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Update: Energy crisis: Petrol scarcity to persist
….Petrol subsidy could hit N6trn by end of year, IMF warns
…PENGASSAN cites bridging cost, says high diesel price affecting trucking of petrol by tankers
…Adds sole importation, inadequate funds, others can’t guarantee supply
…As MOMAN canvasses full downstream deregulation, says inadequate supply responsible for scarcity
Indications emerged yesterday that the ongoing fuel scarcity in the country may not abate soon, as major stakeholders in the sector are currently expressing divergent views as to the cause(s) of the crisis.
While the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, said there is sufficient stock of the product to serve the nation for some weeks, which seemed to be the position of the Nigerian National Petroleum Corporation Limited, another major stakeholder, the Major Oil Marketers Association of Nigeria, MOMAN, said the product available is inadequate to serve the nation, noting that the shortage was fueled by fundamental issues and problems in the sector.
PENGASSAN blamed the current scarcity on difference in the bridging gap cost between when the cost of diesel was N250 per litre and now that it had risen to as much as N820.
Speaking at an electronic medium monitored in Lagos yesterday, President of PENGASSAN, Mr. Festus Osifo, said: “Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA and truck drivers are the ones administering the bridging fund.
“At a particular time, they agreed with truck drivers that the bridging fund is going to be about N10 per litre, depending on the destination you are going to all over the country.
“As at when they agreed, the cost of diesel was about N250, so it was fashionable and the N10 was okay, but today, the cost of diesel is over N700. It has tripled.
“So, the expectations from the tanker drivers is that since the cost has gone up, instead of paying N10.40 kobo as the case may be, you have to multiply it by three. This is a major problem. As at today, we have close to two billion litres of PMS, so the problem is not the stock.’’
He explained that while the stock is available, most truck drivers are not willing to move these products, “because of the previous problem I just enumerated.
“One of the issues again is that today, NNPC is the sole importer of PMS, so they import PMS into the country, and this PMS is brought to the high sea, so they rent some smaller vessels to bunker the PMS and take to the various tank farms or depots.
“So, if it’s the NNPC depots and you are loading from the NNPC depots, you are going to pay about N148 as the ex-depot price. But some of the PMS are also stored in private depots and those private depots don’t sell to retailers for N148; they add some premium to it. At the end of the day, they sell between N152, N155, N160 and N162.”
Inadequate supply, other challenges abound — MOMAN
Countering this at a virtual meeting monitored yesterday in Lagos, the Chairman of MOMAN, Mr. Olumide Adeosun and the Chief Executive Officer, MOMAN, Mr. Clement Isong, jointly observed that the current scarcity of petrol was occasioned by supply inadequacy in the last few weeks, which was worsened by the scarcity and rising price of Automotive Gas Oil (diesel), which tanker drivers depend on to move petrol from the depots to the filling stations.
They said: “MOMAN, as an association, fears that the current supply framework cannot guarantee steady and consistent supplies to the country, given the current state of government finances and unpredictable international supply shortages.”
Full downstream deregulation is key
The duo, who canvassed deregulation, said: “We recommend a gradual price deregulation with targeted palliatives (e.g. transport and agricultural subsidies) to the public to ease implementation.
“However, in the interim, MOMAN recommends that the current single supplier strategy be reviewed. The Federal Ministry of Petroleum Resources, in collaboration with the Ministry of Finance and other relevant MDAs, should set up a task force to immediately focus on increasing diesel supply through accelerated initiatives to increase local modular refining capacity. This move will tackle the supply and distribution challenges.
“There should be phased rehabilitation of existing NNPC refineries to hasten supply of middle distillates (AGO & ATK). MOMAN recognizes and closely associates with the need to ease challenges, with respect to high energy and transportation costs occasioned by extraneous circumstances.
“MOMAN shall continually do its best to distribute petrol to its customers across the country and keep exploring opportunities to partner with industry stakeholders, The Authority and the government should ensure the sustainability and institutionalization of a viable petroleum downstream sector in Nigeria.
“The full deregulation of the petroleum downstream sector and full implementation of the Petroleum Industry Act (PIA) 2021 clearly remains the most viable long-term solution to the country’s supply and distribution challenges.”
Ukraine-Russian war factor
In any case, an investigation by Vanguard indicated that the outbreak of the Ukraine – Russian war and ban on Russian oil and gas, have culminated in scarcity and rising prices globally.
Consequently, Nigeria remains one of the most affected nations because of its over-dependence on imported petroleum products at the expense of the nation’s scarce foreign exchange, thus over-stretching the capacity of government to import.
Legislators postpone dialogue with stakeholders
Meanwhile, the House of Representatives yesterday postponed its meeting with the major stakeholders in the downstream sector from yesterday to Friday this week, following the taking of permission and absent of major stakeholders.
However, the meeting was targeted at finding lasting solution to the nation’s prolonged energy crisis.
Specifically, those expected at the public hearing include the Nigerian National Petroleum Corporation (NNPC) Company limited represented by the GMD, Mr. Mele Kyari, the Minister of State for Petroleum, Timipre Sylva, the Chief Executive Officer of the NMDPRA, the Managing Director of the Nigerian Gas Company (NGC) and that of the Nigerian Gas Marketing Company (NGMC), two subsidiaries of NNPC Limited and others.
The lawmakers had in a letter signed by the Chairman of the Joint Committee on Petroleum Resources (Downstream) Hon. Mahmud Gaya, invited the heads of the organisations for the hearing.
But addressing the House, the Chairman of the joint committee, Gaya said he received communication from the GMD and the minister who said they would not be able to make it because they were also in another meeting at the time.
Long fuel queues, other woes remain
However, the queues remained visible at many filling stations across the nation, yesterday, due to lack of adequate supply.
Transporters, who managed to get supply at the prevailing black market price, ranging from N200 to N300, increased fares to cover cost.
This, it was gathered, has already culminated in the general increase in the prices of basic services and goods, including commodities, a development worsened by epileptic power supply and high prices of cooking gas as well as aviation fuel.
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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
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
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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