Amidst confusion in the downstream petroleum industry, concerning its deregulation, subsidy on Premium Motor Spirit (PMS), also known as petrol, has once again resurfaced, as the Nigerian National Petroleum Corporation (NNPC), weekend, said it incurred N5.35billion as under recovery in June, 2018.
Under-recovery, also known as subsidy, occurs when the pump price of petrol is lower than the actual cost price of the commodity.
In this case, the NNPC, through its subsidiary, NNPC Retail or through oil marketers, sells the product to motorists at a particular price, which is lower than the cost of the product, and pays itself subsidy to cushion against the loss.
According to its Monthly Financial and Operation Reports for June, 2020, released weekend, the NNPC said it had recorded zero subsidy payments in April and May, 2020, after it had recorded under recovery of N43.31billion, N20.68billion and N37.66billion in January, February and March, 2020, respectively.
The confusion stemmed from the fact that the Minister of State for Petroleum Resources, Chief Timipre Sylva, had few weeks back, stated that the Federal Government had deregulated the downstream petroleum sector since March, 2020, thereby relieving the government of the burden of fuel subsidy and giving oil marketers the freedom to determine fuel price, with guidance from the Petroleum Products Pricing and Regulatory Agency (PPPRA).
Also confirming this, Group Managing Director of the NNPC, Mallam Mele Kyari, had in April, 2020, declared that fuel subsidy was gone forever, and that going forward, market forces would be responsible for determining the price of the commodity.
When contacted, Group General Manager, Group Public Affairs Division of the NNPC, Dr. Kennie Obateru, promised to provide further update on the re-emergence of under-recovery on its financials.
The NNPC June, 2020, report further stated that in the month under review, the corporation earned N58.3billion from domestic crude oil sale, from which it spent N5.35billion on under recovery, also known as fuel subsidy.
The NNPC also recorded petroleum products loss of N1.4billion; and pipeline repairs and management cost of N6.24billion.
The NNPC, according to the report, also received N10.12billion from gas and other receipts; while it recorded total remittances of N81.4billion; spent N48.95billion on Joint Venture Cost Recovery and Government Priority Projects; before remitting N19.46billion to the Federation Account.
The reappearance of subsidy, according to the NNPC, was as a result of a rise in the price of crude oil in the international market, which affected the price of PMS locally.
The NNPC said, “In June, 2020, the average crude oil price further increased by $10.04, or 34.7 per cent, month-on-month, m-o-m, to $38.97 per barrel.
“Similarly, the OPEC Reference Basket (ORB) increased by $11.88, or 47.2 per cent m-o-m, to $37.05 per barrel, while ICE Brent and NYMEX WTI rose by $8.36, or 25.8 per cent and $9.79, or 34.3 per cent, to close at $40.77 per barrel and $38.31 per barrel, respectively.
“As reported in the OPEC Monthly Oil Market Report (MOMR), spot crude oil prices continued to rise in June for the second consecutive month due to improvement in physical crude market fundamentals and the gradual reduction in supply overhang. This development suggests that the first half of 2020 was ending on a more positive note than expected.”
The report added that the NNPC downstream subsidiary, the Petroleum Products Marketing Company (PPMC), sold 1.35billion litres of white petroleum products, comprising petrol, kerosene and diesel, in the month of June, 2020, valued at N134.22billion; compared with 950.67 million litres, valued at N92.58billion recorded in May, 2020.
However, the report disclosed that the NNPC recorded a trading surplus of N2.12billion in the month under review, dropping by 20.9 per cent, compared to a surplus of N2.68billion recorded in May.
The NNPC report further stated that the corporation’s operating revenue appreciated by 32.05 per cent, or N76.39billion to N314.72billion in June, compared to N238.33billion recorded in May, 2020; while its expenditure stood at N312.95billion, rising by 32.8 per cent or N77.30billion, from N235.65billion recorded in May.
