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Scarcity: FG Orders NNPCL To Reduce Petrol Price

Published

1 year ago

January 10, 2023

Editor

The Nigerian National Petroleum Company Limited is selling Premium Motor Spirit, popularly called petrol, at a loss because of its mandate from the Federal Government as regards PMS subsidy, the Minister of State for Petroleum Resources, Chief Timipre Sylva, said on Monday.

Sylva’s remarks came as oil marketers stated that the supply hitches in the downstream oil sector that often leads to fuel scarcity, might persist till June, based on the government’s plan to end petrol subsidy in that month.

The petroleum minister spoke in Abuja at the resumption of the scorecard series (2015-2023) of President Muhammadu Buhari.

Last week, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said the Federal Government had budgeted about N3.6tn for fuel subsidy till June 2023.

Sylva, while speaking in Abuja on Monday, insisted that subsidy had been a burden, but stressed that it was a mandate on NNPC which had made the oil firm to continue selling PMS at a loss.

He said, “The management of the supply situation under this subsidy regime is not easy. We must all agree that so much money is being burnt in our cars, but somehow we have to put funds to continue to keep the country wet.

“Sometimes if you really think deeply you begin to wonder what magic we are doing to be able to keep this country wet consistently. Considering that you buy something, let’s say for N10, and you are to sell it at a loss.

“And then you are expected to go back to buy the same thing, and come back again to sell it at a loss. So at every point in time you are looking for more money to continue to buy it, because you’re mandated to sell it at a loss.”

Sylva added, “So if you are a businessman, look at it from this perspective, that you are now in the business where you are mandated to sell at a loss to the public. That is not an easy job, I must tell you.”

Respond in to a question on how he would feel when buying petrol at N300/litre, Sylva said he would not feel bad about it.

“If you ask me how I will feel as a private citizen to buy petrol at N300/litre, sadly, I will say I won’t feel bad, knowing the actual situation. And if you compare Nigeria to other countries, you will understand,” he stated.

The minister added, “When you convert the N300/litre that you are talking about to other currencies, then you will understand. A lot of you travel to the United Kingdom or the United States, how much do you buy petroleum products there? Even in Arab communities that produce crude oil.”

He said the cost of the commodity in Nigeria was not as high as what was obtained in other countries, but stressed that the current national consensus was that subsidy on petrol was no longer sustainable.

“Unfortunately we are still in a subsidised regime, which all of us know. As a country, I think it is a national consensus now that subsidy is not sustainable, but together we will get there,” Sylva stated.

He said until the cost of petroleum products were market driven, investors would continue to shy away from investing in the downstream oil sector.

“Under a subsidised regime, who is going to invest? If you build a refinery, how is your refinery going to make profit under a subsidised regime? But if you have a market-driven situation, you’ll see that a lot of investors will come.

“And the more refineries we have, this problem of access to petroleum products will be a thing of the past,” Sylva stated.

FG, Dangote

The Federal Government on Monday revealed that it had acquired shares in four refineries operating in various locations across the country.

It outlined the refineries to include the 650,000 barrels per day integrated Dangote Refinery in Lagos; 12,000bpd Azikel Modular Refinery in Bayelsa; 5,000bpd Waltersmith Modular Refinery in Imo; and 2,500bpd Duport Modular Refinery in Edo.

The government also announced that the 60,000bpd component of the Port Harcourt Refining Company in Rivers State, would begin operations in the first quarter of this year, stressing that the facility had been completed.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, disclosed this in Abuja at the ministerial scorecard series of the current administration.

Commenting on the equity of the Federal Government in Dangote Refinery, Sylva said it was 20 per cent, adding that the government had also bought shares in three other refineries.

He said, “We have 20 per cent equity in Dangote Refinery and we have also taken 20 per cent equity in Azikel Refinery. We took 30 per cent in Waltersmith, and we also have 30 per cent in Duport Refinery.

“Duport Refinery is already finished. They’ve concluded the construction. It only remains to start operations. I’m sure that within the next one month or so, Duport Refinery will also start operations.”

The minister explained that the Dangote Refinery already had an established contract with NNPC, in terms of crude oil supply, but noted that some modular refineries usually accessed crude oil from assets closer to the plants.

“So they (modular refineries) have this (crude oil supply) contract with private sector owners of these assets that are near them,” he stated.
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News

2023: Why INEC Servers Failed To Work – Peter Obi

Published

16 hours ago

May 5, 2024

Editor

The presidential candidate of the Labour Party, Peter Obi has explained why the Independent National Electoral Commission, INEC, servers failed to work during the 2023 presidential election.

