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Petrol scarcity hits critical point nationwide as imports slump

Published

2 months ago

September 3, 2024

Petrol scarcity hits critical point nationwide as imports slump

The lingering petrol scarcity crisis in Nigeria has reached a critical point, with marketers unable to replenish their rapidly depleting stock.

As the shortage persists, amid the admission of $6billion debt to offshore product suppliers by NNPC Ltd, stakeholders are advocating for transformative measures to address the issue. They emphasise the urgent need to bolster domestic refining capacities and implement full deregulation of the petroleum sector.

They expressed worry that Nigerians may be on a long walk to freedom as NNPC Ltd, the sole importer of petrol, is currently cash-strapped and currently unable to sustain importation, leaving the country with a single option of hiking the price to reflect market realities.

Petroleum sector players have also urged the government to exhibit the boldness and resolve necessary to decisively end the subsidy regime, rather than imposing further hardships on the Nigerian populace.

The Publicity Secretary of the Crude Oil Refiners Association of Nigeria (CORAN), Mr. Eche Idoko, told Daily Sun that the current situation is a national disgrace, particularly for a nation endowed with abundant hydrocarbon resources.

He explained that the failure of the government to implement earlier recommendations by the last administration aimed at giving a boost to modular refinery operations in the country was responsible for the current crisis.

The CORAN Publicity Secretary said part of the recommendations was for the government to set aside about $11 billion special fund for modular refineries to empower them by scaling up their production to include petrol through the procurement of catalytic converters.

According to him, the other part of the recommendation was for the government to make available adequate crude oil for modular refinery operators.

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Idoko disclosed that as at today, the refining capacity of modular refineries is in the region of about 200,000 barrels per day, saying when that is added to the 650,000 barrels of Dangote Refinery, the country would have succeeded in being self sufficient and could still export to earn foreign exchange.

However, he said, those recommendations were never implemented when the new administration came on board and that has led the country to where it is today.

Also speaking, Mr Rabiu Bello, Senior Independent Non-Executive Director at Seplat Energy Plc., said that collaborating with local refineries to process the daily allocation of 445,000 barrels of crude oil, based on a tolling arrangement, would help the government secure petroleum products needed for domestic consumption and allow export of excess products.

In his intervention, the National President of the Petroleum Retail Owners Association of Nigeria (PETROAN), Mr. Billy Gilly-Harris, said this is the best time for the NNPC Ltd to bring back its refineries to operation, saying the nation cannot afford to continue with the lingering energy crisis.

He said it has now become obvious more than ever that the government was still subsidizing fuel and cannot continue to say otherwise under what they continue to call under-recovery.

Gilly-Harris said the Port-Harcourt and other refineries should be quickly commercialized in partnership with those that are serious to do business. The PETROAN President urged the government to as a matter of urgency completely deregulate the downstream sector and allow more private sector players to bring in products and sell at the appropriate price.

“Today, there is nowhere in the world where petrol has landed below $1. And looking at that amount in the Nigeria scenario, where our exchange rate keeps fluctuating. If it is landed at $1 in Nigeria including all associated costs, that should give you an idea of what the actual cost should be.

Some of the marketers who spoke to Daily Sun in separate interviews under anonymity projected that the continued intervention of NNPC Ltd in petrol pricing was no longer sustainable as the importer of last resort has finally come out to say the petrol cost was a strain on its finances.

They said Nigerians should be ready to pay the actual cost of petrol which they pegged at about N1,450 per litre, including all other associated cost.

Meanwhile, loading activities at the Apapa Depot recorded further decline yesterday, as fewer trucks were seen on the queue.

Some of the oil trading companies lamented that fewer cargoes were calling at the nation’s water, an indication that the level of imports have dropped significantly.

Already, petrol has hit N1,500/litre in various parts of Lagos and environs, while the product has skyrocketed to over N2,000 up north.

The frightening development has already taken a toll on transportation and food prices.

Many jurisdictions reported that transportation costs have doubled in the last 48 hours, just as the prices of goods and foods are at stratospheric heights.

Petrol scarcity hits critical point nationwide as imports slump

SUN

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$6bn fraud: Judge scolds Agunloye’s counsel over delay tactics

Published

7 hours ago

November 15, 2024

Trends Admin

Former Power and Steel Minister Olu Agunloye

$6bn fraud: Judge scolds Agunloye’s counsel over delay tactics

Justice Jude Onwuegbuzie of the Federal High Court, Apo, Abuja On Thursday, chastised Adeola Adedipe, SAN, counsel to former Minister of Power, Olu Agunloye, for using delay tactics to slow the pace of the former minister’s prosecution.

Agunloye is being prosecuted by the Economic and Financial Crimes Commission, EFCC, on seven counts of official corruption and fraudulent award of the Mambilla Power Project contract worth $6 billion.

During Thursday’s hearings, the court observed that the defence counsel has been in the habit of making excuses based on Agunloye’s health and age, as well as filing various motions, ensuring that little progress has been achieved in the trial.

Addressing the defence counsel, Justice Onwuegbuzie stated that “My principle of justice is that of no delay. The other time you brought the issue of amicus curiae and wasted the time of the court. You should also know that in my court I don’t read processes.

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“If you need time to serve processes, it must reach me on time, and your colleague must also be duly aware in time. There must be mutual respect. Do not come and serve processes in court; I don’t take that in my court,” he said.

Prosecuting Counsel Abba Mohammed, SAN, informed the court at the start of proceedings that the business of the day was the adoption of the prosecution’s application for the amendment of the charge, which was filed on October 30, 2024, to which the defence responded with a counter-affidavit and a request for an adjournment to allow the prosecution to study the affidavit.

Justice Onwuegbuzie adjourned the case until November 28, 2024, to rule on the adoption of the application.

