Oil Theft Allegations: Produce evidence, Navy tackles Asari Dokubo

The Nigerian Navy has described as spurious, the allegations by ex-Niger Delta militant leader, Asari Dokubo, that some cabals in the military are involved in oil theft in the region. Dokubo made the claims when he visited President Bola Tinubu in Abuja on Friday. Reacting to the accusation, the Director of Naval Information, Commodore Adedotun Ayo-Vaughan, on Saturday challenged Dokubo to produce evidence and names of those behind the criminality. Ayo-Vaughan said the Nigerian military, and the navy in particular, had been at the forefront of fighting crude oil theft at all levels in the country. He said that while crude oil being stolen from pipelines was being refined in the creeks for the local market and the local buyers, it was also being stolen by criminals from offshore at sea. “You remember the case of Mt Heroic Idun that was made to pay fines to the Nigerian government after they were arrested and brought back from Guinea Bissau, Malabo Island, and made to face court orders. “It demonstrated the will of the Navy to go as far as even beyond our waters to arrest a ship that attempted to load without a license, without due approval in April last year. “I was there physically on board one of our ships at FOT in Onne when the navy launched Operation Dakatarda Barawo, which means ‘stop the thief’ in Hausa. “Stop the thief that is stealing the nation’s natural resources, the hydrocarbons. “Nigerian Navy has been fighting crude oil theft, taking the fight to the creeks and as I speak to you, our men are battling in the creeks. “So, what I will just say is, Asari Dokubo is seeking some form of relevance and whatever. “He alleges that there is a cabal of military people that are involved in crude oil theft, let him bring the names. “Nobody is afraid of getting the names of those involved in crude oil theft. “You cannot make such spurious allegations and think that we will just sweep it down the carpet,” he said. Ayo-Vaughan said neither the Chief of Defense Staff nor the Chief of Naval Staff will condone such act. According to him, the Nigerian navy will not be distracted by the allegations and will continue to be actively involved in the fight against crude oil theft and resources in the Niger Delta. “So for anybody to say that there is a cabal of military officers, the only simple thing to do is bring the evidence, bring the names,” he stressed. The Navy spokesman said that the efforts of the Nigerian military in the Niger Delta was the reason Nigeria regained top spot in oil production in the month of May among oil producing countries in Africa, as confirmed by OPEC, NUPRC and others.

Subsidy: Marketers lament delay in payments

Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has disclosed that its members now spend as much as N25 million to purchase a 45,000 litres truck of Premium Motor Spirit popularly referred to as petrol. Before the subsidy was withdrawn, a fuel tanker was purchased for N7 million.  According to NOGASA, the situation has made it impossible for its members to cough out the differentials. National President of NOGASA, Mr. Bennett Korie, who revealed this Wednesday in Abuja, insisted that there is need to also consider the problems associated with the removal. “We are 100 percent in support of subsidy removal, but you know that everybody is talking about subsidy removal but they don’t talk about the problem behind the subsidy removal. It is good to remove subsidies but there are things that people don’t know, for instance, some of the marketers don’t have the money to pay differentials.  “This is because in less than an hour that Mr. President announced the removal of the subsidy, the price changed and that affected a lot of marketers. We are talking about millions of naira. Before the removal, a tanker of fuel was selling for about seven million, but in less than an hour, it went up to 25 million naira, where is the money?” he lamented. Korie said that Nigeria’s high interest rate of 30 percent was making it difficult for marketers to make profits. According to him, where would marketers get money from to continue the distribution of petroleum products across the country. He urged the federal government to pay marketers their outstanding of the Petroleum Equalization Fund (PEF) to boost their Capita and enable them stay in business. “Subsidy was removed without considering some of these problems. At the same time, before now, we have this PEF.  But they are not paying the marketers. There is no money, where do we get the money? “Therefore, I want to use this opportunity to appeal to the government to please pay marketers their PEF, so that they will continue in business, if it is not paid, we would not get fuel to sell,” he said.

