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“Fuel Subsidy Under-Recovery Fund”Senate

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Drama in Senate over $3.8bn subsidy fund

There was mild drama on Tuesday in the Senate over the management of over $3.8 billion fuel subsidy fund by the Nigeria National Petroleum Corporation (NNPC).

Senators were at each others throat following accusations and counter accusations of alleged compromise in their line of duty.

There was also allegation of subterranean plot to source campaign funds from the oil behemoth.

Senate Minority Leader, Senator Biodun Olujimi, sparked the controversy when she raised the alarm over alleged mismanagement of huge subsidy fund.

Olujimi (Ekiti South) told her colleagues that it was dangerous to allow just two people in NNPC, the Group Managing Director (GMD) and  the Executive Director in charge of Finance, as the sole controllers of huge subsidy fund.

The fund, she said, has been curiously renamed “Fuel Subsidy Under-Recovery Fund” for a purpose that has not been explained to Nigerians.

She recalled that NNPC has been severally requested to submit subsidy budget to the National Assembly for consideration and approval.

A request, the lawmaker said, has been resisted by the NNPC without reason.

She insisted that the Senate cannot sit by and allow only two people to continue to manage over $3 billion oil subsidy funds.

Olujimi who came under a point of order, reminded the upper chamber that attempts to compel NNPC leadership to do what is right by submitting a budget to the National Assembly on subsidy payment, has failed.

The amount involved, she reiterated, was “too huge for only two people to control and manage without appropriation.”

Olujimi said, “I need to bring this issue to the attention of the Senate. The NNPC is operating an illegal fund on subsidy. As a Senate, we are the true representatives of the people. We cannot sit back and allow this to continue to happen.

“I am bringing this to the attention of the Senate so that we can look at the issue. Let the various committees, especially the Senate Committee on Petroleum (Downstream), look into this issue. Let them investigate and tell us what the position on ground is.”

She prayed the Senate to mandate its committee on petroleum (downstream) to cause the NNPC to come before the senate to explain what has happened to the fund and the new terminology formulated to manage the fund.

Senate President, Bukola Saraki, agreed.

Saraki asked Senate Leader, Ahmed Lawan and chairman, Petroleum Committee (downstream) Senator Kabiru Marafa to inter face with those involved and report back to the Senate within four days.

He said that “the issue is too serious and the money involved too huge to be left just like that.”

Saraki said: “When we passed the budget, I said the executive needed to bring subsidy budget. In the light of the enormity of this, we will direct the Leader and chairman of Downstream to summon those in charge. They need to get back to us in four days. I don’t want this issue to be partisan. I want us to speak on the basis of fact. I don’t want us to take up this issue and people will begin to see it as a partisan issue.”

Some Senators were however not comfortable with the inclusion of the committee on Petroleum as part of those to investigate the matter.

Senator Mohammed Ali Ndume suggested that since committee on Petroleum has oversight function over NNPC, it should be left out of the probe.

The Borno South Senator re-echoed what Senator Buka Abba Ibrahim murmured that the Petroleum Committee might have compromised on the issue.

Apparently for emphasis, Ndume said that his proposal that the Petroleum Committee should not be part of the investigation stemmed from the insinuation by Ibrahim that the Petroleum committee might have compromised in the course of its oversight duty.

He said, “Issues like this should be looked at seriously. When these things happen, the committee should know. I suggest that the Leader and other people who are not members of the committee should look at this. The committee may have compromised. We should set up an ad-hoc committee to look into the issue.”

Marafa felt injured by the comment that members of his committee might have been comprised by officials of the NNPC.

The Zamfara central lawmaker said that he would not be bothered if his committee was disbanded.

He said that it would not be out of place to say that those proposing the setting up of ad-hoc committee in place of a standing committee have other motives.

 He did not stop there. Marafa said that those behind the proposal for ad-hoc committee were actually gunning to generate campaign funds ahead of the elections in 2019.

There was uproar on the floor. Many senators attempted to shout him down. He persisted.

Marafa said that Ndume must also asked to withdraw his statement that members of his committee have been compromised.

He said that Ndume must not only stop at withdrawing the statement but also tender an apology to them.

He said, “I feel insulted. f the Selection Committee agrees today to dissolve our committee, I will not have any problem with that. They have the right to do that. But for anyone to just accuse us that we have been compromised, I think it is an insult.

