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BIG STORY

Raise Stake In Dangote Refinery, PENGASSAN Tells Federal Government

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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to significantly increase its stake in the Dangote Petroleum Refinery.

The association proposes raising the government’s shareholding from the current seven percent to at least 45 percent.

PENGASSAN President, Festus Osifo, made this recommendation in Lagos on Tuesday during the presentation of the communique from the association’s recent Energy and Labour Summit.

He argued that a larger government stake in the refinery would enhance energy security for Nigerian citizens. He emphasized that energy security is crucial for the survival of any nation, and Nigeria is no exception. The public demands affordable, accessible, and reliable energy supplies.

Osifo further mentioned that the government should partner with players in the private sector to maintain the already available petroleum product storage in the six geopolitical zones in the country.

“When operational, petroleum products will be stored there and only made available when there is a shortage in supply. This will help in eliminating the bad roads and severe erosion-imposed perennial shortages that often lead to queues at petrol stations across the country,” he said.

Osifo emphasised the expansion of pipelines that could be used in the delivery of refined petroleum products across the length and breadth of the country to reduce the pressure on roads by trucks carrying these products.

He pointed out that to achieve energy security, energy must be affordable, hence in ensuring affordability, the Government must do all it can to stabilise the exchange rate as the continuous slide of the Naira will greatly hamper the affordability of energy in Nigeria.

In ensuring local production of petroleum products, he urged the federal government to ramp up efforts to make the Nation’s four refineries work.

He stressed that once operational, the government should divest majority shareholdings and own at most 49 percent of the shareholding in the four refineries, noting that core investors will be brought in to take the 51 percent stake.

He regretted that the NNPC could only buy a 7.2 percent stake in the $20bn refinery.

“Dangote is open to conversations on selling the stake. He was ready to sell 20 per cent earlier and we were also pushing for the government through NNPC to get the 20 per cent, but unfortunately they could only afford seven percent, “ he said.

Osifo said the devaluation of the naira is the major reason why PMS has become unaffordable for Nigerians, noting no government floats its currency above 100 percent.

“If, for example, our exchange rate was at N450 to a dollar, PMS would be selling for around N320 or N350 per litre. So, the main issue wasn’t the removal of subsidies. The main issue was that devaluation. The real problem is devaluation,” he stated.

The association called on the government to develop and strengthen the country’s oil and gas value chain to ensure a more efficient and reliable distribution system downstream.

PENGASSAN stressed that without such a system, the country would continue to face recurring fuel shortages as its reliance on a truck-based distribution system is deficient and inadequate to meet the demands of Nigerians given its vulnerability and disruptions due to bad roads, flooding and ad-hoc logistics arrangements.

The association mentioned that the recent trend of divestment by the International Oil Companies necessitated a strategic shift to accommodate local empowerment, innovation and harnessing potential and latent talents, adding that the divestment trend was driven by the combination of global energy transition goals, financial prudence, portfolio rationalization and evolving regulatory environment.

PENGASSAN cautioned that divestments present both risks and opportunities for Nigeria, including a reduction in foreign direct investment, technical expertise and a potential dip in production level.

“A comprehensive divestment framework under the Petroleum Industry Act (PIA) to guide asset divestment by Licensees and Lessees in the Nigerian Upstream Petroleum Sector should be strictly adhered to and implemented. Pending when the Petroleum Industry Act is amended to include the divestment framework, the current framework promulgated by the Nigerian Upstream Petroleum Regulatory Commission must be gazetted for full implementation.

“A job protection system should be developed by the government to ensure that Nigerians do not lose their jobs post divestment. An MOU must be signed between the divesting companies and the trade unions to protect members’ jobs and enhance their welfare,” he said.

BIG STORY

Lagos State Government To Concession Red And Blue Line Rails For Sustainability, Loan Repayment

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The Lagos State Government has announced plans to concession the operations of the Red and Blue Line rail systems to the private sector in order to ensure their sustainability and repay loans taken for the rail projects.

This announcement was made by the Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, during a recent TVC News interview, where he discussed the measures being implemented to ensure the continued viability of the state’s rail systems.

Osiyemi explained that the concessioning process would involve transferring the operations of the rail systems to private sector players for a defined period. This approach is intended to ensure the continued operation and effective management of the rail projects.

