News

Reps Raise Alarm Over Plot To Sink Nigeria Through Fuel Subsidy

Published

2 years ago

September 20, 2022

… says Nigeria subsidising for neighbouring countries

NNPC extends DSDP to avert fuel scarcity during Christmas.

THE House of Representatives on Monday raised the alarm over alleged plans to sink the country through the controversies trailing the fuel subsidy regime.

Chairman, House ad hoc committee investigating the subsidy regime between 2013 and 2021, Honourable Ibrahim Mustapha, disclosed this while responding to the submission of the Group Managing Director of Nigerian National Petroleum Corporation (NNPC) Limited, Mr Mele Kyari, who averred that Nigeria is subsiding West African countries.

While responding to a question on the huge allocation of petrol to states near border towns, the NNPC helmsman lamented that previous efforts made by the Petroleum Product Pricing Regulatory Agency (PPPRA) to install Acquila facility with a view to forestalling illegal transportation of PMS across illegal border failed.

He, however, said: “If you have N5 million, you can cross the borders with trucks laden with PMS and that is the bitter truth: we have porous borders; yes, we have the Customs service but I do not know.

“PMS crosses anywhere to Cameroon through the North-East, Nigerian petrol gets to Upper Volta, Mali; our neighbouring countries hardly import petrol; in fact, some of them do not have the LC cover to back up imports.

READ ALSO:

“Cameroon refinery got burnt sometime last year or so, since that time, they have not imported petrol and then, still using the product. If you go to Niger, you find that petrol is sold in bottles just like Coca-Cola because, to them, it is a cheaper source why waste their foreign exchange? So, we are subsidising for our neighbours, that is the simple truth.”

In a swift response, Honourable Mustapha said: “There is a committee set up by the seventh Assembly that investigated subsidy. And, in the report of that committee, it was established that 31.5 million litres of PMS were being consumed daily as of that time; that was in 2012.

“Now, in comparison with the figure we are having before us here, 66 million plus litres, one will wonder what increase of consumption is it that within 10 years, we have over 100 per cent increment. How can we justify it?

“For a layman like me, if I say 1,500 trucks were discharged from various depots into the country, it will at least take those trucks five to 12 hours to arrive at their final discharge point and then, it will take more hours to discharge.

“So, how come that these trucks will discharge and return same day and also be able to load to maintain the 64 or 66 million consumption daily?

“And the second issue, if you look at this your table, gasoline price across West African countries per naira per litre. Maybe you will help a layman like me that probably we are simply subsidising for the West African region. Even in Niger Republic, it is sold for N536; in Mali, N577; in neighbouring Benin, N389; in Ghana, N589 and in Togo, N470. In Chad, N362 and in Cameron, N423, whereas the landing cost plus incidentals, profit and whatever as you projected here is N462 in Nigeria and we subsidise it to N162 or N165 or thereabout.

“Don’t you think we deliberately choose to sink the country for the benefits of others? What justification can we say we have to justify this to Nigerians? These are some of the key issues we will like to hear from the horse’s mouth.”

Speaking earlier, the NNPC helmsman, who painted a gory picture of how oil theft and pipeline vandalisation plagued the industry, disclosed that the country, which produced 2.3 million barrel per day before COVID-19, currently produces between 1.2 million and 1.6 million barrel per day, against 1.8 million barrels per day approved by OPEC.

READ ALSO:

Noting that the joint venture partners are entitled to about half of the total production, some of the partners, he said, have declared force majeure, with ExxonMobil shut-in, while Shell has also signified plans to follow suit.

Kyari, who was represented by the company’s Chief Financial Officer, Mr Umar Ajia, said: “We have about 1.6 billion litres incoming, land and marine. This is what is the minimum level we have to maintain, especially as we approach winter. Most of the refineries that we procure are actually shutting down their operations because of the clamour for green energy and COP26 compliance.

“Even gas that is transition fuel for us is being given eight years. Of course, we do not agree. When you look at PMS outlook, we want be closing each and every month with a two billion closing stock. That is the only way you can sustain petroleum so that a marketer do not see some slack and take advantage by begin to hoard product that create, artificial scarcity which can lead to queue.

“There is a huge arbitrage for anybody to move product to outside. We are not saying that the bulk of the product is smuggled. The reality is that there is no study to validate the actual consumption. What we are reporting daily is what the authority, which is the regulator, publishes. They are represented at every depot in Nigeria.

