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Indiscriminate profit: It is natural for marketers to hike prices — NNPCL GCEO

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…Says Nigerians can expect to pay less

…No provision for subsidy in 2023 budget, NNPCL clarifies

By Ibiyemi Mathew

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kolo Kyari has stated that it is natural for pump prices to soar and for consumers to bear the burden when subsidy is removed.

Kyari said this in response to a question he was asked regarding the legality of marketers increasing the price of Premium Motor Spirit (PMS) popularly referred to as petrol that they already had in stock before the declaration by President Tinubu on Monday in an interview monitored by Nigerian NewsDirect on Channels TV.

“I think it is natural because it does happen. It may not be intentional but it happens under every circumstance.

“When you have the cheap price at hand and you now sell it  2 to 3 times the price you purchase, you will have to go back to the market. So when you go back to the market to procure new supply, you are going to buy at the new price which literally will make your gain clearly marginal because for you to continuing that business you have to add money to buy in the next market. It is not really substantial except those who decide they are done with.

“Unfortunately, yes the customers have to bear the burden,” he said.

Speaking further, Kyari said the removal of subsidy will only affect the sale of petrol for now.

“The impact of the current policy is only on Petrol. It won’t affect other products.

“All other products are actually deregulated, aviation fuels and every other petroleum products are actually deregulated,” Kyari noted.

When questioned on the possibility of prices going higher than they are now, Kyari responded that, “it is very unlikely but potentially Nigerians can expect to pay lower prices.

“Petroleum is priced in the international market and we have no control over the price of this commodity in the international market.

“What this situation has brought is  potentially some form of efficiency to come into the system. What you don’t have control over is the price of this commodity in the international market. Whereas many things you have control over. The ability to get it at the cheapest possible rate and that’s a factor of many things, your ability to negotiate good contracts for your marine activities, depot activities, all the way to the fuel station with companies to compete in that space,” he concluded.

Similarly, the GCEO also noted that there is no provision for funding of subsidy in the 2023 budget.

Kyari clarified this when he met with the All Progressive Congress (APC) National Working Committee (NWC) at the party’s National Secretariat.

According to him, “There was a subsidy in 2022 but in 2023, not a single naira was provided for the purpose of financing the subsidy.

“And ultimately while we held back our fiscal obligations, we still have a net balance of over N2.8 trillion that the federation should have given back to the NNPC.

“For any company, when you have negative N2.8 trillion, there is no company in the whole of Africa that will lend to you, you cannot have receivables.

“The provision of subsidy is there, but absolutely there is no funding for it,” Kyari said.

He added that subsidy constituted a huge amount of money which the country might not be able to survive and pay its debts.

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Pilgrimage sponsorship: Mixed reactions trail NAHCON’s operations, as Govs slam inefficiency

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…N90bn subsidy not for sponsorship, but to help stranded pilgrims – MURIC

…National VC of Council of Ulama backs Gov. Bago on probe of NAHCON

…It’s time to end pilgrimage sponsorship – Bishop Emmah Isong blows hot

Rauf Oyewole, Bauchi

Controversies have continued to erupt after the call by the Niger State Governor, Muhammad Umar Bago and Bala Mohammed of Bauchi State to scrap the National Hajj Commission of Nigeria (NAHCON) and set up an agency that will regulate pilgrimage.

The two governors have publicly criticised the hajj management of the Hajj pilgrimage, calling for reforms and decentralisation.

Recall that Bauchi State governor, Bala Mohammed accused NAHCON of failing to meet expectations despite exorbitant charges of over N8 million for a Hajj seat.

He deplored the hardship faced by Nigerian pilgrims in Saudi Arabia while stressing the need to decentralise Hajj operations.

According to the governor, the decentralisation would allow state governments to take full control of Hajj affairs and ensure adequate welfare of their respective pilgrims who paid for Hajj fares through the State Pilgrims Welfare Boards.

Also, Bago, who spoke in a viral clip, sharing his experience in 2024 Hajj demanded a thorough investigation into a N90 billion subsidy given by the Federal Government.

The Governor had earlier posited that “As a state governor, I want to lead a committee of the governors and the Nigerian Governors Forum  (NGF) to scrap NAHCON. NAHCON is not helping matters.”

He said the Federal Government is too big to be worried about Hajj problems.

“This is a local government issue, not a state one. State governments should be able to organise pilgrimages and engage agents from the private sector who can manage this more effectively, as other countries do. The government has no business in doing this,” he said.

“Can you imagine governors of Nigeria, the Speaker of the Federal Republic of Nigeria, paying to NAHCON and having no place to sleep and being embarrassed? People will say it is because governors have been affected. Yes, they have been affected, but it is good that we are affected, and this is the time for us to change the narrative,” he said in the video.

He further lamented that: “We have failed and continue to fail. NAHCON is supposed to be a regulator, not an operator, but it has continued to act as an operator and has, therefore, failed pilgrims. Can you imagine that feeding, accommodation in Medina, tents in Muna, transportation, and healthcare workers are all managed by NAHCON? No other country in the World does this.”

“NAHCON has no business chartering flights; it is not their responsibility to feed the pilgrims. For example, I am from Niger State. If you allow me to feed pilgrims, I will be able to transport food that people are locally used to to Saudi Arabia to feed my own pilgrims,” he said.

