Business

Kerosene Scarcity: IPMAN Wants Direct Supply From NNPC

Published

14 years ago

July 4, 2011

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the Nigeria National Petroleum Corporation (NNPC) to ensure that kerosene is distributed through its members.

Mr Chinedu Okoronkwo, the Chairman of IPMAN’s Products Allocation Committee, made the call shortly after an inaugural meeting of the committee in Lagos.

Okoronkwo said the meting was to ensure that NNPC’s kerosene allocations to IPMAN were given to genuine members to ensure effective distribution and availability.

“NNPC should allocate IPMAN products strictly to its members to avoid diversion by un-recognised marketers.

“The only time we can checkmate mischievous marketers is when all follow due process,’’ he said.

The chairman said that IPMAN was ready to partner with NNPC in addressing the scarcity of petroleum products.

The Secretary of the committee, Mr Olumide Ogunmade, expressed the hope that the committee would ensure equitable distribution of products to IPMAN members.

“We are not fighting the NNPC but want to set records straight so that our valued members who have invested their money in products will get them.

“If we are given 76 per cent allocation for our members, what we are witnessing today on kerosene won’t have occurred because we are widely spread in term of retail outlets and number,’’ he said.

Ogunmade said the committee desired that all petroleum products allocation by the NNPPC/PPMC should go to genuine marketers for effective distribution and monitoring.

Our correspondent reports that IPMAN on Wednesday set up a 22-man committee to oversee the union’s allocation of products from the NNPC.

The committee was mandated to recommend solutions to the lingering scarcity of kerosene.

Meanwhile, some major and independent marketers have alleged that the NNPC, and Pipelines and Products Marketing Company (PPMC) are under-supplying them kerosene.

Some of the marketers, who spoke with newsmen yesterday in Lagos on condition of anonymity, said the situation had resulted in the artificial scarcity and hike in the price of the commodity.

“The inability of NNPC and PPMC to flood the market with the commodity caused the scarcity, and hike in the price of the commodity,’’ one of them said.

The source said that less than five million litres of kerosene were being distributed to the marketers daily, as against 12 million litres the NNPC claimed were being supplied.

The marketers alleged that 30 of them were being allocated a truck of 33,000 litres daily.

They, however, suggested that they should be given licence to import the commodity as part of efforts to address the lingering scarcity of kerosene.

“We urge the government to put in place appropriate mechanisms to ensure that the product is available throughout the country.

“Importation of kerosene by NNPC alone cannot solve the problem of scarcity; government should give licence to independent marketers to fast-track the importation of the commodity to ease scarcity,’’ a marketer said.

A source in the Department of Petroleum Resources (DPR), who preferred anonymity, also advised the NNPC to flood the market with the commodity, and publish daily and monthly allocations to the marketers.

The source said NNPC should increase supply of kerosene to the marketers and other depot owners to ease scarcity as well as reduce the price of the commodity.

Dr Levi Ajunoma, Group General Manager, Public Affairs Division of NNPC, said about 50,000 metric tonnes of kerosene had been allocated to major and independent marketers, as well as depot owners within the last one month.

Our correspondent, however, reports that in spite of this, kerosene still sells at between N120 to N135 per litre in some filling stations.

In spite of announcements by the NNPC that it had distributed sufficient kerosene to oil marketers nationwide, the product has remained scarce and expensive in Asaba.

Our correspondent reports that between June 27 and yesterday, not more than five out of more than 40 petrol filling stations in Asaba had the product for sale to the public.

An investigation showed that the stations that sold the product were only those owned by independent oil marketers.

Not even NNPC Mega station or its grade B type, both in Asaba, had the product for sale.

For instance, out of the more than 15 filing stations on Onitsha high way, only two, King’s Petroleum and Emmy and Sons Oil Ltd, sold the product during the week at exorbitant rates.

Anioma Petroleum and Odims Global Resources Ltd., both oil dealers located on Anwai Road, sold the products too.

No major oil marketer in the city sold kerosene during the period in spite of allegation by Independent Petroleum Marketers Association of Nigeria (IPMAN) in the state that greater percentage of kerosene allocation went to them (major marketers).

