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PEF Bridges To Ensure Uniformity In Petroleum Prices

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The Executive Secretary of the Petroleum Equalisation Fund
(PEF), Mrs Adefunke Kasali in this interview gives an insight into the
operation of the PEF. Excerpts:

 

Question: Could you tell us in brief what your Fund does as
it relates to the deregulation of the downstream oil sector

Answer:The Petroleum Equalisation Management Fund was
established many years ago, in 1973 to be exact, and the mandate of the fund
and the board is basically to ensure that marketers who bridge petroleum
products from point of receipt to their retail outlet are reimbursed

for the transport element of that transport activity in
order to ensure that government policy of uniform prices are fulfilled, and the
board has been doing that since all these years.

Our three major schemes are the bridging, the inter-district
scheme and the equalisation scheme.

To give you an idea, what that means, bridging is the
transportation of products over a period in excess of 450 km. It involves going
from one depot which is the loading depot to the receiving depot, and it has to
be in excess of a 450 km

The inter-district is the same thing, from loading depot to
the receiving depot but this time around, it is less than 450km.The
equalisation scheme is when a marketer loads from the receiving depot to his
retail outlet.

For instance, if the marketer is located in Abuja
environment, the marketer will move from, let’s say, a loading facility in
Lagos, could be Ejigbo satellite depot, he will first of all move that product
to Suleja which is a receiving depot which is a PPMC depot and then, from
there, he will move his product to Abuja.

Question:You talked about uniformity in the pricing, against
the backdrop of the deregulation, though the government price is N97, you still
find people selling it as much as N150, is that uniformity in pricing still
viable?

Answer:I think it is important to go to the background of
our uniformity in prices. Our country is vast. The terrain is very different
from area to area. There are some that are very swampy; in the south-south, you
find creeks and petroleum products are best transported through pipelines.

We all know what happened to pipelines in the recent days’
vandalism, sabotage, breakdown, poor maintenance over the years, has caused the
integrity of some of those pipelines, in fact, majority of them have been
questionable.

When you then move petroleum products through them and you
know somebody is just waiting to hack them once they know that petroleum
products are moving, it creates all kinds of issues.

That’s why we see the concept of bridging, that is, moving
these products by trucks come up a lot in the last few years. PEF as an
organisation is the one that then takes care of that bridging activity without
which, movement of petroleum products and the receipt of the product around the
country will be very difficult.

That idea behind uniformity is that you shouldn’t be
disadvantaged based on where you live. If you live somewhere that is not easy
to get pipelines through the place, then you shouldn’t be penalised for living
in that area.

As to the issue of the pricing, we found out that in some
areas, that there are some unscrupulous marketers that probably take advantage
but it’s not everywhere they take advantage of the situation. It is usually
worse when there are things happening in the country when you see the hike in
prices at retail outlets.

But generally speaking, you find out that prices are around
about where government has put them. (N97).

Question: Some marketers have complained of delay or refusal
to pay them, what are you doing in this regard?

Answer:There are some marketers that we refuse to pay
because they have issues with us, either because we found out that they have
submitted questionable documentation with us to come and collect reimbursement
from us. In that case, if they have bad or questionable weigh-bill, there will
be necessary delays in processing some of these claims until we resolve all of
these claims.

There are times in the past when we have had delays in
payment and if you come to our office, and have a look at where we put all
these claim files. It is in stacks and stacks of files.

(Cuts In)

Question:Why should you allow stacks to mount, if they were
attended to on time?

Answer: We don’t allow them to mount, unfortunately, the
rate at which they bring them is just far outweighs the ability to properly
scrutinise those files and we have to ensure that we are not just paying
government money, without ensuring that those documents are valid.

We have to ensure their veracity, we have to ensure they
loaded the products, we have to ensure that they delivered the product and so
in the process of doing all these confirmation, with the staff we have, it is
very tedious.

