No plans to increase petrol price to N700/litre – IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said they have no intention of further increasing the pump price of petrol. According to the Chairman of IPMAN Southwest Zone, Alhaji Dele Tajudeen, Nigerians should disregard reports making the rounds that the Association plans to increase the price of petrol to N700 per litre. President Bola Ahmed Tinubu had on May 29, told Nigerians that the era of subsidy was gone. Speaking Friday in Ibadan, Tajudeen urged Nigerians to disregard the reports and stop engaging in panic buying insisting that there is no plan to increase the price above the price it is being sold at the moment.   “Even in the PIA, it has been clearly stated that the subsidy must be removed, so, I want to commend him for removing the subsidy and I want to say that we are in total support totally. This is because the subsidy was a scam.” He said the slight increase in pump price was because of the transportation cost and that Nigerians should be at rest as the commodity will not be out of reach for the masses. “I want to disabuse the mind of the people that they should not panic about it, there is no cause for alarm, we are in control and there is nothing like that. “So, people should be rest assured that there is no way they can buy petrol more than the price it is being sold now. “If we look at the price from NNPC retail limited, which is an integral part of NNPC limited, they have more advantages than independent marketers and major marketers. ”So, it was the retail price that they announced they had never given a specific price to the independent marketers. “However, I have read what somebody put into the paper, it is just speculation, it is not a reality. Nothing like that I want to assure the masses. “There is no way the price can go to N700 as we speak, because even if the FX is N700 or N800 that has not nothing to take the price of petroleum from N500 to N700,” Tajudeen said. He noted that the product had been deregulated, hence the differential in prices was due to transportation as it is related to location. ”If you are moving products within Lagos the price may not be more than N300,000 but if you are moving up to Ibadan or there about it could be as much as N500,000. ”And if you are going to Ilorin, it could be as high as N700,000 that would account for the difference in prices. “I want to say with all sense of authority that as of today within Lagos metropolis nobody should sell more than N515 to N520 per litre. ”Though NNPC has given us the price, the reality of it is that what we buy from the market; because NNPC limited is not the only source for our product, we get it from private depots. “So, whatever we buy is what we put on our own margin and sell. ”But as of today, the highest you can get anywhere should be around N550; Lagos N510 per litre; Ogun State between N500 and N520,” Tajudeen said.

Nigerians to pay more for petrol as ex-depot price hits N490/litre

As the ex-depot prices of Premium Motor Spirit (PMS), rises to N490 per litre, some independent fuel marketers in Lagos are already selling the product at prices higher than the fixed rate of N488 per litre. According to unconfirmed reports, while the Nigerian National Petroleum Company Limited depot sells to major marketers at N466.52 per litre, private depots are however selling at N490 per litre. NNPCL stations are selling fuel at the fixed rate of N488 per litre, while major marketers sell fuel between N488 and N492 per litre. Independent marketers who purchase from private depots at N490 per litre are selling fuel to consumers at prices above N500 per litre. President Bola Ahmed Tinubu in his inauguration speech declared that the controversial petroleum subsidy regime was gone. He said rather the funds saved from the subsidies would be channeled to other critical areas.    The federal government for several decades, subsidised fuel and fixed retail prices of petroleum products. The payment has, however, threatened the nation’s fiscal position and impacted the government’s ability to fund developmental projects across the country.

Subsidy: Court reaffirms order restraining NLC, TUC from embarking on strike

The National Industrial Court on Monday declared that the order restraining the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) from embarking on their planned industrial action subsists. Justice Olufunke Anuwe stated that the order as granted on June 5 subsists pending the hearing and determination of the motion on notice. The court in addition, ordered that parties maintain the status quo and adjourned the matter until July 20, for a hearing. Earlier, when the case was called, the Federal Government’s counsel, Mr Ochum Emmanuel informed the court that the matter was slated for Monday for the claimant to take its motion on notice for an interlocutory injunction to restrain the defendants from embarking on strike. He added that he was ready to proceed with his application as the defendants had been served. Mr Marshall Abubakar, the defendants’ counsel on his part however replied that they had filed an application praying the court to set aside its order granted on June 5, restraining his clients from embarking on strike. Abubakar further submitted that the claimant was served the application on June 8, only for them to turn around and serve on them a counter-affidavit on Monday in court. He added that the claimant filed the counter-affidavit on June 16 and instructed the bailiff not to serve them until on Monday in court. The court enquired if defence was properly before the court, Abubakar responded that he was not certain, but that he will find out and do the needful. He also prayed for a short adjournment in order to look at the counter-affidavit and respond. Emmanuel in response opposed Abubakar’s application for adjournment and urged the court to allow him take his motion on notice which was slated for hearing. The counsel also reiterated that the federal government will never a file process and instruct any bailiff not to serve the other party. He argued that it was probably due to the fact that he filed the processes late on June 16 that made the bailiff to serve defence counsel in court on Monday. Emmanuel in his submission equally averred that the defendants were not properly before the court as they had not filed their memorandum of appearance, but only came to urge the court to vacate the order it granted on June 5. He stated that the defendants being not properly before the court cannot seek for an adjournment. In addition, he submitted that if the court should deem it fit to grant Abubakar’s application for an adjournment, the court should equally declare that the order restraining the defendants from embarking on strike granted on June 5 subsist. In his reply, Abubakar submitted that Emmanuel’s application was not necessary as the court had earlier stated that parties should maintain status quo pending the hearing and determination of the substantive suit. He also informed the court that parties were meeting later on Monday to try and resolve the issue. The court in its ruling granted the application for adjournment, directed the defendants to enter their memorandum of appearance and instructed parties to maintain status quo. From facts, he defendants had planned to embark on nationwide strike on June 7 to protest the fuel subsidy removal that brought about the new pump price for the Premium Motor Spirit. The federal government had therefore instituted the suit to stop the defendants, stating that the proposed strike may gravely affect the larger society and the well-being of the nation at large. The claimant in addition stated that the strike is capable of disrupting economic activities, that will affect especially the health and the educational sector.

