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‘PIB Restricts Petroleum Products Import To Refinery Owners’

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The Senate’s decision to award just three per cent to oil-bearing communities may not be the only controversial clause in the Petroleum Industry Bill (PIB) as a closer check has shown that the Upper Chamber also provided that petroleum products can only be imported by refinery owners in Nigeria.
While the bill expectedly removed price controls on petroleum products in Section 205, the Senate version of the bill has a clause that constrains market competition by restricting the importation of products to only players with local refining capacity.
This clearly counters the provision of 205(1), “Subject to the provisions of this Section, from the effective date, wholesale and retail prices of petroleum products shall be based on unrestricted free-market pricing conditions.”
The inserted Section 317 (8) in the Senate bill states, “(1) The Authority shall apply the Backward Integration Policy in the downstream petroleum sector to encourage investment in local refining.
“(2) To support this, licence to import any product shortfalls shall be assigned only to companies with active local refining licences.
“(3) Import volume to be allocated between participants based on their respective production in the preceding quarter.
“(4) Such import to be done under NNPC Limited Direct Sale/Direct Purchase (DSDP) scheme.
“(5) To safeguard the health of Nigerians, imported petroleum products shall conform to the Afri-5 specification (50ppm sulphur) as per the ECOWAS declaration of February, 2020 on adoption of the Afri-Fuels Roadmap”.
The decision by the Senate to impose restrictions on what is supposed to be a deregulated downstream sector of the petroleum industry raised eyebrows among experts who called for the provisions to be expunged.
When contacted, yesterday, energy expert and former President of the Society of Petroleum Engineers (Nigerian Council), Engr. Joseph Nwakwue, expressed concern that the provisions will create a duopoly in a price deregulated environment thereby destroying the Nigerian downstream industry as we know it today.
According to him, “It restricts importation of all petroleum products, including PMS, diesel, aviation fuel, lubricants, and base oil – products which are already deregulated, to only players with local refining capacity.
“In the near term, only the NNPC and Dangote will have domestic refining capacity for PMS for instance, so, they will be the only importers. This takes the industry back and could not have been the intention of the bill.
“Moving from a state-owned monopoly in a price regulated market to a duopoly in a price deregulated market is not what Nigeria needs now as it takes the industry backward and exposes Nigerians to exploitation and further hardship. This, in my humble view, is not reformatory”.
He pointed out that “rather than seek to protect refiners, we should rather seek to protect the consumers by liberalizing and expanding petroleum product supply sources. That is the only way prices will be ‘market-determined’ and consumers made to pay fair value for the products they buy.
“The viability of local refining is not determined or enhanced by locking out competition, it is rather achieved through price deregulation which has been done in Section 205.
“This clause gives statutory unfair advantage to private players rather than through market competition.
“Indeed, the law and the authorities have an obligation to protect the market (other players including Nigerian entrepreneurs) and the consumers rather than to encourage monopoly/duopoly by locking out competition.
“This clause does not create a level playing field for all players in the sector, and can, indeed, destroy existing Nigerian businesses that engage in importation of other petroleum products like diesel, LPG, Aviation fuel etc. with attendant loss of jobs and more economic misery for Nigeria and Nigerians”, he added.
Nwankwue pointed out that governments all over the world “do not create and encourage monopolies or duopolies and that is why anti-trust laws are enacted and enforced to protect industries and consumers.
“Nigeria should not be doing the reverse. A case can always be made about protectionist policies for nascent or pioneer industries, but this is not the case with a long-established, once-thriving Nigerian downstream.
“This clause needs to be expunged from the PIB. The downstream regulator – Authority should be left to develop regulations that are fair, inclusive and transparent for petroleum product importation that ensures open and diverse market supply and hence competition, only then would the objectives of the bill be achieved.
“It is worth repeating that as price control is being removed, supply must be competitive, inclusive, transparent and seen to encourage efficiency. Then, and only then will Nigerians and Nigerian win”, he added.
Also in his remarks, energy expert, Ademola Adigun, said the provision was clearly put in place to favour certain players in the industry.
According to him, “It is a clause designed to give an advantage to Dangote. It’s not a fair clause based on current realities and is capable of creating an oligopoly in the market.
“It’s very unfair and seems inserted to please a certain group”, he added.
Also, a document detailing industry players’ position on the PIB stated this about the section, “A licensing regime for importation be included in Section 174 and the conditions for licensing be open and transparent, ensuring free-market competition and a level playing field for all parties. This will enhance market efficiencies”.
The Senate and the House of Representatives had, last Thursday, set-up conference committees to harmonise both versions of the PIB.
The committees are expected to meet, today.
The harmonized version is also expected to be passed by both chambers before the National Assembly proceeds on its annual break on Thursday.

