Business

Why we back FG on petrol subsidy removal by 2022 – IPMAN, others

Published

5 years ago

November 27, 2021

Petrol price heads towards N1,500 per litre despite falling crude oil prices

• NANS rejects proposed fuel price hike, threatens shutdown

The Independent Petroleum Marketers Association of Nigeria (IPMAN), said yesterday, that its support for the Federal Government over the planned removal of subsidy on Premium Motor Spirit (PMS), stems from the realization that the Petroleum Industry Act (PIA) signed into law by President Muhammadu Buhari on August 16 makes no provision for subsidy.

Besides, IPMAN President, Chinedu Okoronkwo, told the News Agency of Nigeria (NAN) yesterday that his association has consistently “advised the government to remove petrol subsidy because it is not in the interest of development of the downstream sector.”

But the National Association of Nigerian Students (NANS) threatened, yesterday, to shut down the country should the Federal Government go ahead with the planned fuel subsidy removal.

The students’ body also rejected the government’s plan to pay N5,000 transport allowance to 40 million Nigerians to cushion the effect of soaring fuel prices.

Okoronkwo, in the NAN interview, said: “We welcome the decision of the government to stop subsidising petrol by 2022 and we are hoping it will attract more investments to the sector, especially with the passage of PIA.”

He added: “What we want is that a level playing field be provided for everyone in the sector to encourage competition once the subsidy is removed.”

READ ALSO:

Also speaking on the issue, the immediate-past President, Major Oil Marketers Association of Nigeria (MOMAN), Tunji Oyebanji, said continued subsidising of petrol was not sustainable in light of current economic realities.

He said the 2022 deadline was realistic and its impact might be mitigated with the coming on stream of the 650,000BPD Dangote Refinery, Bua Group Refinery, Waltersmith Refinery and other modular refineries.

Oyebanji, who is the Managing Director of 11 Plc, however, faulted the plan to replace the subsidy with cash transfer to Nigerians due to lack of a reliable data base in the country.

“In my personal opinion, I am of the view that such funds should be channeled to areas like education and mass transportation that would be accessible to ordinary Nigerians,” Mr Oyebanji said.

An oil and gas expert, Wilson Opuwei, said the conversation about fuel subsidy in Nigeria “should have been a thing of the past because it was an obvious wastage of the nation’s resources”.

Mr Opuwei, who is the Chief Executive Officer of Dateline Energy Services Ltd., maintained that the elite were the major beneficiaries of the fuel subsidy regime.

He said: “We should let market forces determine the price of petrol and other products, not the government dolling out subsidies with funds that we don’t even have.”

NANS rejects proposed fuel price hike, threatens shutdown

Declaring its position on the issue yesterday, the National Association of Nigerian Students (NANS) threatened to shut down the country should the Federal Government go ahead with the planned fuel subsidy removal.

Addressing journalists in Abuja, NANS President, Comrade Sunday Asefon, said the union would mobilise its 41 million members across the country to protest what he branded a “strange proposal.”

READ ALSO:

The present economic realities in the country, Asefon said, made it wrong for the government to contemplate something as critical as deregulating the petroleum sector “without thinking it through, without consultation and without a robust debate.”

He described the move as a plan by the government to get money at all costs to squander and finance the ostentatious lifestyles of public officers and senior civil servants, adding that any attempt to aggravate the economic woes of Nigerians would not only be unconscionable but reckless.

“Nigerians are really suffering. We are in dire socioeconomic straits. We are weeping in our hearts and souls. We are dying in silence. We feel the agony and anguish because we are practically involved,” he said.

Continuing, he said:It will amount to testing the patience of Nigerians. And we wish to warn against it. The country is very stretched and tensed. In case the government is not aware, we are passing them this intelligence free of charge now. Again we advise: let the government not stretch it further.

“The consequences will be dire. The people are already flamed. Mendacity will beget mendacity

NANS is happy that the organised labour and civil society groups have all rejected the proposal.

”We shall ensure that the entire country is shut down and paralysed should the Federal Government proceed with its insensitive plan of deregulation, or even any further increase in the pump price of fuel. We have had enough.

