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Small Businesses Will Be Hit Hard, MAN Warns As Depot Price Hike May Push Petrol To N160

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The acting Director-General, Manufacturing Association of Nigeria, Mr Ambrose Oruche has said the poor and small businesses that depended on the PMS to power their generators would be hard hit as the pump price of the Premium Motor Spirit, also known as petrol, appears set to hit N160 per litre.

Oruche said it was important for the government to introduce measures to cushion the effect of the deregulation in the sector.

In his words, he said “To reduce the impact, the government should do more in ensuring power generation is big and distribution is efficient, and ensure that people get at least 20 hours of light in a day to reduce dependence on the PMS.

“Government should find a way of compensating the SMEs to stay in business through tax rebates or grants to remain in business and stay competitive.”

Recall that the Nigerian National Petroleum Corporation has increased the price at which it sells the product to marketers from N138.62 per litre to N147.67.

The Petroleum Products Marketing Company, a subsidiary of the NNPC, had initially on Wednesday increased the ex-depot price of the PMS to N151.56 per litre, with marketers saying the product would be sold at between N162 and N165 per litre.

The ex-depot price is the price at which the product is sold to marketers at the depots.

The N151.56 ex-depot price was announced in an internal memo to all stakeholders with reference number PPMC/IB/LS/020 dated September 2, 2020, and signed by D.O Abalaka.

The memo, a copy of which was seen by one of our correspondents, said, “Please be informed that a new product price adjustment has been effected on our payment platform.

“To this end, the price of Premium Motor Spirit is now one hundred and fifty-one naira, fifty-six kobo (N151.56k) per litre. This is effective from September 2, 2020.”

But the PPMC, in another internal memo dated September 2, 2020, with reference number PPMC/MOD/Sales/346 and signed by Onya Schola, reduced the ex-depot price to N147.67 per litre.

When the ex-depot price was fixed at N138.62 in August, marketers were selling petrol at between N148 and N150 per litre. With a new ex-depot price of N147.67 per litre, the pump price may be between N157 and N160 per litre.

Amidst the different ex-depot prices, the Managing Director of the PPMC, Musa Lawal, told one of our correspondents that the first ex-depot price was wrong and should be discarded.

He said the company was investigating how the first memo went out, stressing that although it was from the PPMC, the figures were still being computed and had not been concluded.

“That is not authentic. It is wrong and there is a price review which shall be communicated properly, but what came out early today is the wrong one,” Lawal stated.

Asked to provide the correct one, he replied, “The one that I saw today on the website of one of the dailies is the wrong one. As we speak the circumstances under which that happened are being investigated.

“However, I cannot tell you more than this as the PPPRA (Petroleum Products Pricing Regulatory Agency) is the one to fix prices because we sell based on the guiding price from them.”

But the PPPRA on Wednesday decided to stay mute, as it did in August when the ex-depot price for the PMS was released by the PPMC.

Its spokesperson, Kimchi Apollo, did not answer calls nor replied a text on the matter.

The PPPRA’s silence on the petrol price is contrary to what it said in March.

The agency had stated that it would be issuing a monthly guiding price for petrol, but in August it did not issue any and had remained mute since then.

Meanwhile, oil marketers have said that going by the circulating ex-depot prices for petrol, the pump price for the commodity should hit between N160 to N162/litre.

They also stated that loading of products had stopped at some depots, as marketers were confused about which price to either buy or sell the commodity.

Up till 8pm on Wednesday, officials of the Independent Petroleum Marketers Association of Nigeria stated that no authentic communication had been received from either the PPPRA of the PPMC on the pump price or ex-depot price of petrol.

“Loading has stopped in some depots because of this confusion caused by the price modulation of guiding exercise introduced by the PPPRA and up till now we’ve not received any notice on either the ex-depot price or pump price,” the National Public Relations Officer of IPMAN, Ukadike Chinedu, stated.

But the Zonal Chairman, Independent Petroleum Marketers Association of Nigeria, South- West, Mr Dele Tajudeen, told one of our correspondents that the association had decided that the pump price would be N162 per litre when the ex-depot price was increased to N151.56.

Asked what the pump price would be following the reduction of the ex-depot price to N147.67, he said the association would decide on that later on Wednesday if the ex-depot price remained the same.

“We will add whatever the NNPC has added to our buying price to our selling price,” Tajudeen added.

Petrol price was increased by marketers to between N148 and N150/litre in August from a band of N140.80 to N143.80.

Following the announcement of the new depot price, many filling stations in Ogun and Lagos states were shut on Wednesday as marketers awaited further clarifications from the PPMC.

The Federal Government increased the petrol price a day after power distribution companies hiked electricity tariffs across the country.

The petrol price hike generated angry reactions from the Nigeria Labour Congress, Manufacturers Association of Nigeria and other major groups in the country on Wednesday.

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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