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Army Asks ICC, AI, Others To Take Action Against IPOB

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The Nigerian Army has asked Amnesty International (AI) and the International Criminal Court (ICC) to take “immediate action” and hold the outlawed Indigenous People of Biafra (IPOB) and its sponsor, Simon Ekpa, accountable for crime against civilians in the South East.

It said the international community must condemn the mistreatment “in the strongest terms” of an unarmed and law-abiding citizen by IPOB in the region.

The Army made the call in a statement by its spokesman, Maj-Gen Onyema Nwachukwu, yesterday, while reacting to a viral video that showed IPOB members torturing an ex-soldier of the Nigerian Army.

The statement read: “The Nigerian Army has taken serious note of a disturbing video circulating online, posted by the self-acclaimed Prime Minister of IPOB, Simon Ekpa. In the appalling footage, an ex-soldier, Corporal Toriola Adewale, who honourably retired from the Nigerian Army six years ago, was subjected to brutal torture by the so-called IPOB/ Biafra Liberation Army.

“He was also forced to deliver coerced messages to active military personnel, urging them to abdicate their constitutional responsibilities and abandon their duties. This defenceless citizen was further compelled to falsely claim he was treated well while being held captive.

“It must be unequivocally stated that the claim by IPOB and its terrorist leader that ex-corporal Toriola is still serving in the Nigerian Army is far from the truth. This outrageous propaganda by the IPOB terrorist group is undoubtedly an attempt to justify their savage mistreatment of an unarmed, law-abiding citizen who served his country meritoriously. Such dehumanizing acts must be condemned in the strongest terms by the international community.

“The Nigerian Army therefore urges all Nigerians to disregard this malicious video and stand united against the vile acts of terrorism perpetrated against Nigerians, and particularly, the good and law-abiding people of South East Nigeria by IPOB terrorists. It is no gainsaying that an overwhelming majority of Nigerians in the South East and across the nation have already rejected the criminal propaganda spread by IPOB.

“The savage treatment of innocent citizens like ex-corporal Toriola and other law-abiding Nigerians must not be treated with levity. We call on all relevant international organisations, including Amnesty International and the International Criminal Court, to take immediate action and hold Simon Ekpa and other IPOB terrorist elements accountable for these heinous crimes.”

According to the statement, the Army and other security agencies have recently intensified operations to fight terrorism and insurgency in the Southeast and other parts of the country.

It added, “The recent annihilation of key terrorist leaders in identified terrorists’ strongholds is indicative of this commitment.

“The villainous acts of terror by Simon Ekpa and his accomplices must come to an end, as justice will soon catch up with them. They can run, but they can’t hide forever.”

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281 Inmates Missing From Custodial Centre After Borno Flood 

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The Nigerian Correctional Service (NCS) has declared 281 inmates missing from the Medium Security Custodial Centre, Maiduguri, the Borno State capital.

The Service noted that this followed an evacuation process in the aftermath of the flood incident in the State, as seven inmates were returned to the centre.

NCS, in a statement by its spokesman, Umar Abubakar, in Abuja, yesterday, released the details of the inmates, including their biometrics.

Abubakar said, “The Nigerian Correctional Service has observed the flooding currently being experienced in Maiduguri, Borno State, and its environment.

“The unfortunate incident has left scars, bringing down the walls of the correctional facilities, including the Medium Security Custodial Centre, Maiduguri (MSCC), as well as the staff quarters in the City.

“Upon the evacuation of inmates by officers of the service with support from sister security agencies to a safe and secure facility, 281 inmates were observed to be missing.”

He, however, added that “it is important to note that the service is in the custody of their details, including their biometrics, which is being made available to the public below.

“The service is working in synergy with other security agencies as both covert and overt deployments have been activated to look out for them.

