This month, the International Monetary Fund expressed concern over the resurfacing of fuel subsidies in Nigeria, describing it as ‘concerning, particularly in the context of low revenue mobilisation’.

The Federal Government had in March 2020 removed petrol subsidy after reducing the pump price of the product to N125 per litre from N145 following the sharp drop in crude oil prices.

“The recent introduction and implementation of an automatic fuel price formula will ensure fuel subsidies, which we have eliminated, do not reemerge,” the Nigerian government had told the IMF in the letter of intent dated April 21, 2020, with respect to its request for emergency financial assistance of $3.4bn.

In February this year, the IMF said in a report after its Article IV consultation with Nigeria that the Nigerian authorities expressed a strong commitment to prevent fuel subsidies from resurfacing and to fully eliminate electricity tariff shortfalls by mid-2021.

But petrol subsidy re-emerged earlier this year as the government did not allow the pump price of the product to reflect the significant rise in oil prices.

“The mission expressed its concern with the resurgence of fuel subsidies. It reiterated the importance of introducing market-based fuel pricing mechanism and the need to deploy well-targeted social support to cushion any impact on the poor,” the IMF said on June 17.

BIG STORY

‘We’ll Go After Perpetrators’ — Oluyede Vows Justice For Victims Of Benue Attack

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Olufemi Oluyede, chief of army staff (COAS), has stated that the military will ensure those responsible for the recent attack in Benue are held accountable.

On June 14, over 200 people were killed and many others injured when unidentified gunmen stormed Yelewata, a community in Guma LGA of the state.

During the second quarter media chat titled ‘Military-Media Collaboration: Panacea for Enhanced National Security and Development’ held in Akure, Ondo state capital, on Saturday, the army chief said coordinated operations are in progress to apprehend the attackers.

Represented by Obinna Onubogu, general officer commanding (GOC) 2 division of the Nigerian army, Oluyede reiterated the military’s dedication to safeguarding the nation’s territorial integrity.

“In the coming weeks, you will see very elaborate security arrangements in Benue to ensure that the killings stop completely,” Oluyede said.

“There are ongoing efforts behind the scenes to make sure this does not happen again. As far as the killings are concerned, we will go after them—and by God’s grace, we will get them.”

He noted that President Bola Tinubu has issued clear instructions to address insecurity, adding that troops have been stationed in Benue, Plateau, Kwara, and other affected states.

Oluyede pointed out that despite Nigeria’s vast size, the military is doing its best to provide coverage with available resources.

He also suggested that some of the attackers in Benue may not be Nigerians.

“We are in Benue, we are in Plateau, tackling the menace,” he said.

“But we also need support from the people. In some cases, lack of timely information delays our response. Intelligence from locals is crucial to improving our reaction time.

“The army is not as large as many people think, but we are doing our best to cover space and ground. There are a few places where we are not present, and unfortunately, that is where attackers exploit the gaps.”

Chibuisi, chief of civil-military affairs, stated that the event was aimed at enhancing cooperation between the military and the media to strengthen national security and development.

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BIG STORY

David Mark-Led Opposition Coalition Applies For Registration Of New Party “ADA”

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Ahead of the 2027 general elections, the National Opposition Coalition Group (NOCG), made up of prominent political figures including former Minister of Transport, Rotimi Amaechi, has submitted a request to the Independent National Electoral Commission (INEC) to register its new political party named “All Democratic Alliance” (ADA).

The coalition is led by former Senate President, David Mark.

This move came after a coalition meeting held in Abuja on May 6, 2025, as stated in a letter dated May 19, signed by Amaechi and Umar Ardo, who serve as the Chairman and Secretary of the New Platform Committee (NPC), respectively.

The NPC, which consists of 15 members, was tasked with creating an association to apply for the registration of a new political party.

The statement noted that following several meetings, the formation of sub-committees, and submission of reports, the Committee convened on June 19, 2025, and approved the creation of “ADA” as a political association, along with the party’s logo, slogan, and motto.

The meeting also endorsed the party’s manifesto, constitution, and interim leadership, naming Chief Akin A. Ricketts as the Protem Chairman and Abdullahi Musa Elayo as the Protem National Secretary.

