City Crime

Oil Subsidy Gulps N6.210trn In Eight years

Published

3 years ago

August 22, 2022

Minister of Finance and National Planning, Zinab Ahmed, says a total of N6.210 trillion was paid to independent oil marketers as Premium Motor Spirit (PMS) subsidy by the Nigerian National Petroleum Company (NNPC) in eight years.
Ahmed, who stated this Friday, when she appeared before the House of Representatives Ad-hoc Committee on Petroleum Products Subsidy Regime from 2013-date, said payment period was between 2013 to 2021.
She explained that the government was currently paying N283 as subsidy on every litre of PMS imported into the country by the NNPC Limited.
The Minister, who reiterated that subsidy on PMS is not sustainable as it is exacting pressure on the finances of the country, expressed hope that the subsidy regime will come to an end soon.
“I am going to address issues as highlighted by the lawmakers in the letters sent to us. Deduction of PMS under recovery shortfall by NNPC for the period 2013 to 2022, we are reporting that there is a total sum of N4.436 trillion, which was deducted as PMS under recovery by NNPC for the period January 2013 to December 2021.
In the report, it shows the amount that were deducted in the period under review.
“Also in the report is the summary of subsidy that has been paid to independent oil marketers from 2013 to 2016 and in this report we are reporting the sum of N1.774 trillion has been paid to independent oil marketers as PMS subsidy from 2013 to 2016.
“The total sum of N6.210 trillion was expended from PMS under recovery by NNPC and payment to independent oil marketers from 2013 to 2021.
“On the funding of subsidy payments to independent oil marketers for 2013 to 2016, payments that have been made to them were directly from domestic excess crude account through the deduction of Sovereign Debts Instruments (SDI).
“They are negotiable short term instruments that were issued by government at the time to enable marketers access financial support from their banks for the importation of PMS’’.

“The instrument was approved by the then President in 2010. It is also important to note that we have instances where funds are transferred from the consolidated revenue fund to the domestic excess crude account for subsidy payments.

“For 2015, N31 billion, again same year N106.1 billion transferred from the CRF in another instance to the domestic excess crude account.

“In 2016 there was another transfer of N40 billion from the CRF to same account for the purpose of settling PMS subsidy to oil marketers.

“There was also the sum of N413.363 billion which was provided through short term funding by the Central Bank of Nigeria. The details by the President for the approval of this funding is also attached to the document submitted to the committee.

“With respect to transfer of funds by NNPC and its affiliates to the treasury single account, the Ministry has obtained evidence as enclosed in annex 9 of the report.

“The Ministry is also not in the position to provide statement of account of NNPC and its affiliates. The parliament should ask for this directly from them”, the report stated in part.

City Crime

Industry Braces For Glut And Investor Demands

Published

3 weeks ago

September 29, 2025

The Tide

The oil and gas industry is in for a tough year ahead, as it must balance financial discipline, shareholder returns, and long-term investments in the sustainability of the business—while navigating a hypothetical glut.

The warning comes from Wood Mackenzie, which said in a new report that the industry was faced with conflicting trends over the next year that would make decision-making challenging. Among these is an expectation that the market would tip into an oversupply, pressuring prices, while the demand outlook for oil over the long term brightens up, motivating more investments.

“Oil and gas companies are caught between competing pressures as they plan for 2026. Near-term price downside risks clash with the need to extend hydrocarbon portfolios into the next decade. Meanwhile, shareholder return of capital and balance sheet discipline will constrain reinvestment rates,” Wood Mackenzie’s senior vice president of corporate research, Tom Ellacott, said.

The executive added that investors would also influence decisions, as they continue to prioritize short-term returns over long-term investments. This last part, at least, is not unusual in the current investment environment across industries. It could, however, make life even more difficult for oil and gas companies for a while.

The glut that Wood Mackenzie analysts expect is the same glut that the International Energy Agency has been expecting for a while now. Yet that very same International Energy Agency earlier this month issued a warning on the longer-term security of global oil supply, saying the industry needed to step up investment in new production because natural depletion at mature fields was progressing faster than previously assumed.

Per the report, if the industry has to maintain current levels of oil and gas production, more than 45 million barrels per day of oil and around 2,000 billion cu m of natural gas would be needed in 2050 from new conventional fields. It’s worth noting that this is maintenance of current production levels, assuming demand will not rise, which is a risky assumption.