“Presently, a total of seven inmates have been recaptured and returned to custody, while efforts are on the ground to track down the rest and bring them back to safe custody.”

While this effort is on, the public is assured that the incidence does not impede or affect public safety.”

Recall that the Service’s spokesman had, in a statement last Tuesday, assured that the NCoS officials were working diligently to manage the flood incident that had affected the custodial centre.

Abubakar said, “As the agency responsible for the safekeeping of inmates, we want to assure the public that we are taking all necessary measures to ensure public safety, evacuate inmates to a safer facility, ensure smooth operations, and collaborate with sister security and relevant agencies in providing support and assistance to those affected.

“Contrary to initial reports, the officers and men of the command are working around the clock to ensure a smooth and secure transfer process.

“We appreciate the support and guidance from the Presidency and the Vice President’s visit to Maiduguri to assess the situation.”

According to the National Emergency Management Agency, more than 23,000 households have been hit by the rapid rise of water following the weekend rupture of the Alau Dam on the Ngadda River, 20km south of Maiduguri.

The flood began after the dam overflowed following heavy rains leading to the town’s worst flooding in 30 years, according to the United Nations Human Rights Refugee Council and Maiduguri Metropolitan Council residents.

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Parents Threaten Boycott Over 200% Hike In Lagos Boarding School 

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Parents of students in Lagos Model Colleges are demanding the reversal of a recent 200% increase in boarding fees, accusing the Lagos State Ministry of Education of corruption and insensitivity.

The Chairman of the Parents’ Forum of Lagos Model Colleges, Surv. Dapo Dawodu, raised the alarm on Saturday during the Forum’s meeting in Lagos.

The parents’ forum also threatened to keep their children at home until the fee hike is reversed.

The Tide reports that on Friday, 13th September, the Lagos State Government increased boarding fees in all secondary schools from N35,000 to N100,000 per term.

A letter to all boarding school principals, signed by the Director of Basic Education Services at the Lagos State Ministry of Basic and Secondary Education, Olufemi Asaolu, read: “I have the directive of the Honourable Commissioner to inform all public boarding schools in Lagos State that the State Government has approved the review of the boarding fee payable in all public boarding schools. The newly approved fee is N100,000 only.”

In response, the parents forum, in a letter, dated 14th September, titled “Re: Increment in Fees”, and addressed to parents, described the hike in boarding fees as mindless, provocative and offensive.

The letter partly read: “In the last 24 hours, we have witnessed an avalanche of disdain, anguish, and frustration at the mindless and provocative 200% increase in boarding fees for our children, imposed by the corrupt officers of the Lagos State Ministry of Education!

“It is unfortunate that the unbridled greed of these enemies of the good people of Lagos State (you, the parents) was facilitated by the ministry’s leadership.

“To put it clearly, the fee of N100,000 per term, when paid in a school of 1,000 students, translates to N100 million for the school principal to feed the children for just three months!

“Previously, the same exercise was carried out by the same principal for less than N35 million.

“In a school of 500 students, a principal now wants to spend N50 million for an exercise that used to cost below N17.5 million, paid by parents. If our Honourable Commissioner is not scandalised by this, we parents find it exceedingly offensive!”

The Forum also reminded the Lagos Ministry of Education to review their proposed school feeding and welfare initiative for implementation.

The letter continued: “In February 2024, we proposed a solid scheme for the feeding and welfare of our children in these schools, which the ministry has not been able to fault to date.

“Lagos State prides itself on a free education policy, which should not exclude the boarding programme.

“Parents of boarding students have shown understanding with past governments when the state’s finances were strained many years ago.

“However, with the current government receiving over 350% more funding, boosted by the removal of subsidies—which has drastically reduced parents’ spending power by over 600%—we find it unacceptable that parents are now subjected to further hardship through this unnecessary fee hike.”

The Forum is urging Lagos parents to keep their children at home starting from yesterday,15th September, 2024.

According to the letter, “After considering your concerns, we agree that to avoid swallowing this unjust bait from the government—especially given that some principals have threatened not to allow our children into the boarding houses without the payment of N100,000—we have no option but to ask parents to keep their children at home tomorrow, Sunday 15th until this unreasonable decision by the ministry is FULLY REVERSED! NO REVERSAL, NO RESUMPTION!”

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