Editorial
Addressing Petroleum Products Supply Challenges
Nigeria’s Federal Government recently announced that the commencement of operations at the 60,000 barrels per day Port Harcourt Refinery had been moved from December 2022 to the first quarter of this year. In September last year, the Minister of State for Petroleum Resources, Timipre Sylva, while speaking after a Federal Executive Council (FEC) meeting, promised Nigerians that the country’s biggest refinery would become functional by December 2022.
However, that was no longer possible, according to Sylva and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mallam Mele Kyari. Both men spoke at the President Muhammadu Buhari Administration Scorecard (2015 – 2023) series, anchored by the Federal Ministry of Information in Abuja. The reason adduced by Sylva and Kyari was that the government was buying stakes in some upcoming privately owned refineries in the country because of the need to ensure the nation’s energy security.
Sadly, the Nigerian government, instead of developing refining capacity, waits patiently for the completion of private refineries currently being constructed to end fuel scarcity in the country. This compels the nation to rely on imported petrol for local consumption. This factor robs Nigeria of the gains of the current spike in crude oil prices. The contentious issue of fuel subsidy would not have arisen if Nigeria can refine all its needed petroleum products, as dependence on imported fuel has continued to put serious pressure on the nation’s foreign exchange account at the expense of other productive sectors of the economy.
We reject the reason given by the two government officials for the inability of the Port Harcourt Refinery to commence production last December as originally scheduled. If the refinery had worked, it would have added 60,000 barrels per day of Premium Motor Spirit (PMS) to the supply equation at a time when fuel scarcity has returned across the country and prices have skyrocketed to between N280 and N500 per litre at the few filling stations dispensing the product. This would have helped to reduce the burden on Nigerians.
Furthermore, we think that resuscitating and putting other local refineries back on stream will additionally boost the government’s desire to bridge the yawning gap in the demand and supply chain, and reduce the frustration millions of Nigerians are facing in efforts to move around from one place to another or power their homes. Getting more private sector-driven refineries, like Dangote, Waltersmith, and others to contribute to enhancing the volume or quantity of refined petroleum products available to consumers will help address the excruciating pains the people are experiencing.
At a time when inflation has risen to an all-time high, the Naira’s capacity to compete at the international market (exchange rate) is so weak, the purchasing power of the average Nigerian has been drastically whittled down, and economic opportunities are near zero. Hence, addressing the fuel supply hiccup is key to refocusing the nation, and returning it to a functional state.
Petrol shortages have been recurring for several decades in Nigeria. The present scarcity resurfaced about four months ago and has defied all logic and solutions. The government and its agencies are clueless, making disconnected statements and uncoordinated moves. Curiously, the Department of State Service (DSS) directed the NNPC Limited, the Independent Petroleum Marketers Association of Nigeria, and the Major Oil Marketers Association of Nigeria to resolve the fuel crisis in 48 hours.
Others directed by the Service were the Depot and Petroleum Marketers Association of Nigeria, Nigerian Association of Road Transport Owners, Nigeria Union of Petroleum and Natural Gas Workers, Petroleum Tanker Drivers Union, and other stakeholders. The queues initially appeared to reduce after the directive, but the reprieve did not last as the scarcity assumed a more acute dimension, frustrating Nigerians who are now spending many precious hours at filling stations.
Marketers were selling the product at prices ranging from N175 to N300 per litre in defiance of the regulated pricing regime, signifying an out-of-control. Some private depots in Port Harcourt, Lagos, and other cities increased the ex-depot price to N235/litre as against the approved N148.17/litre. The scenario is further proof of the disarray in the administration of President Buhari. A serious, coordinated government would have cobbled together an inter-agency effort, efficiently coordinated, and with tasks assigned to each agency.
This development is ignominious considering that Nigeria is one of the six leading oil producers and exporters in the world, a fact the President once underscored when meeting with stakeholders. But lamentations are not enough. The Buhari-led government should set to work immediately on a long-term scheme that will not only end scarcity, but ensure the refining of enough petroleum products locally for Nigerians’ consumption. The corruption-ridden importation, which has hampered local refining, is the bane of fuel supply.
Whenever Nigeria experiences fuel scarcity, there are usual speculations about likely causes, claims, and counter-claims by operators and regulators. But one constant fact is that scarcity is not often because of product non-availability but the general increase in the overall cost of importing the product, which usually affects marketers who are always without the required capital amid complaints of unsettled previous loans from the banks.
It is time to ask the Nigerian authorities pertinent questions. What has happened to the refineries the NNPC claimed had been turned around to complement import? What impact has the recently enacted Petroleum Industry Act (PIA) had on fuel supply? The law, passed after more than a decade of debate, was meant to overhaul the nation’s oil industry; is it doing that? What about the modular refinery development strategy that was meant to leverage local refining? Why is it not operational yet, and is there nothing to be done about that?
Buhari should stop treating petrol scarcity with levity. As President and de facto Petroleum Minister, he should suspend his endless foreign trips, and coordinate an inter-agency effort to resolve the current supply logjam. Certainly, enough excuses have been offered for the fuel scarcity in the country and sufficient damage has been done to the people’s well-being. The present administration can end this national shame if it shows a greater commitment to governance and the interest of the people.
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Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
Editorial
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