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FG Spends N774m Daily On Fuel Subsidy -NNPC

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The Nigerian National Petroleum Corporation (NNPC) has said that it loses N774 million daily on under-recovery due to the increase in petrol consumption in the country.
The corporation has refused to use the term subsidy in reference to how much it spends in keeping the official price of petrol at N145 at filling stations, although it is sold for much higher in many states across Nigeria. It has however been criticised for expending such amount on subsidising the product without National Assembly legislation.
The NNPC noted that the daily expenditure was triggered by a heightened petrol consumption rate of 50 million litres per day, occasioned by the proliferation of fuel stations in border communities across the country.
Under-recovery refers to the difference between the landing cost of petroleum products and the retail price the commodity is sold at the filling stations to consumers. The NNPC typically recovers this amount from the revenue it should remit to the Federation Account.
A statement by Ndu Ughamadu, NNPC’s spokesperson said the corporation’s GMD, Maikanti Baru, made this known recently.
Mr. Baru said there is proliferation of fuel stations in communities with international land and coastal borders across the country, insisting that the development has energized unprecedented cross-border smuggling of petrol to neighbouring countries.
This, he said, makes it difficult to sanitise the fuel supply and distribution matrix in the country.
Leading a top management team of the corporation on a visit to the Comptroller General of the Nigerian Customs Service, Hameed Ali, Mr. Baru revealed that detailed study conducted by NNPC indicated strong correlation between the presence of the frontier stations and the activities of fuel smuggling syndicates.
He said that the activities of the smugglers had led to recent observed abnormal surge in the evacuation of petrol from less than 35 million litres per day to more than 60 million litres per day which is in sharp contrast with established national consumption pattern.
Providing a detailed presentation of the findings, the NNPC GMD informed that 16 states, having amongst them 61 local government areas with border communities, account for 2,201 registered fuel stations.
The fuel tank, he noted, had a combined capacity of 144,998,700 (one hundred and forty four million, nine hundred and ninety eight thousand and seven hundred) litres of petrol.
In the same vein, eight states with coastal border communities spread across 24 LGAs account for 866 registered fuel outlets with combined petrol tank capacity of 73, 443, 086 (seventy three million, four hundred and forty three thousand and eighty six) litres.
The NNPC boss said a breakdown of the finding shows that among the states with land border, three LGAs in Ogun State account for 633 fuel stations with combined petrol tankage of 40, 485,000 (Forty Million and Four Hundred and Eight Five thousand) litres while nine LGAs in Borno State have 337 fuel outlets with combined petrol storage capacity of 21, 114, 480 (twenty one million, one hundred and fourteen thousand four hundred and eighty) litres.
Lagos with one local government as border community has 235 registered fuel stations with total petrol storage facility of 19,916, 600 (Nineteen Million, Nine Hundred and Sixteen Thousand, Six Hundred) litres, he said.
On the coastal front, Lagos with six local governments leads with 487 registered fuel stations with combined in-built storage capacity of 50, 239,560 (Fifty Million, Two Hundred and Thirty Nine Thousand, Five Hundred and Sixty) litres. Akwa Ibom with five local governments has 134 registered retail outlets with capacity to store 8, 322, 986 (eight million, three hundred and twenty two thousand and nine hundred and eighty six) litres, while Ondo State with two local governments has 110 fuel stations with capacity to store 3,871,320 (three million eight hundred and seventy one thousand, three hundred & twenty) litres.
Mr. Baru explained that because of the obvious differential in petrol price between Nigeria and other neighbouring countries, it had become lucrative for the smugglers to use the frontier stations as a veritable conduit for the smuggling of products across the border, saying this had resulted in a thriving market for Nigerian petrol in all the neighbouring countries of Niger Republic, Benin Republic, Cameroun, Chad and Togo and even Ghana which has no direct borders with Nigeria.
“’NNPC is concerned that continued cross-border smuggling of petrol will deny Nigerians the benefit of the Federal Government’s benevolence of keeping a fix retail price of N145 per litre despite the increase in PMS open market price above N171 per litre,’’ he said.
He noted that based on the heightened petrol consumption rate of 50 million litre per day, the corporation was incurring an under-recovery of N774 million every day.
Mr. Ali on his part said the Customs Service would work with the corporation to stem the tide of cross-border smuggling of petroleum products, noting that all hands must be on deck to ensure the economic survival of the country.
He called on the authorities to tackle the issue of price differentials which is the underlying motivation for smuggling activities across borders.

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NGO-ATLANTIC-OYOROKOTO ROAD’LL UNLOCK COASTAL PROSPERITY FOR RIVERS – FUBARA

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Rivers State Governor, Sir Siminalayi Fubara, has described the ongoing construction of the brand new 13.52-kilometre Ngo-Atlantic-Oyorokoto Road as a bold and visionary effort by his administration to open up the coastal region for economic growth and harness the full potential of the state’s blue economy.

 

The Governor made this remark during an inspection visit to the project site in Andoni Local Government Area. The road, being constructed by Monier Construction Company (MCC), cuts through challenging coastal terrain and leads to a newly identified beachfront facing the Atlantic Ocean.

 

Governor Fubara explained that while the original plan was to construct a road leading to Oyorokoto Town and its popular beach, his administration decided to expand the project to create an entirely new route that would open access to another pristine beachfront.

 

“We are doing another inspection today. This particular one is a virgin road, 13.52 kilometres of a new pathway to the blue economy,” Governor Fubara stated.

 

“Initially, we were constructing a road to Oyorokoto Beach, one of the finest tourist centres in this area. But as we progressed, we discovered another beach directly facing the Atlantic Ocean. It became clear that we shouldn’t limit development to just one site. We want to harness this new beach front as part of our broader plan to develop the blue economy.”