”We know that neo-liberal and imperial economists will soon emerge to confuse themselves with some well- rehearsed stale analyses and commentaries.”

“It is therefore very strange that the Federal Government could contemplate the removal of fuel subsidy now. The four refineries are not functioning, and if they are functioning at all, it is at a near zero level. There is a zero consultation with stakeholders to even consider issues around deregulation and why it should or should not be. The survival of Nigerian workers and their wards is yet to be discussed, yet a date that may take lives out of them has been fixed.

”Furthermore, inflation is already passing a skyrocketing level. So we may need to find a word to describe the kind of inflation that will be experienced if the pump price of PMS goes above 200 percent. In fact, we are very convinced that the Federal Government is acting impulsively on a matter as sensitive as this. And our conviction is based on many things that cannot just add up. Beyond the issues already raised, let us consider the following economic confusions:

”In the 2022 Appropriation Bill, the FG already provided for fuel subsidies. One then wonders why it will provide for what it plans to eliminate.

”Upon which data did the Honourable Minister of Finance, Budget and National Planning determine that only 40 million Nigerians are vulnerable? And what is the definition of vulnerability in our socioeconomic context?

“Where does she intend to generate the money which will be paid to those 40 million Nigerians since there is no provision for it in the 2022 Appropriation Bill?

”Is it not a very strange economics to rob the poor to pay the poor even lower? In which economic sense or theory does 5000 the inflationary effect of 200 percent increment on the central economic item of a country?”

Asefon urged the government to rescind the plan till adequate arrangements like refining at home and utilising the nation’s petrochemical by-products are made.

”After that, there will be a robust discussion by all stakeholders to deal with associated socioeconomic issues and discuss the details of the new regime. It is only on this condition that there can be a corresponding social equilibrium, economic prosperity, job and wealth creation for Nigerians.”

Finance, Budget and National Planning Minister , Zainab Ahmed, had announced that the government would remove fuel subsidy and replace it with a monthly N5,000 transport grant to about 40 million poor Nigerians.

The Nation

Related Topics:Featured FG IPMAN petrol subsidy

Up Next

Customers outraged over excessive bank charges

Don't Miss

‘More expensive than subsidy?’ — Is FG’s N5,000 transport grant dead on arrival?

Auto

FRSC hands over Safeline Bank to ROBOPAY, targets digital financial transformation

Published

2 days ago

October 5, 2026

Trends Admin

FRSC hands over Safeline Bank to ROBOPAY, targets digital financial transformation

The Federal Road Safety Corps (FRSC) has handed over ownership of Safeline Microfinance Bank to ROBOPAY NIG. LTD., paving the way for a major recapitalisation and technology-driven transformation of the financial institution.

The divestment, which took place on Monday, October 5, 2026, at the bank’s premises in Abuja, is expected to reposition Safeline Microfinance Bank for stronger competitiveness, improved service delivery and sustainable growth in Nigeria’s rapidly evolving financial services sector.

The development, according to a statement by the Corps Public Education Officer, Osondu Ohaeri, is part of the strategic efforts under the leadership of the Corps Marshal, Shehu Mohammed, to reposition the institution for greater efficiency and competitiveness.

Safeline Microfinance Bank was established by the FRSC to provide financial services and opportunities to members of the Corps and other stakeholders.

Speaking at the handover ceremony, Chairman of the Board of Safeline Microfinance Bank, Ibrahim Babagana, a Deputy Corps Marshal (Rtd.), said the decision to divest the bank followed a careful assessment of the prevailing regulatory environment and emerging government policies affecting the microfinance banking industry.

Babagana said sustaining the bank under the changing financial landscape would require substantial additional capital, greater investment in technology and enhanced human capital.

He explained that the Board therefore resolved to transfer ownership to an investor with the capacity, resources and commitment to make the required investments and place the bank on a sustainable growth trajectory.

The former FRSC chief expressed confidence in ROBOPAY, saying the company had demonstrated the competence, commitment and vision required to build on the foundation established by the Corps and take Safeline Microfinance Bank to a new level.

He identified strengthening the bank’s capital base, deploying modern technology and investing in human resources as critical priorities for its survival and competitiveness in the increasingly digital financial services market.

