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FG’s Meeting With NARTO, Oil Marketers Ends In Deadlock

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The strike action embarked by members of the Nigerian Association of Road Transport Owners, NARTO, has continued into the second following the failure of the Federal Government, oil marketers to reach agreement with the transporters.

A meeting conveyed by the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri with NARTO, oil marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, in Abuja ended with an agreement.

Senator Lokpobiri told journalists that the meeting will continue as the government seeks to find a solution to issues raised by the transporters.

According to the Minister, “We have been having engagement with different stakeholders in the downstream petroleum industry based on some concerns which were raised. The engagements are still continuing and we hope that we will be able to find solutions to those concerns as soon as possible. Engagement will continue tonight till tomorrow.

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“But it should be pointed out very clearly that they have demonstrated utmost good faith and patriotism. It should also be known that the issues have nothing to do with the government. It is basically commercial. But as a government we have decided to intervene so that Nigerians will not suffer unduly”, he added.

NARTO had threatened to stop the lifting of petrol over high cost of operation.

NARTO National President, Alhaji Yusuf Lawal Othman explained that the tanker owners have been recording huge losses due to high cost of operation which is no longer sustainable.

He explained that members would park their trucks from Monday “because what we spend on operation is more than what we get in total: both in local and bridging”.

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He said: “We will have to suspend operations between now and Monday. We cannot continue to operate at a loss. Most people have parked. A lot more are going to park.

“But from the point of view of the association itself, we are going to suspend operations on Monday.”

Othman disclosed that NARTO’s efforts at soliciting the intervention of all the key stakeholders in the Federal Government and industry have not yielded positive results.

“We have written letters up to the level of the Chief of Staff. We have written to the Honourable Minister of State Petroleum Resources (Oil).

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“We have written to DG SSS. We have written to the GCEO. We have written to the Authority Chief Executive. We have written to the Major Marketers, yet no response.”

He noted that the N32 Lagos to Abuja freight rate that was implemented while the dollar was N650 is still retained now that dollar is N1,615.

“Everybody is aware that all our consumables in terms of operation are not produced in the country. So, by virtue of the rate of dollars, every consumable has increased. But the freight they are paying us has been the same even during Buhari’s time.So how is that feasible?”

He explained further: “What I mean by local is if you load Lagos, you discharge in Lagos. And bridging is if you load from Lagos, you come to Abuja. Lagos to Lagos, we are paid N120,000.

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“AGO alone to distribute fuel within Lagos is N140,000 because it is N1,400 per litre. So, they give you N120,000 and you spend N140,000. How do you want to operate? We are not talking about cost of vehicles, cost of loading, driver’s allowance. That is for local. For bridging Lagos to Abuja, they gave us N32.

“If you have a truck of 40,000 litres, you are talking of N1,280,000-N1,216,000. Less 5% of the amount of N1,280,000 Withholding Tax N64,000. Less 55,000 loading expenses and 15,000 driver allowance. Total expenses N134,000 while balance is N1,146,000. AGO is N1400 for 900 litres, totalling N1,260,000. There is a total loss of N114,000. The diesel that you use from Lagos to Abuja is 900 litres”, he added.

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Nigeria hits 75.5% on aviation compliance, secures exit from Global Aviation Watchlist watchlist 

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The minister made this known on Thursday during the commissioning of the Juhi-2 aviation fuel depot at the Murtala Muhammed International Airport in Lagos.

Nigeria has officially been removed from the global watchlist as its aviation rating rose to 75.5%, according to the Minister of Aviation and Aerospace Development, Mr Festus Keyamo.

The minister made this known on Thursday during the commissioning of the Juhi-2 aviation fuel depot at the Murtala Muhammed International Airport in Lagos.

Keyamo explained that the improvement follows the recent signing of the Cape Town Convention Practice Direction by the Federal Government, which had initially raised Nigeria’s aviation rating from 49% to 70.5%.

“This new status means that Nigeria is no longer on the watchlist, and airlines operating in the country can now access dry lease aircraft without any restrictions,” Keyamo said.

The minister also hinted at a surge in the number of aircraft entering Nigeria’s airspace, which may require Juhi-2 to expand its fuel depot capacity to accommodate the increased demand.

Patience Dappa, Chairman of Juhi 2 Limited, stated during the ceremony that the launch of the Juhi-2 depot is more than the completion of an infrastructure project.

According to him, it reflects the company’s commitment to excellence and innovation in aviation fuel management.

“As the largest airside jet fuel depot in Nigeria, this facility covers 46,000 square meters and holds a significant storage capacity of 15 million litres of Jet A1 fuel,” she noted.

Dappa emphasized that Juhi-2 is not just about its size but represents operational excellence, safety, and reliability. It features advanced filtration systems, a jet fuel discharge system that can load four bowsers at once, a modern laboratory, and top-tier fire prevention systems.

“This strategic asset is designed to ensure a consistent and reliable supply of jet fuel to Murtala Muhammed International Airport (MMIA), MMA1, MMA2, and nearby airbases,” she said.