Nigeria can develop without subsidy, CIVAC tells Nigerians

A coalition of Civil Society groups, Citizens Voice Against Corruption (CIVAC) has called on Nigerians to embrace the fuel subsidy removal because the country can develop without it. CIVAC is a platform comprising numerous civil society organizations and professional bodies. President Bola Ahmed Tinubu had at his inauguration ceremony announced the removal of fuel subsidy. In a statement signed by CIVAC’s National Coordinator Abdulrazaq Alkali, and made available to journalists on Friday in Abuja, the body noted that Nigeria had failed over the years to reap the benefits of an oil-producing nation as revenues from oil is consumed by fuel subsidy. Alkali said: “For most oil producing countries, high oil prices means high government earning, more spending on education, health, infrastructure, poverty alleviation etc. “Unfortunately, that is not the case in Nigeria, as the high profit margin earned from high oil prices is largely swallowed by petroleum subsidies.” The Group, while condemning the hypocrisy of some Nigerians, noted that many citizens were in agreement that fuel subsidy should be removed. “For example both major candidates in the last presidential election made promises to remove fuel subsidies if elected president, but now they are all over the place blaming President Tinubu for doing what they promised to do for Nigerians,” he said. The coalition called on organised labour to reconsider its proposed strike action as it would further bring more hardship to Nigerians. “The leaders of NLC and TUC should rise up to their duties and stop playing to the gallery or the books of some elites who are benefitting immensely from the petroleum subsidy. NLC and TUC need to get their acts together by putting the future and survival of Nigeria first. “This will cause untold hardship on Nigerians and have a significant damaging effect on an already struggling economy, paralysing the country of more than 200 million Nigerians, the majority of the citizens who live on daily wage will be highly irrational. ‘Moreover, considering the delicate security situation in the country, it will be of great concern that grieving politicians, provocateurs and anarchists can hijacked the strike to stage protests and demonstrations, or hide under the cover of protestors and promote discord, anarchy and unleash mayhem to the detriment of public peace” CIVAC said. CIVAC therefore appealed to the NLC and TUC leaders to explore other avenues to prevent high petroleum prices in the country. “One important option is to engage with the government to find a more suitable solution. For example, by putting pressure on the government to revamp the three national refineries (in Kaduna, Warri and Port-Harcourt) which can play a significant role in easing the pressure on our forex reserve, thus strengthening our currency. “A strong Naira and local refining capacity will make the petroleum products cheap even without subsidies. “In addition, if these refineries are revamped, hundreds of thousands of direct and indirect jobs will be created, thus creating a multiplier effect in the fight against poverty and the growth of our economy,” CIVAC said in the statement.

NNPCL yet to reconcile N8.4trn subsidy claims with OAGF- RMAFC

*Backs Tinubu on fuel subsidy removal The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said that the Nigeria National Petroleum Corporation Limited (NNPCL) is yet to remit over N8.4 trillion subsidy claims with the Office of the Account General of the Federation (OAGF). Whilst reiterating its support for the recent subsidy removal announced by President Bola Ahmed Tinubu during his inaugural address, it described it as long overdue and a major challenge to the economic growth and development of the country. In a statement signed by its Chairman, Mohammed Bello Shehu on Thursday, RMAFC stated that continued payment of humongous amounts to a privileged few in the name of subsidy was a major drain on the nation’s scarce resources as the Nigeria National Petroleum Company Limited (NNPCL) had since stopped contributing to the federation account. In January 2022, NNPCL stopped its contribution to the federation account as it was funding the subsidy regime on behalf of the federal government. Experts have over the years described the fuel subsidy regime as being characterized by opaqueness and other ambiguities. According to Bello, the Commission had been consistent in its opposition to the vexatious issue of subsidy removal since the time of late Hamman Tukur who chaired the Commission during the administration of former President Olusegun Obasanjo. As one of the fourteen (14) Federal Executive Bodies established by section 153 (1)(n) and empowered by paragraph 32 (a) and (c) of part 1 of the Third Schedule of the 1999 Constitution(as amended), RMAFC has the constitutional mandate to monitor the accruals to and disbursement of Revenue from the Federation Account and also advise Federal and State Governments on fiscal efficiency and methods by which their revenue can be increased. The RMAFC helmsman described the May 29th pronouncement of the removal of fuel subsidy by President Bola Ahmed Tinubu at his inaugural speech, due to the non-budgetary provision for subsidy, as a master stroke that broke the jinx, stating emphatically that it is the appropriate step. “The country can no longer sustain fuel subsidies whose demerits far outweigh its benefits to the citizenry. It is saddening to note that since 1st January, 2022 to date, the Nigeria National Petroleum Company Limited (NNPCL) has not been contributing to the Federation Account due to the claimed subsidy payments. The total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608.13 as reported by the Office of the Accountant General of the Federation(OAGF) which is yet to be reconciled by the RMAFC, OAGF, and NNPCL”. He adds that in a situation whereby the records of subsidy transactions are not transparent and crude oil prices are being determined globally, it would be unwise to sustain the phantom payments of subsidy at the detriment of other critical sectors of the economy thus making its sustainability difficult for the government. Mr. Shehu further emphasized that the removal of fuel subsidies will eliminate the alleged uncertainty surrounding the subsidy regime just as it will free funds for the execution of critical national development and human capital enhancement projects such as the provision of an affordable transport system, Investment in the education sector, improvement in Health care and infrastructural development, and resuscitation of domestic Refineries to eliminate dependence on imported fuel, amongst other key sectors. The Commission’s Chairman also poured encomiums on the administration of former President Muhammadu Buhari for providing the necessary enabling environment for the successful take-off of the first private refinery easily the largest in the World built by Alh. Aliko Dangote, the World’s wealthiest Black Man believes that when it becomes operational, the country will witness a glorious dawn in hassle-free oil production and distribution in the absence of a subsidy regime. While commending President Bola Ahmed Tinubu, for his uncommon courage and political will in doing away with the issue of fuel subsidy, he urged the new administration to work out strategies that would cushion the attendant effect of the new policy adding that deterrent measures should be earnestly taken to bring to book all the economic saboteurs who have contributed to our National adversity in accordance with the extant laws of the Federation.