Responding on behalf of ROBOPAY NIG. LTD, Malam Aliyu Abiodun thanked the Board and management of Safeline Microfinance Bank for the confidence reposed in the company, describing the acquisition as a significant milestone and an opportunity to unlock the institution’s considerable potential.

Abiodun said the bank already had valuable assets, structures and an institutional foundation which the new owners would build upon through strategic investments in financial technology, capital and human resources.

He said ROBOPAY would deploy FinTech solutions to modernise the bank’s operations, improve customer experience, expand its service offerings and strengthen its competitive position within Nigeria’s financial services industry.

According to him, the new ownership would retain and leverage the institutional foundation created by the FRSC while introducing innovative technology-driven solutions capable of opening new growth opportunities for the bank.

The transaction thus signals more than a change in ownership, as it ushers Safeline Microfinance Bank into a new phase anchored on recapitalisation, digital innovation and professionalised financial services.

Both parties expressed commitment to ensuring a seamless transition, with the ultimate objective of building a stronger, more competitive and sustainable institution capable of delivering greater value to its customers and stakeholders.

Business

Tantita Operations Push Oil Export Earnings to $9.39bn in Q2

Published

3 days ago

October 5, 2026

Trends Admin

High Chief Government Oweizide Ekpemupolo, popularly known as Tompolo

Tantita Operations Push Oil Export Earnings to $9.39bn in Q2

Nigeria’s crude oil export earnings rose to $9.39 billion in the second quarter of 2026, with improved pipeline security, higher production and greater stability in the Niger Delta supporting the stronger performance.

Provisional Balance of Payments (BOP) data showed that Nigeria’s total goods exports increased to $20.08 billion in Q2, up from $15.56 billion in the first quarter.

Crude oil exports increased by 15.78 per cent to $9.39 billion, while natural gas exports climbed by 40.15 per cent to $3.63 billion.

The improvement has renewed attention on the role of pipeline security in protecting Nigeria’s oil production and ensuring that crude reaches evacuation points and export terminals.

Among the companies involved in pipeline surveillance in the Niger Delta is Tantita Security Services Nigeria Limited (TSSNL), which was engaged by the Federal Government to protect oil pipelines and other critical petroleum infrastructure.

Tantita’s operations, carried out alongside government security agencies, have focused on tackling oil theft, illegal bunkering and pipeline vandalism and improving the security of facilities used to transport crude oil.

READ ALSO:

Industry stakeholders have linked the improved operating environment in the Niger Delta to increased crude production and stronger export performance. However, the rise in export earnings cannot be attributed to Tantita alone, as production volumes, international oil prices, investments, operational efficiency and wider government measures also influence export receipts.

The broader export figures also showed significant improvements across other sectors of the petroleum industry.

Refined petroleum product exports increased by 66.24 per cent to $3.94 billion, while non-oil exports rose by 25.30 per cent to $3.12 billion during the quarter.

At the same time, Nigeria’s crude oil imports fell sharply from $1.39 billion in Q1 to $580 million in Q2, further strengthening the country’s external position.

The stronger export performance helped push Nigeria’s current account surplus to $7.54 billion, representing a 67.93 per cent increase from the $4.49 billion recorded in Q1. The figure was also higher than the $5.17 billion recorded in Q2 2025.

The increase in the current account surplus was driven largely by higher export earnings and an improved goods account.

The rise in crude earnings also coincided with stronger production, with Nigerian crude output reaching about 1.56 million barrels per day in June 2026, excluding condensates.

The development is significant for Nigeria, which has struggled in recent years to consistently meet its production potential because of crude oil theft, pipeline vandalism, ageing infrastructure and underinvestment in the upstream sector.

Improving security around oil-producing assets has therefore become a key part of efforts to raise output and increase foreign-exchange earnings.

Tantita, led by High Chief Government Oweizide Ekpemupolo, popularly known as Tompolo, has been at the centre of the Federal Government’s pipeline surveillance arrangement in the Niger Delta.

Stakeholders, however, say sustained growth in oil earnings will require more than surveillance operations. They have called for continued investment in exploration and field development, improved infrastructure, enhanced recovery from mature fields and faster development of major deepwater projects.