He said the ‘establishment of criminality’ made the INEC servers not work during the last last general elections.

Obi stated this, while addressing the issues of the 2023 elections, including the IREV servers, in Canada during the weekend.

The Labour Party flagbearer in 2023 said people must intensify engagement with all the stakeholders to make the system work.

The former Anambra State governor explained that Amazon testified there were no glitches recorded globally on the day of the presidential election.

He said: “Where did we go wrong in the last election? We didn’t go wrong anywhere. We did the right things.

“But as I can always tell people: when you bring a change, you fight all those who live off the old order. They don’t go away; they gang up. And don’t think it’s a straight race to remove an establishment.

“It’s a long-distance journey anywhere in the world. Go and check anywhere, whether you are looking at what happened in India, with Mandela in South Africa, or America. No change has happened overnight, it takes time.

“I urge all of you, if you really want change, we have just begun. We just have to continue from where we are.

“Yes, there might be one or two things we will correct, those things we will correct. I assure you we are correcting them without naming them.It’s not going to be easy.”

News

INC Vows To Internationalise Ijaw Struggle

Published

16 hours ago

May 5, 2024

Editor

The Ijaw National Congress (INC) says time has come to internationalise the “Ijaw struggle” beyond rhetoric.

Prof. Benjamin Okaba, President, INC, said this in a communique of the 2024 edition of the Ijaw National Day celebration held in Bayelsa.

Okaba said that the vexatious factors that provoked grievances between the late Maj. Adaka Boro and the federal government in the improper management of the oil political economy of Nigeria, have remained unmitigated.

He noted that the situation had worsened with its attendant impunity.

According to him, the Ijaw environment continues to bear the brunt of petroleum resources exploitation-related pollution without concomitant remediation or reparations of the heavily despoiled ecosystem.

“Instead, Ijaw communities still face the adverse effects of uncontrollable spills, perennial flooding, ocean encroachment and so on,” he said.

The INC president noted that at different forums, it had been made clear that the Ijaw agenda of self-determination was premised on resource and environmental justice.

“What all Ijaw people seek is for a fair, just and justifiable reward for our resources and sacrifices.

“The Ijaw Congress has articulated a set of prescient conditions for its continuous commitment to the Nigerian project and these include restoration of true federalism (fiscal federalism).

“Devolution of power and repel of all obnoxious and discriminatory environmental and resource related laws (Land Use, PIA), as well as restoration of Ijaw Territory as non-balkanised, administrative and politically generated unit(s).

“This is for the reassurance and promotion of Ijaw developmental pursuits by creating at least two additional states, more local government areas and wards for the Ijaws.

“Remediation of our massively polluted and endangered environment and the enforcement of adherence to international environmental best practices by IOC’s operating in Ijaw territories,” he said.

Okaba also demanded for the relocation of the administrative headquarters of all oil companies and their subsidiaries to their operational bases in Ijaw territory and Niger Delta.

He further called for proper funding and management of the Interventionist Agencies such as the Presidential Amnesty Programme and Niger Delta Development Commission.

“We call for the promotion of modular refineries owned by our people.

“We also want a balance in appointment at the federal levels (the civil service, military and oil companies) as well as equitable distribution of critical infrastructure, to reflect the true principles of federal character.”

He said it was against this backdrop that the theme of the 2024 Ijaw National Day “Re-Invigorating Our Resolve to take the Ijaw struggle for Self-determination beyond Rhetoric” was derived.

News

Drake Gives Condition To Quit Music As Feud With Kendrick Lamar Thickens

Published

16 hours ago

May 5, 2024

Editor

US rapper Drake has vowed to quit his music career if allegations regarding a secret daughter are substantiated.

The controversy started when rival artiste Kendrick Lamar, in his diss track ‘Meet The Grahams,’ levied accusations suggesting Drake’s involvement with an 11-year-old secret daughter.

Lamar branded the Canadian rapper a “deadbeat” for purportedly neglecting his paternal responsibilities

Renowned American media personality Akademiks, however, disclosed rapper’s response to the allegations during a recent broadcast.

According to Akademiks, Drake denied the claims, going as far as promising to leave the music industry and work for Akademiks if any evidence of the alleged secret daughter emerged.

During his Saturday night show, Akademiks shared the rapper’s direct message, stating, “Drake hit [texted] me, he said, ‘Ak, if you or anybody can prove that I have an 11-year-old daughter, I’ll quit rapping and come work for you.’”