Subsidy Removal: Governors back Tinubu

President Bola Tinubu on Wednesday received the endorsement of his decisions to end fuel subsidy payments in the country and other early policy initiatives of the administration. The president received the support when he hosted members of the Nigerian Governors’ Forum (NGF), led by its chairman, AbdulRahman AbdulRazaq of Kwara, at the State House in Abuja. The governors expressed happiness with the president’s subsidy removal decision, all-inclusive leadership and statesmanship. They congratulated Tinubu for tackling the fuel subsidy debacle, promising to work with him to ameliorate the short-term impact of the decision. Tinubu had earlier called on the governors to collaborate with the Federal Government in addressing the menace of poverty in the country, saying the level of impoverishment is unacceptable. The president advised the political leaders to downplay their differences and jointly focus on alleviating the sufferings and pains of the people. “We can see the effects of poverty on the faces of our people. Poverty is not hereditary, it is from the society. “Our position is to eliminate poverty, set aside partisan politics; we are here to deliberate about Nigeria and nation-building,’’ he said. Tinubu stated that the country should be seen as one big family. “We are a family occupying one house, and sleeping in different rooms. If we see it that way and push forward, we will get our people out of poverty. A determined mind is a fertile ground for delivering on results,’’ he stressed. The president said that good governance would safeguard the future of democracy. “Present in this room is our diversity in culture and politics, but we are one nation. The unity and stability of the country rest upon us. “We have managed ourselves very well to have a democracy. We have campaigned and arrived at our present destination. We must work for our people,’’ he charged the governors. Tinubu assured them that he would maintain an open-door policy and was prepared to share ideas, strengthen institutions and create bottom-up frameworks that would improve the livelihood of Nigerians. “We need synergy to fight other vices like corruption. We are trying to get smugglers out of the way. How do we work together to galvanize the economy and put resources in place. We must think and perform. “After removing subsidy, there must be savings accruing to the Federation Account,’’ he noted. Tinubu said the education sector must be improved as part of efforts to reduce poverty and penury. He also drew attention to the security problems in some states, urging the governors to put in all efforts to tackle insecurity. The president said he was prepared to share ideas, strengthen institutions, and create bottom-up frameworks that would improve the livelihood of Nigerians. “We need synergy to fight other vices like corruption. We are trying to get smugglers out of the way. How do we work together to galvanize the economy, and put resources in place. We must think and perform. “After removing subsidy, there must be savings accruing to the Federation Account,’’ he noted. Tinubu said the education sector must be improved as part of efforts to reduce poverty and penury. AbdulRazaq promised the president that the governors would support the Federal Government in meeting the targets of human development. He thanked the president for the invitation to deliberate on the challenges of poverty and security, promising that the governors will support the federal government in meeting the targets of human development. 

