Connect with us

City Crime

NASS’ Subsidy Debate Delays Fuel Imports

Published

on

Nigeria’s fuel import allo

cations for the fourth quarter are being delayed as National Assembly debates the removal of subsidies and as petrol held in offshore floating storage surges to record levels, trade sources said on Monday.

Nigeria is Africa’s top oil exporter but insufficient refining capacity means it relies on fuel imports, mostly petrol, for up to 85 percent of its oil product needs.

About half of the country’s yearly petrol needs are imported through swap exchanges arranged by a subsidiary of state-run Nigerian National Petroleum Corporation (NNPC), according to traders. The other half is organised independently through deals with Nigeria-based distributors.

The parliamentary debate about subsidies and an excess supply of gasoline stored offshore have put a spanner in the allocation talks for this quarter, traders said, which could drag on into next year.

“These allocations should have been out by October or mid-October but they’re not out still,” one trader said. “There are two key things being looked at – the deregulation talks and the oversupply currently in the market.”

Nigerian President Goodluck Jonathan has backed a plan to remove costly gasoline import subsidies, currently running at about 30 percent. This could prove sensitive in a country where a large section of the population survives on less than $2 (about N320) a day.

Finance Minister and Coordinator of the economy, Ngozi Okonjo-Iweala, has said fuel subsidies will cost Nigeria at least N1.2 trillion ($7.7 billion) this year.

The former World Bank official believes subsidies are a wasteful use of funds, as they are mainly paid to importers of refined products and do not reduce gasoline costs at the pump.

The central bank governor and other key officials have also said a necessary step in reforming the downstream oil sector and expanding sub-Saharan Africa’s second-largest economy will involve weaning Nigerians off hefty fuel subsidies, but the negotiations could drag on for months.

The debate is expected to prove controversial as many Nigerians regard cheap fuel as the only benefit they get from living in an oil-rich nation. Proposed fuel price increases in the past led to nationwide strikes.

Nigeria obtains gasoline via two routes. The NNPC has swap agreements with providers to exchange crude oil for refined fuel products, and through the Petroleum Products Pricing Regulatory Agency (PPPRA) it awards allocations to different suppliers.

Nigeria’s gasoline consumption has increased over recent years amid steady economic growth, with gross domestic product expected to rise by about 7 percent this year.

Monthly consumption of the motor fuel is around one million tonnes, a trader said.

NNPC data suggests Nigeria imported in excess of five million tonnes of premium motor spirit or petrol last year, although traders said that does not take into account the PPPRA allocations.

An excess of gasoline in floating storage offshore has tempered demand from the PPPRA this quarter, according to traders.

One trader estimated there is around 1.3 million tonnes of gasoline floating off the coast of Nigeria, or some 45 mid-range cargo ships carrying roughly 30,000 tonnes each. This is well in excess of the almost one million tonnes held at the previous peak in May.

“We are seeing the usual delays in Nigeria – there is enough product offshore to chew through,” said a gasoline broker. The over-supply could provide rich pickings for pirates in the Gulf of Guinea. An oil products tanker was hijacked a week ago in the latest in a string of attacks in the emerging trading hub.

The removal of the subsidy could also mean a consolidation of the government’s several oil agencies into one overseeing organisation, a trader said.

Earlier this year, the country’s PPPRA censured Noble Group for shipping gasoline to tankers near Lagos Bay for floating storage, which was then unloaded away from the country’s official tenders.

