News
Fuel Supply: Oil Marketers Set For Showdown With FG
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.”
The Governor of Rivers State, Sir Siminalayi Fubara, has begun the celebration of Nigeria’s 65th Independence anniversary with a Juma’at service where prayers were offered for the progress of the state and Nigeria.
Governor Fubara, who advocated for peace and unity of Nigeria during the prayers on Friday at the Rivers State Central Mosque, Port Harcourt, indicated that without peace, the accelerated development of Nigeria will remain in a limbo.
Governor Fubara, who was represented by Alhaji Abdurrazaq Diepriye, therefore urged citizens to remain patriotic.
According to him, “Allah has brought us this far. Without peace, we can not have progress and economic development. I call on all citizens irrespective of creed or tribe to remain patriotic.”
He thanked President Bola Tinubu for restoring peace in Rivers State while also using the forum to appreciate security agencies for their relentless effort in upholding the peace and unity of Rivers State and Nigeria.
The Chief Imam of Rivers State Central Mosque, Imam Ibrahim Yaloo, admonished Moslem faithful to always speak the truth, adding that those who obey Allah will be directed to good deeds and their sins forgiven.
Prayers were offered for Rivers State and Nigeria.
Other activities to mark the 65th Independence anniversary in the state include an Inter-denominational Church Thanksgiving Service on Sunday, 28th September and Parade Ceremony on Wednesday, 1st October.
Vice-President Kashim Shettima departed New York on Sunday after representing President Bola Tinubu at the 80th session of the United Nations General Assembly.
In a statement released on Sunday by the VP media aide, Stanley Nkwocha, the Vice President is now headed to Germany, where he will hold strategic meetings with officials of Deutsche Bank.
The statement read, “Vice President Kashim Shettima has departed New York, United States, after successfully representing President Bola Ahmed Tinubu, GCFR, at the 80th Session of the United Nations General Assembly.
“During his participation at UNGA 80, VP Shettima secured UN Secretary-General António Guterres’ commendation for Nigeria’s bid for a permanent UN Security Council seat.
“He also showcased Nigeria’s $200 billion energy transition opportunity to global investors and strengthened strategic partnerships with the UK on trade, defence, and migration issues.”
Nkwocha added that the VP delivered Tinubu’s national statement, calling for UN reforms and a permanent seat for Nigeria at the UN Security Council, and “demanded Africa’s control over its $700 billion mineral wealth, and digital inclusion initiatives.”
“He also engaged with the Gates Foundation on healthcare and education expansion, positioning Nigeria as the natural hub for the African Continental Free Trade Area’s $3.4 trillion market.
“VP Shettima was seen off at John F. Kennedy International Airport, New York, by cabinet Ministers who were part of the UNGA 80 delegation and Nigerian Mission officials.”
The aide noted that Shettima will return to Nigeria immediately after his engagements in Germany.
The Tide source recalls that the VP departed Abuja, yesterday.
He led other Nigerian officials at the Assembly.
As part of Nigeria’s 65th Independence anniversary celebration, the Federal Government held a special thanksgiving service on Sunday at the National Ecumenical Centre in Abuja to offer prayers and give thanks for the nation.
The event drew top government officials and security chiefs, including Senate President Godswill Akpabio and Secretary to the Government of the Federation, George Akume, as well as their spouses.
Other notable guests included Finance Minister and Coordinating Minister of the Economy Wale Edun, former Plateau State Governor, Senator Simon Lalong, and the Chief of Defence Staff, General Christopher Musa, who led the service chiefs in attendance.
Service chiefs present included the Chief of Naval Staff, Vice-Admiral Emmanuel Ogala, Inspector-General of Police Kayode Egbetokun, Comptroller-General of the Nigerian Immigration Service, Mrs Kemi Nandap and Controller-General of the Nigerian Correctional Service, Sylvester Nwakuche, among others.00
The service came days after the government unveiled the official theme and some of the activities slated for the 2025 Independence celebrations.
This year’s anniversary is tagged “Nigeria @ 65: All Hands on Deck for a Greater Nation,” as announced by the Director of Information and Public Relations at the Office of the Secretary to the Government of the Federation, Segun Imohiosen, in a statement on Wednesday.
“As part of activities to mark the 65th Independence Anniversary, the Juma’at Prayer and the Inter-Denominational Church Service will be held on Friday, 26th September at 1 pm and Sunday, 28th September at 10 am respectively, as well as the World Press Conference on Monday, 29th September at 10 am,” he said.
The Tide source had earlier reported that President Bola Tinubu, alongside former Heads of State, Yakubu Gowon, Olusegun Obasanjo and Goodluck Jonathan, is expected as a special guest at a national discourse convened by the Island Club, Lagos, to mark Nigeria’s 65th Independence Anniversary.
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