The other thing is that, sometimes we just don’t get the
document that we need to do the confirmation. And so, we have a process now
whereby the loading facility and the receiving facility must both send us those
claims and we then match them. Otherwise, somebody might load and not deliver
them and come and make claims. We are a responsible organisation and we cannot
allow that to happen and so may cause delay in some cases.

Question: As a follow up, are there sanctions for
defaulters? How many have you been able to pay in the last two years?

Answer: The act establishing the fund has a penalty in
there, but it is very old. It is like N50,000 (Fifty Thousand Naira.) When the
act is revised by the PIB, that will change. That’s not very punitive, it just
puts it on us, and we have to do the proper work to make sure if the penalty is
not deterrent, then we sort them out and sift these things out (files).

On our marketers’ list, we have thousands of marketers, and
on the retail list, all independent marketers. We deal with major marketers, we
deal with DAPPMA marketers. And so we have very many marketers, and we process
well over 100,000 claims every year.

So if a marketer moves a product now and concluded the
transaction, he may wait to move 10 or 15 other transactions and put them in
altogether. So all those individual lifting, we have to find the receipt of
payments, the invoice and the delivery confirmation, the loading confirmation
for each and every one of them.

So in a file that contains 20 meter tickets representing 20
liftings, that work has to be done for each of those 20 loadings, but we have
now been able to design a soft ware that we are just now in the process of
verifying, and perfecting that will do that matching for us automatically.

But when we don’t get data from all the facilities involved,
then again we will just slow the process down.

Question: The software that you talked about, could it be
the planned electronic loading scheme project Aquila, how much has PEF been
able to save for Nigeria from the introduction of that project?

Answer: That project, the software I was just talking about,
is something we designed along the way, that’s not the Aquila. We have been
working on Aquila since December 2007. We have spent the last four years
perfecting it and doing all the other implementation on project Aquila.

Project Aquila will actually eliminate all the things that
we are talking about here. With project Aquila, the first thing is that there
must be a loading and receiving. One of the issues that we have had is that we
are never sure whether a product was loaded or received. In some cases we have
had situations where it was purportedly received but it was never loaded.
Aquila will ensure that there is a genuine transaction.

The other thing with Aquila is that the product is now very
smooth and efficient and then the payment is done under two weeks. So you don’t
have the delay because it is now all electronically done.

With Aquila we have moved to an end-to-end electronic
solution where it is loaded and dispatched by a mobile computer working with an
RFID device. So that at each of our depots, our depot representatives have this
device, this is the mobile computer; part of it and this is the RFIDD device,
which reads the information.

On every truck registered and tagged there is this RFIDD tag
that is affixed on that truck and all the information on that transaction is
actually stored on the device. The software is re-writable and so when the
transaction is ready; our depot representative reads all the information from
our server unto this device and dispatches the truck electronically.

Right now, the manual system we have to stamp and they
falsify our stamps. Now there is no stamping required, you just go in there
once it is dispatched, that information from this device once the truck has
been let go that information automatically goes into the server in our head
office and at the receiving depot where that truck is headed.

By the time the truck gets there in two or three days or
however long it takes that truck driver to get there, that information is
already sitting on the server and when the truck gets there the depot
representatives at our receiving depot basically goes to the truck and verifies
that information.

 