“I know that those advocating that an ad-hoc committee be set up to investigate the issue are out to generate campaign funds for their election next year. They are free to do so. I will not stop them. But no one should malign us and accuse us of compromise.”

Saraki attempted to restrain Marafa.

Marafa refused to apologize.

He insisted that Ndume must first tender unreserved apology and withdraw his statement.

Sensing total break down of law and order in the chamber, Ndume told his colleagues that Buka Ibrahim had given him the authority to apogise and withdrew his statement.

Marafa followed and withdrew his statement. He also apologised to his colleagues for what many considered a sweeping statement.

The matter did not end there as the Senate Leader protested Marafa’s statement.

He declined to serve in the yet to be constituted committee.

Lawan said that he was declining his nomination to head the probe team to protect his integrity.

Although he did not mention Marafa, Lawan said that it took him several years to build his integrity and reputation and will not want anybody to soil his name.

Saraki and his deputy, Ike Ekweremadu, requested Lawan to reconsider his decision.

The Senate President said that the Senate cannot afford to handle the issue haphazardly.

 He said that “the country cannot be running a subsidy fund of $3.8 billion without knowing who is doing what.”

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BREAKING: PDP Convention Crisis Deepens as Appeal Court Backs Order Against INEC Recognition

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…dismisses appeal, awards N2m cost against party

The Court of Appeal in Abuja has dismissed an appeal by the Peoples Democratic Party (PDP) against the October 31 judgment by Justice James Omotosho of the Federal High Court in Abuja restraining the Independent National Electoral Commission (INEC) from recognising the outcome of the national convention planned for Ibadan, Oyo State on November 15 and 16 by the PDP.

In a unanimous judgment on Monday, a three-member panel of the appellate court resolved the four issues for determination against the PDP.

It held that the appeal by the PDP was without merit and that the Federal High Court was right to have entered the October 31 judgment and granted all the reliefs sought by the plaintiffs.

The Court of Appeal faulted the PDP’s claim that the trial court lacked jurisdiction to have heard the case on the grounds that issues involved were solely internal affairs of the party.

The court also held that the plaintiffs had the locus standi to have institutes the suit to protect their democratic rights and that the PDP was not denied fair hearing as it claimed in its appeal.

The court awarded N2million cost against the PDP for filing a frivolous appeal.

The court is yet to render its decisions in the remaining eight appeals, which include judgment and rulings

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Opeifa Defends Rail Reforms, Unveils Nationwide Expansion Roadmap

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Opeifa maintained that derailments are not peculiar to Nigeria, noting that such incidents occur across advanced rail systems globally.

“Derailments are regular occurrences in the rail sector worldwide. In February alone, there were incidents in countries like Britain and others. Around the same time we experienced one, there were multiple derailments across the world,” he said.

He disclosed that in 2025, Nigeria recorded three major derailments:
• August 26 at Asham in Kaduna State
• November 1 at Abraka on the Warri–Itakpe line
• November 8 at Agbor on the same corridor

He said the NRC responded swiftly, restoring services within 24 hours in one case, while others were resolved within 21 and 28 days respectively.

Opeifa stressed that derailments can result from factors such as weather conditions, signal glitches, human error, speeding, or aging infrastructure, but noted that in Nigeria’s recent cases, there were no fatalities.

“These incidents are preventable and efforts are ongoing to minimize them. However, they should not be seen as major setbacks to the overall progress of the railway system,” he said.

On Allegations of Mismanagement

Addressing allegations of financial mismanagement within the corporation, Opeifa declined detailed comments, citing ongoing legal processes.

“When a matter is in court, it is sub judice. Allegations of corruption or mismanagement should be handled by the appropriate authorities,” he stated.

He reiterated that his priority is to reposition the NRC in line with global best practices and ensure efficient rail services for Nigerians.

Expansion, Upgrades and National Connectivity

The NRC boss said efforts are underway to restore damaged coaches and upgrade infrastructure using local engineers and technicians.

“We are bringing back the lines and retrofitting coaches. The Warri–Itakpe line is operational. The Abuja–Kaduna line is running, and we are increasing trips from two to three,” he said.

