Nigeria’s decision to start the tracking of refined petroleum products movements across the country is expected to solve some few niggling problems arising from the current chaotic fuel distribution system, but it is hardly the most urgent need of the ailing and rotten oil and gas sector at the moment. The Minister of State for Petroleum Resources, Ibe Kachikwu, who announced the new development, said a whopping N17 billion had been approved for the installation of the tracking mechanism.
“We will monitor the trucks till they deliver the products into the storage tanks for the filling (petrol) stations and they are discharged and sold. So, that will produce a 100 percent holistic monitoring of these products,” the minister explained. But is that what a government should spend its time doing when there are so many challenges waiting to be dealt with?
Apart from ensuring that the refined products, which are almost 100 per cent imported these days, do not get diverted to Nigeria’s neighbouring countries, as claimed by officials of the Nigerian National Petroleum Corporation, it will also help to throw new light on the quantity of fuel that is actually consumed in the country on a daily basis. This has been a source of heated controversy between the state oil firm, which is now the sole importer of refined petroleum products, and other stakeholders, and rightly so.
At a time when there were private sector participants in the import business, Nigerians were told the country was consuming between 30 million litres and 40 million litres of petrol per day. But when the NNPC became the sole importer, paying itself subsidies – which it now calls under-recovery – the quantity has been inflated to as high as between 70 million and 80 million litres per day.
More bizarrely, the quantity actually seemed to have reached its peak at a time when there was petrol scarcity all over the country, fuelling suspicion of deliberate inflation of figures because of the higher subsidies that come with higher figures.
While it is good to get the statistics right and ensure that whatever fuel is imported with Nigeria’s hard-earned hard currency is consumed only by Nigerians, it is however worrisome that the process of installation of the mechanism will be administered by the government, using the Petroleum Equalisation Fund, an agency that is not only redundant but part of the anachronism that obfuscates transparency and inflates cost within the oil sector.
According to the Act setting up the fund, its main function is to oversee;
“the reimbursement of petroleum marketing companies for any losses suffered by them arising from the sale of petroleum products at uniform prices throughout Nigeria.”
The question then arises, if garri or bread or beef or cement, for instance, is not sold uniformly across the country, why must petroleum products be sold “at uniform prices throughout Nigeria”? What is so special about petroleum products that they should be singled out for this kind of treatment?
This is one of the reasons why the government should let go of the downstream sector of the oil and gas industry. If market forces are allowed to prevail, most of the problems within the sector would most likely be resolved and it will no longer be the business of the government to invest taxpayers’ money to the tune of N17 billion in the tracking of fuel tankers nation-wide or to even fix prices in the first place. Besides, what happens to the fuel depots and the pipelines that should carry the fuel instead of the tankers? Why can they not be fixed if they are out of order, instead of relying on trucks?
For the umpteenth time, the government should be reminded that it has no business remaining in business; leave business for the businessmen and concentrate on providing a level playing field through the provision of sound infrastructure and rigorous regulatory authority so that businesses can thrive and buoy the economy. This is the only way to boost industrial base, create jobs and widen the tax net.
There is no doubt that the new proposal by the oil minister is an attempt to further entrench the government in an industry that it has been running for close to five decades now without bringing any benefits to Nigerians. This is why the government has found it difficult to sell the moribund, loss-making refineries into which billions of dollars are sunk from time to time on the pretext of carrying out turnaround maintenance.
It is sad that, with less than one year left in the life of this administration, not even one new refinery has come on board to take the pressure off the huge foreign exchange spent on fuel imports in the country. All the initial promises of Kachikwu to sell the refineries have come to naught.
With the exception of the N273.74 million profit recorded in May 2016 and another trading surplus of N16.72 billion in February and March this year, the NNPC has been running at a loss for years. A report by Business Confidential put the amount of losses incurred by the NNPC in the three years to 2017 at a whopping N547 billion. No rational being runs a business in that manner.