Additionally, the interim leadership was charged with securing appropriate office space, opening a bank account once the party is registered by INEC, and managing the party’s affairs in line with its constitution and the Electoral Act (2022).

There has been increasing speculation about a potential coalition involving former Vice President and 2023 PDP presidential candidate, Atiku Abubakar; 2023 Labour Party presidential candidate, Peter Obi; and former Kaduna State governor, Nasir El-Rufai, with the aim of challenging President Bola Tinubu in 2027.

In May, Atiku’s spokesperson confirmed that Atiku, Peter Obi, and El-Rufai were in talks regarding the formation of a coalition ahead of the next election.

Speaking on Channels Television’s Politics Today, the spokesman said, “Well, you and I know that there have been ongoing discussions between Atiku Abubakar and some opposition leaders, Peter Obi, Nasir El-Rufai.”

“Yes, it’s out there in the open. Discussion is still ongoing, and at the end of that discussion, they will come out with a position and the direction that we’re going to follow based on the yearnings and aspirations of Nigerians.”

Meanwhile, the ruling All Progressives Congress has stated that any opposition coalition aiming to defeat Tinubu in 2027 will not succeed.

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BIG STORY

Alao-Akala Family Feud Deepens As First Daughter Seeks DNA Test, Exhumation Of Late Governor’s Body Over Estate Dispute

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The family of the late former governor of Oyo State, Otunba Christopher Adebayo Alao-Akala, is embroiled in deepening crisis as his first daughter, Mrs Oluwatoyin Alao-Aderinto, has approached an Oyo State High Court in Ibadan, requesting a Deoxyribonucleic Acid (DNA) test on seven individuals claiming to be biological children of the deceased, along with an application for the exhumation of the late governor’s remains for the test.

In the suit filed before Justice Taiwo of Court 12 at the state high court, Ring Road, Ibadan, with Motion Number I/443/2024, Oluwatoyin Alao-Aderinto, represented by her counsel, a Senior Advocate of Nigeria, Oladipo Olasope, is asking the court to order DNA tests on herself, along with Olamide, Adebukola, Olamipo, Olamiju (a serving member of the House of Representatives), Tabitha and Olamikunle, as listed in the motion. She also requests that the tests be carried out at a court-approved and accredited laboratory to establish their biological connection to the late governor.

As part of the motion, she is seeking a court order to exhume Otunba Alao-Akala’s body from the mausoleum in his Ogbomoso residence for the purpose of conducting the paternity test.

She asked that the test results be submitted in a sealed envelope and handed directly to the presiding judge for a pronouncement in open court.

The application represents a new development in the ongoing family dispute over the vast estate of the late politician, who died intestate on January 12, 2022.

The conflict, which had remained largely private since his burial, came into the public eye in October 2022 when one Kemi Alao-Akala and Olamide Alabi, believed to be a daughter of the late governor, obtained a Letter of Administration from the Oyo State Probate Registry without informing or seeking the consent of Oluwatoyin, the first child.

She argues that this action was a deliberate and unlawful exclusion that violates the laws governing intestate succession in Nigeria.

In the affidavit and exhibits supporting her motion, Oluwatoyin accused the pair of distorting facts to gain sole control of the estate, despite the existence of other biological children and heirs.

The estate is reported to include properties in Ibadan, Lagos, Abuja, the United Kingdom, and the United States, along with a five-star hotel in Ghana, vehicles, and multiple bank accounts with substantial funds in naira, dollars, and pounds sterling.

Oluwatoyin’s stance on the estate is based on her commitment to ensuring that all concerned individuals—including nuclear and extended family members, aides who served the late governor faithfully, and yet-to-be-identified children—are taken into account, rather than adopting the exclusionary approach of the defendants.

The administrators have listed only seven people as legal heirs, but according to Oluwatoyin’s counsel, there is no established agreement regarding their paternity, and the inclusion of some while excluding others raises serious concerns of fairness and legitimacy. She is therefore requesting scientific verification through the court.

It is worth noting that in a letter dated August 2023 and made public, Oluwatoyin’s lawyer, Oladipo Olasope SAN, warned that excluding the claimant, who is the late Alao-Akala’s first daughter, was a breach of moral and legal standards. He emphasized that without resolution, the issue could further divide the family and undermine the late governor’s political legacy.

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