According to IPMAN Chairman in the state, Chief Akpos Edafevwotu, NNPC allocates about 70 per cent of kerosene to its mega station in Asaba and the smaller ones around the cities.

He said the corporation also gave greater share of the remaining 30 per cent to major marketers, leaving little for his association’s members.

Edafevwotu, however, said that kerosene allocation to IPMAN by NNPC during the period of scarcity was raised to 16 trucks daily as against seven previously but noted that the supply was still inadequate.

The situation in Asaba has again boosted black market operation in the sale of the product.

A litre of the product at such market costs between N200 and N240.

One of the operators who pleaded anonymity, told newsmen that the price of a litre at the “illegal” spots depended on the sources of the stock.

Automated Gas Oil (AGO), known as diesel, has also remained scarce in the Delta capital for a long time and has led to high price of the product.

Currently, a litre sells for between N155 and N165 at filling stations.

In a related development, the NNPC (Retail Products Section) is collaborating with the Capital Oil and Gas in a nationwide kerosene distribution in tankers.

The aim is to ease scarcity.

Our correspondent reports that the pilot scheme began on Saturday in Lagos with 200 tankers loaded with the product.

The vehicles are to be taken to all the nooks and crannies of Lagos State for kerosene sales to residents.

Mr Ifeanyi Ubah, the Chief Executive Officer of Capital Oil and Gas, said at the unveiling of the pilot scheme that the idea was to boost NNPC’s efforts to end kerosene scarcity.

Ubah said the distribution would eliminate long queues at NNPC fuel stations.

“Tankers will be stationed at some locations in the city and rural areas to sell to individuals who want to buy kerosene; the best method to address panic buying of kerosene.

“The product will be handled and sold to Nigerians by sub-dealers who must have paid for them through the banks to avoid sharp practices,’’ he said.

Ubah said the method would go a long way in addressing kerosene scarcity.

He said that the schemes would be conducted in Abuja, Kano and Port Harcourt.

Dr Levi Ajuonuma, the Group General Manager, Public Affairs Division in NNPC, said the corporation on Thursday allocated 25,000 metric tonnes of kerosene to major and independent marketers to ease the scarcity.

“Distribution bottlenecks have been our major challenge but we have finally addressed that, and we believe all marketers will ensure the circulation of the product across the country,’’ he said.

Ajuonuma also said that the truck distribution would effectively address the lingering scarcity.

“We implore both regulatory bodies and the media to assist in monitoring the distribution of the product at the official pump price of N50 per litre,’’ he said.

Mr Victor Enilama, the Operations Officer at the Department of Petroleum Resources, urged the NNPC to publish all kerosene allocations to marketers to guide the department in monitoring their sale.

Enilama said the DPR would not seal a fuel station or prosecute its owner when there was no product in the station.

“Kerosene is under-supplied; the NNPC should beef up supply to marketers and depot owners to ensure adequate distribution and sales at the normal pump price,’’ he said.

He urged the corporation to ensure sustainability of the kerosene distribution, warning that if not properly monitored, it would be mismanaged and abused.

Our correspondent reports that kerosene is still sold for between N120 and N135 per litre in some filling stations in Lagos State.

Business

Ban On Satchet Alcoholic Drinks: FG To Loss N2trillion, says FOBTOB

Published

2 days ago

November 24, 2025

The Tide

Ahead the December 31 effective date for enforcement of the ban on alcoholic drinks and beverages in PET or glass bottles below 200ml, the Food, Beverage, and Tobacco Senior Staff Association (FOBTOB) has warned that Nigeria risks losing more than N2 trillion in investments.

The union urged the federal government to reverse the planned ban, cautioning that the Senate’s directive to the National Agency for Food and Drug Administration and Control (NAFDAC) would trigger severe socioeconomic consequences across the industry.

Speaking at a Press Conference, in Lagos, the President of FOBTOB, Jimoh Oyibo, said repealing the directive would prevent massive job losses and protect the country from economic disruption.

“Repealing the order would avert the grave repercussions that would most definitely follow the ban, especially by saving approximately 5.5 million jobs, both direct and indirect,” he said.