To be continued

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Oil & Energy

Abia Secures $145m Investment Commitment To Establish Solar Manufacturing Plant

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Abia State Governor Alex Otti has welcomed a proposed $145 million investment to establish a solar manufacturing plant in Isiala Ngwa South Local Government Area, describing it as a major boost to the state’s industrial and renewable energy ambitions.
The development was disclosed in a statement issued last week by the Chief Press Secretary to the Governor, Ukoha Njoku Ukoha, after Otti received the investors, led by their Team Leader, Dr. Oko Jaja, at the Government House in Umuahia.
During the meeting held on July 16, 2026, Otti said he was encouraged that the proposed project had reached the Final Investment Decision (FID) stage, with the investors committing up to $145 million to establish the solar manufacturing facility in the state.
What they are saying
Governor Otti welcomed the investors’ commitment, saying the project had progressed to the stage where they were ready to invest up to $145 million in Abia.
“I’m glad that at least you have reached the final investment decision where you are investing up to $145 million.”, he said.
He also assured the investors of the state’s continued support, noting that the government had already provided the land required for the project and remained willing to address any additional requirements needed to facilitate the investment.
“We had to do everything that was required to make the land available. And we would like to assure you that if there is any other thing that you need for this investment, do not hesitate to let us know”, the Governor said.
Speaking on behalf of the investors, Dr. Oko Jaja said the project, being developed with Chinese partners, had advanced significantly and that the first tranche of funding is expected to be released by September 2026, paving the way for implementation.
Also speaking, the Chief Executive Officer of MD NWAKANMA NIGERIA Limited, Dennis Madu Nwakamma, said construction of the plant is expected to commence by the end of September under a public-private partnership with the Abia State Government. He added that the project will manufacture solar panels and related products while creating jobs and providing technical training for young people in the state.
The proposed investment adds to Abia’s growing push into the renewable energy sector. The state is among the few in Nigeria with a regulated electricity market and is home to Geometric Power, whose integrated power system supplies electricity to Aba and surrounding communities.
The development also follows Governor Otti’s recent commissioning of an upgraded 5MVA power station at Abia State University, which doubled the facility’s capacity from 2.5MVA to improve electricity supply within the institution.
Earlier, in February 2024, he commissioned the 188MW Geometric Power Plant, a landmark project aimed at expanding power generation and improving electricity access in the state.
The proposed solar manufacturing facility is the latest in a series of investment projects announced for Abia as the state seeks to attract private capital into manufacturing and infrastructure.
In March, Governor Otti commissioned a $35 million industrial facility in Aba, part of a planned $100 million investment expected to deepen the city’s manufacturing base and attract additional private sector activity.
The state government has also completed the acquisition of Afro Beverages from the Asset Management Corporation of Nigeria (AMCON) after paying N500 million to facilitate the revival of the company.
Separately, the Federal Government and the African Development Bank have urged the Abia State Government to resolve administrative delays affecting the commencement of the $263.8 million Abia State Integrated Infrastructural Development (ABSIID) project, which is expected to strengthen infrastructure and support economic growth across the state.
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FG Urges Against Operators’ Actions That Could Distabilise Market

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The Minister of Power, Chief Joseph Tegbe, has called on operators in the Nigerian Electricity Supply Industry (NESI) to avoid actions that could affect the decentralised electricity market.
The minister made the call at the workshop on Legal, Policy and Regulatory Harmonisation between federal and state institutions on the Decentralisation of the Nigerian Electricity Supply Industry (NESI), in Abuja.
Tegbe said the Federal Government retains an important leadership role, while state governments now have expanded responsibilities; the Nigerian Electricity Regulatory Commission (NERC)continues to regulate areas within its jurisdiction; and state regulators are emerging to supervise their respective markets.
He further stated that transmission remains a national asset; distribution companies continue to serve millions of customers; generation companies continue to supply energy into the grid; private investors provide capital; development partners provide technical support; while consumers remain at the heart of every decision.
Nothing that  none of these institutions exists in isolation, he said: “Our success is interconnected. This is why collaboration must become the defining principle of our decentralised electricity market. We must ensure collaboration rather than competition between institutions. We must build alignment instead of regulatory conflict. We must practice mutual respect instead of jurisdictional rivalry.”
He said the Electricity Act did not establish parallel electricity industries, but complementary electricity markets, operating within one national framework.
“Our objective must therefore be regulatory coherence. Investors should not encounter conflicting rules. Developers should not navigate contradictory approval processes. Consumers should not become casualties of institutional uncertainty. Market participants should enjoy clarity, predictability and confidence wherever they choose to invest,” he stated.
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Oil & Energy