Even with projects ramping up and new ones approved for development and not yet in production, a large gap still exists “that would need to be filled by new conventional oil and gas projects to maintain production at current levels, although the amounts needed could be reduced if oil and gas demand were to come down,” the IEA said.

However, demand could just as well increase, heightening the degree of uncertainty in the industry and making long-term planning even more challenging—especially for companies with higher debt-to-equity ratios. Wood Mackenzie expects those with gearing of above 35% would prioritise resilience over long-term growth, while those with better debt positions would turn to divestments and asset acquisitions to improve the quality of their portfolio.

Share buybacks will also remain on the oil industry’s table as a favorite tool for making shareholders happy, although, Wood Mac notes, these tend to dry up when oil slips below $50 per barrel. Interestingly, the analytics company does not seem to factor into its analysis a scenario where prices might go up instead of down, especially now that President Trump has signaled he would be willing to step up pressure on Russia to bring a swifter end to the war in Ukraine.

If prices do rise, for whatever reason, including failure of the massive 3-million-bpd glut that the IEA predicted to materialize, then the immediate outlook for the oil and gas industry becomes different—but not too different. Companies have already demonstrated they would not return to their old ways of splurging when times were good and tightening belts when times were bad. They would likely stick to spending caution and shareholder return prioritization, regardless of prices.

By Irina Slav

City Crime

ECN Commences 7MW Solar Power Project In AKTH

Published

4 weeks ago

September 22, 2025

The Tide

As a landmark intervention designed to guarantee uninterrupted electricity supply, the Energy Commission of Nigeria (ECN), has commenced a 7MW solar power project at the Aminu Kano Teaching Hospital (AKTH)

The project is the outcome of ECN’s comprehensive energy audit and strategic planning, which exposed the unsustainable cost of diesel and the risks associated with AKTH’s dependence on the national grid.

Working in close collaboration with the Federal Ministry of Innovation, Science, and Technology under the coordinating leadership of Chief Uche Nnaji, the ECN planned and executed this critical project to secure the hospital’s energy future.

The Director – General, ECN, Dr. Mustapha Abullahi, said “the timing of this intervention could not be more crucial” recalling that only days ago, AKTH suffered prolonged power outages that tragically claimed lives in its Intensive Care Unit.

“That painful incident has strengthened our resolve. With this solar installation, we are ensuring that such tragedies are prevented in the future and that critical medical services can operate without fear of disruption”.

Abdullahi stated that the project is a clear demonstration of the Renewed Hope Agenda of President Bola Ahmed Tinubu in action and reflects ECN’s commitment to making Nigeria’s energy transition people-centered, where hospitals, schools, and other essential institutions thrive on reliable, clean, and sustainable power.

The ECN boss further reaffirmed ECN’s commitment to continued deployment of innovative energy solutions across the nation.

“This is not just about powering institutions; it is about saving lives, restoring confidence, and securing a brighter future for Nigerians”, he stated.

City Crime

Women And Dangers Of Obnoxious Practices

Published

1 month ago

September 12, 2025

The Tide

It is worrisome to hear that a woman or a girl is bathed with acidic contents just because she refuses to adhere to one instruction or the other from an opposite sex.

Sometimes, you see a woman with bruises on the face, with one eye swollen as if she is an animal perhaps she demanded one or two things from her spouse.

A situation where a widow will be mandated to marry a brother-in-law for her to still belong to the family where she is married and to partake in inheritance should be looked into.

Severally, there have been talks, seminars, workshops, fora, arguments, bills and laws abolishing the issues that concern women, especially violence. But much has not been achieved to curtail the menace.

Violence against girls and women has been on the increase. From time to time, it is either girls are denied access to father’s property or a widow is denied inheritance to husband’s properties. Even when laws are put in place about things that will help women have their rights, some persons feel that culture and tradition do not permit such laws.

We are aware that some women are rich and may not want to partake in the share of their late parents’ property, but there are vulnerable ones who may need to be empowered, through perhaps, late parents’ property inheritance.

Some of the obnoxious laws were made before now without the consent of women. There was no enough representation to either argue for or against so as to be beneficial to women generally. Some of the laws were so primitive that even when civilisation came, became difficult to change. Very unfortunately, it is the women sometimes who execute the laws made by men in their absence. But women are suffering it.

If government can establish laws abolishing certain practices against women and girls, it will be better for them and should in the presence of women so that they can contribute as well.

For long, laws against female genital mutilation and circumcision have existed but some communities with their culture and tradition have refused to put a stop to it with reasons best known to them.

Circumcision of a full-grown girl or lady may not be the only way of attaining maturity. It is a harmful practice and the pain associated with it cannot be imagined. The illegal operation is not performed in the hospital so the dangers inherent will be much.

For those who still practise it, the menace should be discouraged as that is not a proper way of ushering a girl into womanhood. A lot of women lose their lives due to pains experienced during the process. If it was practised in the past when civilisation was not there, it is a different case, nowadays with science and technology proving it wrong, those who still practice should resist.

We know that government is doing a lot to save women and girls from some of the pains they go through but right steps should be taken in the right direction and all stakeholders intensify efforts in dealing with persons who perpetuate evil against their fellow women.

One issue that comes to mind is implementation even if policies and laws are out in place by relevant agencies. The issues have been dwelt on for decades, but it is still practised as big ceremonies in some communities.

When it comes to inheritance, a girl born into a family, married or unmarried will be denied access to father’s property.

When parents are sick, the female child will pick him or her for care and offset medical bills. If it has to do with the demise of parents, the woman and the husband will be mandated to provide a cow and perform other burial rites.

If the National Assembly makes laws concerning the well-being of women, community heads, molecular leaders, women groups and associations, religious organisations, Non-Governmental organizations (NGOs) and Civil Society Organisations (CSOs) should create more awareness through the media to sensitise rural dwellers.

In this digital era, it should be forbidden that a woman loses her spouse and she is mandated to drink water used on the late husband.

A legal practitioner, Tam Jacobs, said if one forcefully shaves a woman’s hair with the intention that she is mourning her late spouse, she can sue that person for assault.

He said if the woman is forced to drink water used on her late husband’s body, she can also sue for attempted murder.

According to him, several cases of girl-child inheritance have been won and documented in the law court but some cannot claim it.

“Even a widow who is handicapped may not be able to make attempts so NGOs, CSOs should be in the forefront to support them and ensure that the laws are implemented at the grassroots level where they are practised”, he said.

A pharmacist, Eno Amos said any culture that does not add colour and value to life, especially as it concerns women should be abolished.

She added that implementation can be easy in the cities where awareness has been created but expressed fear that it may not be easy in the rural areas where culture is really practised.

A business woman, Agnes Ugwu, said tradition and culture were made by man and not God and wondered why people who claim to be educated still follow the tradition of ancestors who never went to school.

Ignorance also comes to play here. If you have watched a documentary showing female genital mutilation and the gory experience the young women go through is something else. Some of the perpetrators claim that the practice has existed for ages. Women have to learn more about issues that concern them.

A nurse, Rosy Ekeocha, said it is not about culture but about the behavior of a group of people in the community who force it on others.

According to her, let people change their behaviour and leave culture alone. It does not happen in every family and if any family allows it that is its business.

She said we are in the 21st century, certain cultures and tradition need to be reviewed to ensure that they align with today’s reality.

Culture is dynamic she said, but that implementation of laws relating to the vulnerable in the society calls for concern.

We should not behave the way people behaved twenty decades ago, after all, we do not dress the way our forefathers dressed. Time has evolved and things are getting better as it concerns women. We are getting more exposed and more enlightened about issues that concern us. Information is moving round as the world is a global village.

Talking about culture nowadays, we wear shoes whereas our forefathers never had any. They walked barefooted

far distances to get family necessities but things are better now as we are mobile.

That should also happen to culture and tradition. There are certain aspects of our culture and tradition which are practised today that have expired long ago. We should get rid off them.

Sometime, the bill for prohibition of obnoxious practices against women at the National Assembly was a welcome development, how far have the powers that be gone to ensure that it favours women.

It is expected that the bills abolishing obnoxious practices against women and girls in the society should have started achieving results as it concerns their wellbeing.

Eunice Choko-Kayode