“The ultimate game is for all our rail systems we’ve done—that is, the Red Line and Blue Line—there is going to be some concessionairing with the private sector for a period of time to ensure sustainability and continuity,” he stated.

He added, “The concessioning would help pay back the loans taken for the rail projects.”

The commissioner emphasized that the concessioning strategy aims to ensure efficient operations and long-term financial sustainability, in line with the state’s vision for a world-class transportation network.

  • More Insight

Osiyemi further highlighted the substantial financial and technical challenges involved in operating rail systems, describing them as capital-intensive projects that require significant resources and specialized expertise.

To tackle these challenges and build local capacity, he noted that the Lagos State Government has enlisted foreign partners to temporarily manage the operations of the trains.

These partners are expected to not only ensure smooth operations during their tenure but also transfer critical skills to Nigerian personnel. The plan includes a structured training program lasting one to two years, after which the management of the rail systems will be fully handed over to local operators.

“What we have done is we have consulted foreign partners who, of course, would run these trains for a particular period of time and train our people—that is, transfer of skills.”

“They will train our people for one to two years, then hand over for our own management,” Osiyemi explained.

  • Things You Should Know

The Lagos State Government, under its Lagos Strategic Transport Master Plan, has set out an ambitious vision to develop a network of rail systems across the state.

Currently, only the first phases of the Red Line and Blue Line rail systems have been completed, with passenger services already in operation.

The Blue Line is a 27km electric rail line designed for sustainable operations. Its first phase, covering 13km from Lagos Marina to Mile 2, was completed in 2023 and began commercial operations in September, carrying over 2 million passengers to date.

The Red Line, spanning 37km from Agbado in Ogun State to Oyingbo in Lagos, operates on diesel. Its first phase, a 27km stretch, includes eight strategically located stations: Agbado, Iju, Agege, Ikeja, Oshodi, Mushin, Yaba, and Oyingbo.

The construction of the second phases of both the Red Line and Blue Line rail systems is being managed by the China Civil Engineering Construction Corporation (CCECC), which also oversees the operation of the trains.

Beyond the Red and Blue Lines, the state has plans for additional rail systems, including the 68km Green Line (Lekki Free Trade Zone to Marina), the 85.7km Purple Line (Redemption Camp to Ojo), the 48km Orange Line (Ikeja CBD to Agbowa), and the Yellow Line, all aimed at enhancing the state’s transportation network.

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BIG STORY

Lagos Commissioner Tokunbo Wahab Condoles With Families Of Epe Accident Victims

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Condolence Message from the Honourable Commissioner for Environment and Water Resources, Lagos State, Mr. Tokunbo Wahab.

I am deeply saddened by the tragic incident that occurred in our community, Epe, claiming the lives of two promising young adults, a dedicated tricycle driver, and leaving several other people injured. This heartbreaking accident has left our hearts heavy, as we mourn the loss of these young souls who were full of hope and dreams, and an industrious individual who worked tirelessly for his livelihood.

As a member of this community, I extend my heartfelt condolences to the families and friends affected by this terrible loss. I can only imagine the pain you must feel, and I want you to know that you are not alone in this moment of grief.

Let us honor the memories of these individuals by advocating for safety and awareness on our roads. As we move forward, may we find comfort in community and strength in one another. May their souls rest in peace, and may their families find solace and healing in the days to come.

Our thoughts and prayers are with you all.

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BIG STORY

JUST IN: Monday Okpebholo Sworn In As Edo State Governor

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Monday Okpebholo, a serving senator, has been sworn in as the governor of Edo State.

Okpebholo took his oath of office at about 1pm on Tuesday during the inauguration ceremony in Benin, the state capital.

As the candidate of the All Progressives Congress (APC), Okpebholo won the September 21 off-cycle governorship election in the state.

He polled 291,667 votes to defeat Asue Ighodalo of the Peoples Democratic Party (PDP), who came second with 247,274 votes.

Olumide Akpata, the candidate of the Labour Party (LP), came third with 22,763 votes.

Dennis Idahosa was also sworn in as the deputy governor of Edo.

Dignitaries, including Vice-President Kashim Shettima, Abdulrahman Abdulrazaq, chair of the governors’ forum; Philip Shaibu, reinstated deputy governor of Edo; and other governors from the party, were present as Okpebholo took the oath of office.

The new governor later rode in an open-top van around the stadium, acknowledging cheers from supporters.

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