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Fuel Scarcity ’ll Last 18 Months -FG ….Admits Products Diversion Through Porous Borders …Says No Functioning Refineries, No Solution To Scarcity
The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, yesterday disclosed that it would take the next 18 months for the country to solve the problem of fuel scarcity permanently.
Kachikwu, however, said the government has put various measures in place to address the issue of scarcity within the 18 months.
He said such issues include forex for marketers, repair of refineries and tax consideration for oil marketers .
The Minister, who appeared before the National Assembly Joint Committees on Petroleum, also added that its a shame that Nigeria cannot refine its crude oil after 40 years of activities in the downstream.
According to him, a Presidential committee has been set up to look for how to cushion the effect of higher price crude and lower price downstream sales at N145, adding: “It is 18 months plan before private refineries come on stream.”
Kachikwu added that Dangote and modular refineries are in the pipeline from 2019 and onward to solve the problem.
He said the ministry and the Nigerian National Petroleum Corporation were working round the clock to find a solution to petrol scarcity.
As part of the solutions to permanently end the scarcity, Kachikwu said the country’s refinery needed to be functional.
He added: “It is what I might call an emergency before the work that we are doing on the refineries that would be finished sometime in 2019.
“I want to remind that over two years we haven’t had queues.
“We are spending night and day to find solutions to nip this in the bud
“Ultimately what this country needs is to have its refineries working and I have said that it is shameful that after 30, 40 years of activities in the downstream, we cannot produce sufficient [petroleum products].
“I have said nobody sells crude in its form in the world and we have to have the technical capacity to do this.”
Kachikwu listed non-payment to marketers as one of the reasons for the scarcity.
The minister also expressed regrets that some people took advantage of the situation.
Also in his presentation, the Group Managing Director of the NNPC, Maikanti Baru, enumerated reasons for the scarcity of fuel.
Baru said the situation is now under control.
According to him, part of the reasons for scarcity are the strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria on December 18, smuggling due mainly to price arbitrage, false threat of price hike by NNPC leading to hoarding, diversion and smuggling and insinuation of supply gap.
Meanwhile, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has called for prompt enforcement of the law to check incessant diversion of petroleum products from Nigeria to the neighbouring countries.
Kachikwu made the call yesterday in Abuja during a public hearing organised by the National Assembly Joint Committee investigating the cause of recent fuel scarcity in the country.
The minister also called for adequate policing of the country’s borders to frustrate the continued diversion of petroleum products.
He accused some marketers of illegally maximising profit by diverting fuel meant to be supplied in Nigeria.
According to him, “the incentives are attractive to those diverting these products because while petrol sells for about N300 in some countries, we are selling at N145, so you can see that they are making huge profits.
“Our borders must be properly policed and the law must be enforced in such a way that every marketer must account for every petrol that leaves his depot.”
The minister, while decrying the infrastructural decay in the oil sector, said there the was need for private sector involvement in managing some critical facilities.
Kachikwu said: “For instance, there is need to encourage private sector involvement in the protection of pipelines.”
On their part, the Major Oil Marketers Association of Nigeria called on the Federal Government to fully deregulate the downstream sector.
The Executive Secretary of the association, Obafemi Olawore also called for accelerated attention to the Petroleum Industry Bill before the National Assembly.
Olawore said the delay in passing the bill was frustrating efforts to deregulate the sector and ensure increased private sector participation.
Similarly, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, says the Federal Government is working assiduously to revamp the country’s refineries to address the problems of fuel crisis.
Kachikwu said this yesterday in Abuja during a one-day public hearing of the National Assembly Joint Committees on Petroleum (Downstream), investigating the causes of recent fuel scarcity recorded across the country since December 2017.
The minister, who decried the poor state of the refineries over the years, condemned their inability to produce sufficient fuel for the country.
According to him, it is shameful that a country after over 35 years cannot produce sufficient fuel for its citizens.
“I have said that selling crude is a fairly wrong model which is akin to selling our agricultural products in the wrong way and nobody does that anywhere in the world anymore.
“Unless we have operational refineries, there will be no permanent solution to the fuel crisis in the country,’’ Kachikwu said.
He also said that a lot of work was going on to ensure private sector participation in refining crude oil.
“The gearing up of private refineries and the modular refineries will complement the efforts of the government-owned refineries to ensure there is adequate supply of petroleum products in the country,” said the minister.
He said that government had mapped out strategies to ensure availability of petrol which will be sold the at the government-regulated price.