Fuel Imports Surged By 207% In June — NMDPRA report

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Nigeria’s petrol importation surged by 207 per cent in June 2026, even as domestic Premium Motor Spirit supply fell by 22 per cent, according to the latest data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The development marked a sharp reversal from the pattern recorded at the beginning of the year when domestic refining was supplying the bulk of the country’s petrol requirements.
The NMDPRA’s June 2026 Fact Sheet, obtained by our correspondent on Saturday, showed that average daily PMS imports rose from 5.9 million litres in May to 18.1 million litres in June.
The 12.2 million-litre daily increase represented a 206.8 per cent month-on-month rise.
In contrast, domestic PMS receipts fell from 41.5 million litres per day in May to 32.5 million litres per day in June, representing a decline of 9 million litres or 21.7 per cent.
Despite the sharp drop in domestic supply, total PMS receipts rose from 47.4 million litres per day in May to 50.6 million litres per day in June. This represented an increase of 3.2 million litres per day or 6.8 per cent.
The report read, “Total PMS receipts rose by seven per cent from 47.4 million litres per day in May to 50.6 million litres in June, driven by a 207 per cent surge in imports to 18.1 million litres, even as domestic supply fell by 22 per cent to 32.5 million litres per day.
“Domestic daily receipts include DPRP gantry and all coastal evacuation receipts. Consumption data is based on volumes trucked out from all facilities into the domestic market.”
The figures suggest that the increase in imports more than compensated for the decline in domestic supply during the month.
The development is significant because Nigeria entered 2026 with a much stronger domestic supply position. In January, domestic PMS supply was reported at 40.1 million litres per day, accounting for about 61.8 per cent of the country’s petrol supply, while imports averaged 24.8 million litres per day.
However, imports fell sharply to 3.0 million litres per day in February before rising to 5.9 million litres per day in March. The country’s dependence on imports then remained relatively low through the following months before the sharp increase recorded in June.
Compared with January, June’s domestic PMS receipts of 32.5 million litres per day were 7.6 million litres, or 19 per cent, lower than the 40.1 million litres recorded at the beginning of the year.
Conversely, June’s import volume of 18.1 million litres per day was 6.7 million litres, or 27 per cent, below January’s 24.8 million litres per day.
However, the composition of supply changed considerably. While domestic supply accounted for the larger share of the market in January, the June figures showed a much greater reliance on imports to supplement local production.
The June data also showed that the country’s crude oil receipts by domestic refineries improved during the month.
Crude oil receipt by domestic refineries rose from 0.578 million barrels per day in 0.632 million barrelsMay to  per day in June, an increase of 0.054 million barrels per day, or 9.3 per cent.
The NMDPRA rounded the increase to 10 per cent in its fact sheet.
The rise in crude receipts occurred at a time when domestic PMS supply decreased, indicating that higher crude deliveries alone did not immediately translate into higher petrol receipts in the domestic market.
The figures could also reflect changes in refinery operations, product yields, maintenance activities, evacuation arrangements and the balance between domestic production and imported products.
The June fact sheet further showed that average daily PMS consumption increased marginally from 46.3 million litres in May to 47.4 million litres in June.
The 1.1 million-litre increase represented a 2.4 per cent rise.
The increase in consumption, however, was far smaller than the 207 per cent jump in petrol imports.
As a result, the country’s petrol stock position improved during the month. PMS stock sufficiency rose from 16.2 days in May to 19.7 days in June.
This represented an increase of 3.5 days, or 21.6 per cent.
The improvement means that the country entered July with almost 20 days of petrol stock sufficiency, despite the increased reliance on imports.
The increase in petrol stocks is significant against the background of the supply disruptions and price volatility that have characterised the downstream petroleum market since the removal of petrol subsidy.
At the beginning of 2026, the NMDPRA reported that PMS stock sufficiency had risen to 33 days in January, compared with 29.2 days in December 2025. However, the stock position subsequently declined before recovering to 19.7 days in June.
The June data also showed a dramatic increase in imported Liquefied Petroleum Gas, popularly known as cooking gas.
