Business

Stakeholders Urge FG To Adopt New Economic Strategies For Revenue

Published

9 years ago

August 10, 2015

L-R: Assistant General Manager, Five Star Logistics Limited, Mr Nicholas Bruce, representative of Executive Secretary, Nigeria Shippers Council (NSC), Mrs Okam Ada, Executive Director, Stars Investment Company Limited, Iroghama Obuoforibo, and President, Women International Shipping and Trading Association (WISTER), Jean Chiazor-Anishere, during the WISTER Nigeria Business Luncheon/lunch of Membership Directory in Lagos on Friday

Some stakeholders in the oil and gas industry, last Friday urged the Federal Government to adopt new economic strategies that would boost the nation’s revenue, amid the declining oil receipts.
The energy experts made the appeal in separate interviews with newsmen on the sidelines of the just concluded international conference of the Society of Petroleum Engineers (SPE) held in Lagos.
The Managing Director, Frontier Oil Plc, Mr Thomas Dada, said that the global economic challenges make it imperative for the country to look inwards and tap its indigenous human and material resources.
He said that the inwards search, especially in human capital, would also assist the nation in retaining huge funds lost annually to capital flight.
According to Dada, Nigeria must also look inwards for an effective strategy to maximising its huge petroleum resources earning and utilising it for rapid industrial and economic growth.
He said that the move for increased local content in the petroleum industry was timely and strategic in managing the effects of the dreaded oil price burst, currently threatening activities in the oil and gas sector.
National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Chinedu Okoronkwo, called for sustained political will in the implementation of the subsisting local content policy.
Okoronkwo said that the local content policy was a won battle for the indigenous players in the industry to accept the challenge of driving the industry.
He said it would save the country from adversities of free fall of crude oil prices in the international market.
The IPMAN boss said that the only way out of the tight oil price curve was for all stakeholders in the industry to foster unity and proffer solutions to bridge the deficits arising from dwindling oil revenue.
He said also that collaboration among local and international players in the industry remains the requirement needed to sustain Nigerian Content Development (NCD).
He pointed out that the indigenous players in the oil and gas industry have escaped the average psychological limits in the country. Okoronkwo explained that the mindset of the industry has developed above the Nigerian psychological template.
Also speaking, Chairman Momas Meter Manufacturing Company (MEMCOL), Mr Kola Balogun, said that the survival of the Nigerian petroleum industry and the success of running policy programmes depend on ability of local service providers to deliver.
Balogun urged government to harness more gas for sustained and rapid industrial growth needed for economic development.
He said that the combination of gas and power form the prime index of country’s economic development and key indicators of standard of living.
“There is a correlation between gas consumption ratio of a country and the nation’s economic development,” he said.
Balogun noted that the current level of gas development in the country remains grossly inadequate in meeting the nation’s economic targets.
“Current total gas production in the country could only deliver 36 gigawatts of electricity.
“There was a critical need for policies that would stop gas re-injection and flaring in order to harness and channel more gas to power generations,” he said.
President, SPE Nigeria Council, Mr Emeka Ene, said that the crude oil price dilemma was a universal concern.
According to Ene, players must face the new reality by adopting cost efficient measures in keeping afloat.
He added that local content remains the only path for the industry through the prevailing market turbulence.
On the domestic environment, he said, gas demand for local industries and power plants has become imperative in the face of the new realities in the industry.
He said that the local content journey has yielded fruits after 13 years’ journey.
Our correspondent reports that the 4-days SPE conference and exhibitions which started on August 3 has “Natural Gas Development and Exploitation in an Emerging Economy Strategies, Infrastructure and Policy Framework,” as its theme.

Business

Fuel Scarcity: IPMAN threatens shutdown over bridging claims

Published

20 hours ago

May 3, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum, has exonerated its members from the current fuel scarcity in the country.

According to IPMAN, this is caused by its inability to source petroleum products.

The IPMAN Depot Chairmen Forum also threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members, since 2022.

Alhaji Yahaya Alhassan, the Chairman, of the Forum said this while briefing newsmen in Abuja, yesterday.

Alhassan said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from NNPC Ltd. deport, rather from the private depots at high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1, 000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians.

“Contrary to claims that IPMAN members are hoarding Premium Motor Spirit (PMS) known as fuel, we would like to categorically state that PMS scarcity is wholly triggered by inability to get fuel from NNPC and not IPMAN,’’ he said.

Meanwhile, the NNPC Ltd. Chief Corporate Communications Officer, Olufemi Soneye said the disruption was due to logistical issues which had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which has since been resolved.

“However, as you know, overcoming such disruptions typically requires double the amount of time to return to normal operations.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Soneye said.

He however, said the lines would clear out soon.

On the non-payment of bridging claims, the IPMAN forum said it was distressed and depressed by the laidback attitude of the NMDPRA towards the survival its member’s businesses, arising from its refusal in paying the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria in order to serve the teeming population of Nigerians,’’ Alhassan said.

He recalled that Sen. Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring minister’s directive.

“We are not happy with the indiscriminate increment in the issuance and renewal of Sales and Storage Licence, by the NMDPRA, and the subsequent delays in acquiring the licence, which our members are recently subjected to.

“We are also calling on President Bola Tinubu to look into this unwholesome figure which is highly detrimental to our business and reverse it forthwith, as it is bound to impact negatively on the masses.

“We are poised to take far reaching decisions that may cripple the supply and sales of petroleum products across Nigeria if our demands are not met within the shortest period of time.

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products forthwith till our demands are fully met, and the consequences will be terrible.

“We call on our members to however remain resolute and law abiding, even as we draw close to the immediate ultimatum for our demands to be met by the NMDPRA,’’ the chairman said.

Reacting to the IPMAN’s claims, the Acting Head, Corporate Communications, NMDPRA, Seiyefa Osanebi said the bridging claims payment was ongoing.

“The bridging claims payment is always an ongoing process,” she said.

Maritime

Shippers’ Council Registers 160 Port Operators

Published

5 days ago

April 29, 2024

The Tide

The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”, Akutah said.
He said that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu