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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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Democracy Day: Tinubu Honours Heroes, Seeks Stronger Collective Action on Terrorism
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President honours Gens. Yar’Adua, Williams, Igbokwe, media moguls, activists, other heros
With a call on Nigerians to unite in the fight against terrorism, banditry and kidnapping, President Bola Ahmed Tinubu reflected on the nation’s 27 years of uninterrupted democracy.
He said such joint efforts had become imperative because the battle against insecurity cannot be left to the government alone.
The President listed some deserving individuals, including the late Gen. Shehu Musa Yar’Adua, Gen. Ishola Williams, media executives, rights crusaders and others for national honours.
In his Democracy Day broadcast this morning, the President urged citizens to avoid ethnic profiling and blame games in the face of security challenges.
He assured that the country would emerge stronger and more united after overcoming terrorism.
He said: “At a time like this, let us not assign blame or point fingers. Crime has no ethnicity.
“We must stand united and be assured that the enemies of our nation shall soon be history.
“We will triumph over terror and continue to build a more prosperous nation.”
The President spoke against the backdrop of recent abductions in Oyo and Borno states.
He described the incidents as a painful reminder that democracy cannot thrive without security.
Expressing optimism that the abducted children would regain their freedom, Tinubu stressed that his administration had responded decisively by declaring a security emergency and approving the recruitment of more than 50,000 police officers and thousands of military personnel.
Besides, he said the government allocated N5.41 trillion to defence and security in the 2026 Budget, describing it as the largest security vote ever.
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“Democracy without security is a mirage,” he said, noting that the allocation represents the biggest defence and security budget in Nigeria’s history.
Tinubu said the country had moved beyond conventional military training exercises with international partners to precision targeting of terrorist networks, citing the degradation of an ISWAP command centre in Arege, Borno State, as evidence of progress.
Reflecting on the democratic journey, Tinubu said the country had enjoyed its longest uninterrupted period of civilian rule, spanning 27 years since the return to democratic governance in 1999.
He noted that despite its imperfections, Nigeria’s democracy remained resilient because citizens had consistently chosen leaders through the ballot box, resolved disputes through legal institutions and ensured peaceful transitions of power.
Ahead of the forthcoming governorship elections in Ekiti and Osun states, the President urged stakeholders to safeguard the integrity of the electoral process.
He called on the Independent National Electoral Commission (INEC), security agencies and political parties to ensure peaceful and credible polls, warning that democracy suffers whenever citizens lose confidence in elections.
The Ekiti governorship election will be held on June 20, while the Osun poll is scheduled for August 15.
Tinubu challenged the National Assembly, the Judiciary, the media and civil society organisations to continue serving as guardians of democratic governance.
“Criticise me, disagree with me, but never stop believing in Nigeria,” he said.
On youths, the President urged them to see the country as their future and contribute actively to national development rather than seeking opportunities elsewhere.
He said: “Nigeria is your home and your future. Build here, code here, work here, and vote here. Every great nation was built by those who stayed to solve problems, not by those who abandoned ship.”
The President also commended members of the armed forces, police, intelligence agencies, traditional rulers, religious leaders and community heads for their roles in promoting peace and national cohesion.
The President paid glowing tribute to Nigerians who endured imprisonment, exile, persecution and death during the struggle for democracy, describing them as heroes whose sacrifices made the current democratic dispensation possible.
He saluted the late winner of the annulled June 12, 1993 presidential election, Chief Moshood Kashimawo Abiola, and his deceased spouse, Alhaja Kudirat Abiola, alongside other democracy vanguards.
Former President Muhammadu Buhari in 2018 signed an Executive Order proclaiming June 12, the date of the historic election won by Abiola but annulled by the military, as Democracy Day. It has since been observed as a public holiday.
Those listed for national recognition include Chief Gani Fawehinmi, Chief Bola Ige, Chief Alfred Rewane, Senator Abraham Adesanya, Chief Anthony Enahoro, Alhaji Balarabe Musa, Commodore Dan Suleiman, Dr. Beko Ransome-Kuti, Chief Frank Kokori, Chief Arthur Nwankwo, Mr. Chima Ubani and Gen. Yar’Adua.
Tinubu also announced national honours for many journalists, activists, lawyers, politicians and civil society leaders who suffered persecution, detention, exile and other hardships during the struggle against military rule.
Many military officers who were persecuted during the pro-democracy struggle were also honoured.
They are Ayoka Lawani, Tunde Fagbenle, Oladele Alake, Olatunji Bello, Louis Odion, Segun Babatope, Sam Omatseye, Ademola Osinubi, Bola Bolawole, Lade Bonuola, Femi Kusa, Osa Director, Richard Akinnola, George Mbah, Niran Malaolu, Gbemiga Ogunleye, Jenkins Alumona, Muyiwa Adekeye, Babajide Kolade-Otitoju, Ike Okonta and Ben Charles-Obi (posthumous).
Activists on the list are Debo Adeniran, Ayo Opadokun, Ralph Obiora, Ose Osayande, Sylvester Odion-Akhaine and Arthur Nwankwo (posthumous).
Others are Osagie Obayuwana, Joe Okei-Odumakin, Titus Mann, Joe Igbokwe, Maj.-Gen. Ishola Williams (retd) and Femi Aborisade.
The President equally recognised many military officers, including Maj.-Gen. M.A. Garba, Brig.-Gen. Lawal Jaafaru Isa, Col. Umar Farouk Ahmed, Col. Sambo Dasuki, Col. Lawan Gwadabe, Brig. Jonathan Ndam Temlong, Col. Musa Shehu, Maj.-Gen. Chris Eze, Maj.-Gen. Harris Dzarma, Col. Isa Jibrin, Maj.-Gen. Joseph Oshanupin, Col. Olusegun Oloruntoba, Lt.-Col. Happy Kefas Bulus, Col. J. Okai, Col. Emmanuel Ndubueze, Lt.-Col. Yakubu Muazu and Brig. Yahaya Abubakar, who is the Etsu Nupe.
The President added: “Among the architects of modern democratic Nigeria, we honour General Shehu Musa Yar’Adua for his vision of national partnership.
“In recognition of his contributions, the Federal Government has approved the revitalisation and renaming of the completed Institute of Petroleum Studies, Kaduna, as the General Shehu Musa Yar’Adua University of Geological Sciences and Engineering Technology.”
Tinubu said the full honours list would be released in the coming days.
According to him, the greatest tribute Nigerians can pay to the heroes is to build a nation where freedom is protected, justice is upheld, opportunities are expanded, and government remains accountable to the people.
June 12, he believes, demonstrates the possibility of a united Nigerian nation, noting that while the heroes of that struggle secured political freedom, the responsibility of the present generation is to secure economic freedom.
‘Reforms necessary’
He defended the economic reforms undertaken by his administration, arguing that they were necessary to rescue the country from severe fiscal strain and economic uncertainty.
The President said the reforms had restored stability and credibility to economic management, increased federation revenues, improved fiscal transparency and attracted fresh investments into agriculture, manufacturing, energy, technology, mining, transportation and the creative sector.
He added that domestic refining capacity had expanded significantly, enhancing energy security and reducing dependence on imported petroleum products.
‘We’ll deliver on electricity supply’
On electricity, Tinubu said his administration inherited a sector plagued by inadequate generation, weak transmission infrastructure, huge distribution losses, a metering deficit exceeding four million customers and massive legacy debts.
He noted that the Electricity Act signed by his administration had empowered states to generate, transmit and distribute electricity, while the Presidential Power Sector Task Force had been mandated to tackle the metering gap and raise a N4 trillion bond to settle verified debts in the sector.
The President said the Rural Electrification Agency (REA), with support from the World Bank and the African Development Bank (AfDB), was extending off-grid and mini-grid electricity projects to underserved communities, educational institutions, markets and hospitals across the country.
“Electricity is a democratic dividend we owe every Nigerian. We intend to deliver it,” he said.
Nigeria Investment Opportunities
Highlighting ongoing projects, the President said they were creating jobs, improving connectivity and opening new opportunities for enterprise.
He said the National Agricultural Development Fund (NADF) was deploying 10,000 tractors over five years, while over 1,000 small and medium enterprises had been certified for export.
He added that non-oil exports grew by 21 per cent in the past year.
Despite the progress, the President acknowledged that many Nigerians continued to face economic hardship.
He assured citizens that the government remained focused on reducing inflation, increasing food production, creating jobs, improving living standards and ensuring that the benefits of economic reforms reached every household.
“We are moving from uncertainty to stability. The next phase is about accelerating growth and ensuring the benefits are felt in every home, every community and every region. We believe that democracy must be felt in the pocket,” he said.
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BREAKING: Reps Pass State Police Bill in Major Security Reform Move
The House of Representatives has passed the state police bill, effectively making way for the decentralisation of the Nigerian policing architecture.
The resolution followed the voting by 289 lawmakers in favour of state police during Thursday’s plenary session presided over by the Speaker, Tajudeen Abbas.
Recall that the House committed Thursday’s plenary to voting on the State Police Bill following the spike in killings, kidnappings, and banditry in the past few months.
The session was not without its fair share of drama, as shortly after the lawmakers settled down for the business of the day, Kaduna lawmaker, Bashir Zubairu, moved a point of order, explaining that the document on the proposed state police put together by the House Committee on Constitution Review got to the lawmakers only on Thursday afternoon.
Recognised to speak by the speaker, Zubairu said, “Mr Speaker, this document was only made available to lawmakers in the chambers, and we are yet to go through it. We cannot do justice to it because we have not gone through it.”
Zubairu, a member of the African Democratic Congress, was ruled out of order, allowing the process to proceed.
While the Speaker took members through the clauses, voices shouting “Point of Order” could be heard, but the presiding officer ignored them.
Before the voting began, Abbas announced that the electronic voting system was faulty, noting that the exercise would be conducted based on attendance.
Out of the 290 members in attendance, 289 voted in favour of state police while one voted against. The Speaker abstained from voting.
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No More Delays’ — Senate Leader Confirms State Police Bill Passage This Week
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The National Assembly is set to pass the constitutional amendment bill establishing state police this week, Senate Leader Opeyemi Bamidele has disclosed, describing the reform as long overdue in view of Nigeria’s worsening security challenges.
Speaking in an interview with journalists, the lawmaker representing Ekiti Central Senatorial District said the National Assembly had concluded consultations with key stakeholders and was ready to fast-track the amendment process.
According to him, the amendment would be separated from the broader constitutional review exercise to ensure speedy passage and transmission to the 36 state Houses of Assembly for ratification.
“A cross-section of Nigerians has made it abundantly clear that there cannot be a better time to establish state police than now. We have reached a firm conclusion that we will pass the constitutional amendment to make provision for state police, and this will come to fruition this week,” Bamidele said.
He disclosed that consultations had involved the National Assembly leadership, the Attorney-General of the Federation, the Chief of Staff to the President, the Inspector-General of Police and other critical stakeholders.
The Senate Leader also revealed that President Bola Tinubu and a majority of state governors support the proposal, expressing confidence that the required approval from two-thirds of state assemblies would be secured.
On the controversy surrounding calls for a probe into military spending amid rising insecurity, Bamidele defended the Senate’s decision to reject the motion, insisting that placing the armed forces under public scrutiny while they are actively engaged in counter-terrorism operations would be counterproductive.
He said the military was confronting an unconventional enemy and had continued to make sacrifices in the fight against terrorism despite difficult circumstances.
“We cannot put our military on trial in the middle of a war. Accountability mechanisms already exist through the Senate Committees on Defence, Army, Navy and Air Force, which carry out oversight responsibilities,” he stated.
Bamidele argued that significant progress was being made against insurgents, adding that recent attacks by terrorists reflected desperation arising from heavy losses suffered during military operations.
The Senate Leader also dismissed claims that the 10th National Assembly had become a “rubber stamp” of the Executive, saying lawmakers had consistently engaged the Presidency behind closed doors to resolve disagreements before bills reached the floor.
According to him, constructive collaboration between the legislature and the executive should not be mistaken for weakness.
“We are not a rubber stamp Senate. We simply chose to resolve disagreements privately rather than perform them publicly,” he said.
On electoral reforms, Bamidele maintained that the Electoral Act should not be amended in the heat of political contests, stressing that any review should take place after elections and without retroactive effect.
He also reaffirmed his support for the publication of legislators’ salaries and allowances, saying greater transparency would help dispel public misconceptions about lawmakers’ earnings and benefits.
Regarding anti-kidnapping legislation, Bamidele disclosed that the proposed Anti-Terrorism Bill and measures prescribing the death penalty for convicted kidnappers remain on course and would be concluded alongside related constitutional amendments.
Reflecting on the performance of the 10th Senate, he identified the controversy surrounding the suspension of a senator and allegations of gender insensitivity as one of the institution’s lowest moments.
However, he highlighted several legislative achievements, including tax reforms, the student loan scheme, and the establishment of new federal tertiary institutions across the country.
Bamidele expressed optimism that the Senate’s reforms, particularly the state police initiative and tax legislation, would strengthen national security, deepen democratic governance and provide long-term economic benefits for Nigerians.
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