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Kerosene Scarcity: IPMAN Wants Direct Supply From NNPC

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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.

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Paper Industry’s Economic Contribution Hits N398bn

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The contribution of the paper industry rose to N398.8billion in 2023 from N356billion it recorded in 2022.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Musa Yusuf, disclosed this in a report released to mark the inauguration of World Envelopes Day in Lagos.
Marking the event, which also commemorated the 50th anniversary of envelope manufacturing firm, FAE Limited, Yusuf stated that the paper industry has a profound economic impact across all sectors of the economy.
He, however, noted that the growth in digital technology had greatly disrupted the sector, especially as a mode of communication.
“As of 2023, the value of the Nigerian paper industry was N398.8billion naira, according to the National Bureau of Statistics.
“The value was N365bn in 2022; N363 billion in 2021; and N255billion in 2020. This is a significant contribution to our GDP. However, when compared to the size of our economy, which is estimated at N230trillion as of 2023, it is still very small”,  the CPPE boss stated.
Yusuf said the paper industry had been largely in recession because of the digital technology disruptions and other macroeconomic headwinds, especially relating to exchange rate depreciation, forex liquidity crisis and high cost of fund and energy cost escalation.
He emphasised that the paper industry had a profound economic impact across all sectors of the economy, which underscored the need for government intervention in the sector.
In her opening remarks, the Managing Director of FAE Limited, Funlayo Bakare, described World Envelopes Day as the brainchild of the company, which sought to set aside April 16 as a day to celebrate the fundamental role envelopes play in daily communication.
“As we celebrate our golden jubilee, we are delighted to announce the inauguration of World Envelopes Day, to be celebrated annually on the 16th day of April.
“This is a pioneering initiative by FAE Ltd in accordance with our leadership position in the sector.
“The establishment of World Envelopes Day is to raise awareness about the importance of envelopes in various aspects of human endeavour, including personal correspondence, business transactions, and creative expressions”, she said.
The Publisher of The Guardian Newspaper, Maiden Ibru, who chaired the occasion, stressed the need to strike a balance between digitalisation and physical paper production, especially due to the indispensable role paper plays in cultural preservation.
Nigeria once had three paper mills: the Nigeria Paper Mill Limited, located in Jebba, Kwara State; the Nigerian Newsprint Manufacturing Company Limited, Oku-Iboku, Akwa Ibom State; and the Nigerian National Paper Manufacturing Company Limited in Ogun State.
The mills are no longer operational, and the country has had to depend on importation to make up for the shortfall.
The Asset Management Company of Nigeria has taken over the management of NNMC over unpaid debts.

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Aviation Union Threatens Strike Over Revenue Deduction

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The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has said it would embark on industrial action if the Federal Government refuses to exempt aviation agencies from a directive that seeks to deduct 50 per cent from their Internally Generated Revenue (IGR).
ATSSSAN disclosed this in a communique issued by its National Executive Council (NEC) after its National Economic Council meeting in Ibadan, Oyo State.
The NEC, which had in attendance all 17 affiliates of ATSSSAN comprising all branch Chairmen, Secretaries, and national officers, reiterated calls for the exemption of the aviation agencies from the deduction of 50 per cent  of their IGR under the Fiscal Responsibility Act.
The association said the agencies were not established for profit, hence stifling them of the required funds would jeopardise the effective performance of their safety and security mandates.
ATSSSAN warned that if the Federal Government insist on the deduction, it would compound the current financial state of the agencies, and “we may be forced to direct all aviation workers to down tools until the government reverses itself”.
Last year, the Federal Government directed the Office of the Accountant General of the Federation to immediately commence the presidential directives on a 50 per cent automatic deduction from the IGR of Federal Government-owned enterprises.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had issued a circular titled, “Re: Implementation of the Presidential Directives on 50 per cent Automatic Deduction from Internally Generated Revenue of Federal Government Owned Enterprises (FGOEs)”.
According to the circular, all partially-funded Federal Government agencies and parastatals (receiving capital or overhead allocation from the Federal Government’s budget) should remit 50 per cent of their gross IGR, while all statutory revenues, like tender fees, contractor’s registration, and sales of government assets, among others, should be remitted 100 per cent to the sub-recurrent account.
ATSSSAN stated its apprehension over what it perceives as deliberate efforts by certain private airlines to stop their employees from forming labour unions.
Citing Section 40 of the Nigerian Constitution and international labor norms, the association contends that such actions constitute a violation of workers rights.
The statement, however, did not specify the airline operators suppressing workers from joining unions.
Part of the statement read, “The NEC-in-session calls on all employers in the private sector in the aviation industry to respect collective bargaining agreements in order to avert industrial crises at the workplace.
“NEC-in-session was seriously disturbed by the continuous willful acts by some private airlines towards frustrating the unionization of their employees, contrary to the letters and spirit of Section 40 of the Constitution of the Federal Republic of Nigeria and relevant international conventions and laws”.
The association, therefore, called upon the Federal Ministry of Labour and Employment to uphold and enforce employees’ rights to unionise within the aviation industry.
It urged the Minister of Aviation and Aerospace Development, Festus Keyamo, to orchestrate a dialogue involving all relevant stakeholders, including the non-compliant airlines and labour unions, under the auspices of the Labor Ministry.
At the meeting, other issues affecting workers, especially members’ welfare and working conditions, and the aviation industry at large were discussed, and positions and resolutions were taken.
The aviation group decried what it perceive as a dearth of avenues for career progression within government-owned aviation entities.