Given the track record so far, it is doubtful if anything good can come out of the Nigerian oil industry as long as it continues to be dominated by the corrupt government-owned monopoly. Nigeria can make all the money it requires from the oil industry through tax and royalties, without getting directly enmeshed in a business where there is no transparency and accountability.
We have consistently recommended root and branch reforms of the downstream sector that will target private investors and free government completely from the hydrocarbon distribution business. In a deregulated environment, oil marketing companies can fully track, trace and monitor the distribution of their products and quickly detect illicit activities that negatively impact on their bottom lines. What the sector needs now is a complete overhaul that will position it to deliver maximally to Nigeria as a major oil producing country. It is time to clear the coast for the private sector to come in.
Over 30 vehicles held in traffic with almost 10 commuters were burnt to death in the inferno on Lagos-Ibadan Expressway, opposite Michael Otedola Housing Estate, along Mowe, before Berger this evening.
The vehicles were reportedly burnt to ashes as a result of a fallen petrol tanker which hit a pavement and catches fire along the Otedola bridge, of Lagos Ibadan expressway. Cause of the accident seems to be as a result of Brake Failure.
The Joint Rescue Operation involving FRSC, LASEMA, NPF, RRS, NSCDC, Lagos State Fire Service, LASTMA were on ground to assist in clearing the incident area. As at the time of this report, over 10+ persons have been reported dead, 4 injured
Bodies of the victims of the tanker explosion being evacuated 💔💔💔💔...
An Eyewitness gives details of how the fire accident occurred on the Otedola Bridge
WATCH BELOW
This man above wasn't even worried about his car because it could have been his life! God help us.
LESSON - Please friends, always save yourself first! As long as you have life, everything can be replaced!
PLEA/ADVISE TO NIGERIAN GOVERNMENT
Why should tankers go through the same road with normal commuters? Can't fuel and other PMS be transported through Trains? Rather a separate route for tankers alone?
This is not so in other nations. FRSC and other force don't stop trailers for inspection but cause of bribery they stop smaller ones for seat belts.
Government please make the roads safe for motorist! We are tired of all these!
May the souls of the dead Rest In Peace.
The Peoples Democratic Party, PDP, has said that President Muhammadu Buhari and his APC government want to increase the pump price of petrol in order to fund the 2019 general election.
The main opposition party appealed to the APC-led government not to increase the fuel price which is already N145 per litre.
According to the PDP, the lingering fuel crisis and its attendant black-market costs were only a ploy by the APC to justify their intended hike of petroleum prices.
This was part of the PDP’s statement on Friday, issued by its national publicity secretary, Kola Ologbondiyan.
The statement said, “Any increase in fuel pump price would be an indirect tax on Nigerians to fund APC interests and considering the pains Nigerians have suffered under this inept and unfeeling government, this intended hike will be callous.
“It is now clear to all that this APC- controlled government will never act in the interest of Nigerians. All the actions and policies of APC, in their close to three years in office, have been targeted against Nigerians and there are no signals that they will change.”
“We therefore urge Nigerians to reject this plot to raise the prices of petroleum products even as they gear towards using the next election to end the misrule of the APC,” the party said.
The party added that instead of putting more burden on the people, the APC-led government should come out clear on “sleazes in the oil sector under its watch, particularly the shady oil subsidy payouts and illegal lifting of N1.1 trillion worth of crude using unregistered companies.”
Reno Omokri, former aide to ex-president Goodluck Jonathan says the price of Premium Motor Spirit (PMS), popularly called petrol will soon be increased.
Omokri on Friday in a series of tweets said the government was ashamed to publicly announce the new price to Nigerians
According to him, Buhari’s government will increase the price because they can no longer pay for subsidy which was earlier called a scam under Jonathan’s administration.
He wrote “The Buhari administration is going to increase fuel price sooner than later. Mark my words.
