Editorial
That Cut In Fuel Price
Minister of Petroleum Resources, Mrs.
Diezani Alison-Madueke, took Nige
rians by storm late last Sunday when she announced a marginal reduction in the pump price of Premium Motor Spirit (PMS), otherwise called petrol from N97 to N87 per litre. The Minister said that the new price regime takes effect from 12 midnight that day.
She further directed all filling stations across the country to comply by adjusting their pumps in line with the present reality, just as she charged all regulatory agencies, especially the Department of Petroleum Resources (DPR), the Petroleum Products Pricing and Regulatory Agency (PPPRA), and other agencies of government to monitor petroleum products marketers and filling stations to ensure total compliance.
Since the announcement of the cut in the pump price of petrol with effect from January 19, 2015, groups, individuals and key stakeholders, have continued to voice divergent views on the motive and indeed the propriety of the decision. Even organised labour under the Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and other interest groups are not left out of the discourse.
While some welcome the gesture and rationalize it as government’s response to the yearnings of Nigerians, particularly because of the prevailing economic conditions, others think, and vehemently too, that the reduction in price by N10 is not proportionate to the huge fall in the price of crude oil in the international market.
Some persons insist that the fall in the price of crude oil should naturally trigger a reduction in the prices of all derivatives of hydrocarbons, including Automotive Gas and Oils (AGO), Dual Purpose Kerosene (DPK), and Aviation Fuels (Jet A and Jet A1), and not just PMS (Petrol).
While we commend the government for reducing the pump price of petrol, we wonder the parameters it used to arrive at the new price. It did not also let Nigerians know what to expect when the price of crude appreciates and whether government can again unilaterally increase prices.
Our first worry, however, was the failure of government to extend the price cut to other key derivatives of crude oil, such as DPK, AGO and Aviation Fuels. We believe that a reduction in the price of petrol, without a corresponding cut in the prices of kerosene, diesel and jet oils, may not affect the critical masses; particularly those in the rural areas and low income earners in urban centres who depend on kerosene for cooking. On the other hand, industries and manufacturers, whose economic contributions oil the wheel of development, as well as some key transporters and commuters, are left out as they depend largely on diesel that is not affected.
This is why we join other well-meaning Nigerians to call on the Federal Government to take a holistic review of the intervention measure with a view to further cutting the prices of all petroleum products across board. We also think that the review should be done in such a way that no iota of arbitrariness was allowed to permeate the process.
Even so, The Tide is particularly worried that under a regulated petroleum industry, where government regulates prices in consonance with a complex subsidy regime, a drop in the price of crude oil at the international market, resulting in unanticipated intervention of this nature, is not sustainable. We say so because crude oil prices fluctuate, depending on prevailing circumstances.
The real test is in the courage of both government and the people to deal with a sudden upward change on the product price. Should the government also raise price and on what terms; would the people trust government to raise price and without any yardstick, especially if the new price is high?
For us, the current situation provides an ample opportunity for the Nigerian people to rise up and call for the removal of subsidy on petroleum products, thus allowing market forces determine the prices of the essential products. Besides, a deregulated downstream sector of the petroleum industry would surely open the floodgate for the take-off of new refineries and petrochemicals facilities to add the much-needed value in the country’s economy.
In addition, a deregulated regime would create millions of new jobs for the teeming population of skilled and semi-skilled manpower, stop products importation, as well as eliminate corruption in the industry, thus saving trillions of Naira frittered away by a band of cabals, among other benefits. We think that this is the right way to go, if the present generation must move Nigeria to the next level.
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Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
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