News
Petrol Subsidy: NNPC Under Pressure
There are indications that the Federal Government through the Nigerian National Petroleum Corporation (NNPC) would be under more pressure to fund Nigeria’s petrol under-recovery or a subsidy as the price of Bonny Light rises to $65 per barrel in May, 2021.
This showed an increase of 150 per cent when juxtaposed against $26 per barrel recorded in the corresponding period of 2020 when the outbreak of Coronavirus pandemic, and low demand for crude oil had culminated in low prices.
However, the current high prices of crudes, and by extension petrol is attributed to the re-opening of many economies, the discovery of Coronavirus pandemic vaccines and the efforts of the Organisation of Petroleum Exporting Countries (OPEC) to achieve market stability.
The 16th Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC Ministerial Meeting of the Declaration of Cooperation (DoC), which took place via teleconference on Tuesday, April 27, 2021, under the Chairmanship of Saudi Arabia’s Minister of Energy, Prince Abdul Aziz bin Salman; and Co-Chair, Deputy Prime Minister of the Russian Federation, Alexander Novak, had raised hope for increased stability.
In a statement, OPEC, had stated, “The Meeting emphasized the ongoing positive contributions of the Declaration of Cooperation in supporting a rebalancing of the global oil market in line with the historic decisions taken at the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting (ONOMM) on April 12, 2020 to adjust downwards overall crude oil production, and subsequent decisions.
“The meeting highlighted the continuing recovery in the global economy, supported by unprecedented levels of monetary and fiscal support, while noting that the recovery is expected to pick up speed in the second half of the year.
The ministerial meeting emphasized, however, that Covid-19 cases are rising in a number of countries, despite the ongoing vaccination campaigns, and that the resurgence could hamper the economic and oil demand recovery.
“The meeting reviewed the monthly report prepared by the Joint Ministerial Monitoring Committee (JMMC), including the crude oil production data for March, 2021, and welcomed the positive performance of the participating countries.
Overall conformity to the production adjustments was 115 per cent in March, 2021, reinforcing the trend of high conformity by the participating countries.
The meeting expressed its “appreciation to the participating countries that performed beyond expectation in March, 2021, with total over-conformed volumes of 1.23 mb/d.”
Commenting on the development, a Port Harcourt-based analyst, Dr. Bala Zaka, said, “With the rise in oil price, it would now cost more to procure and refine crude oil, meaning that the cost would be transferred to Nigeria as the nation currently imports all its petrol from the global market.”
The downstream sector of Nigeria’s petroleum industry was deregulated in March, 2020, when the prices of crude were relatively low at less than $35 per barrel, meaning that the cost of refining and price of petrol were relatively cheaper then.
In its April, 2020 report, OPEC confirmed that, “Crude oil prices collapsed in March, 2020, recording their deepest monthly drop since the global financial crisis in 2008.
“The ramifications of the Covid-19 pandemic were the main driving force, resulting in unprecedented worldwide oil demand shock and massive sell-offs in the global oil markets, amid a significant crude surplus.”
But the greatest pressure is currently fuelled by the smuggling of the product to neighbouring countries, especially Cameroun, Chad, Niger, and Benin.
The investigation, weekend, showed that increased smuggling of petrol across Nigeria’s borders has put pressure on the NNPC to meet the national daily demand, currently estimated at ‘72.72 million litres’ as the smuggled product goes for between N300 and N500 per litre in these nations.
However, in an interview, the Chairman, Major Oil Marketers Association of Nigeria (MOMAN), Mr. Adetunji Oyebanji, who is also the Managing Director, 11 Plc, said the huge price differential across the borders, provides an adequate incentive for smugglers.
He said, “The incentive is much. Even if you put the angels at the borders, the differential is too much. The only solution is to bridge the gap and remove the incentive. If not, it will continue.”
Nevertheless, the Department of Petroleum Resources (DPR) said it has sealed many stations nationwide for committing various offences, including under-dispensing and hoarding, but not much has been achieved in the battle against petroleum products diversion.
Nevertheless, the National President of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Gillis-Harry, maintained that, once the deregulation is properly outlined and the rules of engagement brought out, its members, comprising major and independent marketers, as well as depot owners, are ready to commence fuel import.
“In reality, there is no way any marketer, retail outlet owners, or tanker and depot owners, would invest in a business they cannot be certain that they would make a profit.”
News
PDP Opobo/Nkoro Hails Fubara On Peace, Projects
Stakeholders of Peoples Democratic Party (PDP) in Opobo/ Nkoro Local Government Area of Rivers State have commended the state Governor, Sir Siminalayi Fubara for his disposition that has fostered peace in the State.
Rising from an expanded stakeholders meeting last Saturday in Opobo Town, the body in an eight-point communique signed by its Chairman, Hon. Benneth Daminabo, Chairman of Council, Rt. Hon. Enyiada Cookey-Gam and LG party Chairman, Warisenibo Godwin Pepple commended the governor for linking Opobo/Nkoro LGA to the national grid.