Kachikwu also said that lack of sufficient reserve, low clearance speed of petrol at the ports, diversion of products are some of the reasons for the ongoing fuel crisis being experienced in the country, says Minister of State for Petroleum Resources, Ibe Kachikwu.
Mr. Kachikwu said this while speaking before a meeting of the joint committee of the Senate and House of Representatives. The meeting was convened to find a lasting solution to the fuel crisis.
“The causes were; first, diversion was very key, second, there were logistics issues,”Once those diversions began, Apapa Wharf was a problem to be able to move things due to bad roads, lack of sufficient reserve in our system making us unable to respond to the supply gap arising largely from the fact that private sector pulled out from supply.
“There has been a loose enforcement on diversion in the country. We have not been able to police our depots adequately.”he said
He explained that disparity in the landing cost has prevented the private marketers from importing petroleum into the country.
“Going forward we need to address the issue of pricing, there is a disparity between landing cost and cost we are selling. If we are going to sell at N145, we need to put some mechanisms in place so that the private sector will go back importation. We have a committee looking at this and we are still going to submit a report for review.
“Currently, the landing cost of product is N170 to N171 and we sell at N145 and the price we are allowed to sell is N145.”
He said the executive is currently working on modalities to permanently resolve the petrol crisis and prevent it from rearing its head any other time.
“We need to make marketers responsible for every tank of fuel up until the point of delivery.
Rivers State Governor, Sir Siminalayi Fubara, has declared that his administration will ensure the delivery of developmental projects and the prevalence of peace in all parts of Rivers State.
The Governor emphasized that the achievement of these lofty ideals can only occur through the unwavering contributions of all Rivers stakeholders.
Speaking during the commissioning of the 10.7-kilometre Egbeda–Omerelu Road constructed by his administration, the governor said Rivers State can only move forward when its people choose unity over division.
He assured Rivers people that development projects would reach every part of the State but cautioned that progress cannot thrive where conflict persists.
Reflecting on the project, Governor Fubara recalled that the road was a promise he made during the inauguration of the first phase about a year ago.
“We made a promise that we were going to do this project, and today I am happy that the government has fulfilled that promise made to Emohua people, Egbeda community and Omerelu people,” he said.
He noted that the essence of governance is service to the people, adding that responding to their needs is a core responsibility of any administration.
“We decided to do this because you know where we are coming from, and if we don’t tell our story, many won’t know what we are doing. Even in the face of tribulations, we have remained focused on delivering the dividends of democracy. We will continue to serve our people with respect and honour,” he affirmed.
Governor Fubara also reiterated his support for President Bola Ahmed Tinubu, pledging to back all groups working towards securing the President’s victory in 2027.
Giving technical details of the project, the Permanent Secretary of the Ministry of Works, Dr. Austin Ezekiel-Hart, explained that the contract was awarded on October 27, 2024, to Messrs Johnson Roadworks Limited.
He said the road links communities in Emohua and Ikwerre LGAs and shortens travel time for motorists commuting from Ahoada East, Ahoada West and Omoku through Egbeda to Owerri in Imo State.
He added that the infrastructure features a 12-metre clearing width and an 8-metre asphalt surface, comprising a 50mm binder course and a 40mm wearing course. It is complemented by 24 kilometres of drainage channels with a 1.05m² cross-sectional capacity to ensure durability and efficient water flow.
In his remarks, the Chairman of Emohua Local Government Area, Dr. Chidi Lloyd, described the road as a crucial link for surrounding communities, significantly easing movement for residents.
He praised the governor for demonstrating continuity and consolidation and prayed for God’s strength to enable him to achieve even more for the people.
Governor Siminalayi Fubara says Rivers State remains the best investment destination for investors in the oil and gas sector.
Governor Fubara stated that since the economic development of Rivers State is closely connected to the growth of the oil and gas industry, his administration has continued to collaborate with the Federal Government and host communities to protect natural assets in the sector.
The Governor stated this during the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation Oil and Gas Roundtable in Port Harcourt.
Represented by the Secretary to the State Government, Dr. Benibo Anabraba, he pointed out that since the economy of Nigeria relies substantially on the oil and gas sector, his administration will continue to collaborate with relevant stakeholders to ramp up production.
“The Nigerian oil and gas sector is the lifeblood of our nation’s economy, contributing over 90% of Federal Government’s foreign exchange earnings. Similarly, Rivers State, home to numerous national and multinational oil and gas companies, is the centre of Nigeria’s hydrocarbon industry, with the State’s oil and gas resources generating over 40% of the country’s revenue.