The NNPC said: “June, 2020 indicates a lower trading surplus of N2.12billion compared to the N2.68billion surplus in May, 2020, when the world began a fragile recovery from the Covid-19 effect. The 21 per cent net increase in performance is attributed primarily to the 166 per cent rise in surplus posted by NPDC; reflecting ongoing global rise in market fundamentals for the second consecutive month.
“In addition, PPMC continued to enjoy the drop in average product landing cost as profit increased by 22 per cent; while takings from Nigerian Gas Company (NGC); Nigerian Gas Marketing Company (NGMC); and Duke Oil Incorporated grew by 16 per cent, one per cent and 127 per cent, respectively.
“All other Strategic Business Units (SBU), recorded further loss positions with Corporate Headquarter (CHQ), deficit increasing by 71 per cent compared to last month due to increased terminal benefits made to retired staff, thus reducing the group surplus for this month.”
Wike, Pride Of Nigeria’s Democracy, NUJ Affirms
The Nigeria Union of Journalists (NUJ) has described Rivers State Governor, Chief Nyesom Wike, as an exhibit of pride to democracy in Nigeria.
The NUJ also noted that Wike has redefined governance through demonstration of democracy in action with his service to Rivers people.
The National leadership, the 36 State Executives, and the FCT, including members of the NUJ across the country made the assertion in Port Harcourt during the inspection tour led by the Rivers State Commissioner for Information and Communications, Pastor Paulinus Nsirim of both completed and ongoing projects being undertaken by the governor in the state.
The National President of the NUJ, Chief Chris Isiguzo, said the 1999 Constitution bestows on the media the responsibility to hold governments accountable to the people.
Isiguzo posited that having placed the projects side-by-side with the expectations of the populace, it was obvious that the governor’s investment in critical infrastructure would remain lifelong empowerment tools for the people.
”We were at the Mother and Child Hospital. We took time to look at the facilities there. That can easily be said to be first of its kind in the country.
”At the much-talked about Real Madrid Football Academy, where they are going to train the young ones, we saw that they have good facilities. At the moment, they have also offered admission to 140 pupils.
”That’s also to catch-them-young, and I want to believe that by the time this kind of resources is continuously invested in sports development in Nigeria, it’s just a matter of time, it will gain its pride of place in sporting world.”
On her part, the National President of Nigeria Association of Women Journalists (NAWOJ), Mrs Ladi Bala said that the projects she had seen were entirely unique, unprecedented and very uncommon in the country.
According to Bala, the Emmanuel Chinwenwo Aguma Judges’ Quarters stand out as first of its kind in Nigeria, with its serene ambiance that would translate into enhancing the productivity of judges of Rivers origin.
”I believe that democracy is at work in Rivers State, and, for Rivers people, I want to congratulate them, and to say, this is the true reflection of what democracy should be across board.
”I want to call on other governors across the country to borrow a leaf from what the governor of Rivers State is doing. Wike is working, and we are very proud of what we have seen here”, she added.
In his reaction, the National Internal Auditor of NUJ, Muhammad Tukur, stated that Wike was a committed leader with the vision of uplifting the standard of life of his people.
Tukur, who expressed gratitude to Wike for his support to the NUJ National Conference in Port Harcourt, said that his show of love for journalists confirms his commitment to the welfare of the people.
On his part, Chairman of Oyo State Council of the NUJ, Comrade Ismail Ademola Babalola, asserted that the Mother and Child Hospital, and the Real Madrid Football Academy were part of projects Governor Wike was using to secure a productive future for the youths of the state because they meet global standard.
Also speaking, the Vice President of NUJ North Central Zone, Chief Wilson Bako, commended the quality of the various roads and flyover bridges constructed in the Port Harcourt metropolis to make the city tourists’ destination of choice.
In the same vein, the Vice Chairman of NUJ in Jigawa State, Comrade Larai Musa, said she has confirmed all that the news media had carried about Wike and his projects’ mantra, and asserted that it was leaders like him that were needed at the national level.
