Connect with us

News

Fuel Supply: Oil Marketers Set For Showdown With FG

Published

on

A confrontation that would trigger another round of fuel crisis is currently brewing between oil marketers and the Federal Government, as the marketers have given the government an ultimatum to fully deregulate the downstream sector of the country’s petroleum industry; put a motion in place to increase marketers margin from the sale of Premium Motor Spirit (PMS), also known as petrol or risk a collapse of the industry.
In an interview with newsmen in Abuja, spokesperson for one of oil marketing groups, who chose not be named, claimed that from the present arrangement in the fuel trading business, where the Nigerian National Petroleum Corporation (NNPC), was the sole importer of petrol, oil marketers are currently not making any profit from the sales of the commodity.
Increasing oil marketers’ take, listed as Trader’s Margin in the PMS pricing template would lead to an increase in the price of petrol if other variables were left constant in the template.
Also, deregulating the downstream petroleum industry would trigger a rise in fuel price, as the current template of the Petroleum Products Pricing Regulatory Agency (PPPRA), puts the expected open market of PMS at N179.50 per litre, meaning that the government is paying N34.50 as subsidy per litre of petrol.
However, when contacted on the impending showdown with marketers, spokesperson for the Nigerian National Petroleum Corporation (NNPC), Mr Samson Makoji, claimed he was in a meeting, and promised to provide the NNPC’s response on the issue at a later time. As at the time of going to press, he was yet to respond.
The spokesperson for the oil marketers further lamented that the newly introduced N50 Point of Sale, POS, charge newly introduced by the government was negatively affecting oil marketers and if not removed, would force many oil marketing companies to close shop.
The spokesperson disclosed that the country enjoyed uninterrupted fuel supply during the Christmas period because oil marketers agreed to work with the Federal Government in that regard.
He said, “Government appealed to us that we should do everything to ensure that there is fuel in December. Again, as I am talking to you, we have listed about three or four items that are still disturbing us.
“One, we are not making any profit, we want them to deregulate or increase our margin. It is either they increase our margin or they deregulate. Two, this N50 POS charge is a killer. No business will survive if it is allowed. Three, the bad roads are not helping us.
“If all these are not addressed; if something is not done, the system will collapse sooner than you think. We are talking to them through government, NNPC and the PPPRA, and hoping that individually, they are putting heads together to find the solution to it. There must be a solution to it, like yesterday.”
He added that the Federal Government was yet to fully liquidate its indebtedness to the oil marketers in the area of outstanding fuel subsidy claims, noting, however, that the government had issued the marketers three promissory notes, with the last of the notes to be cashed in by the first quarter of 2020.
He stated that the oil marketers are currently losing about 20 per cent of their claims due to the Federal Government’s style of liquidating the claims.
He disclosed that the oil marketers had decided to follow the path of dialogue in their engagements with the NNPC, a step it had been taking since the appointment of Mele Kyari, as the Group Managing Director of NNPC.
“We are still going to do that until we feel our patients can no longer bear it. If the system pushes all of us out of business, it is at their own peril. We have been talking to them and they seem to be listening to us, and it seems like they would do some of the things we requested,” the spokesperson noted.
Also speaking, Chief of Staff of the National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. James Tor, confirmed that the Federal Government was currently addressing the issue of backlog of fuel subsidy debts owed oil marketers.
He said, “Every effort is on by the Federal Government to pay the backlog of the fuel subsidy debts owed oil marketers. If you have an issue with somebody and the person has started a programme and a plan to address the issue, there is no need of making it an issue again. We are not making subsidy debts an issue again because the government has already arranged a programme for it”.
On the issue of uninterrupted fuel supply, Tor said, “We kept in line with the efforts of the President of the country, with his efforts and determination to addressing the challenges in the oil and gas sector.
“He has actually improved on all aspects of the industry, so we advised our members to work in tandem with President Buhari’s policy. We urged all our members to ensure that fuel distribution and supply was in line with Mr President’s efforts and they all kept to it.”

Continue Reading

News

FG Spends N10tn On Power Since Privatisation

Published

on

 

The Federal Government says it has invested more than N10tn in Nigeria’s electricity sector since its privatisation in 2013, but the intervention has yet to deliver the reliable power supply expected from the reform.

The Managing Director of FGN Power Company Limited, Kenny Anuwe, disclosed this yesterday at the sixth annual conference of the Power Correspondents Association of Nigeria, in Abuja.

The conference afforded stakeholders to examine the country’s roadmap to reliable and affordable electricity under the Federal Government’s ambition to grow the economy to $1tn by 2030.

