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Petrol Landing Cost Now N180 Per Litre, Says Kachikwu

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The landing cost of Premium Motor Spirit, also known as petrol, is N35 higher than the pump price of N145 per litre, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said on Tuesday.

Kachikwu said the rise in global crude oil prices after the 2016 hike in petrol price brought back subsidy.

Recalling the experience of 2016, when the government increased petrol price from N86.5 to N145 after months of severe scarcity, he described fuel subsidy as an emotive issue.

“You have very positive argument that says, ‘Why is this happening; let’s get it out.’ Once you do it, the streets get flooded by protesters. You have five or six or 10 days of no activity in the country. So, any attempt to remove the subsidy must be very well-managed,” the minister said on the NTA Good Morning Nigeria programme, monitored by our correspondent.

He noted that in 2016, the government wrote to the Nigeria Labour Congress and all the trade unions, adding that meetings were held with the security apparatus.

Kachikwu said, “Even when there was a consensus on how we were going to do it, we still had an issue at the very tail end of the moment; NUPENG and PENGASSAN supported but, of course, the other members of the trade unions pulled out.

“Eventually, thankfully, Nigerians saw through what we were trying to do and let it happen. And thank God that happened at the time because when you look at the gap today, the landing cost is about N180 per litre and sale price is N145. Imagine if it (pump price) was N90-something; we will literally be a bankrupt country.”

The minister added, “The point I am making is that anything you are going to do on subsidy requires a very efficient management of information – getting everybody who are stakeholders to tie into it.

“Should we deal with the removal of subsidy? I was gung-ho when I assumed this position that there was no way I was going to tolerate a subsidy regime at the time in 2015 of about N1.2tn-N1.3tn. There was just no way; we didn’t have the capacity to continue to pay.”

“So, I convinced the President that this needed to happen; thankfully, he listened, he agreed and we did. Now, we then had over-recovery period for quite a while and then we went into this upswing in prices that has now taken us again into under-recovery.”

The minister noted that the government had not paid marketers all the outstanding subsidy arrears.

He said, “I think, first and foremost, we need to find a way of fixing refineries quickly, whether it is government-funded or whatever – my preference is always private sector funding.

“I think the labour union has never really said they would not be supportive of an attempt to take away this subsidy element; the union has always said, ‘If you are doing it, show me what you [will] do with those new receipts of income. Two, what do you do with the refineries?’ Therefore, we need to address those to even get their buy-in.

“Secondly, we need to segregate between those who need subsidy and those who don’t; you will find that 80 per cent or more of those who get subsidy today do not need it. There is nothing necessarily bad with some element of subsidy if it is well-managed and is very little, and if the private sector can take it away completely; that is fantastic. That is the most ideal situation.”

The Nigerian National Petroleum Corporation, which has been the sole importer of petrol into the country for about two years after private oil marketers withdrew from the importation of the product, bears the burden of subsidising the product.

As of March 20, 2018, when the international benchmark price for oil (Brent) was around $66 per barrel, the expected open market price of petrol, according to data obtained from the Petroleum Products Pricing Regulatory Agency, was around N189 per litre. The agency has not released any data since then.

The Group Managing Director, NNPC, on December 23, 2017, said the Federal Government had been resisting intense pressure to increase the pump price of petrol, noting that the landing cost of the commodity was N171.4 per litre as of December 22, 2017 when oil price was around $64 per barrel.

BIG STORY

It’s Better For Anyone Holding PDP Down To Quit — Gov. Makinde On Atiku’s Exit

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Seyi Makinde, governor of Oyo state, has said that the departure of former Vice-President Atiku Abubakar from the Peoples Democratic Party (PDP) will not impact the party’s position.

Abubakar left the PDP on July 14, stating that the party has deviated from its founding principles.

The party, which serves as the main opposition, has been experiencing internal conflict since the 2023 presidential election.

Speaking on Wednesday during the 10th coronation anniversary colloquium of Aladetoyinbo Ogunlade, the Deji of Akure, Makinde said Atiku’s departure will not weaken the PDP’s foundation or momentum.

The governor noted that the PDP would be in a stronger position if those hindering its progress step aside.

“Politics is a game of interest. I don’t think his exit will make any dent on PDP as a party,” Makinde said.

“PDP is an institution. We have freedom of entrance and exit. Anyone who holds PDP down, it is better for such an individual to quit.”

Speculation continues to grow that Makinde may enter the 2027 presidential race.

Abubakar, who is also seeking the presidency, has aligned himself with the opposition coalition to advance his ambition.

Addressing the move by some opposition politicians to adopt the African Democratic Congress (ADC) ahead of the 2027 elections, Makinde said the coalition does not pose a threat to the PDP.

“I don’t see ADC as a threat to PDP. The goal is about the same. If you are not happy about the tempo and pace of governance, you are free to associate and see what can be done,” he said.

“But one thing we must all realise is that players will come and go, governors will come and go, presidents will come and go, but our state and country will remain.”

Makinde emphasized that traditional institutions are essential to good governance, conflict resolution, and community development.

“Too often, traditional institutions are misunderstood. Some imagine frail old men who have outlived their relevance,” he said.