Also, Comrade Ikechukwu Ordu of Enugu State Council of the NUJ noted the need for other political leaders to emulate Wike in providing dividends of democracy to Rivers people and changing the fortunes of his state.
Also from the Enugu State Council of the NUJ, Comrade Ugochukwu Chukwudieke, said she was completely overwhelmed by what Wike has done in constructing the Okoro-Nu-Odo Flyover Bridge, Rumuogba Flyover Bridge, and Rebisi Flyover Bridge delivered within one year.
Chukwudieke also praised the quality of work on the Rumuola Flyover Bridge, Ogbun-nu-Abali Flyover Bridge, GRA Junction Flyover Bridge, and the Orochiri-Wurukwo flyover project at Waterlines Junction by Aba Road.
Stop Constitution Review, CNG Tasks NASS
The Coalition of Northern Groups (CNG), yesterday, called on the National Assembly to suspend the review of the 1999 Constitution, describing it as ill-timed and uncalled for, particularly in the face of the growing agitation for Nigeria’s break-up.
It also urged the National Assembly to invoke the doctrine of necessity to organize a Biafra referendum as the final step towards the separation of the Igbo from the rest of Nigeria.
This was part of the presentation which CNG made before the leadership of the National Assembly against the backdrop of the disturbances created by certain interest groups in the South-East, in the form of the agitation for a separate state of Biafra.
Briefing journalists in Abuja after the presentation, CNG Spokesman, Abdul-Azeez Suleiman, noted that the Biafra agitation in the South-East had turned violent, alleging that the aim of the unrest in the region was to instigate reprisals by northerners against people from other parts of the country.
He said, “We demanded the immediate suspension of the ongoing exercise for the review of the 1999 Constitution and to concentrate on the first priority of determining who and what actually constitutes Nigeria as a nation in the present circumstance in which the Igbo, by taking up arms against the Nigerian state for the third time, have foreclosed every hope for the rest of us to continue coexisting with them as one nation.
“In order to achieve the final separation of the Igbo from the rest of Nigeria, we also demanded the NASS to organize a referendum by seeking the cover of the same Doctrine of Necessity invoked by Nigeria’s federal parliament that paved way for former President Goodluck Jonathan’s takeover by declaring the late President Umaru Musa Yar’Adua unfit.
“We further demanded NASS to prevail on the Federal Government of Nigeria to invite the United Nations as well as the African Union and ECOWAS, to initiate the process of self-determination to mandate the Biafrans out of the Nigerian union by leveraging on the several relevant international treaties and conventions to which Nigeria is a signatory.
“Today, everyone can see that the diabolical scheme planned and exhibited in the actions and clamours of IPOB, supported morally and politically by the vast majority of the pliant and affrighted Igbo elites, politicians, traditional rulers, business persons, and the larger population of this ethnic group has pushed Nigeria to the precipice.
“We are convinced that this renewed violent determination of the Igbo to see through the secession of the South-East from Nigeria is now real and cannot be avoided or deferred any longer without terrible consequences.
“In order to avoid such mishaps and unnecessary devastation on all sides, particularly the South-East whose leaders and agitators are now bent on driving it over the brink into a catastrophe, CNG is of the view that resort to available means of actualising the separation of the South-East from the rest of Nigeria is today a vital task that must be undertaken by all.”
Suleiman also argued that in order to prevent a descent into another civil war, and to forestall mass killings and untold sufferings, CNG has committed to the call for a referendum that will finally separate the South-East from Nigeria.
He added, “In this connection, we are hoping the NASS will come up with a framework to be agreed upon in the course of the referendum and its final implementation in the South-East or any enclave that wishes to secede from Nigeria.
All identified indigenes (Igbos) of the enclave or entity that called for secession (South-East) must leave the territory of Nigeria and assemble in their designated enclave for the purpose of the exercise.
