Editorial
Kerosine And The Subsidy Question
The House of Representatives last week
started investigation into recent
allegations surrounding the subsidy, cost and availability of kerosine in Nigeria. Already, there are conflicting statements on the subject that makes this probe imperative.
Being a product needed by nearly everyone, kerosine on its own attracts so much interest. It is therefore, understandable when inflammatory reactions emerge when simple questions on the management of the product fail to add up. In fact, the revelation that the Presidency and the NNPC work at cross-purposes on the matter is disgusting.
No wonder, therefore, that many Nigerians want to know why kerosine is hardly available. They want to know why a product that is said to be subsidised is being sold above the approved N50 per litre price and why the NNPC should be the body to decide how to source it, how to pay for it and even to subsidise it in spite of the fact that no sum was appropriated for the purpose.
Speaking at the hearing organised by the House Committee on Petroleum (Downstream), Speaker, Aminu Tambuwal, alleged that the country had spent more than N1trillion to subsidise kerosine in the last four years.
Represented by the Deputy Speaker, Hon Emeka Ihedioha, the House Speaker said since there was no budgetary provision for subsidy on kerosine, Nigerians would want to know the source of funding for the subsidy, especially, given the fact that a Presidential directive was issued in June 2009 to stop subsidy on kerosine.
“When kerosine is available at all, it is sold at such exorbitant rates that Nigerians have to pay huge sums to get the product … this mystery surrounding kerosine subsidy warrants a full scale investigation to unravel the truth”, he said.
Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu,had listed diversion, sharp practices by middlemen, usage of kerosine for road construction, and as aviation fuel, pipeline vandalism, industrial application, among others, as some of the reasons why kerosine was not only readily available for domestic consumption, but also expensive for the ordinary Nigerian.
Yakubu said that apart from repairing vandalised pipelines, and reviving depots across the country to check diversion and smuggling of kerosine, NNPC was also stepping up the supply of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas from 65,000 metric tonnes in 2011 to 250,000 metric tonnes in 2013 as a means of reducing the hardship caused by kerosine scarcity.
He also stated that “kerosine subsidy was funded by unrealisable revenue inflow”, explaining that “the NNPC takes crude at international price, and refines to kerosene, which it sells at the domestic market at regulated price of N50 per litre.”
He said that “NNPC became the sole importer and supplier of kerosine when marketers withdrew because of the uncertainty over subsidy in 2011.” Admiting that although there was a Presidential directive to stop kerosine subsidy, the directive was ineffective because it was not gazetted.
It is clear that some of the answers to issues raised only serve to raise more questions instead of the needed succour for the ordinary Nigerian, who depends on kerosine for both his domestic and commercial use. Clearly, all these would have been avoided if the country had optimally utilised her refineries and acquired newer and more portable models over the years.
While the kerosine problem may be seen as one crisis too many in some quarters, the truth must be told that this perhaps is the first time Nigeria is seeing the true dividend of democracy. This opportunity to ask questions and get answers may not only minimise the incidence of impunty in the polity, but discourage waste, corruption and speculations.
This is why we expect the National Assembly to do a thorough job on this matter. Everything must be done to ensure that the committee was not compromised or its findings locked away from public eyes. But the point must be made also that if Nigerians are looking for the product even at black market price, the clamour to subsidise the product becomes meaningless. Clearly, the solution to this problem is not unknown.
Editorial
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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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