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.

Ignore fake news about Kyari’s suspension—Presidency

Cold water has been poured on speculations going round that President Bola Tinubu has suspended the Nigeria National Petroleum Corporation Limited (NNPCL) GCEO, Mallam Mele Kyari. Presidency sources said on Saturday night that the President had not given such directive for the suspension of Kyari as NNPC Boss. Social media platforms were abuzz on Saturday evening with several posts claiming the President had directed the immediate suspension of Kyari as NNPC GCEO. The social media posts of the purported suspension of Kyari gained traction as it was coming barely 24 hours after the Presidency announced the suspension of the Governor of Central Bank of Nigeria, Godwin Emefiele. Multiple sources in the Presidency reiterated that there was no such plan to suspend Kyari as the GCEO of the NNPC. One of the sources said, “We got to know about the purported suspension through social media posts. But I can confirm to you that there is no such directive coming from the President. Nigerians are known to play a lot with trends and someone may just have sat down somewhere to make such posts. “There is no iota of truth in that post claiming that the President has suspended the NNPC GCEO. There is nothing to be worried about because the Petroleum Industry Act is clear on how the NNPC GCEO or any member of the NNPC Board could be removed.”

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.

Subsidy: Finance Commissioners want all accruals put into Federation Account

The Forum of Commissioners for Finance of Nigeria has called on the Federal Government to ensure that all accruals from the removal of fuel subsidy go to the Federation Account. The outgoing Chairman of the Forum, Mr David Olofu made the call at a valedictory session for outgoing State Commissioners for Finance held in Abuja on Friday. Olofu is also the immediate past Commissioner for Finance and Economic Planning, Benue State. While commending President Bola Tinubu on the removal of subsidy, Olofu said, as finance experts, the Forum, like other Nigerians, had long yearned for it. “We will like to sincerely commend the President for having that political will to do that, first day in office. “That is what we had been yearning for. He came, his first day in office, he was able to achieve that which we have always asked for”, Olofu said. On how the President should manage the funds from subsidy, Olofu said that the Constitution provided for all federation revenues to go into the federation account. “Nobody has any authority whatsoever to deduct any amount from federation revenue. “So, I will align myself with the position of the Constitution and recommend that all the accruals go into the federation account and let it be disbursed from the federation account”, he stressed. He said, however, the Federal Government should come up with policies and programmes that could address the challenges Nigerians are currently facing as a result of increase in the pump price of fuel due to the removal of subsidy. “I believe that the President has the capacity and knowledge to be able to do that decisively. “He has already started it by proposing a wage increase for workers but that has to be done alongside with sub-nationals because the sub-nationals have the bulk of civil servants in this country. “I believe he is on track but, apart from the wage increase, we also have to look at issues of infrastructure because we believe strongly that if we can wrap up infrastructure in this country, it will also help to improve the living standard and bring down the cost of living.” Olofu appealed to Nigerians to be patient saying, the long-term benefit of what has been done by the President far outweighs the short-term pains people were going through. For the incoming Chairman of the Forum, Wale Akinterinwa, commended his predecessor, saying that Olofu did a very good work while leading the forum. “He has actually elevated the forum to a much higher level than he met it. Be that as it may I will try to ensure that I continue from where he stopped. “I will continue to sustain the good relationship he has created with all the revenue-generating agencies such as the Ministry of Finance and the Office of the Accountant General of the Federation”, he said. Akinterinwa who is the Commissioner of Finance Ondo State, reiterated that the removal of fuel subsidy was an overdue issue. His words: “I commend the President for having the courage to immediately remove the fuel subsidy as he was sworn. “Well, we are going to feel the pain we are feeling in the short run but in the long run, it is in the best interest of everybody.” Mohammed Shehu, Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), on his part, commended the forum on efforts at taking the issue of the federation account very seriously. “We hope that as the years go by, the agitation on federal might or federal imposition on a lot of things would become a thing of the past. “This is an opportunity for states revenue mobilisation and all other agencies to collaborate in the area of increasing internally generated revenue of states and diversification of the economy”, he said. He also said that the removal of fuel subsidy was good for the economy. Shehu urged states to ensure that the monies that were eventually going to the states should be put to use properly so that “we can run a very good federation and create opportunities for jobs for Nigerians.” Special Guest of honour at the event, the Governor of Jigawa, Umar Namadi tasked the forum to build on the legacy of the outgoing chairman saying that he brought a lot of innovation and professionalism to the organisation. He was a former Commissioner for Finance Jigawa and the immediate past Deputy Governor of the state before becoming the present governor. Shehu said that removal of fuel subsidy was a bold step taken by the President. The event was attended by the Accountant General of the Federation, Mrs Oluwatoyin Madein and representatives of Central Bank of Nigeria (CBN) and Federal Inland Revenue Service (FIRS)

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.