Oyibo appealed to the Senate to invite stakeholders to a public hearing, insisting that all parties must be allowed to present their positions before any decision is made.

“For a fair hearing and to demonstrate good faith, the Senate should invite relevant stakeholders to a Public Hearing to ‘hear the other side’ and be adequately informed to make an informed decision,” he said.

The union leader urged the Senate to carefully review and endorse the validated National Alcohol Policy, describing it as a multi-sectoral framework developed after last year’s public hearing, when the initial call for the ban was raised.

He urged the lawmakers to consider the entire value chain in the alcoholic beverage industry, including formal and informal workers and legitimate local manufacturers, before approving any enforcement.

Highlighting the economic implications, Oyibo said close to N2 trillion invested in machinery and raw materials could be wasted, while over 500,000 direct workers and an estimated five million indirect workers, including suppliers, distributors, marketers, and logistics operators, could lose their livelihoods.

He said “Nearly N2 trillion worth of investments in machinery and raw materials could be lost. Indigenous Nigerian manufacturers risk total collapse, discouraging future investments.

“Smuggling and the circulation of unregulated alcoholic products may skyrocket, worsening public health dangers. Government tax revenue could decline sharply as factories shut down or scale back operations.

“With rising unemployment and no safety nets, this ban will plunge families into poverty. The very children the policy claims to protect may be forced out of school if their parents lose their jobs”.

Business

Estate Developer Harps On Real Estate investment

Published

2 days ago

November 24, 2025

The Tide

A Canadian based Nigerian Estate Developer, Andrew Enofie, has said that diversification of investment into the real estate sector remains the key to business sustainability.

Enofie said this during the launch of The Golden Gate investments, in Port Harcourt, recently.

He said real estate sector has always remain stable during period of inflations, adding that diversification into the sector would ensure that businesses never loose out during such periods.

He also called on Nigerian businessmen to put their money into the Canadian estate industry with the view to reaping maximum benefit.

According to him, Canada has one of the lowest inflation rate in the world and Nigerian businessmen can reap benefits by putting their monies into the Canadian estate sector.

Enofie said his company, with many years of experience in the real estate sector, can assist Nigerian businessmen with the quest to acquire property in Canada.

According to him, investors have more opportunities to diversify their funds, saying “it also open doors for investors to invest in the Canadian real estate market.

“With the launch of this fund, we are strategically positioned to navigate current market dynamics,r3 rising demand, shifting rates and evolving economic trends, while focusing on sustainable growth”, he said.

Also speaking, an investor, Mike Ifeanyi, also called on investors to invest in real estate.

He commended the company for its pledged to assist Nigerian businessmen willing to invest in Canada, but added that the whole thing must be transparently done inorder to avoid fraud.

Also speaking, Chukwudi Kelvin, yet another investor, described the event as an eye opener, stressing that time has come for Nigerian investors to go into the Canadian estate sector.

By: John Bibor,/Isaiah Blessing/Umunakwe Ebere/Afini Awajiokikpom

Business

FG Reaffirms Nigeria-First Policy To Boost Local Industry, Expand Non-oil Exports

Published

2 days ago

November 24, 2025

The Tide

The Federal Government has reaffirmed its continued commitment to driving Nigeria-First policy aimed at encouraging local manufacturers and improving the economy through the non-export sector.

This is as the National Assembly has revealed that a bill for establishing a Weights and Measures Centre is advancing.

Delivering the keynote address at the Opening Ceremony of the 2025 Nigerian International Trade Fair, in Lagos, Minister of Industry, Trade and Investment, (FMITI), Dr. Jumoke Oduwole, said that government would continue to promote locally made goods.

Oduwole stated that the fair was not only an opportunity to showcase the best of Nigerian products but ensuring that the country continues to accelerate its non-oil exports under the Renewed Hope Agenda.

The minister noted that the government’s reforms are working and demands a lot of support from all stakeholders.

In her words, “Already, our non-oil exports have grown by 14 per cent. Our exports to the rest of Africa was the fastest growing at 24 per cent last year Q1, year-on-year, CBN released the results at the end of Q1.