NLC, TUC suspend proposed strike after meeting with FG

Nigerian labour unions have suspended the proposed strike scheduled for Wednesday, June 5 after meeting with government officials at the Presidential Villa in Abuja. Both parties met for two days but no resolution was met to halt the proposed industrial action. Labour unions are opposing the removal of fuel subsidy by President Bola Tinubu, causing petrol prices to jump over N500 per litre in different parts of the country. Nigeria Labour Congress (NLC) president Joe Ajaero and his team arrived at the presidential villa at about 5:45 pm on Monday. The NLC was absent at the meeting between the government representatives and organised labour on Sunday. Representatives of the Trade Union Congress (TUC) were however in attendance. Federal government representatives at the meeting on Monday included House of Reps speaker Femi Gbajabiamila, Dele Alake, spokesperson for the government’s delegation; group CEO of NNPCL Mele Kyari, former governor of Edo state Adams Oshiomhole and former governor of Ogun State Ibikunle Amosun. Our correspondent gathered that the labour unions agreed to halt the strike for government to introduce plans to cushion the effect of fuel subsidy removal on Nigerians. Gbajabiamila said the Federal Government, the TUC and the NLC would establish a joint committee to review the proposal for any wage increase or award and establish a framework and timeline for implementation. “The Federal Government, the TUC and the NLC would review World Bank Financed Cash transfer scheme and propose inclusion of low-income earners in the programme,” Gbajabiamila said. “The Federal Government, the TUC and the NLC to revive the CNG conversion programme earlier agreed with Labour centres in 2021 and work out detailed implementation and timing. “The Labour centres and the Federal Government to review issues hindering effective delivery in the education sector and propose solutions for implementation. “The Labour centres and the Federal Government to review and establish the framework for completion of the rehabilitation of the nation’s refineries. “The Federal Government to provide a framework for the maintenance of roads and expansion of rail networks across the country.” Prior to the meeting, the National Industrial Court restrained the labour unions from embarking on any form of strike. Ruling on an exparte application filed before the court, Justice O.Y. Anuwe restrained the defendants (the TUC and the NLC) from embarking on the planned nationwide strike on Wednesday pending the hearing and determination of the motion of notice dated June 5, 2023. The judge also ordered that the defendants be immediately served with the originating processes, the motion on notice and the order of the court.

Subsidy Removal: FG mulls TUC’s demands, sets up c’ttee to review minimum wage

The Federal Government has said it will consider the list of demands from the Trade Union Congress (TUC) which includes a review of the minimum wage for workers in Nigeria. Speaking to State House correspondents after a meeting between the Federal Government and the TUC which lasted for about several hours, the spokesperson for the Federal government, Dele Alake, said that it will also look at the practicability of the demands. Among things the government is considering is tax holidays for workers. Alake said that most fundamentally, President Bola Tinubu will constitute a tripartite committee to include states and organised labour and the private sector to study the dynamics of the minimum wage augmentation with a view to reach an amicable conclusion. According to him, there is no disagreement with the Nigeria Labour Congress (NLC) over their demand for a review of the minimum wage or a return to the status quo, noting that the FG representatives will meet with the President to crystallize decisions on the demands. He added that the absence of the NLC does not translate to an isolation of the group in the discussion but that the FG is making efforts to reach them as the parties agreed to reconvene on Tuesday 24 hours before the scheduled strike by the NLC. Meanwhile, the TUC has maintained that the Federal Government, in the interest of social dialogue, revert the price of fuel while discussions continue. President of the TUC, Festus Osifo, said the union is hopeful as the Federal Government promised to look into their demands, the top of which is a review of the current minimum wage among others. “The demands are so long, they are so many. Part of it is the demand for a (review) of the minimum wage and we stated that for us, it is quite apt that the minimum today is not a living wage, as we all know. The value of the minimum wage since it was negotiated, has plummeted to a very abysmal level as it is today.” *Channels

Subsidy Removal: FG, TUC in closed-door meeting 

The representatives of the Federal Government are meeting with the Trade Union Congress  (TUC)  at the State House over the removal of fuel subsidy. This is a follow-up to Wednesday’s meeting with the organized labour which ended in a deadlock. At that meeting, the Nigerian Labour Congress (NLC) demanded that the Federal Government go back to status-quo by reversing the price of fuel before resuming negotiations with the union. In Sunday’s meeting, the federal government’s team is led by the Secretary to the Government of the Federation (SGF), Senator George Akume. Others are the Governor of the Central Bank of Nigeria (CBN), Godwin Emefie; former Governor of Edo State, Comrade Adams Oshiomhole; and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari. Also in the meeting are the Executive Secretary of the National Sugar Development Council (NSDC), Zacch Adedeji; Executive Vice President, Downstream, of the NNPCL, Yemi Adetunji; former Lagos State Commissioner for Information and Strategy, Mr Dele Alake; Hon James Faleke, among others.