“Exchange rate has been moving steadily from N195.5 to now N390.6 to a dollar, on average. The subsidy scheme is two ways, the fx subsidy and price.

“The shipping cost has doubled, therefore the landing cost of PMS has moved from N87 per litre in 2015 to about N327.68 per litre today. When you compare it to what we sell, you have a N209 on every litre. When you multiply the N209 per litre with an average of 66.7 million litre, you are talking about N3.4 trillion subsidy for the year.

READ ALSO:

“The reality today is that if one were to take statistics of the number of vehicles in Nigeria, how many Keke NAPEP do we have? How many pumping machines do we have? On a routine visit, I saw nothing less than a million keke. Take an average that each one uses four litres every day, that is four million litres, one city.

“We have not done a study to validate; people are saying that we are evacuating 66 million a day. That is the reality. Some days, what is evacuated can go as much as 100 million a day, while some weekends, we do zero. The marketers are watching.

“States like Oyo and Ogun states even consume more than Lagos State, so you wonder. Is it that they have more vehicles than Lagos? This explains that these are states with porous borders and that will explain why this bulk evacuation is going out of Oyo and Ogun states, probably neighbouring countries.”

He also informed the lawmakers that the company resolved to extend the Direct Sales Direct Purchase (DSDP) contract, which was billed to end in August 2022, in order to avert fuel scarcity in December and during the 2023 general election.

“It is a very dangerous period to begin to re-tender for that because we are facing the winter. These are the difficult ‘embers months’ that we normally avoid fuel scarcity,” he said.

Before resorting to a closed-door session, Mustapha had directed some subsidiaries, including Duke Oil and NNPC Retail Limited, to appear on Thursday with relevant documents.
Tribune

Up Next

Court orders ASUU to call off strike

Don't Miss

Blame seven million applicants for incomplete voter registrations – INEC

News

JAMB to security agents: Arrest any parent who comes near CBT centres

Published

4 hours ago

April 18, 2024

Trends Admin

JAMB CBT Centre

JAMB to security agents: Arrest any parent who comes near CBT centres

The Joint Admissions and Matriculation Board, (JAMB), has ordered all Computer-Based Test, CBT, centre owners to ensure the arrest of any parent found close to any of their facilities during the 2024 UTME exercise.

The Board’s spokesman, Fabian Benjamin, gave the directive at the final briefing of CBT centre owners, on Wednesday, saying that the directive became necessary following the intrusive disposition of some parents during the Board’s previous exercises.

Benjamin quoted JAMB’s Registrar, Prof. Is-haq Oloyede, as saying that any parent who disobeys the order would not only be arrested but his ward would be disqualified from sitting for the examination.

“This measure is necessary as it has been discovered over time that many of these intruding parents are facilitators of examination infractions while others have, by their actions, disrupted the Board’s examinations in the past.

READ ALSO:

“Some miscreants also disguise themselves as parents to infiltrate the centres to perpetrate all forms of infractions,” he said.

Oloyede disclosed that the Board has directed security operatives to work with the centres to arrest any meddlesome parent, who comes near the centres, noting that going by the extant national policy on education, a candidate for the examination must have attained the age of 17 years.

“It is evident that these parents had not allowed their wards to pass through the classes as defined in the document, hence, the determination to follow their wards to the examination venue with the aim of compromising examination officials.

“At any rate, it is clear to any discerning observer that these parents deserve to be sanctioned as they had obviously ‘smuggled’ underage children into the ranks of those scheduled to sit the examination,” he added.

He, therefore, appealed to centre owners to consider the assignment as a national engagement and not as a purely profit venture, urging them to expose the bad eggs among them.

JAMB to security agents: Arrest any parent who comes near CBT centres

News

Kaduna assembly speaker warns el-Rufai’s son over threats of lawmakers

Published

4 hours ago

April 18, 2024

Trends Admin

Mohammed Bello El-Rufai

Kaduna assembly speaker warns el-Rufai’s son over threats of lawmakers

Kaduna State House of Assembly Speaker, Hon Yusuf Liman, has warned Bello El-Rufai, the son of the immediate past governor of the state, Nasir El-rufai, against threatening and intimidating the House over the probe panel set up to investigate his father’s eight-year tenure in office.

Hon Liman expressed worry that Bello sent insulting and subtle threat messages to him as the Rt. Hon Speaker of Kaduna State House of Assembly via WhatsApp message over the probe of his father.

