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No Authentic Data On Fuel Consumption -Statistician General …As Expert Says $1.2bn On Fuel Import Criminal
Although Nigeria is Africa’s largest oil producer, it is also one of the continent’s largest importer of refined petroleum products.
However, despite being a net importer of refined petroleum products, including petrol, no Nigerian government agency has the authentic data on the daily petrol consumption in the country, the National Bureau of Statistics (NBS) has declared.
The Statistician General of the Federation, Yemi Kale, told our correspondent that all data currently in circulation in the media and some government agencies were either outdated or guesstimates.
Mr Kale, who spoke in Abuja through his technical assistant, Esiri Ojo, during a telephone interview with our reporter, said these estimated data cannot be relied upon for planning or policy decisions.
“At the moment we (NBS) do not have any reliable data on fuel consumption yet. We are working on a survey that would provide the information for the sector. Every other figure you hear being carried about by various agencies, and even the media, are just guesstimates,” Mr Ojo said.
The NBS is Nigeria’s central repository of all data and statistics on all activities in all sectors of the country’s economy.
The spokesperson of state-owned oil company, the Nigerian National Petroleum Corporation (NNPC), Ndu Ughamadu, also confirmed the country was yet to have reliable fuel consumption data.
“The NNPC has no confirmed data or statistics on fuel consumption in the country. The corporation relies on figures provided by PPPRA (Petroleum Products Pricing Regulatory Agency),” Mr Ughamadu said in a telephone chat with our correspondent.
Fuel marketers used the figure to make subsidy claims from government for supply of petroleum products.
On February 7, 2017, the Minister of State for Petroleum Resources, Ibe Kachikwu, told a House of Representatives committee that daily consumption of petrol was 28 million litres.
The minister said the figure dropped from about 50-55 million litres a day that the PPPRA was using for fuel subsidy payment.
The NBS’ latest petroleum products consumption statistics is November 2016. In the publication, the agency said about 12.66 billion litres of petrol was consumed in the country between January and September of the year.
The number of days between January 1, 2016 and September 30, 2016 were 273, or eight months and 29 days. The Bureau said the figure translated to about 51.87 million litres per day.
But, the figure is higher than the petrol consumption data published by NNPC in its annual statistics bulletin on its website.
The publication showed about 17.41 billion litres, or 47.6 million litres per day of petrol was distributed in 2016.
In the wake of the recent fuel crisis in the country, the Group Managing Director of the NNPC, Maikanti Baru, triggered another controversy over the issue.
In March this year, during a meeting with the Comptroller General of Customs, Hameed Ali, Mr Baru said under-recovery (considered by many to be a veiled name for subsidy) cost per annum by the NNPC was estimated at about N774 billion for petrol supply.
But, Mr Ughamadu, clarified to our correspondent that the figure Mr Baru gave was not “real expenditure”.
He said it was a mere projection based on the price of crude oil at a certain level at the international market and the landing cost of fuel in the country.
With increasing crude oil price in the international market and a corresponding increase in petrol importation cost, Mr Ughamadu said there was a huge price differential between the regulated price at the pump and the deregulated market price in the neighbouring countries.
What this means is: With retail petrol price fixed at about N145 per litre and open market price above N171 per litre, the differential price stands at N26 per litre.
Based on a projection of about 35 million litres per day consumption, the level of under-recovery, or subsidy, will come to about N774 billion per annum.
Mr Ughamadu said the under-recovery of N774 billion per annum was based on projections on the volume of fuel consumption per day and the price of crude oil at the international oil market.
A breakdown of the figure will come to about N64.5 billion per month, or N2.081 billion per day.
With the price differential between the open market price of N171 and the approved retail price of N145 per litre, further analysis shows an average daily consumption of about 30 million litres.
The NNPC spokesperson said in recent times petrol evacuation from depots witnessed an abnormal upsurge, from below 30 million litres per day in August 2017 to an average of over 50 million litres. He said figure later rose to a peak of about 84.2 million litres on December 8, 2017.
“The higher the price of crude oil, the higher the landing cost and the price of petroleum products at the pump in the country,” he said.
Based on NNPC projections, if petroleum consumption rises to about 45 million litres per day, under-recovery cost would equally rise to about N993 billion per annum.
At 50 million litres per day, the under-recovery will grow to N1.11trillion; 55 million litres per day (N1.22 trillion); 60 million litres per day (N1.33 trillion); 65 million litres per day (N1.44trillion) and 70 million litres per day (N1.55 trillion) per annum.