“Others view them as mere instruments of political endorsement. That mindset must change.

“Traditional institutions are not relics of the past. They are enduring pillars of identity, legitimacy, and communal cohesion.

“Long before Nigeria’s formal administrative systems took root, traditional rulers dispensed justice, upheld values, coordinated local security, and kept communities united.

“Reforming legal frameworks to provide clarity on the roles, rights, and recognition of traditional councils and strengthening our security architecture to formalise community policing strategies rooted in traditional structures.”

Makinde said traditional institutions continue to be the custodians of the grassroots and warned that excluding them from nation-building would be a mistake.

“No wonder politicians continue to seek their blessings and validation,” he added.

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BIG STORY

RCCG Pastor Absconds With $8000 Church Money, Abandons Wife, Marries New One

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A pastor with the Redeemed Christian Church of God has reportedly fled with “$8,000” in church funds, left his wife behind, and married another woman.

Pastor Folu Adeboye, wife of the General Overseer, Worldwide, of the RCCG, disclosed this while speaking at a men’s programme.

She explained in a video monitored by Church Times that the pastor was given the money for mission work in South Africa but instead abandoned his wife and relocated to the United States, where he married someone else.

Adeboye said the incident happened during a visit to Cape Town, South Africa, where she preached at the RCCG parish led by the pastor. The church service was held in a rented space at an eatery.

While she was ministering, a woman entered and began packing chairs, apparently indicating their allotted time was over. Surprised by this, Adeboye asked the pastor what it would cost to get a permanent site.

The pastor, who she said hails from Ekiti State, suggested that “$8,000” would allow them to begin the process by purchasing a used vehicle. He proposed giving the vehicle to a tourism agency to generate returns for acquiring a permanent church building.

Encouraged by the idea, Adeboye gave him the money.

However, the pastor had other plans. After receiving the funds, he travelled to the United States and left his wife behind in South Africa.

She noted that the abandoned woman is now in a distressed state, nearly “running mad.”

Church Times quoted Pastor Adeboye as saying: “RCCG men, what are we going to do? Are we going to continue with such a lying spirit, a deceitful spirit to the God of the kingdom?”

She stressed the need to return to core values of faith and truthfulness. Recalling past hardships, she said: “We must get to the point where we say wherever He leads, we follow. We were in this bush. For three years, there was no light. We went back to the days of the lantern and we were grinding with stone, whereas where we were coming from we had grinding machines, we had washing machines.”

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BIG STORY

Federal Government Targets 8,000MW In 18 Months With Efficient Power Grid

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The Federal Government has expressed confidence that improved oversight of the national power grid by the Nigerian Independent System Operator (NISO) could boost electricity output to 8,000 megawatts within the next 12 to 18 months.

Speaking at a leadership retreat for NISO’s top management in Abuja, Director General of the Bureau of Public Enterprises (BPE), Ayodeji Gbeleyi, said the nation’s installed capacity is above 14,000MW, but actual generation remains around 5,500MW.

Gbeleyi noted that with enhanced grid management and greater investment in transmission and distribution systems, the sector is positioned to see major improvements soon.

“As an independent entity, NISO now carries the weighty responsibility of managing the national grid with impartiality and integrity. In doing so, it must guarantee non-discriminatory access, efficient dispatch coordination, and fair market settlement, free from undue influence or conflict of interest,” he said.

He added, “From where we stand today, we have about 5,500MW of power being wheeled on a day-to-day basis. Compare that with the fact that the total nameplate capacity for generation in the country is a bit above 14,000MW. So it’s not a tall order for us to believe that in the near term, 12 to 18 months, we can increase that 5,500 by a minimum of 50%, because the generation capacity is there. If this grid capacity can be scaled up and we build in resilience, chances are that with distribution infrastructure also being scaled up.”

He also revealed that the Federal Government has secured $500 million from the World Bank to finance distribution network upgrades. This includes providing 3.2 million meters nationwide, alongside another 2 to 3 million meters under a presidential initiative.

Chairman of the NISO Board, Adesegun Akin-Olugbade, stressed the importance of independence and coordination in delivering reliable power services.

“NISO is not just a new institution. It is a new idea. A system operator that is truly independent. A market coordinator that is truly neutral. A planning authority that is truly strategic. We are responsible for real-time grid operations, long-term system planning, and the coordination and development of the electricity market. These are not side functions, they are central pillars. Because when power fails, everything else, industry, healthcare, education, even security struggles,” he said.

Managing Director/CEO of NISO, Engr. Abdu Bello, stated that the goal is realistic, provided focus is maintained and private investment is attracted.

“It is a target that can be achieved. We have to put ourselves and our house in order by making sure that we are focused and making sure that we also attract investment from the private sector. I believe if we are able to do that, given this retreat, this retreat is part of the plan to keep us focused. We will have a direction, strategic plan, and actions going forward. So it’s achievable,” he said.

Executive Director of Portfolio Management at the Ministry of Finance Incorporated, Tajudeen Ahmed, affirmed that MOFI will fully support NISO in delivering on its mandate.

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