News
Black market, queuing boom, as NNPC battles deepening fuel scarcity
By Kayode Sanni-Arewa
The Nigerian National Petroleum Company Limited has vowed to end the queues for Premium Motor Spirit, popularly called petrol, by Wednesday, as the black market for PMS boomed on Sunday.
NNPC also declared that it did not owe international oil traders $6.8bn as claimed in some quarters, a development which some industry watchers described as a major reason for the widespread PMS scarcity in Nigeria.
But despite the national oil firmās assurance that the queues for petrol would clear this week, oil marketers said on Sunday that the loading of products at depots had yet to improve.
Black marketers of petrol who sold the commodity in jerrycans took advantage of the situation, as they dispensed PMS for as high as N1,200 to N1,500/litre, depending on the area of purchase.
Day 5 ā Hunger protesters take to the street as they continue to express their grievances. | Punch0.00 / 0.00
This came as the sole importer of the commodity (NNPC) blamed the petrol scarcity on evacuation challenges at PMS vessels.
NNPC is Nigeriaās only importer of petrol. Other dealers stopped importing the commodity due to their inability to access the United States dollar required for petrol imports.
The Chief Corporate Communications Officer of NNPC, Olufemi Soneye, told one of our correspondents that the oil firm was working hard to tackle the fuel supply challenges, stressing that the queues should clear by mid-week.
āItās just an evacuation challenge out of Apapa (ports in Lagos) from the vessel. But we are working on it. It should be resolved. Iām very sure that fuel scarcity will be cleared out by Wednesday,ā Soneye stated on Sunday.
He later issued a press statement on the matter, saying, āThe NNPC Ltd regrets the tightness in fuel supply witnessed in some parts of Lagos and the FCT (Federal Capital Territory), which is as a result of distribution challenges.
āThe company further urges motorists to shun panic buying as it is working round the clock with relevant stakeholders to restore normalcy.ā
āThe company further urges motorists to shun panic buying as it is working round the clock with relevant stakeholders to restore normalcy.ā
But operators told The PUNCH that the fuel supply situation at the depots had yet to improve as of Sunday.
An official of one of the top petroleum companies in Nigeria said the company was out of stock.
āWe donāt have supply yet. For us and many depots in Apapa, itās nil stock,ā the official, who spoke in confidence due to lack of authorisation to speak on the matter, stated.
An oil marketer disclosed that the scarcity might get worse in Lagos during the week as there was no improvement in supply.
The scarcity may get worse in Lagos during the week. Nothing is changing yet. Though motorists still get the product to buy although at very high rates,ā the marketer disclosed.
A depot operator revealed that ādepots will still get supplies this week, but definitely it will not be enough to meet desired demand to bring down the fuel crisis.ā
The manager of a filling station in Abeokuta, the Ogun State capital, said a litre of petrol was N880 as of Friday.
The manager, who identified himself simply as Adeyanju, said his principal had not been able to get fuel since Friday, adding that the private depots were hiking the price of petrol.
On his part, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, said the challenges in the downstream oil sector were compounded by the recent nationwide hunger protests.
āAside from the fact that there is not enough supply, the recent protests disrupted activities in the downstream oil sector. We are still struggling to sort that one out and there is also the challenge of low supply of petrol,ā he stated.
NNPC denies indebtedness
In a similar development, the national oil firm said on Sunday that it does not owe international oil traders $6.8bn.
The company also denied claims that it has not remitted funds into the federation account since January.
Soneye, in a statement, reacted to different allegations against the state-owned energy firm.
It was alleged that NNPC owed some of its suppliers, being the sole importer of petrol into Nigeria, though Soneye acknowledged that such transactions were done on credit.
āNNPC Ltd does not owe the sum of $6.8bn to any international trader(s). In the oil trading business, transactions are carried out on credit, so it is normal to owe at one point or the other.
āBut NNPC Ltd through its subsidiary, NNPC Trading, has many open trade credit lines from several traders. The company is paying its obligations of related invoices on a first-in-first-out basis,ā Soneye stated.
However, he did not state the financial obligations NNPC is currently attending to
On remittances, he said, āIt is not correct to say that NNPC Ltd has not remitted any money to the federation account since January. NNPC Ltd. and all its subsidiaries remit their taxes to the Federal Inland Revenue Service regularly.
“This is in addition to payments of CIT (company income tax) to road contractors under the Road Investment Tax Credit Scheme. In all, NNPC Ltd is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee.ā
Soneye maintained that the NNPC is not a regulator and has nothing to do with the quality of imported fuel.