FG’s approval for private importers will crash fuel price, says IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN), has commended the Federal Government for approving the importation of petroleum products by private firms. Mr. Chinedu Anyaso, Chairman of IPMAN Enugu Depot Community, in charge of Anambra, Ebonyi and Enugu States, said this while reacting to the development in Awka on Sunday. The Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, on Friday, said private marketers could now import petrol into the country. Farouk said under the new arrangement, the NNPCL had ceased to be the sole importer of petrol into Nigeria. “We put the regulation in place, we make sure quality control is complied with, we make sure the product is there and we give licence to any prospective importer. “The market is now open for everybody that wants to import as far as they meet all the requirements. The NMDPRA will no longer fix prices or release templates for petrol. “As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixes the price; in a deregulated market, it is the market force that dictates the price,” he said. Anyaso said this was a positive development and appropriate responses to the demands of marketers and Nigerian masses who had condemned the monopolistic grip of NNPCL on the oil and gas sector for decades. He said this would create the much needed competitive pricing environment and allow market forces to demand price of products. According to him, “two days ago, I repeated the call that the Federal Government should issue import licences to private investigators, I also said it is wrong for the NNPCL, which is a private company, to be the sole importer and determiner of prices. “I am happy that the same NMDPRA also announced that approval has been given to private importers. This is how it should be in a deregulated Industry. “The competition that will begin in the coming days will surely ease the pain of high prices of products,” he said. Anyaso commended the Federal Government for its bold step and called on it to extend the same to refineries to complement the contributions of Dangote refinery when it commenced production. He said the four existing refineries should be repaired to produce at optimal capacity while licences are issued to more people who could build modular refineries. He said this was the time to address the problem of Enugu Depot which had been moribund for over 15 years and had made distribution of products in the zone difficult as a result. “We are appealing that as the government is addressing the issue of supply, they should also address the problem of distribution, Enugu Depot has not functioned for over 15 years, we need the Federal Government to fix it. “It has not been easy for our members who source products from Lagos, Warri, Calabar and bring by road, the risk, accident and losses have been too much,” he said.

We’ll no longer fix petrol prices– NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it will no longer fix prices or release templates for Premium Motor Spirit (PMS). Authority Chief Executive (ACE), Mr Farouk Ahmed, who said this at a news conference in Abuja on Friday, said that market forces would henceforth dictate prices under the liberalised market. “As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixes the price; in a deregulated market, it is the market force that dictates the price,” he said. The development was sequel to the removal of subsidy on PMS known as petrol. President Bola Tinubu had in his inaugural speech on Monday said fuel subsidy regime had ended with the commencement of his administration. Ahmed, however, said the market was now open for everybody that would import as far as they met all the requirements. “So, it is not about the Nigerian National Petroleum Company Limited (NNPC Ltd) alone. “We put the regulation in place, we make sure quality control is complied with, we make sure the product is there and we give licence to prospective importer. “We make sure we guide the operations of everyone in the sector whether at the depot or wherever the product is but we will not put a cap to say this is what the price must be,” he said. According to Ahmed, the role of the NNPC is to fix prices of the petrol it imported and not take over the responsibilities of the Authority. “In the case of the NNPC, the organisation is the sole importer at this point. We told the NNPC to recover its costs because they know how much it cost them to import the product and sell it. “Of course, we also know how much shipping, offshore, ex-depot and ex-pump are. But we cannot tell them to sell at a price because the market is deregulated,” he added. The NMDPRA boss also disclosed that the Federal Government has officially scrapped petroleum equalisation as well as the national transport allowance. He said the NMDPRA, the federal government and Consumer Protection Commission (FCCPC) would mount aggressive monitoring of activities in the downstream sector to prevent profiteering by petroleum marketers. Ahmed further disclosed that marketers are now free to source their foreign exchange anywhere around the world to import petroleum products and recover their costs without impediments. On where the importers will source their forex from, Ahmed said the CBN would not give dollar to anyone because of open market, adding that anyone willing to import should get the dollars from anywhere to import. According to him, anyone willing to open a letter of credit from any part of the world can do that to import. “That marketers can source their forex from anywhere is the beauty of the liberalised market that the NMDPRA has introduced based on the provision of the law”. Ahmed said that the market would henceforth be modulated to allow the fluidity of prices, adding that though no template spelt out the pricing components of petrol price. He said that, “based on this, the price would no longer be static rather depend on the international price of the gasoline market.