$6bn fraud: Judge scolds Agunloye’s counsel over delay tactics

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Emefiele printed new naira notes different from what Buhari approved – Ex-CBN official

Published

7 hours ago

November 15, 2024

Trends Admin

Former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele

Emefiele printed new naira notes different from what Buhari approved – Ex-CBN official

The trial of former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, continued at the Federal Capital Territory (FCT) High Court in Maitama on Thursday, November 14, 2024.

A former CBN Deputy Governor, Kingsley Obiora, who served in the policy department, testified that the newly printed naira notes issued during Emefiele’s tenure deviated from the approval granted by then-President Muhammadu Buhari.

In his testimony before Justice Maryann Anenih via Zoom, Obiora disclosed, “the approval by then President Muhammadu Buhari was different from what was eventually produced,” according to a statement from the Economic and Financial Crimes Commission (EFCC).

Obiora, responding to evidence presented by prosecution counsel Rotimi Oyedepo SAN, explained that he noticed discrepancies when comparing the naira notes in circulation with the President’s original directive.

During his seven-year tenure at the CBN, Obiora served on the Committee of Governors (COG), which he described as a body comprising “the governor, four deputy governors, and the director of corporate services.” He clarified, “The governor is the Chairman of the Committee, and during my tenure as Deputy Governor, Emefiele was our Chairman.” Obiora said the Committee met every Wednesday to address significant policy matters.

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Obiora recalled the initial introduction of the redesign plan during an event marking the one-year anniversary of the e-naira in Lagos on October 25, 2022. “The governor called all four deputy governors into a huddle and informed us of the plan to redesign the currency,” he said, expressing immediate concerns, as he felt “the event itself may not be the appropriate place to announce such a major policy.” He advised that the policy undergo further scrutiny before any public announcement.

Despite his reservations, Obiora noted that Emefiele proceeded with the plan, formally presenting it to the COG on October 26, 2022. “The governor mentioned that we had already had the president’s approval for the policy,” he stated, adding, “The deputy governor in charge of currency operations presented a memo, and it was discussed, deliberated upon.” Following this, a press conference was held to announce the redesign.

Obiora explained that the CBN Board was formally briefed on the naira redesign months later, in mid-December 2022. He said, “The policy was discussed at the board level mid-December. The board did not sit as day-to-day management but instead gave policy directions.” Obiora clarified that “the board’s involvement in the policy was limited to endorsing the COG’s prior decision, not initiating it.”

During cross-examination, defense counsel Olalekan Ojo, SAN, questioned Obiora about the timing of the board’s formal involvement. Ojo suggested that the December meeting “conforms with the naira notes currently in circulation,” to which Obiora responded, “Yes, sir.” He noted there had been no indication or directive from former President Buhari challenging the redesign.

Reflecting on past experiences with currency design, Obiora mentioned that while he was with the bank during the introduction of a redesigned N100 note in 2014, he was not directly involved in its development.

After delivering his testimony, Justice Anenih discharged Obiora and adjourned the case to December 4, 2024, and January 21, 2025, for further proceedings.

Emefiele printed new naira notes different from what Buhari approved – Ex-CBN official

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Train attack: ECOWAS court dismisses SERAP suit against FG

Published

7 hours ago

November 15, 2024

Trends Admin

Train attack: ECOWAS court dismisses SERAP suit against FG

The Community Court of the Economic Community of West African States (ECOWAS Court) has rejected a suit filed by a group of Nigerian activists, the Socio-Economic Rights and Accountability Project (SERAP) over an attack by bandits on an Abuja-Kaduna train on March 28, 2022.

The court held that it lacks jurisdiction over the case because relevant ingredients that could qualify it to be entertained as a public interest litigation were missing.

SERAP filed the case after bandits attacked the Abuja-Kaduna passenger train in 2022.

In the attack, armed assailants bombed the train carrying over 970 passengers on the Abuja-Kaduna rail line near Rigasa in Kaduna.

The attack led to numerous fatalities, injuries, and abductions.

SERAP, by its case, sought to hold the government of Nigeria accountable for alleged human rights violations in relation to the terrorist attack.

The organisation claimed, among others, that the attack was the result of the state’s inability to provide tight security for the passengers.

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SERAP argued that Nigeria’s alleged lack of measures to avert the attack violated the rights of passengers to life, security, and dignity.

It prayed for a N50 million compensation for each of the passengers and their families.

In a judgment delivered on Wednesday, the regional court declared the suit inadmissible due to lack of victim status required for public interest litigation.

A statement by the court said the judgment was delivered by Justice Dupe Atoki.

It added: “The court recognised its jurisdiction to hear the case as it involved potential human rights violations within a member-state, in accordance with Article 9(4) of the ECOWAS Supplementary Protocol.

“However, the court found the claim inadmissible on grounds that it failed to meet the victim status requirement essential for litigation under Article 10(d) of the same Protocol.

“In its findings, the court said that SERAP claimed to be acting in public interest, citing previous incidents of terrorism in the region, including attacks on educational institutions and transportation services.

“However, the court determined that the case did not meet the criteria for a public interest action, or actio popularis, which requires that the alleged violations affect a large, indeterminate segment of the public or the general public itself.

“The Court highlighted that: The victims of the March 28 attack were identifiable individuals rather than an indeterminate public group, making the claim unsuitable as a public interest litigation.

“The reliefs sought, including specific monetary compensation, were directed at the identifiable victims of the attack rather than the public at large.

“Members of the three-member panel of the court were Honourable Justice Ricardo Cláudio Monteiro Gonçalves(presiding judge), Honorable Justice Sengu Mohamed Koroma (panel member), and Honorable Justice Dupe Atoki (judge rapporteur).”