In a related development, in September, the Nigeria Civil Aviation Authority (NCAA) shed light on the reasons behind Nigeria’s reclassification to Category 2 status, which led to the suspension of Nigerian airlines’ operations to the United States.

Captain Chris Najomo, Acting Director General of Civil Aviation, in a statement, clarified that Nigeria’s airlines can only operate flights to the US upon successfully passing the International Aviation Safety Assessment (IASA) Programme and achieving Category 1 status, a prerequisite also applicable to other countries.

Najomo said, “The attention of the NCAA has again been drawn to a publication about the purported ban on Nigerian airlines by the United States. Due to the wrong impression such news could create, it has become expedient that we put this report in its proper perspective.

“Upon attaining Category 1, Nigerian airlines would be permitted to operate Nigerian registered aircraft and dry-leased foreign registered aircraft into the United States, in line with the existing Bilateral Air Services Agreement (BASA).”

Najomo provided historical context by revealing that Nigeria initially achieved the coveted Category 1 status in August 2010.

Subsequently, the US Federal Aviation Administration (FAA) conducted a follow-up safety evaluation in 2014 to assess Nigeria’s continued adherence to international aviation safety standards.

Furthermore, Najomo noted that an additional safety assessment was undertaken in 2017, resulting in Nigeria’s successful retention of its Category 1 status.

However, he clarified that the US FAA introduced a significant policy change in September 2022, whereby countries previously classified as Category 1 would be de-listed if, after a two-year period, they lacked an indigenous airline operating direct services to the US or partnering with a US-based carrier.

He said, “Also removed from the Category 1 list were countries where the FAA was not providing technical assistance, based on identified areas of non-compliance to international standards for safety oversight.

“No Nigerian operator has provided service into the United States using a Nigerian registered aircraft within the two years preceding September 2022.”

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Polytechnic Students Set Provost’s Residence ablaze Over Alleged N23m Extortion

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Irate students at the College of Health Sciences and Technology in Jega, Kebbi State, have set the residence of Provost Haruna Saidu-Sauwa on fire and vandalized his vehicle.

The protest erupted over allegations that the college management extorted N23 million from students regarding index registration for 250 graduating students.

According to a source within the college, the controversy originated from a newly introduced public health programme, initially affiliated with Reproductive Health and the Public Health Association of Nigeria. The college merged the programme with the Environmental Health Department to secure certification, leading to a demand for an additional N65,000 from each student for index registration, on top of the N30,000 already paid.

Accusing the management of extortion, the students responded violently by stoning vehicles and setting the provost’s residence on fire. College staff fled the scene in fear before security personnel arrived.

Kebbi Police Command’s Public Relations Officer, Nafiu Abubakar, stated that further details will be provided once information from the Divisional Police Officer in Jega is available.

The college’s mission to produce skilled healthcare professionals is now under scrutiny as the ongoing crisis raises concerns about its commitment to ethical standards.

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FG revokes Julius Berger highway contract

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The Federal Government has revoked a section of the Abuja-Kaduna highway contract being handled by Julius Berger.

The media reports that the contract was awarded to Julius Berger in 2018 when former President Muhammadu Buhari was in power.

While the Kaduna-Zaria section has been completed and Zaria-Kano section almost done, the Abuja-Kaduna section has recorded 27 percent progress in 6 years.

Speaking during the inauguration of rehabilitation of the highway on Thursday, Minister of Works, Sen. David Umahi, accused Julius Berger of playing politics with the project.

He said the company was seeking for N1.5trn for the project but it was reviewed to N740bn by the Federal Executive Council (FEC).

“Berger said to do this entire job, it needs N1.5tr, we started negotiation since September last year writing letters every week. Eventually, we told them that despite the ones they are requesting, it will still take them four years to complete as there have been traffic jam and kidnapping on the road.”

“We presented the option of balkanising the road into three which the President approved. When we did that, Berger accepted it and the rate. But we did not know they were playing games by continue to play delay tactics and at that time their side was N710bn, both completed and those to be done. Later, they came back that they wanted an increase to N740bn, we went to FEC and they gave approval only for them last week to say they need another increase to N903bn.

“Even if we accept it, other contractors will want the same and it will increase the project to about N4bn per kilometre which is on asphalt. Our position is that we are not increasing this project for Julius Berger beyond N740bn, the game is over. If they are not doing it, we will give it those that will do it on the same quality of the coaster road at a cheaper rate. They have put the project into politics, so they are using it to de-market our administration and we say enough is enough.”

He stated that the road which is 375km dualised (750km) will see the addition of 7.5 kilometers in Kogi and Kano States.

Speaking earlier, the ministry ‘s Director of Highway Construction, Engr. Bakare, said the project was de-scoped while the outstanding sections of the project were re-awarded to Dangote and BUA.

He said the length of the road to be constructed by Dangote is 38 kilometre dual within the section one and will cost N145bn with a 14 months completion date.

Similarly, the project which was formerly funded by the Presidential Infrastructure Development Fund (PIDF), will now be paid for through the Tax Credit Scheme.

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