“The only reason for the delay is that they are ashamed to tell Nigerians that they have been paying the same subsidy they claimed was a scam under Jonathan but can no longer afford to pay.”
Recall that the Minister of State for Petroleum Resources, Dr Ibe Kachikwu on Friday denied reports of increment in fuel price to N180.
Ibe Kachikwu, the Minister of State for Petroleum Resources, has given reason why petroleum marketers allegedly responsible for hoarding fuel during the Yuletide season can’t be punished by government.
The Minister said there was no single evidence that marketers were hoarding petroleum products and as such, they could not be punished.
Kachikwu made the disclosure after a Federal Government delegation led by the Chief of Staff to President Muhammadu Buhari, Abba Kyari, and fuel marketers as well the heads of the Department of State Services and the Nigeria Immigration Service, and representatives of other paramilitary services met at the Presidential Villa, Abuja.
Addressing State House Correspondents after the meeting, Kachikwu said the parley was not a fault-finding one but meant to find a lasting solution to the problem of fuel scarcity.
According to the Minister, “This is a major concern that Nigerians should not be made to suffer, that Nigerians do not get through the kind of thing they went through this December.
“We want to find a lasting solution and that is what the committee will come out with in the resolutions tomorrow (Wednesday).
“The thing is even the Nigerians, who have suffered, will want to be sure that we find a lasting solution and find evidential basis upon which to punish people.
“This is a democratic government. I don’t have one (evidence) yet; if you have one, I will like to have it.”
In order to halt the untold hardship presently affecting Nigerians due to the ongoing fuel crisis, the President of the Senate, Dr. Abubakar Bukola Saraki, on Thursday, directed the Senate Committee on Petroleum Resources (Downstream) to cut short its recess and immediately convene a meeting with industry stakeholders.
According to the report by Punch, Chairman of the Senate Committee on Petroleum Resources (Downstream), Senator Kabiru Marafa, revealed this today in Abuja.
Following the directive, the Committee has summoned the Minister of State for Petroleum, Dr. Ibe Kachikwu, Group Managing Director of the Nigerian National Petroleum Corporation, Mr. Maikanti Baru and other relevant stakeholders in the petroleum sector to a crucial meeting on Thursday, January 4, 2018.
He further added that the meeting, which will be held in the Senate Hearing Room 221 and its proceedings aired live on the Nigerian Television Authority, is meant to address the lingering fuel scarcity bedevilling the nation in the last few weeks with a view to putting a complete stop to the unsavoury development.
The Senate, which is presently on Christmas and New Year break is billed to resume Committee work for budget defence on January 9, and commence plenary on January 16.
Tayo Aboyebi, South-West Chairman of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), on Monday confirmed that massive loading of petrol was ongoing at different depots in Lagos.
He assured that Nigerians that the current scarcity of fuel would end in the next two days.
“I am glad to tell you that the product is now available and today, being Christmas holiday, tanker drivers are waiting to collect the product.
“Nigerian National Petroleum Corporation (NNPC) is now making use of Major Marketers Association of Nigeria (MOMAN) tank farms to distribute petrol.
“This is to accelerate the product to different locations. As I am talking to you, our members are taking the product out of depots to filling stations across the country.
“To make it quicker, NNPC is also using Folawiyo depot, Aiteo and NIPCO depots and I can tell you that the rate at which loading is taking place now, the crisis will soon be over,” he told NAN.
Atoyebi denied allegation of diversion of the product by his members, adding that such had not been reported to him.
“To the best of my knowledge no such cases have been reported to the union.
“It is not easy to divert the product because petroleum tankers loaded were being monitored to their destinations,” he said.
He urged Nigerians to desist from panic buying, adding that the product was now available.
“Nigerians should not result to panic buying now; petrol is available in depots unlike few days ago when the product was not available.
“The product will be in all filling stations in few day’s time, so buy only what you will use and stop hiding petrol in your house, it is dangerous,” he said.
