Although Nigeria is Africa’s largest oil producer, it is also one of the continent’s largest importer of refined petroleum products.
However, despite being a net importer of refined petroleum products, including petrol, no Nigerian government agency has the authentic data on the daily petrol consumption in the country, the National Bureau of Statistics (NBS) has declared.
The Statistician General of the Federation, Yemi Kale, told our correspondent that all data currently in circulation in the media and some government agencies were either outdated or guesstimates.
Mr Kale, who spoke in Abuja through his technical assistant, Esiri Ojo, during a telephone interview with our reporter, said these estimated data cannot be relied upon for planning or policy decisions.
“At the moment we (NBS) do not have any reliable data on fuel consumption yet. We are working on a survey that would provide the information for the sector. Every other figure you hear being carried about by various agencies, and even the media, are just guesstimates,” Mr Ojo said.
The NBS is Nigeria’s central repository of all data and statistics on all activities in all sectors of the country’s economy.
The spokesperson of state-owned oil company, the Nigerian National Petroleum Corporation (NNPC), Ndu Ughamadu, also confirmed the country was yet to have reliable fuel consumption data.
“The NNPC has no confirmed data or statistics on fuel consumption in the country. The corporation relies on figures provided by PPPRA (Petroleum Products Pricing Regulatory Agency),” Mr Ughamadu said in a telephone chat with our correspondent.
Fuel marketers used the figure to make subsidy claims from government for supply of petroleum products.
On February 7, 2017, the Minister of State for Petroleum Resources, Ibe Kachikwu, told a House of Representatives committee that daily consumption of petrol was 28 million litres.
The minister said the figure dropped from about 50-55 million litres a day that the PPPRA was using for fuel subsidy payment.
The NBS’ latest petroleum products consumption statistics is November 2016. In the publication, the agency said about 12.66 billion litres of petrol was consumed in the country between January and September of the year.
The number of days between January 1, 2016 and September 30, 2016 were 273, or eight months and 29 days. The Bureau said the figure translated to about 51.87 million litres per day.
But, the figure is higher than the petrol consumption data published by NNPC in its annual statistics bulletin on its website.
The publication showed about 17.41 billion litres, or 47.6 million litres per day of petrol was distributed in 2016.
In the wake of the recent fuel crisis in the country, the Group Managing Director of the NNPC, Maikanti Baru, triggered another controversy over the issue.
In March this year, during a meeting with the Comptroller General of Customs, Hameed Ali, Mr Baru said under-recovery (considered by many to be a veiled name for subsidy) cost per annum by the NNPC was estimated at about N774 billion for petrol supply.
But, Mr Ughamadu, clarified to our correspondent that the figure Mr Baru gave was not “real expenditure”.
He said it was a mere projection based on the price of crude oil at a certain level at the international market and the landing cost of fuel in the country.
With increasing crude oil price in the international market and a corresponding increase in petrol importation cost, Mr Ughamadu said there was a huge price differential between the regulated price at the pump and the deregulated market price in the neighbouring countries.
What this means is: With retail petrol price fixed at about N145 per litre and open market price above N171 per litre, the differential price stands at N26 per litre.
Based on a projection of about 35 million litres per day consumption, the level of under-recovery, or subsidy, will come to about N774 billion per annum.
Mr Ughamadu said the under-recovery of N774 billion per annum was based on projections on the volume of fuel consumption per day and the price of crude oil at the international oil market.
A breakdown of the figure will come to about N64.5 billion per month, or N2.081 billion per day.
With the price differential between the open market price of N171 and the approved retail price of N145 per litre, further analysis shows an average daily consumption of about 30 million litres.
The NNPC spokesperson said in recent times petrol evacuation from depots witnessed an abnormal upsurge, from below 30 million litres per day in August 2017 to an average of over 50 million litres. He said figure later rose to a peak of about 84.2 million litres on December 8, 2017.
“The higher the price of crude oil, the higher the landing cost and the price of petroleum products at the pump in the country,” he said.
Based on NNPC projections, if petroleum consumption rises to about 45 million litres per day, under-recovery cost would equally rise to about N993 billion per annum.
At 50 million litres per day, the under-recovery will grow to N1.11trillion; 55 million litres per day (N1.22 trillion); 60 million litres per day (N1.33 trillion); 65 million litres per day (N1.44trillion) and 70 million litres per day (N1.55 trillion) per annum.