Total LPG receipts rose from 4.1 kilotonnes per day in May to 5.1KT per day in June, representing a 24.4 per cent increase.
Domestic LPG receipts, however, fell from 4.0KT per day to 3.6KT per day, a decline of 0.4KT per day or 10 per cent.
Imports rose from 0.1KT per day in May to 1.5KT per day in June.
That represented an increase of 1.4KT per day, or 1,400 per cent.
The sharp increase in LPG imports helped push total receipts higher, even as domestic supply declined.
The figures indicate that LPG supply exceeded consumption during the month, potentially supporting inventory replenishment.
The supply of Automotive Gas Oil, commonly known as diesel, declined by 14 per cent in June.
AGO receipts fell from 18.8 million litres per day in May to 16.2 million litres per day in June, a decline of 2.6 million litres or 13.8 per cent.
The decline was entirely recorded in domestic receipts as the country recorded no AGO imports in either May or June.
The NMDPRA data showed that diesel consumption remained unchanged at 16 million litres per day in both months.
Consequently, June’s total AGO receipts of 16.2 million litres per day were only marginally above consumption.
Despite the lower supply, AGO stock sufficiency improved from 31 days in May to 37.1 days in June.
That represented an increase of 6.1 days or 19.7 per cent.
The rise in stock sufficiency, despite lower daily receipts, suggests that existing inventories continued to provide a substantial buffer for the diesel market.
The supply of Aviation Turbine Kerosene also fell during the month.
ATK receipts declined from 3.6 million litres per day in May to 2.5 million litres per day in June.
The 1.1 million-litre decline represented a fall of 30.6 per cent.
ATK consumption also fell from 3.1 million litres per day to 2.9 million litres per day, representing a 6.5 per cent decline.
The drop in consumption was, however, significantly smaller than the decline in receipts.
Domestic gas supply rose marginally during the period under review.
The NMDPRA reported that domestic gas supply increased from 4.984 billion standard cubic feet per day in May to 5.116Bscf/d in June.
The increase of 0.132Bscf/d represented a 2.65 per cent rise.
The authority said its domestic gas supply figure includes volumes supplied to the Nigeria LNG Limited.
The modest improvement came as the Federal Government and industry stakeholders continued to focus on increasing gas availability for power generation, industrial production and other domestic uses.
The January-to-June 2026 trend points to a petroleum market that has remained heavily influenced by the changing balance between domestic refining and imports.
Nigeria began the year with domestic PMS supply accounting for the majority of total supply. January’s 40.1 million litres per day from domestic sources compared with 24.8 million litres per day from imports.
By June, however, domestic supply had fallen to 32.5 million litres per day, while imports stood at 18.1 million litres per day.
Although the absolute volume of imports in June remained lower than January’s figure, the sharp increase from the May level showed how quickly the market could turn to imported products when domestic supply weakened.
The trend also highlights the continuing importance of domestic refining capacity to Nigeria’s fuel security.
In May, the Dangote Petroleum Refinery supplied an average of 41.5 million litres of petrol daily, according to reports based on the NMDPRA’s monthly data. The figure was significantly higher than the 40.1 million litres per day recorded in January. However, June’s domestic PMS receipt fell to 32.5 million litres per day.
The development comes amid the gradual transformation of Nigeria’s downstream petroleum sector, with the Dangote refinery increasingly supplying the domestic market while imports continue to act as a balancing source.
The figures also demonstrate that increased refinery crude supply does not automatically guarantee a corresponding increase in domestic petrol receipts. In June, crude receipts rose by about 9.3 per cent, while domestic PMS receipts fell by 21.7 per cent.
For consumers, the most immediate implication is that the country’s petrol supply system remains dependent on a combination of local refining and imports.
The June data therefore presents a mixed picture: domestic refining received more crude, total petrol supply increased and stock levels improved, but local PMS receipts fell sharply while imports surged.
In the wider downstream sector, diesel supply remained entirely domestic, LPG imports increased dramatically to supplement weaker local receipts, aviation fuel supply declined and gas availability recorded modest growth.
The data underscores the continuing transition of Nigeria’s petroleum market from an import-dependent system to a mixed supply structure in which domestic refineries are expected to provide the bulk of demand while imports fill supply gaps.
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