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NCDMB Rakes In $1m Return On NEDOGAS Investment

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Management of the Nigerian Content Development and Monitoring Board (NCDMB) says it has received a cheque of $1 million from Nedogas Development Company Limited (NDCL).
A statement made available to newsmen by the Directorate of Corporate Communications and Zonal Coordination of the Board said the sum received was part of the return on investment (ROI) on one of its strategic investments.
The statement added that: “The cheque was presented by the Chairman of the company, Engr. Emeka Ene, when he visited the Nigerian Content Tower in Yenagoa, Bayelsa State, where he was received by the NCDMB’s Executive Secretary, Engr. Felix Omatsola Ogbe, and other members of the Board’s management.
“Nedogas Development Company Limited (NDCL) is a joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company.
“As part of the project, Nedogas NDCL constructed and commissioned a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility located in the Umusam Community, near Kwale in Delta State, Niger Delta, Nigeria.
“The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province by providing the opportunity for independent operators in the area to monetize natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick market access.
“Nedogas is one of the several strategic and successful investments of the NCDMB funded from the Nigerian Content Development Fund (NCDF), in line with the Board’s mandate to build capacity and catalyze local projects in the Nigerian oil and gas industry as enshrined under the Nigeran Oil and Gas Industry Content Development (NOGICD) Act”.
In his remarks, according to the statement, the NCDMB Executive Secretary stated that the success story of NEDOGAS at Kwale, Delta State, could be replicated in other oil and gas producing communities to minimise gas flaring, saying that Ogbe also declared the Board’s readiness to continue collaborating with the company.
“Their model should be extended to other parts of the country where gas flaring is continuing.They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.
“The NCDMB had continued to receive briefings from its investment partners. We’re still waiting for them to come back with success stories. Some of them are near completion and have not started operations yet”, the NCDMB’s Executive Secretary said.
In his remarks, Chairman of NEDOGAS, Mr. Emeka Ene, conveyed the company’s excitement in returning part of the credit and profit, adding that it was a proof that the NCDMB’s investment was a success and they are getting back that investment, adding that the firm looks forward to further collaboration with the NCDMB to expand its scope.
Responding, the NCDMB boss said the Board was now doing effectively and practically and tangibly what it was set up for, saying its mandate was to impact the economy by direct interventions.
“That’s the way the economy can grow, improve the gas infrastructure in such a way that’s sustainable despite the tight economic conditions”, he said.
He added that, “the  value propositions of the Nedogas project include total eradication of flared gas and conversation of environmental pollutants into products of value and creation of a strategic gas gathering hub and injection node for quick access to market for gas owners to monetize gas”.
Other benefits, according to Ogbe, include the provision of alternative gas supply to western flank of the OB3 line to add to the volumes of economic sustainability and increase in Nigeria’s Gross Domestic Product (GDP).
“The partnership with NEDOGAS is one of NCDMB’s 15 strategic investments geared towards actualizing the Federal Government’s aspirations in key areas of the oil and gas industry.
“Most of the projects were targeted at actualizing the Federal Government’s Decade of Gas programme.
“Some of NCDMB’s notable third-party investments include Waltermith’s 5000 barrels per day (bpd) modular refinery in Imo State, Azikel Group12,000 bpd hydro-skimming modular refinery in Gbarain, Bayelsa State, and Duport Midstream’s 2,500bpd modular refinery in Edo State.
“Other investments of the Board include Better Gas Energy for LPG terminal and gas distribution, partnership with Rungas Prime Industries Limited to establish a cooking gas cylinders manufacturing plant in Polaku, Bayelsa State, and Alaro City in Lagos and the partnership with Butane Energy to deepen LPG utilization in the North”, he stated.
The Executive Secretary also noted that there was the partnership with BUNORR Integrated Energy Limited in Port Harcourt, Rivers State, to produce 48,000 litres of base oil per day and partnership with the Nigerian National Petroleum Corporation (NNPC) Limited, Brass Fertilizer and Petrochemical Company Limited, and DSV Engineering to establish a 10,000 Ton Methanol Production Plant, Odioama, in the Brass Local Government Area of Bayelsa State.

By: Ariwera Ibibo-Howells, Yenagoa

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