A fortnight ago, Mr Kachikwu also said the under-recovery cost had risen to about N1.4 trillion per annum, an indication that the petroleum resources ministry may have based the petrol consumption level at NNPC projection of 65 million litres per day.
Although the minster later withdrew the the statement on the figures, he said the Ministry of Petroleum Resources was working with some agencies to produce an authentic figure that would soon be made public.
Mr Kachikwu may have made a veiled reference to the survey the NBS said it was currently working on in collaboration the Ministry of Petroleum Resources, NNPC, PPPRA and Petroleum Equalisation Fund to produce an authentic data on fuel consumption in the country.
Mr Ojo said the survey would involve household and industrial players in the economy, to provide accurate and authentic figures of fuel consumption going forward.
Meanwhile, the Committee on Petroleum Industry Bill (PIB) of the House of Representatives has been told that it was criminal for the federal government to expend a whooping sum of $1.2 billion on importation of petrol into the country in one year.
An expert in the oil and gas sector, Dr. Austine Olorunsola made the declaration while fielding questions from the committee chaired by Hon. Ado Doguwa during an interactive session organised by the Petroleum Development Trust Fund (PTDF) on PIB.
A member of the committee, Hon. Sunday Karimi had provoked some thoughts, remarking that the current administration under President Muhammadu Buhari has consistently denied spending money on subsidy despite revelations by the NNPC that it’s spending N1.4trillion annually to bring in the product.
But responding, Olorunsola, who led a technical team of experts in the drafting and presentation of different components of the Petroleum Industry Bill (PIB) said the importation was unnecessary, explaining that the money was enough to build new refineries.
He said: “It’s criminal to spend $1.2billion to bring in products. You can use that amount to build three to four big refineries if you want.
“You can even use that money to open up the market by giving soft loans to private investors if government is not interested in building refineries to establish them so that we can stop importation and create employment”.
The PIB according to the consultant was split into four different components, namely: the Petroleum Industry Governance Bill (PIGB), the Petroleum Industry Administration Bill (PIAB), the Petroleum Industry Fiscal Bill (PIFB), and the Petroleum Industry Host Community Bill (PHCB).
Olorunsola, who also took the committee members through the technical details of different components of the PIB, made up of four proposed legislations underscored the importance of the bill, saying it would engender comprehensive governance of the oil and gas sector in a way that would generate maximum returns to the stakeholders.
He however cautioned the country on over independence on oil, urging that the proceeds be used to diversify the economy to keep pace with other oil economies.
“Nigeria must timely exploit her oil and gas resources to realise maximum value for rapid development of her economy.
“So, we need to move pretty fast. The US today has become the biggest producer of oil which wasn’t so about eight years ago.
“Now, China has retired most of its coal energy sources and diversified into renewable energy sources with a sea of solar panels being assembled to power cities and industries.
“So, the dynamics are changing as those who were importing before are now exporting, which is why we need to do something different and fast. If you don’t do something quickly about what you have, the value of it will be completely eroded.
“The essence of managing oil resources is to provide the best possible economic outcome for all stakeholders, ensure optimal utilisation of all infrastructure ; to ensure operations is managed in safe and environmentally sustainable manner. To satisfy today and ensure sufficient savings for the rainy day and future generations”, Olorunsola said.
He urged the Deputy Chairman of the Ad-hoc Committee, Hon. Victor Nwokolo (PDP, Delta) who is incidentally the chairman, House Committee on Petroleum (Upstream), and indeed, the National Assembly at large to pass the remaining three bills along with the PIGB for onward delivery to president Buhari for his assent.
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FG Spends N10tn On Power Since Privatisation
The Federal Government says it has invested more than N10tn in Nigeria’s electricity sector since its privatisation in 2013, but the intervention has yet to deliver the reliable power supply expected from the reform.
The Managing Director of FGN Power Company Limited, Kenny Anuwe, disclosed this yesterday at the sixth annual conference of the Power Correspondents Association of Nigeria, in Abuja.
The conference afforded stakeholders to examine the country’s roadmap to reliable and affordable electricity under the Federal Government’s ambition to grow the economy to $1tn by 2030.
Anuwe said the huge government spending has kept the industry afloat but stressed that public funding alone could not address the country’s electricity challenges, calling for increased private sector participation and alternative financing models to accelerate infrastructure development.