Anuwe said the huge government spending has kept the industry afloat but stressed that public funding alone could not address the country’s electricity challenges, calling for increased private sector participation and alternative financing models to accelerate infrastructure development.

The conference was themed, “$1trn Economy: Nigeria’s Roadmap to Reliable and Affordable Power Supply.”

The disclosure raises fresh questions about the outcome of the 2013 power sector privatisation, which transferred the country’s 11 distribution companies and six generation companies to private investors, while the Federal Government retained ownership of the transmission network.

Despite successive government interventions, electricity supply has remained unstable, with inadequate generation, gas shortages, weak transmission and distribution infrastructure, mounting sector debts and poor investment continuing to undermine the industry.

Anuwe acknowledged that government funding had been significant but insufficient to meet the sector’s ambitions.

“Government has invested over N10tn in the electricity sector since the advent of privatisation. But is it enough? How much money is enough? If government didn’t invest that money, the industry would not be standing today.

“No matter how you look at it, no matter how critical you are about what government’s role is, if government did not put that money in, the industry would not be standing,” he said.

He, however, described the continued dependence on government funding as unsustainable, noting that the Federal Government was responsible for more than 95 per cent of new infrastructure investment in the sector.

“That’s not why we privatised. We have all kinds of excuses why that has happened. And a lot of them are legitimate. But it’s time for us to move from excuses to saying how do we fix it. It does not need the government to do everything. I believe that government cannot do everything,” Anuwe said.

He said the country needed simpler investment structures, predictable regulations, clear institutional responsibilities and commercially viable projects to attract private capital.

According to him, the FGN Power Company is targeting an investment structure that could attract 1bn, with the Africa Finance Corporation expected to match the amount.

He disclosed that the company’s ongoing Presidential Power Initiative projects were expected to deliver additional transmission capacity, with a target of 5,540 megawatts by 2029 and at least 60 per cent improvement in grid reliability.

The projects include a second batch of 12 Siemens substations and special projects involving Omotosho substations, which are expected to cumulatively deliver nearly 3,400MW.

Anuwe said most of the ongoing first-phase transmission substation and line projects were now expected to be completed in the first quarter of 2027, following delays.

He added that the company had secured financing for its pilot phase and was working with international technical and financial partners, including Siemens Energy, China Machinery Engineering Corporation and TBEA.

The Minister of Power, Joseph Tegbe, in his address, said the Federal Government had also developed a four-pronged roadmap to address the sector’s challenges through grid stabilisation, sector liquidity and sustainability, asset optimisation and expansion and enhancement of the national grid.

He said the government had raised N1.23tn under its N3.3tn plan to settle verified legacy debts owed to electricity generation companies.

According to him, more than 2.8 million electricity customers have been metered under the Presidential Metering Initiative, while additional transmission capacity exceeding 15,000 megavolt-amperes had been added to the national grid between 2023 and October 2026.

“Let me inform this gathering that we have developed a four-pronged roadmap to address
the power sector challenges comprehensively. These are Grid Stabilisation, Sector Liquidity
and Sustainability, Asset Optimisation, and Expansion and Enhancement of the grid. Central
to this plan is a corridor approach that prioritises major load centres for reliable, round-
the-clock electricity supply.

“A technical audit has been commissioned to establish a robust diagnostic baseline, identify critical constraints and guide the prioritisation, sequencing and
execution of interventions. The corridor approach gives this roadmap a practical industrial focus.

“In the past two months alone, I have commissioned newly installed substation equipment across Kumbotoso, Dankata, Mashi, Dan-Agundi, Apapa, Ijora, Ikeja, Biliri, Walalambe and other locations, adding over 1,300MVA to Nigeria’s transmission capacity. This has unlocked more power to the respective Distribution Companies for onward distribution to industrial and household customers,” Tegbe said.

He added that the government was adopting a corridor-based approach to improve electricity supply in major economic centres, beginning with the Lagos-Ogun axis and Abuja franchise area, which together account for more than 50 per cent of national electricity demand.

The minister said the proposed 24-hour electricity zones would align generation, transmission and distribution capacity with demand in industrial clusters, subject to technical readiness and commercial viability.

He also identified vandalism as a major threat to electricity infrastructure, disclosing that President Bola Tinubu had approved a coordinated anti-vandalism campaign involving security agencies.

Earlier, the Chairman of PCAN, Obas Esiedesa, said reliable and affordable electricity was indispensable to the country’s ambition of building a $1tn economy by 2030.

He urged stakeholders to move beyond identifying the industry’s problems and focus on practical solutions, particularly investment, infrastructure development and sustainable financing.

 

 

Continue Reading

News

Fubara: Why We Engage Only Qualified Engineers, Indigenous Contractors On Projects …As Governor Bags NATE Platinum Award, Inducted Into Highest Membership Cadre

Published

on

Governor of Rivers State, Sir Siminalayi Fubara, has stated that his administration engages indigenous contractors,  qualified engineers and technologists in road and housing projects to ensure the delivery of standard and quality projects in  the State.

 

Governor Fubara stated this yesterday  while declaring open the 42nd Conference of Technologists in Engineering ( CONFOTECH)  and Annual General Meeting of the Nigerian Association of Technologists in Engineering, (NATE), in Port Harcourt.

 

The conference  saw the association conferring its Platinum Award on  Governor Siminalayi Fubara and his induction into the highest membership cadre of NATE in recognition of his massive infrastructural development across Rivers State.

 

Governor Fubara, who was represented by his Chief of Staff, Mr. Sunny Ewule,  expressed  the readiness of his administration to the continued partnership and support for professional associations in promoting professionalism, building capacity and driving technological advancement.

 

He  thanked  the leadership and the entire membership of NATE for finding him  worthy of  their  most prestigious award and honour, the NATE Platinum Award, and the accompanying induction into the highest membership cadre of the association.

 

“I consider  this award not as a personal achievement but as a recognition of the collective effort of  my administration and the good people of Rivers State in the area of infrastructure development and the deployment of engineering and technological solutions to advance the socio-economic development of the state, he said.

 

Governor Fubara noted that the theme of the conference: Safety, Regulation and Enforcement in Engineering: A Panacea to Industrial and Technological Growth in Nigeria, could not be more timely and relevant.

According to  Fubara, no meaningful industrial growth can take place  without safety,  strong regulation, and enforcement, adding that it is for that reason that his  administration has continued to insist on standard, quality delivery, and the engagement of qualified engineers, technologists and indigenous contractors in  road construction, housing and other major developments across the state.

 

In his welcome address, the National President of the Nigerian Association of Technologists in Engineering (NATE), Engr. Dominic Udoatan, said the conference underscores a fundamental truth that safety, effective regulation and strict enforcement are indispensable to sustainable industrial and technological growth.

 

He urged government, regulatory bodies, employers and professional associations to work together to ensure competence, accountability and the protection of lives and property, while expressing the association’s sincere appreciation to Governor Fubara’s administration for its recognition of the importance of infrastructure, technical competence and technological advancement.

 

 

Continue Reading

News

IGP Warns Police Officers Against Partisanship …Directs Regular Engagement With Journalists

Published

on

The Inspector-General of Police, Olatunji Disu, has warned officers of the Nigeria Police Force against engaging in partisan political activities, insisting that the Force would remain neutral before, during and after the 2027 general elections.

The IGP gave the directive during a strategic meeting with senior police officers, including Deputy Inspectors-General of Police, Assistant Inspectors- General of Police and Commissioners of Police, at the Force Headquarters, Abuja, last Wednesday.

He told the officers across the country to maintain regular interactions with journalists as part of efforts to tackle misinformation and fake news ahead of the elections.

He said sustained engagement with the media would strengthen public communication, promote transparency and help curb the spread of misleading information capable of undermining public confidence in the electoral process.

Disu assured that the Nigeria Police Force would not allow itself to be used by politicians or political parties, saying the Force remains committed to providing a level playing field for all participants in the electoral process.

“We will remain neutral, ensure the safety and security of the electorate before, during and after the election,” he said.

The Police Chief warned that any police officer found participating in partisan politics would face appropriate disciplinary and legal consequences.

On the protection of citizens’ rights, the IGP charged Commissioners of Police to ensure that all reported cases of human rights violations are properly documented, investigated and resolved within a reasonable period.

He also directed police commands and zones across the country to establish accessible and visible Complaints Response Units to enable members of the public report alleged abuses and obtain appropriate redress.

Disu emphasized the need to improve the welfare of police personnel, directing Commissioners of Police to ensure prompt payment of death benefits to families of fallen officers and personally visit such families to demonstrate the Force’s support and solidarity.

He highlighted some of the achievements recorded by the Force but maintained that more efforts were required to address prevailing security challenges, particularly banditry in parts of the country.

He also cautioned Commissioners of Police against travelling outside their respective states without obtaining express approval from his office.

The IGP thanked President Bola Tinubu for his continued support and commitment to strengthening the capacity of the police to combat crime and maintain national security.

 

King Onunwor

Continue Reading

Trending