“?Considering this, the survival and economic development of Rivers State are closely connected to the growth of the oil and gas industry. That is why, since the beginning of this administration, we have focused on safeguarding the national oil and gas assets in collaboration with the Federal Government, security agencies, communities and other stakeholders, and we will maintain this commitment for as long as it is necessary.
“Furthermore, we have established and maintained a conducive, peaceful, and secure environment for companies to open and flourish in the State as part of a strategic plan to stimulate our economy, generate jobs, and enhance the well-being of our citizens.
“We therefore recognise and applaud the vital role that indigenous companies are currently playing in bridging gaps and advancing the development of Nigeria’s oil and gas industry,” he stressed.?
Governor Fubara affirmed that Nigerian-funded companies can only succeed and make meaningful contributions to the nation’s economic prosperity when challenges that limit the nation are effectively tackled, and expressed his administration’s stand to support indigenous organisations such as the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation.
Declaring the roundtable open, the Governor assured the Nigerian-Owned companies in the oil and gas sector, that “we are ready and willing to respond positively to any administrative, policy, or legislative recommendations within our jurisdiction as a subnational State.”
The Founder of the Nigeria and Entrepreneurship Summit and Honours (NESH) Foundation, Mr Emeka ugwu-Ozu, disclosed that the summit, held only in an oil and gas producing place, is a forum for all in the industry to brainstorm and suggest best practices for local players.
“This roundtable discussion takes place in only oil and gas producing states, and it is intentional. And that is to make sure that sooner, it becomes like what we say is the equivalent of Houston in the United States of America.
“I would say that from what I have seen so far, Rivers State is back and open, safe and good for business. The oil and gas players should come and see what we have seen,” he said.
Wife of the Rivers State Governor, Lady Valerie Fubara, has lauded the commitment, solidarity and pivotal role of women in promoting peace and enterprise development in Rivers State.
Lady Fubara spoke at the second edition of ‘Women Converge,’ a special programme organized by Rivers Women Unite for Sim, an NGO, at the main bowl of the Alfred Diete-Spiff Sports Complex in Port Harcourt, last Thursday.
She said women in the state had tremendously impacted the state positively through their prayers, careers, contributions to the home fronts, and expressed appreciation to Rivers women, for their unwavering support to her husband, Sir Siminalayi Fubara, the Governor of Rivers State, while urging them to continue to pray for the state.
“Once again, let me use this occasion to thank Rivers women for their support both in prayers and solidarity with me and my family. You have been wonderful. I can’t reward all that you do, but God in heaven who sees in secret will surely reward you openly.
“Truly today, marks another milestone in our effort to shape the society for good and lending our support for the sustenance of peace and development of Rivers State in particular and Nigeria at large. Without doubt, the prayers of our women avails much in every situation.
“Let me enjoin our women to remain prayerful because God is ever ready to answer our prayers. In all that we do, we must not forget the hand of God and often seek Him for direction and help. You have always been steadfast and I urge you not to relent, and together we will move our society forward. Whatever you do, putting your trust in God will certainly succeed”.
The Rivers State first Lady described the theme of the event, “Women in An Evolving World” as apt and, deeply reflective of the very essence of actions and strategies that women adopt to navigate the new world order.
She noted that despite the complexities of managing the home front and the constraints of economic realities, women had demonstrated formidable strength and resilience to confront the odds of life.
“This Converge underscores the resilience of our women to succeed no matter the odds, especially with absolute faith in God and determination for greater accomplishments.”
“Whether in the industry, business, agriculture, public service or even in politics, they have always shown strong determination to adapt and to accomplish like others.
“Our natural state notwithstanding our focus has always been to reach for the sky like every other person and as Rivers women we have always been pacesetters.
The Keynote Speaker, Pastor Eno Jerry Eze, described women as the foundation of every society, noting that the development of every society depends on the strength of womanhood.
In their good will messages, notable Rivers women who attended the event expressed optimism over the prospects of sustainable peace and development in Rivers State, and reiterated their support for the administration of Governor Siminalayi Fubara.
Some dignitaries that attended the event include former Commissioner for Environment in Rivers State, Prof Roseline Konya; foremost activist, Ann Kio Briggs; wife of the former Deputy Governor of Rivers State, Dr Mrs Christie Toby; President of the Port Harcourt Chambers of Commerce Industry, Mines and Agriculture, PHACCIMA, Dr Chinyere Nwoga; Pastor Ene Secondus, among others.
Highlights of the event were ministrations, cutting of cake and special prayers for Rivers State.