The conference was themed, “$1trn Economy: Nigeria’s Roadmap to Reliable and Affordable Power Supply.”
The disclosure raises fresh questions about the outcome of the 2013 power sector privatisation, which transferred the country’s 11 distribution companies and six generation companies to private investors, while the Federal Government retained ownership of the transmission network.
Despite successive government interventions, electricity supply has remained unstable, with inadequate generation, gas shortages, weak transmission and distribution infrastructure, mounting sector debts and poor investment continuing to undermine the industry.
Anuwe acknowledged that government funding had been significant but insufficient to meet the sector’s ambitions.
“Government has invested over N10tn in the electricity sector since the advent of privatisation. But is it enough? How much money is enough? If government didn’t invest that money, the industry would not be standing today.
“No matter how you look at it, no matter how critical you are about what government’s role is, if government did not put that money in, the industry would not be standing,” he said.
He, however, described the continued dependence on government funding as unsustainable, noting that the Federal Government was responsible for more than 95 per cent of new infrastructure investment in the sector.
“That’s not why we privatised. We have all kinds of excuses why that has happened. And a lot of them are legitimate. But it’s time for us to move from excuses to saying how do we fix it. It does not need the government to do everything. I believe that government cannot do everything,” Anuwe said.
He said the country needed simpler investment structures, predictable regulations, clear institutional responsibilities and commercially viable projects to attract private capital.
According to him, the FGN Power Company is targeting an investment structure that could attract 1bn, with the Africa Finance Corporation expected to match the amount.
He disclosed that the company’s ongoing Presidential Power Initiative projects were expected to deliver additional transmission capacity, with a target of 5,540 megawatts by 2029 and at least 60 per cent improvement in grid reliability.
The projects include a second batch of 12 Siemens substations and special projects involving Omotosho substations, which are expected to cumulatively deliver nearly 3,400MW.
Anuwe said most of the ongoing first-phase transmission substation and line projects were now expected to be completed in the first quarter of 2027, following delays.
He added that the company had secured financing for its pilot phase and was working with international technical and financial partners, including Siemens Energy, China Machinery Engineering Corporation and TBEA.
The Minister of Power, Joseph Tegbe, in his address, said the Federal Government had also developed a four-pronged roadmap to address the sector’s challenges through grid stabilisation, sector liquidity and sustainability, asset optimisation and expansion and enhancement of the national grid.
He said the government had raised N1.23tn under its N3.3tn plan to settle verified legacy debts owed to electricity generation companies.
According to him, more than 2.8 million electricity customers have been metered under the Presidential Metering Initiative, while additional transmission capacity exceeding 15,000 megavolt-amperes had been added to the national grid between 2023 and October 2026.
“Let me inform this gathering that we have developed a four-pronged roadmap to address
the power sector challenges comprehensively. These are Grid Stabilisation, Sector Liquidity
and Sustainability, Asset Optimisation, and Expansion and Enhancement of the grid. Central
to this plan is a corridor approach that prioritises major load centres for reliable, round-
the-clock electricity supply.
“A technical audit has been commissioned to establish a robust diagnostic baseline, identify critical constraints and guide the prioritisation, sequencing and
execution of interventions. The corridor approach gives this roadmap a practical industrial focus.
“In the past two months alone, I have commissioned newly installed substation equipment across Kumbotoso, Dankata, Mashi, Dan-Agundi, Apapa, Ijora, Ikeja, Biliri, Walalambe and other locations, adding over 1,300MVA to Nigeria’s transmission capacity. This has unlocked more power to the respective Distribution Companies for onward distribution to industrial and household customers,” Tegbe said.
He added that the government was adopting a corridor-based approach to improve electricity supply in major economic centres, beginning with the Lagos-Ogun axis and Abuja franchise area, which together account for more than 50 per cent of national electricity demand.
The minister said the proposed 24-hour electricity zones would align generation, transmission and distribution capacity with demand in industrial clusters, subject to technical readiness and commercial viability.
He also identified vandalism as a major threat to electricity infrastructure, disclosing that President Bola Tinubu had approved a coordinated anti-vandalism campaign involving security agencies.
Earlier, the Chairman of PCAN, Obas Esiedesa, said reliable and affordable electricity was indispensable to the country’s ambition of building a $1tn economy by 2030.