“Now, this shows us that our goods are in demand across Africa. Earlier this year, the Federal Ministry of Industry, Trade and Investment opened an air cargo corridor in partnership with Uganda Air, and we mapped 13 Southern and Eastern African countries who want Nigerian products. We understood that they want our fashion, they want our light manufacturing, our food, our snacks, plantain chips, chin chin.

“They also want our zobo, our shea butter, beauty products. The things we take for granted here, our slippers, our hair wigs, are things that are in demand across the continent. And so we’re here to support our Nigerian exhibitors and to welcome our friends across Africa and across the world.

“Exhibitors, buyers who are interested in purchasing, we’re interested in growing these businesses. So a business that is a small business this year should be a medium-sized business in the next five years. Each trade fair has its uses, each trade fair has its conveners, and really, to be honest, there cannot be too many.

“This trade fair, traditionally, has been the largest in the country, and we want to bring it back to its former glory. There’s nothing like a competition.

On her part, the Executive Director, Lagos International Trade Fair Complex Management Board, Vera Safiya Ndanusa, said the board would, in the coming months, champion structured and modernised regulatory frameworks for trade fairs and exhibitions.

She stressed that reviving the Tafawa Balewa Complex was part of a broader mission to strengthen confidence in the nation’s trade infrastructure, while stimulating industrial activity and showcasing the enormous potential of the nation’s citizens.

“Most importantly, we remain the only agency in Nigeria expressly mandated by law to organise trade fairs, and we intend to restore that statutory responsibility to the prominence it deserves ensuring coherence, quality, and national alignment in trade events across the country.

“We will be deepening our engagement with NACCIMA, whose partnership has historically anchored the success of organised trade in Nigeria, while also strengthening ties with ECOWAS, continental business groups, and international partners who share our vision for a more integrated African marketplace.

“In the coming months, we will champion a more structured and modernised regulatory framework for trade fairs and exhibitions, one that protects stakeholders, ensures standards, and positions Nigeria as a credible and well organised destination for regional and continental commerce”, she stated.

She noted that as Africa embraces the promise of the African Continental Free Trade Area, a new momentum was building across the continent.

“For Nigeria, AfCFTA is not just an economic framework; it is a pathway to industrialisation, job creation, and intra-African collaboration.

“This complex must play a central role in that journey. We intend to make this fairground a primary entry point for African trade, a marketplace where producers and buyers from across the continent meet, a logistics hub connected to regional value chains, a centre for cross-border SME activity, and a launchpad for Nigerian businesses looking to expand beyond our borders.

“To achieve this, we are intentionally expanding access to markets physically, economically, and digitally. We are working to make participation more affordable for SMEs, women-led enterprises, and young entrepreneurs. We are improving mobility within and around the complex. A truly vibrant trade ecosystem must be inclusive, and inclusivity begins with access,” she stated.

Chairman, House Committee on Commerce, Ahmed Munir, commended Ministry of Industry Trade and Investment, ED LITF and her team, for promoting the platform as a veritable marketplace of ideas, innovation, and partnership.

He said the event was a clear reflection of the economic agenda of the current administration, supported by Speaker Rt. Hon.Abbas Tajudeen.

According to him, “The House of Representatives recognises that the engine of our economy is the private sector, particularly our Micro, Small, and Medium Enterprises (MSMEs), which contribute nearly 50 per cent to our GDP and employ the vast majority of our citizens.

“To create the competitive environment they need, the National Assembly has been working assiduously to pass and amend vital legislation to enhance the Ease of Doing Business by Streamlining regulatory bottlenecks and reinforcing essential infrastructure to make business operations simpler and more predictable.”

He stressed that as policy makers they would continue to promote the “Nigeria First” Policy through robust legislative support, ensuring that government ministries and agencies prioritise locally manufactured goods in all public procurement processes. “This is our clear statement: We must buy Nigerian to build Nigeria.

“Also to ensure quality and standards, the bill for establishing a Weights and Measures Centre is advancing. Quality is not optional; rather, it is the key to consumer trust and international competitiveness,” he said.