Oil & Energy
Reps Probe Customs Over Auctioned Petroleum Products
The Ad Hoc Committee on the Volume of Fuel Consumed Daily in Nigeria of the House of Representatives has asked the Nigeria Customs Service (NCS) to provide details of the Premium Motor Spirit (PMS) seized and auctioned by the agency.
This followed request by the Comptroller-General of the NSC, Col. Hameed Ali (rtd.), for a court order to enable the Service auction other petroleum products except petrol during an appearance before the Committee.
Responding to questions on imported petroleum products being smuggled to neighboring countries, Ali, who was represented at the appearance by the Deputy Comptroller General (Enforcement, Investigation and Inspection), Etim Edorhe, said the NCS was doing its best towards achieving its mandate.
“Customs is not folding its hands, we are doing our work. The borders are there, we have the joint border patrol in place.
“Yes, we are daily intercepting these items as they attempt to move out. Some of them in tankers, some of them in drums, then in jerry cans. And some of these smugglers have this ingenuity of having petroleum products in polymer bags that you would not know.
“But daily, we seize them. We are always ahead of whatever method they adopt. I just told you, I took record of what happened in 2021, which I am going to give to you.
“In 2021, a total of 2,278,297 litres and with a duty paid value to the tune of N501,514,178,692.50 was intercepted”, he stated.
The NCS boss, however, explained that the seized petroleum products do not require a court injunction before being auctioned.
“When you intercept inflammable products, you don’t keep them because of the possibility of fire around the premises. So, such items are auctioned and the money paid into the Federation Account”, he said.
In his contribution, a member of the Committee, Uzoma Nkem-Abonta, said the lawmakers should probe the seizures and auctions, “so we can satisfy the public that these things were properly managed.”
Speaking, Chairman of the Committee, Abdulkadir Abdullahi, in his ruling, said, “The product seized, the auctions, the payments and the auctioneers and those who bought (the auctioned petroleum products) should be made available to us.
“We don’t want to leave any stone unturned so that we can look at these things critically and positively. He came with the list of the seized products but he didn’t give us an orderly. So, I ask that he gives it to us so we can also cross-check. He may wish to tender that”.
In his respy, the Customs boss promised to provide the requested details from 2015 to 2021, for which he was given seven days.
“Give us the full details of the products seized, auctioned, the auctioneers, the volume, the value ad any other related matter to this application”, Abdullahi directed.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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