A fortnight ago, Mr Kachikwu also said the under-recovery cost had risen to about N1.4 trillion per annum, an indication that the petroleum resources ministry may have based the petrol consumption level at NNPC projection of 65 million litres per day.
Although the minster later withdrew the the statement on the figures, he said the Ministry of Petroleum Resources was working with some agencies to produce an authentic figure that would soon be made public.
Mr Kachikwu may have made a veiled reference to the survey the NBS said it was currently working on in collaboration the Ministry of Petroleum Resources, NNPC, PPPRA and Petroleum Equalisation Fund to produce an authentic data on fuel consumption in the country.
Mr Ojo said the survey would involve household and industrial players in the economy, to provide accurate and authentic figures of fuel consumption going forward.
Meanwhile, the Committee on Petroleum Industry Bill (PIB) of the House of Representatives has been told that it was criminal for the federal government to expend a whooping sum of $1.2 billion on importation of petrol into the country in one year.
An expert in the oil and gas sector, Dr. Austine Olorunsola made the declaration while fielding questions from the committee chaired by Hon. Ado Doguwa during an interactive session organised by the Petroleum Development Trust Fund (PTDF) on PIB.
A member of the committee, Hon. Sunday Karimi had provoked some thoughts, remarking that the current administration under President Muhammadu Buhari has consistently denied spending money on subsidy despite revelations by the NNPC that it’s spending N1.4trillion annually to bring in the product.
But responding, Olorunsola, who led a technical team of experts in the drafting and presentation of different components of the Petroleum Industry Bill (PIB) said the importation was unnecessary, explaining that the money was enough to build new refineries.
He said: “It’s criminal to spend $1.2billion to bring in products. You can use that amount to build three to four big refineries if you want.
“You can even use that money to open up the market by giving soft loans to private investors if government is not interested in building refineries to establish them so that we can stop importation and create employment”.
The PIB according to the consultant was split into four different components, namely: the Petroleum Industry Governance Bill (PIGB), the Petroleum Industry Administration Bill (PIAB), the Petroleum Industry Fiscal Bill (PIFB), and the Petroleum Industry Host Community Bill (PHCB).
Olorunsola, who also took the committee members through the technical details of different components of the PIB, made up of four proposed legislations underscored the importance of the bill, saying it would engender comprehensive governance of the oil and gas sector in a way that would generate maximum returns to the stakeholders.
He however cautioned the country on over independence on oil, urging that the proceeds be used to diversify the economy to keep pace with other oil economies.
“Nigeria must timely exploit her oil and gas resources to realise maximum value for rapid development of her economy.
“So, we need to move pretty fast. The US today has become the biggest producer of oil which wasn’t so about eight years ago.
“Now, China has retired most of its coal energy sources and diversified into renewable energy sources with a sea of solar panels being assembled to power cities and industries.
“So, the dynamics are changing as those who were importing before are now exporting, which is why we need to do something different and fast. If you don’t do something quickly about what you have, the value of it will be completely eroded.
“The essence of managing oil resources is to provide the best possible economic outcome for all stakeholders, ensure optimal utilisation of all infrastructure ; to ensure operations is managed in safe and environmentally sustainable manner. To satisfy today and ensure sufficient savings for the rainy day and future generations”, Olorunsola said.
He urged the Deputy Chairman of the Ad-hoc Committee, Hon. Victor Nwokolo (PDP, Delta) who is incidentally the chairman, House Committee on Petroleum (Upstream), and indeed, the National Assembly at large to pass the remaining three bills along with the PIGB for onward delivery to president Buhari for his assent.
Rivers’ll Ensure Safe, Secure Environment For Economic Growth -Wike .
Rivers State Governor, Chief Nyesom Wike, has said that his administration would continue to support security agencies in the state to ensure a safe and secure environment for the economic prosperity of citizens.
He said the Rivers State Neighbourhood Safety Corps, the Operation Sting and the revitalised C4i security outfits were set up to help provide security to stimulate growth and prosperity of all in Rivers State.
The governor spoke through the Secretary to the State Government, Dr. Tammy Danagogo, at the 2021 Conference/Annual General meeting of the Nigerian Institute of Public Relations, Rivers State chapter, in Port Harcourt, yesterday.
“This administration has embarked on aggressive infrastructural development and a very deliberate urban renewal efforts around the capital to attract local and foreign investors to stimulate our economy.
“We have also opened up local governments through quality road networks. Upgrade of various social and recreational facilities in various local government areas,” he said.