āOn the issue of quality/quantity fiscalisation of imported petroleum products, NNPC Ltd has no role whatsoever as it is not a regulator. The Nigerian Midstream and Downstream Petroleum Regulatory Authority, which is the relevant regulatory agency in charge of such issues, is an independent body and does not report to the NNPC Ltd,ā he noted.
He explained that the NNPC is not averse to inquiries by the media into issues on and around its operations before dissemination to the public either through the print or electronic channels of communication.
āThe company will, always, gladly take the opportunity to state the facts of the subject matter(s). This is in line with the companyās commitment to the Transparency, Accountability, and Performance Excellence philosophy as emplaced by the Mele Kyari-led management since stepping into the saddle in 2019,ā Soneye said.
Queues in states
Despite NNPCās assurance and defense, the queues for petrol lingered in many states and Abuja, while the cost of the commodity crossed N1,000/litre in some locations.
Fuel scarcity persisted in Abuja, Nasarawa, Niger, and neighbouring states. It resurfaced in Lagos on Sunday. The PUNCH observed that the queues to the Northwest filling station inward Gbagada stretched to the West End bus stop along the Gbagada-Oworonshoki Expressway.
The queues at the NNPC filling station at Ogudu stretched across the nearby bridge. It was the same scene at the MRS filling station at the Estate bus stop.
In Osogbo, Osun State, petrol was unavailable in most filling stations observed in Ayetoro, Old Garage, and Ota Efun Area, while a handful of independent marketers dispensing fuel sold the product for N800/litre.
Motorists and commuters decried the increase in petrol prices in Edo State. Independent marketers sold it for between N830 and N890/litre in the state capital while the outlets owned by major marketers sold for between N680 and N688/litre.
The cost of transportation worsened in Uyo as petrol sold for between N900 and N950/litre in the metropolis.
Residents of Gombe State lamented the increase in the cost of PMS across most filling stations in the state.
Petrol scarcity in Bauchi State did not change as customers stayed in long queues to buy the product on Sunday.
Residents of Lafia, the Nasarawa State capital, lamented the hike in the price of PMA and the scarcity of the product.
The scarcity was also pronounced in Sokoto State as many residents expressed frustration over the development.
The fuel scarcity in the Kaduna metropolis and its environs continued unabated on Sunday, causing untold hardship to motorists and other road users.
News
NNPC’s failure to fix refineries might encourage Dangote to be monopolistic
Despite bickering between the Dangote Petrochemical Industry and the Nigerian National Petroleum Corporation Limited (NNPCL), a group of Nigerians in Diaspora has entertained fears that the leading regulatory agency might be secretly encouraging Dangote Refinery to be monopolistic in oil distribution in the country.
Dr. Donald Illiya, Global President of Nigerians in Diaspora Movement
(NDM), in a statement signed Monday morning from London, United Kingdom, said the public faceoffs between the NNPCL and Dangote refinery is confusing, and might be to distract Nigerians, while the regulatory body encourages Dangote to be the sole oil distributor in Nigeria, by suppressing the state owned local refineries and hold them continually in comatose.
“The Nigerians in Diaspora Movement have watched with perplexity the choreographed performance between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Petrochemicals Refinery, which is meant to keep exploiting Nigerians by making them pay more than reasonable pump prices for refined petroleum products.
“For us, taking in the state of the nation’s economy and the ongoing cost of living crisis, we are of the view that Nigeriaās fate is tied to the state of government-owned refineries, which must be made functional to cause a consequential drop in the prices of fuel and a positive knock-off effect on the cost of living.
“From our review of the murky situations around the refining, importation, supply and pricing of petroleum products, we are constrained to conclude that NNPCL and its officials are aiding Dangote Refinery to emerge as a monopoly by failing to revive domestic refineries while obscuring this fact by being publicly hostile to each other”, the statement said.
The group, while asserting high level of corruption in the energy sector, said, despite spending over N17 trillion to rehabilitate the Port Harcourt, Warri and Kaduna refineries from 2002 to 2022, and still spending more, even under the present regime of President Bola Ahmed Tinubu, the local refineries have remained comatose.
“We are concerned that the unfolding drama is part of a larger plot to conceal the fact that NNPCL has kept its track record as a cesspit of corruption, which is most prominent in the phantom turnaround maintenance of the government-owned refineries. From when NNPCL Group CEO, Mele Kyari assumed office in July 2019, the administration of President Muhammadu Buhari approved $1.5 billion for the rehabilitation of the Kaduna, Port Harcourt, and Warri refineries. Another N54.66 billion was spent on refinery rehabilitation from January to June 2022.