There was wild jubilation on Monday at Mani Petrol Station, Mowe, Ogun State as the Department of Petroleum Resources (DPR), sanctioned the owner and instructed him to dispense fuel for free to motorists.
News Agency of Nigeria (NAN), reports that Head of Operations, DPR office in the state, Kasali Akinade, had earlier visited the station to warn the owner to start selling at the approved pump price.
NAN also reports that DPR officials had to return to sanction the owner because he refused to comply with their earlier directive.
Speaking with journalists, Kasali said it had become imperative for him to make a “scapegoat” out of the station, so as to serve as a deterrent to others around the area.
He wondered why people would want to make life difficult for fellow citizens, saying the department has zero tolerance for such act of indiscipline.
“We got a tip-off that they are hoarding and selling at N220 per liter. We came here and instructed him to start selling at the approved pump price and forgave him for what he did.
“But as soon as we left his station, he reverted back to the old price and even stopped selling. We had to turn back and make a scapegoat out of him.
“This will serve as a deterrent to others because we treated him as a gentleman at first, but he decided to sabotage the efforts of the federal government,” he said.
He advised other marketers to quit short-changing the public, saying if they have any grievances, they should channel it to the appropriate quarters rather than taking it out on the masses.
Some customers who spoke with NAN expressed their joy at the DPR’s intervention, saying they needed such acts while also advising proper monitoring on the part of the authorities.
NAN reports that other stations visited that were hitherto not selling were made to start selling just as those who were selling above pump price were made to revert to the normal price of N145 per litre.
Source
NAN
Fuel scarcity has continued unabated in Rivers State, especially in the state capital, Port Harcourt. DAILY POST reports that many filling stations hoard their products in the day but dispense at exorbitant prices at night.
Meanwhile, in a crackdown to check the situation, the Department of Petroleum Resources, DPR, has sealed off about twenty filling stations in one week.
The affected private filling stations were accused of various offences, including selling products above the government approved pump price, under delivery of products and diversion of products.
Zonal Operations Controller Downstream DPR Port Harcourt, Ibani Frank-Briggs said the affected filling stations will be sanctioned in line with the petroleum laws.
Frank-Briggs assured that the team will continue the monitoring of filling stations in Rivers State even during the festivities period.
“Our officials were out to inspect what filling stations are doing to Nigerians. I can tell you that are product but they keep doing this deliberately to hurt our people.
“We have sealed off almost 20 filling stations in different parts of Port Harcourt for violating our regulation.
“We will continue with this exercise until we achieve results.
“I can assure that all erring filling stations will pay for their crimes,” he said.
Presidency has told Nigerians to report filling stations selling above N145 per litre to Department of Petroleum Resources, DPR.
The government on Sunday provided help line on which Nigerians can share their complaints.
This is contained in a terse statement by President’s Personal Assistant on New Media, Bashir Ahmad
It read: “On #FuelCrisis: You can report any fuel station hoarding or selling fuel above N145 per litre (official price) by calling Department of Petroleum Resources (DPR) on 08058298820. Kindly RT.”
Meanwhile, Nigerian government has identified those behind the current fuel scarcity.
Director General of the National Orientation Agency (NOA), Dr Garba Abari, said the situation was caused by oil marketers.
In a statement on Saturday, Abari said the hoarding is an intentional ploy to force government to increase the pump price of the product.
Governor of Ekiti State, Ayodele Fayose, has accused the federal government of deliberately causing the current scarcity of fuel in the country so as to justify the planned increment of petrol pump price from N145 to N185 per litre.
The governor, who said the federal government, was being insensitive to the plight of Nigerians, added that “petrol is scarce across the country because the federal government deliberately reduced supply since it is only the Nigerian National Petroleum Corporation (NNPC) that is importing the product.”