 

The Governor emphasised that the project, once completed, will not only improve access to coastal communities but also stimulate tourism and economic activities, boosting revenue for Rivers State.

 

Describing the area’s difficult terrain as challenging, he commended the contractor for its dedication, and expressed confidence that the road would be completed and commissioned by March next year.

 

“You can see for yourself, it’s a brand-new road in a very difficult terrain, just like the one we saw yesterday. But I strongly believe we will overcome it. From what we’ve seen today, the contractor, MCC, is doing their best, and by next year, hopefully by March, we’ll have the cause to commission this project and give God all the glory,” the Governor affirmed.

 

Governor Fubara also visited Opobo/Nkoro Local Government Area to assess the progress of work on the Epellema axis of the ongoing 5.2km Kalaibiama-Epellema road project featuring a 450-meter bridge.

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FUBARA HAILS PROGRESS OF WORK ON TRANS-KALABARI ROAD

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Rivers State Governor, Sir Siminalayi Fubara, has expressed satisfaction with the level of progress recorded on the ongoing Trans-Kalabari Road project, revealing that about 75 percent of the critical piling work has been completed.

Governor Fubara made this known while addressing journalists after an on-the-spot inspection of the 12.5-kilometre road project, which will connect the state capital to several Kalabari communities across the sea.

The Governor rode on a boat from a jetty at Rumuolumeni in Obio/Akpor Local Government Area through the rivers and creeks on the project route during the inspection.

The project was awarded to Lubrik Construction Company Limited, on May 15, 2024, with an initial 32-month completion timeline.

The Governor said the visit was aimed at verifying reports from the Ministry of Works regarding the project’s advancement. He commended the contractors for their dedication, and described the progress as “a true reflection of hard work and commitment to excellence.”

“The first phase of the project takes us to Bakana, and features four major river-crossing bridges and nearly five deck-on-pile structures. The terrain is difficult, and the engineering work required is complex. But to the glory of God, I can confirm that the reports I’ve been receiving are accurate. Almost 75% of the piling job, which is the most critical part of the project, has been achieved,” Governor Fubara said.

He emphasised that the Trans-Kalabari Road is one of the most technically demanding infrastructure projects in the state due to its challenging marine terrain but reaffirmed his administration’s resolve to deliver it on schedule.

Governor Fubara highlighted the strategic importance of the road in connecting the Kalabari Kingdom to Port Harcourt, and stimulating economic growth across riverine communities.

“This is a key project that will turn around the lives of the Kalabari people immediately it is concluded. By the grace of God, in the next six months, if we return here for inspection, we might be driving across the bridge,” he said.

Governor Fubara assured Rivers people that his administration remains focused on delivering transformative infrastructure projects that will improve lives and bring lasting development to rural communities.

“We have made a promise to our people to embark on projects that will change lives and bring development, and this is a testament to that commitment,” he added.

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RSG EXPRESSES CONCERN OVER FLOODING IMPACT, EROSION

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The Governor of Rivers State, Sir Siminalayi Fubara, says that the impact of flooding and erosion on the inhabitants of Rivers State, especially those living in coastal communities, are of great concerns to the government.

 

Governor Fubara lamented the consequences of flood on both human and biotic life, which sometimes lead to loss of life, property, and degradation of the environment.

 

The Governor made the remark in Port Harcourt during the launch of a book titled, ‘Coastal Zone Flooding And Erosion in Developing Communities, Principles, Cases and Strategies,” written by Emeritus Prof. Wiston Bell-Gam.

 

According to the Governor, who was represented by the Secretary to the State Government, Hon. Benibo Anabraba, his administration, would continue to undertake and encourage adaptation strategies to combat flooding.

 

In his words: “The Rivers State Government will continue to undertake and encourage adaptation strategies, such as construction of seawalls and breakers, canals and channels, restoring coastal ecology and ecosystem for coastal resilience and where necessary, the relocation of communities on the coastline.

 

“These issues are currently receiving the much needed attention and intervention by the recent approval of the construction of shoreline protection along the coastlines of more than five communities in Ogba/Egbema/Ndoni and Opobo/Nkoro LGAs respectively.”

 

“It is important that as stakeholders in the protection and preservation of marine environment, we all act and advocate for mitigation strategies such as reduction in emission of Green House Gasses  that causes climate change and rise in sea levels. Let us promote the use of clean energy and against fossil fuel.

 

Governor Fubara further cautioned residents to desist from building on waterways.

 

“We also need to encourage our people to stop developing buildings on and along natural water courses, indiscriminate sea mining and dredging activities on our coastline without consideration for mangroves and swamps,” he stressed.

 

He appreciated the author for his advanced contributions to the body of knowledge in both Rivers State and globally.

 

Also speaking, a former Military Governor of the old Rivers State and Amayanabo of Twon Brass, King Alfred Ditte-Spiff, who was Royal Father at the Event, stated that the book was timely to enable stakeholders manage the challenges of global warming.

 

“Global warming is real. If it’s not addressed globally, a time will come coastal areas will find themselves under water. The coastline of Nigeria is shocking with many mangroves gone,” he noted.

 

The Reviewer of the Book, who is also the Vice Chancellor of Olusegun Agagu University of Science and Technology, Ondo State, Prof Temi Ologunorisa, explained that the 14-chapter book is timeous as it fills literary gaps between desire and available knowledge on coastal flood and erosion in developing communities.,

 

“A major beauty of the book that sets it apart is the detailed consideration of flood and erosion control from around the world,” he stated, adding that the book is based on detailed field investigation.

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