“More funds have disappeared into the private coffers of those managing NNPCL such that additional monies have been spent even under the current government, bringing the total expenditure on refinery repairs to approximately N17 trillion on turnaround maintenance of the nationās three refineries between 2002 and 2022.
“The only output Nigerians have had from this huge expenditure are the ever-changing delivery dates for the refineries to resume operation. In November 2023 a December 2023 target date was announced for Port Harcourt Refinery, and by December of that year, March 2024 was announced as a new date only for this to be altered at least three other times.
“The completion of repairs on Kaduna Refinery was set for the first quarter of 2024, but the refinery has only produced stories on why it is being delayed. Warri Refinery has not fared any better, as a similar first quarter of 2024 target date for commencement of operations, as announced by Mele Kyari, turned out to be folklore”, the group added.
They are of the opinion that, “It is consequently plausible that the failure to make these refineries functional is beyond incompetence and the theft of the funds meant for repairing them. It is now glaring that the refineries are being kept moribund to create a favourable condition for the emergence of a monopoly. This is a tragic turn of events at a time when jurisdictions worldwide are taking bold steps to prevent predatory and monopolistic tendencies to protect citizens and businesses”.
Nigerians in Diaspora Movement, therefore, urged “President Bola Tinubu to take decisive steps to purge the rot in NNPCL so that domestic refineries can resume production and ward off the dangers of succumbing to a monopoly, which also presents a single point of failure for the nationās fuel supply”.
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News
Trump set to sign Executive Order to flush out transgender personnel from US military
President-elect, Donald Trump, is set to sign an executive order that would remove all transgender members from the United States military.
It was learnt that the development has intensified concerns within the LGBTQ+ community.
The report claimed that the state officials had stated that transgender personnel would be discharged on medical grounds, deeming them āunfitā to serve.
Recall that during Trumpās first term as president, he introduced a similar policy that prohibited transgender individuals from joining the armed forces while allowing those already enlisted to remain in their roles.
After Trump left office, President Joe Biden had overturned the military ban in his first week as president in 2021, issuing an executive order to restore transgender individualsā right to serve openly. However, with Trumpās potential return to the White House, transgender rights in the US may face renewed challenges.
However, the current proposal, as reported, would extend to removing all transgender service members, regardless of their current status. It is anticipated that the executive order will be issued on Trumpās first day in office, January 20 next year.
If signed, Trumpās new directive could be broader and more contentious than the policy he implemented during his first term. What would be its impact on transgender personnel serving in US military.
Reports indicated that approximately 15,000 transgender individuals are actively serving in the US military.
This is coming amid moves by US congress to stop irst transgender lawmaker from using female restrooms and bathrooms in her new workplace.
US House Speaker Mike Johnson had expressed his support for the policy that tends to disregard transgender ideologies in the legislative arm.
āAll single-sex facilities in the Capitol and House Office Buildings ā such as restrooms, changing rooms, and locker rooms ā are reserved for individuals of that biological sex,ā the speaker said in a statement last Wednesday.
āIt is important to note that each Member office has its own private restroom, and unisex restrooms are available throughout the Capitol. Women deserve womenās only spaces,ā he added.
The move to prevent McBride from using the womenās facilities in the House was first initiated by Rep. Nancy Mace, R-S.C., who on Monday introduced a resolution to ban trans women from using womenās bathrooms inside the complex.
Mace said the resolution was āabsolutelyā in response to McBride, a Delaware Democrat, being elected to the House.
She took her anti-trans crusade even further on Wednesday, announcing a bill to ban trans people from using bathrooms that align with their gender in all federal buildings across the country. Neither of the resolutions have been brought to a House vote.
It is important to note that each Member office has its own private restroom, and unisex restrooms are available throughout the Capitol. Women deserve womenās only spaces,ā he added.
The move to prevent McBride from using the womenās facilities in the House was first initiated by Rep. Nancy Mace, R-S.C., who on Monday introduced a resolution to ban trans women from using womenās bathrooms inside the complex.
Mace said the resolution was āabsolutelyā in response to McBride, a Delaware Democrat, being elected to the House.
She took her anti-trans crusade even further on Wednesday, announcing a bill to ban trans people from using bathrooms that align with their gender in all federal buildings across the country. Neither of the resolutions have been brought to a House vote.
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