Continue Reading

City Crime

Delta Attorney-General Laments Hike In Human Trafficking

Published

on

Delta State Attorney-General and Commissioner for Justice, Ekemejero Ohwovoriole (SAN) has lamented the increasing rate of human trafficking, especially the girl child in the state.
Ohwovoriole decried the increase in his office in Asaba when the zonal commander of the National Agency for the Prohibition of Trafficking in Persons (NAPTIP), Mr Nduka Nwawenne paid him a courtesy visit.
The Attorney-General stated that it was against the dignity of the state and disheartening to see that Delta State now ranked first in human trafficking, overtaking Edo State.
He stressed the need for stakeholders to tackle the menace, adding that if it was one single victim that was rescued, they would be rewarded for their efforts.
Ohwovoriole stated that young girls were the most vulnerable ones in the issue of human trafficking, stressing that children from poor family backgrounds also fall victim to human trafficking.
While saying that their request for an office space in the state would be looked into, to see how the government could be of assistance to them, he assured them of his ministry’s partnership in the fight against human trafficking.
He said that the Task Force on human trafficking and irregular migration, which he chairs, should be having regular meetings.
Earlier, the Zonal Commander of Naptip, Mr. Nwawenne informed the commissioner that Delta state had overtaken Edo state as the foremost state in human trafficking in nigeria.
He told the Attorney-General that their Zonal Command was the first to be established in Nigeria because of the prevailing issues of human trafficking in the area, noting that ika south was the highest in cases of human trafficking as a result of its proximity with edo state.
Nwawenne appealed to the Commissioner and the State Government to provide office accommodation for their officials to operate in Asaba.

Continue Reading

City Crime

Army Arrests 50 Foreigners, Others For Job Racketeering

Published

on

The Nigerian Army said it has arrested 50 suspects, including foreigners, for alleged international job racketeering in Lagos.
The Director, Army Public Relations, Brig. Gen. Onyema Nwachukwu, who addressed journalists in Abuja, on Wednesday, said the suspects were arrested during an operation jointly conducted by the Army and the Nigeria Immigration Service.
He also disclosed that no fewer than 13 criminals were killed and 88 arrested during various operations across 20 states of the federation.
Among those arrested include 50 suspects comprising foreigners who were nabbed for alleged International job racketeering.
Onyema said, “In the South-West region, on November 2, 2023, troops of 9 Brigade Nigerian Army in conjunction with personnel of Nigerian Immigration Service, Lagos State Command, conducted a raid operation on a suspected criminal hideout at Ifako Ijaye.
“During the operation, 50 suspects, including foreigners who specialise in international job racketeering, were arrested. In a similar development same day, the same troops arrested two suspects at a hotel in Ogba in the Ikeja LGA.
“The arrest was in connection with the murder of one Mallam Idris Ardo, the Ardo of Panya Village in Plateau State. Preliminary investigation revealed that one of the arrested suspects masterminded the killing of Ardo and fled the community since the incident occurred.”

Continue Reading

City Crime

Elder Statesman Charges FG On Judges, Magistrates’ Security

Published

on

An elders statesman and advocate of oil rights in the Niger Delta, Rev Sokari Soberekon, has called on the Federal Government to beef up security for High Court Judges and Magistrates in the country. The iconoclastic doctor of humanities made this plea while addressing newsmen during the just concluded 2023/2024 rededication of the legal year of the Rivers State Judiciary held at the St. Cyprian’s Anglican Church in Port Harcourt last Thursday.
Soberekon stressed the essence of maximised security for Judges and Magistrates in Nigeria to ensure prompt and fearless dispensation of justice, equity and fairplay. He, maintained that apart from armed Police orderlies, the Judges and Magistrates should be legally authorised to keep personal arms for self defence when necessary, adding that this innovative policy would enhance the desired environment for an independent judiciary.
According to the octogenarian minority rights activist, the judiciary is the sanctuary of justice and equity.
He recalled the circumstances surrounding the gruesome murder of the former Federal Attorney General and Minister of Justice, Late. Chief Bola Ige.
Soberekon noted that, in spite of the retinue of official security aides attached to the late former Governor of Oyo State, Ige would not have been murdered if he was personally armed on that fateful day of his demise.
Soberekon emphasised the need to shun eye service in the nation’s polity.
He, however, maintained that the only Oga in politics is God Almighty, who he said uses people to install others in office.
Soberekon recalled the meeting he had with King Alfred Diete-Spiff in Lagos from where the pioneer Governor of the State started planning the blueprint of the old Rivers State.
He said what Rivers State needs now is peace, and applauded the placard with the description, ‘Peace’, displayed during the rededication ceremony.
He noted with delight that while delivering a sermon at the occasion, the Vicar of the church advised Nigerians to give peace a chance and also to build a nation where peace and justice reign.

Continue Reading

Trending