On long-term plans, Opeifa disclosed that the NRC roadmap envisions rail connectivity across major cities nationwide, subject to funding and phased execution.

He dismissed claims of abandoned projects, explaining that rail developments are capital-intensive and implemented in phases based on available resources.

He cited progress on the Lagos–Ibadan corridor—part of the larger Lagos–Kano project—as well as ongoing work on the Kano–Maradi line linking key northern cities.

Lagos–South-East, Port Connections in View

Opeifa also highlighted plans to expand connectivity between southern ports and inland cities. These include proposed links from Warri to Abuja and from Lekki Deep Sea Port to Kajola, Benin, Onitsha, and Aba, enabling both passenger and cargo movement.

Toward Modern Signaling and Faster Trains

On modernization, he said Nigeria is gradually upgrading from older narrow-gauge systems to standard-gauge infrastructure with improved signaling technology.

He noted that metro rail projects in Kaduna, Kano, and Lagos are being developed with higher signaling standards, positioning the country for faster and more efficient train services in the coming years.

“We are not yet at the highest global level, but we are moving steadily upward,” Opeifa said.

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Ticket Reform Boosts Confidence in Lagos–Ibadan Rail Service, Says Opeifa

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A quiet transformation is reshaping the daily commute between Nigeria’s commercial hub and the historic city of Ibadan. Passengers on the Lagos–Ibadan standard gauge corridor say services have become more efficient and predictable following a clampdown on ticket racketeering led by Kayode Opeifa

The renewed confidence in the rail line linking Lagos and  is influencing residential and employment decisions among middle-income earners who once considered daily intercity commuting unrealistic.

“It is now possible to live in Ibadan and work in Lagos without the daily anxiety of securing a ticket,” said Adewale Bamidele, a financial analyst who travels three times a week. “Before, you needed connections. Now, you book, you board, you arrive.”

A Line Once Hindered by Middlemen

The Lagos–Ibadan railway, inaugurated as a flagship infrastructure project under the administration of former President Buhari was designed to ease pressure on the congested Lagos–Ibadan Expressway and deepen economic integration across the South-West.

However, in its early phases, passengers frequently complained of informal ticket rackets. Allegations included bulk-buying by intermediaries and artificial scarcity that forced travellers to pay inflated prices for seats on high-demand trains.

Industry observers say such practices undermined the railway’s credibility as a mass transit solution. “Transport systems thrive on predictability and fairness,” said a transport economist “Once access is perceived as compromised, commuters revert to road transport despite the risks and delays.”

Enforcement and Digitisation

Since assuming oversight responsibilities within the sector, Opeifa has reportedly intensified internal monitoring and strengthened digital ticketing protocols. Railway officials, speaking on condition of anonymity, said stricter verification processes and disciplinary measures against errant staff have curtailed unauthorised ticket sales.

Although the Nigerian Railway Corporation has not released detailed enforcement data, anecdotal evidence from regular commuters points to shorter queues, smoother boarding procedures and fewer last-minute cancellations.

For professionals with flexible work schedules, the improvement has been significant. The average journey time of about two to three hours—depending on the service type—now compares favourably with unpredictable road travel, which can take considerably longer during peak traffic.

Changing Urban Dynamics

Property agents in Ibadan report a modest rise in enquiries from Lagos-based workers seeking more affordable housing. Rents in many parts of Ibadan remain significantly lower than comparable neighbourhoods in Lagos, offering relief to households grappling with inflationary pressures.

“Rail reliability changes everything,” said Funke Adebayo, a real estate consultant in Ibadan. “When people trust the timetable, they are more willing to relocate.”

Economists caution, however, that long-term success will depend on consistent maintenance, adequate security along the corridor and transparent ticketing systems. Any return to informal practices could quickly erode recent gains.

The Lagos–Ibadan corridor is widely regarded as a litmus test for Nigeria’s broader rail ambitions. With additional standard gauge projects planned or underway nationwide, policymakers face mounting pressure to ensure that infrastructure investments translate into reliable public service delivery.

For now, passengers remain cautiously optimistic.

“It feels more organised,” Bamidele said while disembarking at Mobolaji Johnson Station in Lagos. “If this standard is sustained, rail can genuinely compete with road transport.”

Nigeria agree, the real challenge lies not just in laying tracks, but in sustaining public trust.

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