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Petrol price may hit N1,800/litre over Dangote’s subsidy removal call in Nigeria
By Mario Deepromoter
Dangote Petroleum Refinery, the sole producer of petrol being off taken and distributed for Nigerians, has declared that the government should end subsidy, a move that would cause an imminent surge in the prices of the product to as high as N1,800 litre.
The Founder of the 650,000 barrels per day capacity refinery, Alhaji Aliko Dangote, who threw his full weight behind subsidy removal just nine days after his facility started production of petrol, said in an interview with Bloomberg that this is the right time for the federal government to stop petrol subsidy.
The product, which sold for N650 per litre at the NNPCL outlets before September 15, skyrocketed to as high as N1,010 per litre in the same outlets on the day the private refinery began production. With the call for full subsidy removal, the prices could be as high as N1,800 per litre.
“I think it is the right time to (take away subsidy) because all countries have gotten rid of subsidy,” he said.
Statistics showed that the price of the product would go up to the market price which is higher than the subsidised price any time the subsidy is removed, but Dangote maintained that what actually increases a product’s price is the subsidy.
Subsidy, according to him, is a sensitive issue, adding that once a country subsidises the product, people would increase the price.
To Dangote, the subsidy would lead to the government “paying what they are not supposed to be paying.” Dangote said petrol subsidy is not sustainable and the government cannot afford to keep subsidising.
“Our price of gasoline is about 60 per cent the price of our neighbouring countries and we have porous borders, so it is not sustainable. Government cannot afford the amount of subsidies we are paying,” he said.
Speaking further on the viability of petrol subsidy, Dangote said it is the government’s decision to either continue with or halt the payments.
“We have a choice of exporting when we produce and we sell locally. We are a private company and it is true we have to make a profit,” he said.
We built something worth $20 billion, and definitely we have to make money.
“The removal of subsidy is totally dependent on the government, not on us.
“We cannot change the price but I think the government would have to give up something for something.”
Dangote said eventually, the subsidy would have to go, adding that the petrol sold locally by his refinery will be tracked to ensure the consumption rate is accounted for.
“But this refinery will bring quite a lot of issues out there. It would show the real consumption of Nigeria because nobody can tell. Some people say it is 60 million litres per day, some say it is less,” the billionaire said.
“But right now, by us producing, everything can be counted and accounted for. Most of the trucks or ships that will load from us, we will put a track on them to be sure they are going to take the oil within Nigeria and that can help the government to save a lot of money.
“For example, in Saudi, citizens believe that oil is our god-given gift and should not charge for it. The government was selling it at a very low price. But today, as we speak, gasoline is about 40 per cent cheaper in Nigeria than in Saudi Arabia, which I think does not make sense.”
On May 29, 2023, President Bola Tinubu said the petrol subsidy regime was over.
Almost three months later, TheCable reported that Tinubu was considering a “temporary subsidy” on petrol as crude oil prices and foreign exchange rates soared.
However, Ajuri Ngelale, former presidential spokesperson, said there was no reintroduction of subsidy.
Also, on January 3, the Nigerian National Petroleum Company (NNPC) Limited denied the return of the petrol subsidy, saying it had been removed entirely.
However, on April 15, Nasir el-Rufai, former governor of Kaduna state, said the federal government is spending more on petrol subsidy than before.
TheCable also reported on August 19 that Tinubu approved a request by NNPC to utilise the 2023 final dividends due to the federation to pay for the petrol subsidy — but NNPC denied the existence of petrol subsidy, only to admit hours later that the federal government owes it N7.8 trillion for subsidising petrol.
Almost a month later, Tinubu said Nigeria’s daily consumption of petrol was reduced to about 30 million litres after subsidy removal.
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Environmental infractions: Lagos seals churches, businesses over
By Francesca Hangeior
In a bold move to tackle violations of Lagos State environmental laws, the Lagos State Environmental Protection Agency has sealed off prayer centres and business premises across the state.
This was disclosed in a statement shared on X.com by the Lagos State Commissioner for the Ministry of Environment and Water Resources, Tokunbo Wahab, on Wednesday.
According to a statement released by LASEPA on Wednesday, the enforcement operation is part of the agency’s ongoing efforts to ensure compliance with environmental laws and protect public health.
The statement revealed that the establishments were found guilty of violating environmental regulations despite several warnings from the agency.
It said, “In a decisive step towards tackling noise pollution and other environmental violations, the Lagos State Environmental Protection Agency @LasepaOfficial today sealed off multiple establishments across various parts of Lagos State.
“The enforcement operation, which targeted locations in Ikeja, Mushin, Gbagada, and Maryland, is part of the agency’s ongoing efforts to ensure compliance with environmental laws and protect public health.
“Among the closed establishments are Vital Products Limited, A & P Nigeria Limited, Polite Anchorage and Suites, Redeemed Christian Church of God, Terrag Inn Apartment, Evening Class Guest House, Celestial Church of God, a printing press, Charley’s Bar, and 7th Heaven Hotel & Suites.
“These establishments were found guilty of violating environmental regulations despite several warnings from LASEPA.”
The statement further revealed that the General Manager of LASEPA issued a stern warning, emphasising the agency’s stance on compliance with environmental laws.
It added, “The General Manager of LASEPA, Dr Babatunde Ajayi @thetundeajayi, emphasised the agency’s zero-tolerance stance on non-compliance with environmental laws. ‘We will not tolerate non-compliance with our regulations.
“Dr Ajayi said all businesses must recognise their environmental responsibilities and collaborate with the state government to ensure a cleaner, more sustainable Lagos.
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Justice Kekere-Ekun appears before Senate for screening
*** Vows to tackle corruption
By Francesca Hangeior
The Acting Chief Justice of Nigeria (CJN), Honourable Justice Kudirat Kekere-Ekun, has vowed to enforce a zero-tolerance policy on corruption in the judiciary.
She emphasised that integrity and strictness are central to her judicial approach.
Kekere-Ekun, who appeared before the Senate for screening, assured lawmakers that, once confirmed, she would prioritise the speedy handling of petitions before the courts.
Responding to questions from the senators, the Acting CJN promised to ensure that the judiciary remains insulated from external influence. Additionally, she committed to advocating for better welfare and infrastructure for the judiciary.
Justice Kekere-Ekun also highlighted the need for strengthening national institutions and ensuring better behavior from the populace, especially during elections. She stressed that such improvements would help reduce the tendency to contest election results in court.
Meanwhile, the Senate has commenced the screening of Honourable Justice Kudirat Kekere-Ekun for the position of Chief Justice of Nigeria.
Before the screening began on Wednesday, Senate Leader Senator Opeyemi Bamidele (APC, Ekiti Central) moved a motion to reorder the legislative agenda, allowing the screening of Kekere-Ekun to be the first item on the day’s business. The motion was seconded by Deputy Minority Leader Senator Oyewumi Olalere (PDP, Osun West).
Kekere-Ekun, accompanied by other Supreme Court and Court of Appeal justices, arrived at the Senate Chamber at 12:30 PM.
Senator Bamidele invoked Order 12 of the Senate’s Standing Orders to permit her and her entourage to enter, which was seconded by Senator Olalere.
The Acting CJN was led into the Chamber by Senator Basheer Lado, Special Adviser to the President on Senate Matters.
On Tuesday, President Bola Tinubu wrote to the Senate, seeking the confirmation of Honourable Justice Kudirat Kekere-Ekun as the Chief Justice of Nigeria.
The President’s letter, read by Senate President Godswill Akpabio, was submitted upon the Senate’s return from its annual recess, which began in July.
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