Governor Fayose’s Special Assistant on Public Communications and New Media, Lere Olayinka, quoted him as saying in a release issued on Sunday, that “Allowing fuel scarcity to persist for over two weeks when Nigerians are preparing to celebrate Christmas and New Year is the height of wickedness on the part of the All Progressives Congress (APC) federal government.
“Funny enough, instead of directing its anger to President Muhammadu Buhari, who is the Minister of Petroleum, on December 7, 2017, the Federal Executive Council (FEC) choose to give the Minister of State for Petroleum, Dr Ibe Kachikwu seven days ultimatum to end the fuel scarcity. Today is December 17, exactly ten days after the misplaced ultimatum was given, the situation has even gotten worse.”
He said “By the time the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) goes on strike as being threatened, the whole country will be shut down and one wonders what will become of Nigerians that desire to move around during the festive season.”
Governor Fayose, who said it was necessary for the federal government to tell Nigerians the truth about the situation of fuel supply in the country, noted that it was the restriction of supply of petrol to NNPC alone that has put Nigerians into hardship.
He said, “It is only the NNPC that is bringing products in; and the result is the scarcity being experienced now. The thinking is that by the time the scarcity persists for like one month, with Nigerians already buying at N200 per litre, the people will jump at it if petrol is increased from N145 to N185 per litre.
“This time, Nigerians will resist any attempt to further impoverish them by increasing the pump price of petrol.”
Ibe Kachikwu, Minister of State for Petroleum Resources, on Thursday attributed the ongoing fuel scarcity to shortfall in supply of petroleum products across the country.
He said the Nigerian National Petroleum Corporation, NNPC, was making efforts to ensure that queues at filling stations disappeared in a couple of days.
Speaking during a news briefing in Abuja, the Minister assured that there was adequate storage facility for imported products.
Kachikwu added that emergency measures were in place to ensure that the products were available during the Yuletide and post-January.
He said, “Presently, queues in Lagos have reduced. We know that Lagos, Abuja, Benue, Port Harcourt were among the worst-hit areas.
“Benue has been dealt with; Port Harcourt is quite moderated. Apart from these areas, other places in the country are probably liquid.
“The major problem is the gap in terms of volume, because NNPC is the only one importing the product to the country.”
The minister further disclosed that four vessels laden with petroleum products would “berth in a few days and a total of 20 cargoes are also expected with petroleum products’’.
The Nigerian National Petroleum Corporation (NNPC) has said that it has put in place measures and facilities to curb gas flaring preparatory to the 2020 flare out deadline by the Department of Petroleum Resources (DPR).
A statement from the NNPC said its Group Managing Director, Dr. Maikanti Baru made this submission during a one-day public hearing on Gas Flaring Prohibition Bill 2017, at the National Assembly in Abuja.
Baru who was represented by the Managing Director of the Nigerian Petroleum Development Company (NPDC), Mr. Yusuf Matashi expressed NNPC’s strong support for the legislation to reduce gas flaring, adding that the Corporation considered the legislation from the financial benefits it promises to capture rather than seeing it from the point of view of penalty.
“NNPC supports the legislative intervention to prohibit gas flaring in line with global best practices, considering its negative impacts on the environment and the communities where the gas is flared. NPDC, the Exploration and Production arm of the Corporation, is going ahead to see that the monetization of flared gas is realized despite the challenges of the past,” Baru stated.
He informed that NPDC was the highest gas supplier to Nigerian domestic market and was therefore committed to the reduction and elimination of gas flaring to generate more revenue for the country.
Earlier, the Senate President, Dr. Bukola Saraki, who was represented by the Deputy Majority Leader, Senator Bala Ibn Nallah, while declaring open the public hearing said the issue of gas flaring was a national embarrassment adding that the 8th Senate was committed to enacting a legislation that would end gas flaring in the country.
On his part, the Senate Committee Chairman on Gas, Senator Albert Bassey, stated that the Gas Flaring Prohibition Bill 2017 served as a legislative panacea to end gas flaring in the country.