“The outcome of the referendum shall be final, irreversible and shall not be reviewed or reconsidered for any other reasons. Citizens of the breakaway enclave shall be deprived of any automatic rights to return to the territory of the rump Nigeria, or to be admitted to live in any of its parts.
“We are aware that all this while, the North continued to bear the brunt of the violent agitations for secession with equanimity, stoical calm and resignation.
“Therefore, as the CNG recommits to the pursuit of a final constitutional separation with Biafra, we urge the North to remain the bulwark of respect, integrity, dignity, decorum, tradition, decency, morality, civilization, etiquette, good behaviour, politeness, accommodation, and all other positive traits with the assurance that the good will ultimately prevail over evil.”
PDP’s Performance Has Diminished APC In Rivers, Wike
The Rivers State Governor, Chief Nyesom Wike says with what his administration has achieved, and is still doing, in terms of delivery of critical infrastructure, nobody in the state needs to talk about the All Progressives Congress (APC) anymore.
The governor made the assertion at the flag-off of construction work of the Ogbum-nu-Abali/Eastern-Bypass Road project, yesterday, in Port Harcourt.
Wike explained that the previous administration politicised the reconstruction of the Ogbum-nu-Abali/Eastern-Bypass road and actually failed to accomplish it.
The governor said he has defied those political intrigues, and has genuinely interfaced with the people to understand the economic benefits a dualised road in the city centre could attract.
According to Wike, with the level of infrastructural development around Ogbum-nu-Abali, there would be a spike in the value of property and enhanced economic activities.
“I know that the people of Ogbum-nu-Abali resisted the dualisation of this road because of lack of information. When I met with the community leaders, they said look, they have houses bequeathed to them by their grandparents.
“I told them that whether they like it or not, if I don’t dualise it today, tomorrow somebody else will do it. And you don’t know who is coming.
“So, it’s better done now that I am a governor than when you don’t know who is coming. And the economic benefit of this road is too much, which you may not understand now.”
Speaking further, Wike stated that the entire Old Government Residential Area (GRA) has been given a facelift with quality road projects.
“This is the only place remaining. Old GRA cannot be like that and then we will leave this place. We have done the Rebisi flyover, the Oru-Abali flyover. There is no way this place will not be dualised at all. It’s not possible.”
Performing the flag-off, the member representing Port Harcourt Federal Constituency 1, Hon Kenneth Anayo Chikere, said the formal flag-off ceremony has ended several speculations about the possibility of executing the project.
“This day witnesses the eventual actualisation of the Ogbum-nu-Abali/Eastern Bypass Road project. Thank you governor for the Ogbum-nu-Abali/Eastern Bypass Road project!
“Thank you governor, for the Ogbum-nu-Abali internal roads, completed, commissioned and profitably in use. Thank you for being a worthy son and governor! Thank you for the exemplary leadership, the infrastructural and human development in all sectors.”
The Rivers State Commissioner for Works, Elloka Tasie-Amadi, while giving the project description said the dualisation of the Ogbum-nu-Abali Road will extend all the way to the ongoing Eastern Bypass dualisation.
“Today, Ogbum-nu-Abali Road is a 7.3m wide single carriage way, with a cross section of approximately 8.5m width inclusive of the drains on either side of the road. After reconstruction and project completion, we will have a cross section of 18.1m width on the axis extending to Eastern Bypass and 17.35m width along Ogbum-nu-Abali Road.
“This cross section is made up of 2 carriageways, each measuring 7.3m wide, both of which will be separated by a median of 1.5m width along the extension to Eastern Bypass and a median of 750cm width along Ogbum-nu-Abali Road.
It includes 1m wide drains on either side of the road, and of course, street lighting to ease movement at night as well as enhance security.
The commissioner said, the project like many others commissioned or ongoing will be built to design specifications aimed at guaranteeing minimum life-span requirement of 30 years.
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