He urged stakeholders to move beyond identifying the industry’s problems and focus on practical solutions, particularly investment, infrastructure development and sustainable financing.
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Fubara: Why We Engage Only Qualified Engineers, Indigenous Contractors On Projects …As Governor Bags NATE Platinum Award, Inducted Into Highest Membership Cadre
Governor of Rivers State, Sir Siminalayi Fubara, has stated that his administration engages indigenous contractors, qualified engineers and technologists in road and housing projects to ensure the delivery of standard and quality projects in the State.
Governor Fubara stated this yesterday while declaring open the 42nd Conference of Technologists in Engineering ( CONFOTECH) and Annual General Meeting of the Nigerian Association of Technologists in Engineering, (NATE), in Port Harcourt.
The conference saw the association conferring its Platinum Award on Governor Siminalayi Fubara and his induction into the highest membership cadre of NATE in recognition of his massive infrastructural development across Rivers State.
Governor Fubara, who was represented by his Chief of Staff, Mr. Sunny Ewule, expressed the readiness of his administration to the continued partnership and support for professional associations in promoting professionalism, building capacity and driving technological advancement.
He thanked the leadership and the entire membership of NATE for finding him worthy of their most prestigious award and honour, the NATE Platinum Award, and the accompanying induction into the highest membership cadre of the association.
“I consider this award not as a personal achievement but as a recognition of the collective effort of my administration and the good people of Rivers State in the area of infrastructure development and the deployment of engineering and technological solutions to advance the socio-economic development of the state, he said.
Governor Fubara noted that the theme of the conference: Safety, Regulation and Enforcement in Engineering: A Panacea to Industrial and Technological Growth in Nigeria, could not be more timely and relevant.
According to Fubara, no meaningful industrial growth can take place without safety, strong regulation, and enforcement, adding that it is for that reason that his administration has continued to insist on standard, quality delivery, and the engagement of qualified engineers, technologists and indigenous contractors in road construction, housing and other major developments across the state.
In his welcome address, the National President of the Nigerian Association of Technologists in Engineering (NATE), Engr. Dominic Udoatan, said the conference underscores a fundamental truth that safety, effective regulation and strict enforcement are indispensable to sustainable industrial and technological growth.
He urged government, regulatory bodies, employers and professional associations to work together to ensure competence, accountability and the protection of lives and property, while expressing the association’s sincere appreciation to Governor Fubara’s administration for its recognition of the importance of infrastructure, technical competence and technological advancement.
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IGP Warns Police Officers Against Partisanship …Directs Regular Engagement With Journalists
The Inspector-General of Police, Olatunji Disu, has warned officers of the Nigeria Police Force against engaging in partisan political activities, insisting that the Force would remain neutral before, during and after the 2027 general elections.
The IGP gave the directive during a strategic meeting with senior police officers, including Deputy Inspectors-General of Police, Assistant Inspectors- General of Police and Commissioners of Police, at the Force Headquarters, Abuja, last Wednesday.
He told the officers across the country to maintain regular interactions with journalists as part of efforts to tackle misinformation and fake news ahead of the elections.
He said sustained engagement with the media would strengthen public communication, promote transparency and help curb the spread of misleading information capable of undermining public confidence in the electoral process.
Disu assured that the Nigeria Police Force would not allow itself to be used by politicians or political parties, saying the Force remains committed to providing a level playing field for all participants in the electoral process.
“We will remain neutral, ensure the safety and security of the electorate before, during and after the election,” he said.
The Police Chief warned that any police officer found participating in partisan politics would face appropriate disciplinary and legal consequences.
On the protection of citizens’ rights, the IGP charged Commissioners of Police to ensure that all reported cases of human rights violations are properly documented, investigated and resolved within a reasonable period.
He also directed police commands and zones across the country to establish accessible and visible Complaints Response Units to enable members of the public report alleged abuses and obtain appropriate redress.
Disu emphasized the need to improve the welfare of police personnel, directing Commissioners of Police to ensure prompt payment of death benefits to families of fallen officers and personally visit such families to demonstrate the Force’s support and solidarity.
He highlighted some of the achievements recorded by the Force but maintained that more efforts were required to address prevailing security challenges, particularly banditry in parts of the country.
He also cautioned Commissioners of Police against travelling outside their respective states without obtaining express approval from his office.
The IGP thanked President Bola Tinubu for his continued support and commitment to strengthening the capacity of the police to combat crime and maintain national security.
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