He commended the state chapter of the NIPR for the choice of the theme of the conference: “Nigeria’s Security Situation: A Factor in Reputation and National Development”, adding that stakeholders must begin to act in a very different, drastic and positive strategy to remedy the already battered reputation of Nigeria.
He urged the NIPR to use its expertise and experience to thrive to galvanise and stimulate the populace and government at various levels for the resuscitation of citizens sense of pride and responsibility of whatever was left of the nation’s image and reputation.
“All hands must be on deck, especially reputation managers to call on government at all levels to begin to act in ways and manner that will help to revive the battered image of this country,” he added.
Welcoming guests and participants to the conference, the Rivers State Commissioner for Information and Communications, Pastor Paulinus Nsirim, who is also the state chairman of NIPR, commended the cordial relationship existing between the institute and the state government under the leadership of Governor Wike who is a honorary fellow of the institute.
“Governor Wike has been very supportive of all the activities of the Institute. That is what you also get from a visionary leader who has changed the landscape of Rivers State with infrastructure, with various developmental projects that touch the lives of the ordinary man,” he said.
Nsirim said the state chapter of NIPR was proud to associate with Governor Wike for the giant strides he has recorded and would continue to record until the end of his tenure in 2023.
“As a chapter that is responsive to the development of Nigeria, we have chosen the theme for this year’s conference as our own way of contributing to the national discourse,” he said.
He said the conference would produce a blueprint that would guide national discourse and urged participants to contribute robustly to the conversation.
“It is expected that the fallout of the conference will re-engineer national security and national development with the aim to put our country on the path of rapid growth,” he said.
In his speech, the President and Chairman of Governing Council of NIPR, Malam Mukhtar Sirajo, emphasised on the need for all Nigerians to collaborate to fight insecurity currently confronting the country’s economic and political stability.
He welcomed the theme of the conference, saying that it was coming at the time the institute had gotten sufficient worry about national security, peace and economic development.
In his keynote address, Dr. Ike Neliaku, chronicled the increasing violent crimes that had claimed thousands of lives in the various parts of Nigeria, and submitted that the rising insecurity situation in the country had impacted and would continue to impact negatively on corporate and national reputation.
He said the worrisome development would have concomitant consequence on individual and national development.
Chairman of the conference, Chief Felix Otuwarikpo, said the conference was put together to dissect the current carnage affecting the Nigerian nation.
“As an institute, we will leverage on the conference to proffer solutions to the security challenges affecting the nation,” he said.
The conference also featured the presentation of awards for good public relations and community development to some distinguished members and organisations.
Church Of Nigeria Honours Wike, Sanwo-Olu, Akeredolu, Others
The Church of Nigeria (Anglican Communion) has bestowed awards for exemplary leadership qualities in a challenging economy and dedication in the service of God and humanity on the Rivers State Governor, Chief Nyesom Wike; Lagos State Governor, Babajide Sanwo-Olu; Ondo State Governor, Oluwarotimi Akeredolu, and Ogun State Governor, Adedapo Abiodun.
Also honoured is the Lagos State Commissioner for Health, Prof Emmanuel Abayomi, with an award for quality and equitable healthcare delivery.
The awardees were honoured at the standing committee meeting of the Church of Nigeria, at the Diocese of Lagos, Archbishop Adebola and Oluranti Ademowo Resource Centre, Faith Plaza, Bariga, Lagos State.
The Primate of All Nigeria Anglican Communion, the Most Rev. Henry Ndukuba, who conferred the awards on the recipients, said the political leaders were considered for the award for their outstanding role, courageous leadership, and standing firm in defense of Nigerians against insecurity, provision of basic infrastructure to the citizenry and the fight against Covid-19 pandemic.
Addressing the congregation on the state of the nation and the role of the church, Rivers State Governor, Chief Nyesom Wike, admonished the leadership of the church to encourage its members to be part of the governance process in the country.
The governor noted that a situation whereby Christians leave governance for politicians alone is no longer obtainable.
According to Wike, the effect of bad leadership will also affect the church if they remain passive to the issue of governance.
“You must be part of choosing leadership. Don’t say you have no role, you have a role. When you don’t participate, bad leaders will emerge and when bad leadership emerges, you are part of it.
“You must encourage your people to be part of leadership. I didn’t go to any school to study leadership.
“So, nobody should say that as a Christian you cannot be a governor, no. The head of SUBEB in my state is a priest and you can see the leadership he has given to that agency today. You will feel proud about it. That used to be the most corrupt agency, but today it is headed by a priest and you can see the difference.”
Wike decried the inherent injustice that has characterised the Nigerian State, and urged the church to speak against socio-political issues adversely affecting the progress of the country.
“We say we are all one Nigeria. We went to World Bank to borrow money to do specific projects. One of the states that make up Nigeria I hear is Rivers State. And I also know in paying this money back to World Bank, money that comes from the resources of my state will be used in paying back this money. But my state was denied to have projects from that loan.”
The Rivers State governor said a situation where states depend on the Federal Government to survive can no longer be tenable, and insisted that states must be allowed to collect revenues such as Value Added Tax (VAT) to enable them improve the welfare of their people.
“You have gone to take loan and I am one of those states that will pay back those loan and you deny me to benefit from the projects that that money will be used for. I have no problem with that.
“Allow me the one (VAT) the Constitution says I am entitled to, let me collect that one and develop my state.”
He regretted that some governors in Nigeria have refused to think out of the box on how to boost economic activities in their states.
“There is flood in my state, it requires N200millon, I will go to Abuja to beg. Even as a governor, I will knee down before a DG of an agency of government. You will knee down for a director just because of N300million. That is the status of some of the governors of some states.”
In his remarks, Lagos State Governor, Babajide Sanwo-Olu, commended the church for its support, and announced the waiver of N2billion for land acquired by the Church of Nigeria in Lagos State.
The governor stated that Nigeria and the rest of the world are going through difficult times amidst the Covid-19 pandemic, and used the occasion to canvass for mass vaccination of the citizens.
The Primate of All Nigeria Anglican Communion, the Most Rev. Henry Ndukuba, while speaking on the theme of the conference: “Abiding in Christ: God’s Panacea in an Unstable World”, lamented that Nigeria was fast becoming a land flowing with tears and blood because of the impact of terror, banditry, herdsman attacks on communities and kidnapping.
He said a situation in which communities that are predominantly Christians are targeted one after another in some parts of Kaduna State and North-Central of Nigeria was unacceptable.
“We call on President Muhammadu Buhari to brand the bandits and herders attackers as terrorists and let them be treated as such.”
The Primate urged Nigerians to avail themselves the opportunity 2023 general election offer to exercise their right to choose new leaders.
He appealed to the Federal Government to urgently address the free fall in the value of the country’s currency because of the attendant impact on the store of value and confidence of investors.
Rivers Begins Process To Check Flooding
The Rivers State Government has said that it was working with relevant agencies to roll out the process that would check perennial flooding in the state.
The state Commissioner for Information and Communications, Pastor Paulinus Nsirim, disclosed this at a media briefing in Port Harcourt, last Wednesday.
Nsirim, therefore, called on those living and doing business in the state to play their part in line with the programme that would be executed by government to address the problem of flooding.
He frowned at the situation where residents of Port Harcourt had turned the drainage systems into refuse bins, and warned that “that is not what it should be.
“The present administration under Governor Nyesom Wike is desirous to make Rivers State a destination of choice and that is why the government has embarked on massive infrastructural development in line with its urban renewal programme.
“So, what is expected of those living and doing business in Rivers State now, is to co-operate with government to ensure that the urban renewal programme and the plan by government to make this state a destination of choice is realised,” he said.
He noted that the state government could not do it alone as it required the support of corporate organisations, civil society groups, religious organisations and the media to enlighten their publics on the need to behave as responsible citizens.
He called on the media to embark on massive enlightenment programmes along the line of the roles of citizens in checking flooding in the state.
“We believe that if the citizens cooperate with government, as government is out to ensure that everyone living and doing business in the state does so in a healthy environment, we believe that in the next few days or weeks we will find a solution to this (flooding),” he said.
Nsirim also announced the names of entrants selected for the essay competition on the title, “Our State Our Responsibility” introduced under the second phase of the #OurStateOurResponsibility advocacy campaign of the ministry launched at the beginning of this month.
He said those shortlisted were expected to be at the conference room of the ministry by 11am on Monday, September 27, 2021, for a physical test to ascertain their original ownership.
Those shortlisted are: Jessica Hart, Samuel William, Amarachi Chimezie, Jasper Dorcas, Jaja Tamunoimiegba Christian, Sophia Oyibo, Blessing Pepple, Anyiam kelechukwu, Deborah Adegbami, Gift Samuel, Okiche Golden, Okiche Miracle, Orovwigwo Deborah, Otuka Goodluck and Ziga Paago.
By: Beemene Taneh
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