This was contained in a statement made available to newsmen on Wednesday by the Media Aide to the Speaker, Malam Suraj Bamalli.

The State House of Assembly had on Tuesday raised a panel to investigate financial dealings, loans, grants, and project implementation from 2015-2023 in Kaduna State during the administration of ex-governor el-Rufai.

The Speaker also noted that el-Rufai’s son allegedly took to social media with two tweets, insinuating a call to “fight” and disrespecting the entire members of the Kaduna State House of Assembly.

Bello el-Rufai is a member of the House of Representatives representing the Kaduna North federal constituency.

READ ALSO:

According to the statement, “Threats and intimidation from anyone, including federal lawmakers, will not deter the Kaduna State House of Assembly from its pursuit of justice and accountability. The Assembly remains resolute in its mandate to provide checks and balances and uphold the rule of law in Kaduna State.

“We urge the good people of Kaduna State to remain vigilant and steadfast in their support for transparency, accountability and the rule of law. The Kaduna State House of Assembly will continue to serve the best interests of the state and its citizens.

“In light of recent events, the Kaduna State House of Assembly wishes to address the erratic and unruly actions of Hon. Bello el-Rufai, the member representing Kaduna North Federal Constituency.

“Shortly after the establishment of a committee to investigate financial dealings, loans, grants, and projects implementation from 2015-2023 in Kaduna State, Hon. Bello Elrufai took to social media with two tweets, now deleted, insinuating a call to “fight” and disrespecting the entire Legislative Arm of Government.

“Additionally, he sent insulting and subtle threat messages to the Rt. Hon Speaker of Kaduna State House of Assembly, Hon Yusuf Liman via WhatsApp.

“The screenshots of these tweets and messages have been widely circulated, causing concern among the citizens of Kaduna State. It is disheartening that a Federal Lawmaker, entrusted with representing the people, would resort to such behaviour, attempting to obstruct the lawful functions of the State Assembly.

“The Kaduna State House of Assembly wants to reassure the good people of Kaduna State that it remains steadfast in its commitment to serving without fear or favour. The members of the Assembly took an oath to uphold the integrity of their office and ensure due diligence in their duties, regardless of any attempts at intimidation or threats”.

Kaduna assembly speaker warns el-Rufai’s son over threats of lawmakers

News

We’ve stopped paying fuel subsidy, FG replies el-Rufai

Published

5 hours ago

April 18, 2024

Trends Admin

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri

We’ve stopped paying fuel subsidy, FG replies el-Rufai

The Federal Government has said that assertions in some quarters that it’s still spending trillions in naira to subsidise Premium Motor Spirit, popularly called petrol, are untrue.

The government debunked the payment of subsidy on petrol claim through its Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited.

This is even as it challenged those who are alleging the return of subsidy payment to provide evidence to substantiate their claims.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stressed that since President Bola Tinubu had declared the end of subsidy on petrol, nothing can change.

He noted that fuel subsidy was a sensitive issue, but noted that the government had made its position known on the matter.

Lokpobiri, in a recent video, insisted that petrol subsidy had ceased to exist, and implored those who alleged that the government was still subsidising the commodity to provide evidence and facts.

READ ALSO:

The minister said, “I don’t want to delve into that issue. It is a very sensitive issue. It is better we get all the facts. As far as I’m concerned, the President removed the subsidy and it remains removed till today. Anybody who is saying that subsidy is being paid, it is left for the person to bring the facts and then we will talk about them.”

Asked whether the price being paid for petrol currently is determined by market forces, the minister replied, “It may not be determined by market forces but let us deal with the price as it is today.

“Every government has a duty to do certain things, not only in the petroleum sector but in several other sectors, to be able to cushion the effect and burden on Nigerians.”

El-Rufai had told journalists in Maiduguri on Monday that many citizens were not aware that the government had reintroduced the PMS subsidy.

“The Federal Government is now subsidising fuel; many people don’t know this. It is the right policy. I have always supported the withdrawal of oil subsidies; but in the course of implementing the policy, the government realised that subsidy has to be back; right now, the government is paying a lot of money for subsidy, even more than before.

“You start implementing a policy because you are sure it is the right policy, but in the course of implementation, you come across bottlenecks, and you modify.

“The keyword in leadership, in my view, is pragmatism. You should be pragmatic. So when you make a policy, you start implementing it, and it doesn’t seem to work well. You should have the humility to stand back and say this is not working, and you modify it,” the former governor stated.