The Federal Government has also been pursuing measures aimed at attracting fresh investment into Nigeria’s upstream sector, including fiscal incentives for deepwater oil and gas projects.

For Nigeria, the latest export figures offer a boost at a time when the country is seeking stronger foreign-exchange inflows, increased oil production and greater fiscal revenues.

The challenge now is to sustain the improvement by keeping petroleum infrastructure secure, reducing crude losses and ensuring that higher production translates into consistent export earnings and broader economic benefits.

Tantita Operations Push Oil Export Earnings to $9.39bn in Q2

Business

Dangote Sets 40-Month Deadline for $16bn East Africa Refinery in Kenya

Published

7 days ago

October 1, 2026

Trends Admin

Dangote Sets 40-Month Deadline for $16bn East Africa Refinery in Kenya

Nigerian industrialist Aliko Dangote has set a 40-month completion target for his planned $16 billion East Africa refinery in Lamu, Kenya, following the official groundbreaking of the project.

Dangote and Kenyan President William Ruto broke ground for the 700,000-barrel-per-day (bpd) refinery on Wednesday, September 30, 2026, with the facility designed to supply refined petroleum products to Kenya and other countries across the region.

Dangote said the refinery would be commissioned within 40 months.

“We will come back here and commission this refinery in 40 months from today,” he said at the ceremony.

The Dangote East Africa Petroleum Refinery and Petrochemicals Complex is expected to process about 700,000 barrels of crude oil daily, making it one of the largest refining projects in Africa and, when completed, potentially the world’s largest single-train refinery.

The project is expected to produce petrol, diesel, jet fuel, polypropylene and base oil, with the products targeted at Kenya and wider East African markets. Dangote has also said part of the refinery’s jet-fuel output could be supplied to Europe and the United Kingdom.

The facility will also include a planned 1,000-megawatt power plant, which Dangote said would provide electricity for the wider industrial complex.

READ ALSO:

Beyond refining, the billionaire said the project would create an industrial ecosystem covering petrochemicals, logistics, engineering, marine services, manufacturing, technology and small and medium-sized enterprises.

Dangote also announced plans for a training school that would prepare 1,000 Kenyan engineering graduates for opportunities associated with the project. The wider development is expected to generate thousands of jobs across the refinery and related industries.

The project has attracted major international engineering and technology partners, with Honeywell Technologies providing process technologies, licensing, engineering services, catalysts, equipment and digital solutions.

The use of established designs and experience from Dangote’s Nigerian refinery is expected to shorten the development schedule compared with a typical new refinery.

Engineers India Limited is also involved in the project under a major engineering and project-management contract.

Dangote’s Kenyan project is modelled partly on the experience of his 650,000-bpd refinery in Lagos, with the new facility expected to draw on technology and engineering experience gained from the Nigerian plant.

The refinery is expected to source crude from Uganda and other African producers, while serving a market extending beyond Kenya to countries including Uganda, Rwanda, Tanzania, Ethiopia and South Sudan.

Regional leaders who attended the groundbreaking included Ugandan President Yoweri Museveni and Ethiopian Prime Minister Abiy Ahmed, alongside other African leaders and former Nigerian President Olusegun Obasanjo.

President Ruto described the project as an investment in energy security, industrialisation and regional integration, while stressing the importance of ensuring that Kenyan citizens benefit from the employment and training opportunities created by the refinery.

Dangote has also proposed allowing governments in the region to take a combined 30 per cent stake in the refinery, potentially giving participating countries an opportunity to benefit financially from the project.

However, the project faces a legal challenge over the land on which it is being developed. A Kenyan court ordered parties to maintain the status quo over a disputed parcel in Lamu after residents challenged the development, citing ancestral land claims and other concerns.

Environmental concerns have also been raised over the potential impact of the project on the coastal ecosystem and the wider Lamu area.

Despite the legal and environmental issues, Dangote has said the project will proceed.

Once completed, the $16 billion Kenya refinery is expected to increase refining capacity in East Africa, reduce dependence on imported petroleum products and support the region’s broader industrialisation drive.