Opinion
We Need Petroleum Products
In recent times, the prices of petroleum products rose to the extent that citizens found it difficult to meet up.A situation where the price of petrol especially, is put at N170, N175 per litre in a country where crude oil is produced calls for concern.
Sometimes the problem may not come from the marketers but the authorities saddled with the responsibility of providing these essential commodities.I think one of the reasons for high cost of the products is the issue of importation and landing cost which according to some marketers make it difficult for them to break even.According to them, the marketers purchase from the major distributors at N161 or N162, and do not make any serious margin selling at N170 per litre.
When the present federal administration came into power a few years ago, the price of petrol was less than N100 per litre. They would always talk about subsidy removal and nothing reasonable to show from funds recovered from that.
How long will Nigerians continue to suffer with high cost of petroleum products? With epileptic power supply available, it is difficult for people to cope buying petrol at high cost to power their generating sets.
The chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Rivers State chapter, Dr. Obele Ngechu, said there was a looming petrol scarcity in the country and explained that high percentage of marketers were unable to get the products at the depots.
Motorists have been advised to avoid panic buying as the issue will soon be sorted out.
According to him, what is happening today in the international market, the rise, the upward review of crude oil is affecting the local market. The cost of gas is no longer the same. PMS is selling at over N170 or N180 in some stations. In the country today, you find out that the supply of petrol is not sufficient. Most petrol stations have run out of stock.
You imagine a situation where all the marketers will be requesting for petrol and only about 25 per cent will be able to get.
Last week, I had an experience of moving up to two or three filling stations in a particular area and none had a product.Cooking gas was also not there as they said they never had supply. When I finally got one, the price had increased.
I think there is need for Nigeria to fix the refineries and not wait or depend on private ones which may not be able to satisfy users.It is high time the National Assembly took a short-term approach to the situation by making emergency arrangement for approval for subsidy since it was not in the 2021 budget.
Let there be subsidy because it will be difficult for Nigeria to be buying petrol at the initial high rate when she is not paying subsidy.In any port in Nigeria, the landing cost of petrol is N190 per litre from the foreign market, according to the IPMAN chairman.
When these products are refined in Nigeria; for instance, kerosene prices definitely will be minimal for the masses. The kind of kerosene available does not look good.
IPMAN Chairman said adulterated kerosene has taken over the market due to the high cost of refined kerosene in the international market.His words: “All Nigeria consumes now is what they call “Kpo fire”, because kerosene imported from the international market now is very expensive, it will cost N300 to arrive Nigeria and you can see “Kpo fire” is the one refined locally and a lot of people are dying as a result of it.”
The implication is that hike in price of petrol will definitely affect transport fares. Motorists may want to increase fares to recover the cost and maximise profit, which is the mission of every business operator.
For the transporters who ply inter-state business with more quantities of fuel in some trips may also increase the fares to meet up. The rate at which people travel from one destination to another will reduce considering the high cost and scarcity of the product.
Although from December till now, with the price fluctuation, commercial vehicle operators have maintained their fares.We are aware that each time there is increase in pump price, prices of commodities rise because traders who deal on staple food especially the ones who go to “bush markets” will also increase price due to high cost of transportation.
Economic losses are always associated with high pump price because some commercial motorists can decide to withdraw from the business with the fear of not meeting up the turnover on a daily basis.
Sometimes car owners decide to keep their vehicles at home preferring to board public transport to work.
High foreign exchange is another issue affecting the major distributors from the international market and with high cost marketers find it difficult to cope.
Nigeria’s benchmark in the budget as it relates to sale of crude oil at the international market is pegged at $30 to $35 but crude oil is sold at $62 dollars per barrel.
Even cooking gas of 12.5 kg which was sold at N4000 for sometime now has gone up to N5000. This started gradually and unfortunately has not stopped till now.
As a result, some households have resorted to the use of kerosene and even firewood as their last option which, according to experts, is not advisable.
The government is supposed to subsidise the price for independent marketers and let the four refineries be fixed to function maximally, otherwise this current challenge in the petroleum industry will not do the citizenry any good.
We are not unaware that more private refineries are being established by individuals while some will be in operation soon, but let something be done as fast as possible because of the masses.
Since the four traditional refineries are not producing at full capacity, the government should set up additional modular refineries that should be able to refine fuel in Nigeria at the price that the marketers can afford and break even.
When this is done, the product will be readily available, the issue of high cost and sometimes scarcity of the product will be a thing of the past.
The Federal Government should, as a matter of fact, repair the refineries so that crude oil can be refined in Nigeria. If they have become so obsolete, then new ones can be built new ones.
By: Eunice Choko-Kayode
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
