Business

FG Spends N150bn On Fuel Subsidy Monthly, NNPC Admits

Published

5 years ago

June 25, 2021

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has disclosed the Federal Government spends as much as N140billion to N150billion to subsidise premium motor spirit (PMS) otherwise called petrol, monthly.
According to Kyari, the open price of petrol has risen to N256 per litre.
With the present pump price of petrol pegged at N162 per litre, it means government is subsidizing the product by N94 per litre.
Kyari said petrol daily truck out has risen significantly to 103 million per litre.
He said, “If we are to sell at the market today at current exchange rate, we will be selling the product at about N256 to a litre. What we sell today is N162, so, the difference is at a cost to the nation”.
“The difference comes back to as much as N140billion to N150billion cost to the country monthly.
“As long as the volume goes up, that money continues to increase and we have two sets of stress to face, stress of supply and stress of foreign exchange for the NNPC. We may not see foreign exchange cheque taking place for importation”.
Kyari stressed at the meeting which had the Economic and Financial Crimes Commission (EFCC), Department of State Services (DSS), Nigeria Police Force (NPF), Nigeria Customs Service (NCS), Nigeria Security and Civil Defence Corps (NSCDC), and other relevant downstream and upstream stakeholders in attendance, harped on the need to find urgent solution to petrol smuggling challenge in the country.
He explained, “In very recent data, we see what we really want in the beginning of May and June, there was a day we load out about 103 million litres of PMS within one day across the depots. We know it is not required, we know it is inappropriate and we also know that something wrong is happening that somebody is chasing something.
“But we in NNPC, we are not in control of that, we are not in every depot, we don’t keep products in all the depot but when the volume goes down, it comes down to us, when there is tight in supply, it comes back to the NNPC and we solve the problem”.
The NNPC boss said that President Muhammadu Buhari had directed that smuggling must stop, adding that it was the reason for inviting all stakeholders to chart the way forward.
Stakeholders in the downstream sector of the petroleum industry have blamed distribution system and low pump price for the increasing rate of smuggling of petrol, out of Nigeria.
The stakeholders, who include marketers, depot owners and transporters called for synergy to check the activities of smugglers.
Speaking at a stakeholders meeting to work out synergy to tackle incidents of smuggling of petroleum products criminals, the Chairman of the Board of Directors of the Independent Marketers Association of Nigeria (IPMAN), Alhaji Aminu Abdulkadiri urged the Nigerian National Petroleum Corporation (NNPC) to release more products to its members.
Abdulkadiri noted that with over 20,000 filling stations across the country, IPMAM members sell directly to the Nigerian people.
He said, “I have been in this industry for over 30 years and there are underlying issues that I want the GMD to take cognizance of and this will go a long way in chasing who does what.
“One, we have almost 30,000 retail outlets in this country and both major marketers and DAPMAN have about 2000-3000, the rest belong to my members. But the truth there is who is responsible for storing and distributing this product? The bulk of this product is being distributed by DAPMAN.
“NNPC needs to work with IPMAN and DAPMAN ensure that marketers that have retail outlets that are viable for Nigerian consumers should be attached to each depot in this country. That way NNPC can track most of these products that are being either diverted or smuggled out.
“But so long as the source of distribution is not monitored and product are sold indiscriminately, the problem will continue”, he added.
On her part, Chairman, Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN), Mrs. Winifred Akpani, said the group was concerned about the high volume of petrol consumption in Nigeria.
Akpani said it was difficult to determine the actual amount of petrol consumed in the country, pointing out, however, that the Department of Petroleum Resources (DPR) has critical role to play if smuggling was to end in the country.
“We as depot operators do not own all these stations but we sell a lot to people who have the stations. And one thing we always insist is where is your DPR licence not only are you going to show us your DPR licence we are going to cross check with the list that updated periodically and send to each depot by the DPR and it only on that basis that we sell product to you,” she added.
She noted with the resources and technology available in the industry, tracking the movement of trucks should not be a big challenge.
Also speaking, the National President of the Nigerian Association of Road Transport Owners (NARTO), Alhaji Yusuf Lawal Othman, called for closer monitoring truck outs at the depots.
According to him, “The system needs to be reorganized. I don’t see any reason why you have 200 filling stations in a local government that does not consume more than 45,000 litres.
“I also don’t see how the depot which normally do programme per day will programme quite a number of trucks to a local government which does not consume more 45,000 litres per day. It means that we are sleeping”.

Business

Boat Mishap Kills Pastor, Wife And Church Members In Brass Water

Published

5 days ago

May 18, 2026

The Tide

A boat accident in Bayelsa state has killed a serving Pastor, Wife and other church members along Brass waterways

The sad incident happened at Odioama in Brass local government area of Bayelsa State when the Pastor, wife and members of his church were in a programme.

?Tide confirmed that the lifeless body of the Pastor’s wife has been found and deposited in a mortuary while the remains of her husband ,the Pastor is yet to be recovered

as search party are still ongoing.

Although the real cause of the boat Mishap is not yet known as at the time of this report, our Correspondent gathered that the identities of the Pastor, wife and church members were not disclosed to the public.

The mishap, Tide gathered occurred on Friday morning when the church members were on a boat transit

The Bayelsa State government and the state police command are yet to issue official statement’s on the sad accident

By: CHINEDU WOSU

Business

Rivers Workers Seek Scrapping Of Contributory Pension Scheme

Published

5 days ago

May 18, 2026

The Tide

The Rivers State Council of Nigeria Civil Service Union has called on the State Government to urgently scrap the contributory pension scheme, describing it as unfavourable to long-serving civil servants in the state.

Chairman of the union, Chukwuka Osuma, said this in an interview with newsmen in Port Harcourt, recently.

Osuma said the current pension structure has continued to worsen post-retirement hardship for workers.

He noted that the contributory pension scheme had failed to provide adequate retirement security for workers who had spent many years in service, especially those approaching retirement age.

According to him, civil servants who had served for more than 20 years were among the worst affected under the scheme, insisting that many retirees could no longer cope with prevailing economic realities.

He also informed that the Union has made moves to showcase their concerns, pleading with Governor Siminalayi Fubara to abolish the pension policy and introduce a more favourable arrangement for affected workers.

“The union was not opposed to pension reforms, the contributory scheme should only apply to newly employed workers or those with fewer years in service”, he said.

Osuma explained that workers who had already spent decades in the civil service ought to remain under a more secure pension structure capable of guaranteeing stability after retirement.

The labour leader further noted that inflation and the rising cost of living had continued to erode the value of retirement savings, thereby increasing the suffering of pensioners across the country.

He also appealed to the state government to consider extending the years of service in the civil service from 35 to 40 years and the retirement age from 60 to 65 years.

Osuma argued that such adjustment had become necessary in view of present-day economic realities and changing conditions in the workplace.

The unionist also reviewed that similar policies had already been adopted in some sectors and jurisdictions, expressing optimism that the State could also implement the reforms for the benefit of workers.

He however, commended Governor Fubara for approving an N85,000 minimum wage for workers in the state, noting that the amount was above the national benchmark of N70,000.

Osuma also acknowledged the government’s efforts in the area of workers’ promotions and bonuses, but insisted that pension reforms and extension of years of service remained critical to the long-term welfare and stability of civil servants in Rivers State.

By: King Onunwor

Business

FG Begins South-West Tour To Promote New Cooperative Bank

Published

1 week ago

May 13, 2026

The Tide

The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.

Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.

According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.

Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.

Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.

“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.

The minister noted the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.

According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.

Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.

He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.

“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.

He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.

“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.

Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.

“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.

“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.

Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.

She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.

Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).

“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.

“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.