In addition, it lauded the effort of the governor in pursuing the 50.15 kilometre Dual Carriage Ring Road, Elelenwo internal road, Aleto-Ebubu-Eteo Road in Eleme and Andoni Road projects.
Despite the distractions, the stakeholders said they were impressed that the governor had equally done projects in health-the unveiling of Prof. Kelsey Harrison Hospital, Agric projects at Tai and Oyigbo and improving welfare of civil servants.
In their words, “members reaffirmed their unalloyed loyalty and implicit confidence in his administration.”
Condemning the unfriendly and discourteous utterances of Senate President, Godswill Akpabio and Tony Okocha in different fora in the State, the forum urged the duo to desist from such action in order not to heat up the polity.
The forum pledged to stand by the governor through, “thick and thin”, the stakeholders acknowledged the contributions of women, who through prayers for the government has impacted positively in the direction and posture of the governor.
Finally, the forum unanimously expressed gratitude to the Simplified Movement and other bodies that have thrown their weight behind the governor to ensure that the administration is stable and successful.
By: Kevin Nengia
News
‘Rivers People Are Now Breathing Fresh Air Under Fubara’
Aformer Caretaker Committee Chairman of Abua/Odual Local Government Council of Rivers State, Hon Elamo Arogu, says under Governor Siminalayi Fubara, the people of the State are now breathing fresh air.
Hon Arogu said Governor Fubara has given Rivers people hope, considering the impactful and people-oriented projects being carried out by his administration.
The former CTC chairman made the assertion during the Simplified Movement’s thanksgiving service and rally held in honour of Rivers State chief executive last Friday in Abua .
Arogu said under Governor Fubara, the Abua/Odual people have the confidence that the dividends of democracy will definitely get to them.
He noted that the Governor has the strong will to change the narrative in Rivers State, being the reason he is receiving massive support across the State.
“The people of Abua/Odual are strongly behind him. Our doors ate open for everyone because there is government in place to attend to the needs of the people. I believe that he will develop Abua/Odual and other Rivers council areas, hence, the massive support. This government is business- oriented and we are ready to encourage him succeed and invest in our land. The issue of a bank; road networks and other necessities of life bordering on development as demanded by the people will be considered by Governor Fubara”, he said.
He called on the opposition to team up with Governor Fubara to build a stronger, united and viable Rivers State.
He maintained that ward nine under his leadership is Simplified.
News
Rivers State University Cooperative Society Elects New Leaders
The United Port Harcourt Peoples Cooperative Investment & Credit Society Limited, Rivers State University, Port Harcourt, has elected new leaders to pilot the affairs of the cooperative for the next two years.
They are Pastor Dr. Barine Aeba (President); Dr. Gift N. Nkweke (Vice-President), Dr. Kenneth Chima Adiele (General Secretary), Victor G. Banigo (Assistant General Secretary),
Rose Yeyeda Nwosu (Treasurer), Adaku Nwogu (Financial Secretary) and Stella Ereba (Public Relations Officer).
Inaugurating the new Management Committee after a keenly contested election held recently at the University Amphitheatre, the Director of Cooperatives in Rivers State, Dr. Elizabeth Chidi-Wike, congratulated the seven-member Executive for emerging winners at the election, charging them to uphold the bye laws of the Cooperative Society and hold regular congress meetings.
Dr. Chidi-Wike used the forum to commend the outgone Management Committee for reviving the Cooperative and placing it on an enviable pedestrial.
In her remarks, the Acting Registrar of the University, Mrs. Ibimonia Sotonye Harry applauded Cooperative members for keeping faith with the Cooperative Society, stressing that the goal of the society in helping members save for retirement cannot be over emphasised.
In his valedictory speech, the outgone President, Dr. Mie-Idala Jones Amachree expressed gratitude to God for the successful completion of his four-year tenure, thanking his fellow Management Committee members who gave him the needed support that transformed the Cooperative Society.
In his acceptance address, the President, Pastor (Dr.) Barine Aeba thanked the university management for providing the enabling environment for the peaceful conduct of the election, pledging that he will fulfill all his campaign promises.
A total of 165 Cooperative members participated in the electoral exercise which was conducted by an Electoral Committee led by Engr. (Dr.) Joseph D. Enoch.
-
Oil & Energy4 days ago
Nigeria Hosts Global Confab On Oilfield Sustainability, Hydrocarbon Accounting
-
Sports4 days ago
Iheanacho, Dessers Applaud Finidi’s Tactics
-
Rivers4 days ago
Group Begins Massive Support Drive For Fubara
-
News2 days ago
Reps Member Pledges Support, Loyalty To Fubara, Joins SIMplified Movement
-
Maritime4 days ago
Illegal Migration: NIS, NIWA Move To Strengthen Partnership
-
News4 days ago
Insecurity: Arrest Gumi Within Seven Days, Group Tells FG
-
Rivers2 days ago
Bonny Ward 12 Endorses Council Boss For Second Term
-
News2 days ago
New Kalabari Monarch To Emerge Soon -Regent