Source
Daily Trust
The Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has criticised the proposed N5 petrol levy by the Senate, describing it as a huge joke.
Alhaji Tokunbo Korodo, the South-West Chairman of NUPENG, said in Lagos on Saturday that the proposal was ill-timed and also smacked of insensitivity to the current economic hardships facing Nigerians.
He wondered how the nation’s Upper Chamber could think of another fuel price increase when Nigerians were
“striving to cope with the current harsh economic realities”.
“How can the Senate propose such a bill at this particular period when poor Nigerians can hardly feed themselves?
“The prices of foodstuffs have tripled in the market, while workers’ salary has not been increased,” Korodo told the News Agency of Nigeria (NAN).
Sen. Kabiru Gaya (APC-Kano), the Chairman, Senate Committee on Works, had on June 1, presented a bill entitled, “National Roads Bill” to the House.
The bill recommends that Nigerians should pay N5 levy on every litre of imported petroleum products and that levy will form part of the proposed national roads fund.
It also recommends the deduction of 0.5 per cent on fares paid by passengers travelling on inter-state roads to commercial mass transit operators as well as the return of toll gates on federal roads, among others.
Korodo said:
“Just a year ago, the pump price of petrol was increased from N87 to N145 per litre and Nigerians accepted the increment because of the sincerity of President Muhammadu Buhari’s administration.
“Any attempt to adjust the price of petrol under any guise will be resisted by the Organised Labour.”
The NUPENG chief called on well-meaning Nigerians to prevail on the leadership of the Senate to step down the bill.
The Ekiti State Governor, Ayodele Fayose, has given owners of petrol stations hoarding fuel in the state 24 hours ultimatum to resume selling the product to customers or have their Certificates of Occupancy revoked.
A terse statement by his spokesperson, Lere Olayinka quoted the governor as threatening to revoke the Certificates of Occupancy, CoO, of any “Petrol Stations” that fail to heed his order.
The statement reads,
“Governor Fayose has given owners of petrol stations in Ekiti State 24 hours ultimatum to begin to sell fuel to the people or have the Certificates of Occupancy (CofO) of their Petrol Stations revoked.”
Nigeria’s Minister of State for Petroleum Resources, Ibe Kachikwu, has vowed to resign if Nigeria continues to import fuel by 2019. He made this statement on Monday, during an interview on BBC World Service programme, HardTalk, hosted by Stephen Sackur.
Mr. Kachikwu promised to see to it that the refineries were completed to ensure that there is a future for oil in Nigeria.
He also stated during the interview that the government plans to diversify into agriculture, tourism, and other sources of revenue to solve the problem of over-dependence on oil. Mr. Kachikwu declared that 2019 has been set as the target for Nigeria to become self-sufficient in refining petroleum and put an end to its import.
He said:
“2019 is the target time… I target 2019. If I don’t achieve it, I will walk…I put the date and I will achieve it.”
Note that the present administration’s tenure will end in May 2019, and except they are re-elected, it is unclear how Kachikwu’s deadline of 2019 is going to matter. Kachikwu went on to state that he has delivered on all his promises so far.
“I have delivered on all that I have promised when I came into office. First, I took Nigerian National Petroleum Corporation (NNPC) and made it a profit- making organization. This is the first time such is happening. I reshaped the organization. I removed cash call deficits of over $ 6 billion and renegotiated it.
I will deliver on the refineries and I’m committed to it. I will deliver a future for oil that makes sense for Nigeria. I can ’t pretend that we’re going to solve in one day all the problems that happened in Nigeria in the past.”
Kachikwu also answered a question regarding the state of President Muhammadu Buhari’s health and stated that he did not know all the details.
“He is in London; he’s undergoing hospital treatment. I don’t know the details of that. I obviously wouldn’t know. But…he’s back in London, he ’s continued some levels of meetings.
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