While speaking, the Founder/Executive Director of Muslim Rights Concern (MURIC), Prof. Ishaq Akintola, advised Governor Bago to channel his suggestion on how to improve the Hajj operation.

According to him, NAHCON has been engaging in internal restructuring and has always welcomed new ideas.

On scrapping NAHCON, Akintola said that: “We want the Federal Government to stop interfering in Hajj operations, we are capable of handling our things. About five to six years ago, the Nigerian Supreme Council for Islamic Affairs demanded that the Hajj operation be handled by Muslim Community; the government does not need to interfere at all.

“The only place the government needs to come in is the area of international relations, international travels, issuance of passports and protocols.”

MURIC dismissed the uproar on the N90 billion subsidy by the Federal Government, saying that some people were out to give the government of the day a “bad name.”

According to him, “The Federal Government did not sponsor pilgrims. The N90 billion given was not for sponsorship. Economy of Nigeria nosedived and the Naira fell against the Dollar. The value of what they have paid became short and they needed additional N2 million each to meet up. As a responsible government, the Federal Government intervened by supporting the pilgrims who could not meet up with the deadline.”

Akintola said that such intervention could be extended to Christians Community as the government has been doing to its citizens in distress. He cited the Ukraine war where Nigerian students were trapped and the government quickly intervened to evacuate the stranded students.

MURIC said it would not comment on the demand for a probe of NAHCON as it has enough evidence of any mismanagement of funds.

Speaking on the sponsorship of pilgrimage, National Publicity Secretary of Pentecostal Fellowship of Nigeria (PFN) and Former Chairman of PFN Cross River State, Bishop Emmah Isong, said in his personal opinion, it is time to stop sponsorship of pilgrimage to holy lands.

According to him, Nigeria has many religious historical sites that could attract foreigners to Nigeria.

He said, “Let’s make it a public-private partnership. I mean where the government will provide security and manage visas, diplomatic matters.”

He said that as a stakeholder in Christian Association of Nigeria (CAN), he never used government resources to perform pilgrimage.

“I raise money to sponsor myself. Somebody should do so. We must not be colonialistic in our ways.

“What we have now is people sponsoring their girlfriends, those who have three or four wives are sponsoring their families to both Mecca and Jerusalem. The poor man doesn’t go on pilgrimage, those without connection don’t go on pilgrimage. Pilgrimage is your personal venture for spirituality. So what is the business of Nigeria?”

Also speaking, the National Deputy Chairman, Council of Ulamas, Sheikh Danazumi Musa, aligned with the submission of Governor Bago to probe the fund released to NAHCON, saying that the as a major stakeholder must have experienced or noticed injustice before coming to the public to demand for the probe.

“In Islam we don’t tolerate injustice. I’m in support of a special Committee of Inquiry into this year’s Hajj exercise. There are a lot of complaints from the pilgrims.”

Musa believed that there was nothing wrong in subsidising Hajj for Nigerians pilgrims, adding that subsidy is given to citizens across the World when a responsible government feels that things are tough for its people.

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Minimum wage: We will pay what we can — Southern Govs

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The 17 Governors from the Southern part of Nigeria under the aegis of the Southern Governors’ Forum have advocated that each state be allowed to negotiate a new minimum wage they can pay with the labour unions.

This was contained in a communique issued at the end of their meeting held in Abeokuta, the Ogun State capital.

“The Forum discussed the minimum wage issues demanded by labour and unanimously agreed that the minimum wage should be reflective of the cost of living and ability to pay, and each State be allowed to negotiate their minimum wage,” the communique partly read.

In the 16 points communique, the Forum called for strengthening of fiscal federalism and devolution of powers and expressed concern over current practices where mineral licences are issued and explorations undertaken without recourse to state governments.

It noted that issuing mineral licences without carrying the states along have resulted in criminal activities, attendant negative environmental impact, ecological degradation, and with no remediation commitment or revenue accruing to the States or the Federal Government.

The governors maintained that being the economic and industrial region of the country, there was a need to address the inadequate power supply in the region by taking advantage of the recent constitutional amendment that now allows States to regulate, generate, transmit and distribute electricity whilst also considering optional sources like renewables.

The southern governors said they have resolved to aggressively embark on energy transition plan from fossil fuels (petrol and diesel) to cleaner energy and specifically CNG (Compressed Natural Gas) and ultimately EV’s (Electric Vehicles) to help reduce the cost of transportation, which would lower the cost of food, goods and services of the citizens and residents.

The meeting also called on the Federal Government to rehabilitate, repair and reconstruct Trunk A roads and transfer some roads to States that have expressed interest in taking them over, applauding President Tinubu for conceptualising and commencing the construction of the Lagos-Calabar Coastal Road, which cuts across eight states of the region.

The Communique hinted that the governors have resolved to commission a regional multimodal transport master plan that would prioritise connectivity of rail, road, air and water transportation, to facilitate interstate, intra-regional movement of persons, goods and services and thereby enhancing the ease of doing business.

It further stated that Southern States Development Agenda (SSDA) would comprise of a team whose primary responsibility is to outline a holistic plan to foster trade and investment, sustainable growth and development, economic prosperity, social harmony and food security for the region would be set up.

The Development Agenda, the governors added, would work hand in glove with individual State Investment Promotion and Facilitation Agencies, the Nigeria Investment Promotion Commission (NIPC) and other relevant MDA’s and multilateral agencies as necessary.

On the issue of state police, the Governors resolved to continue to advocate for the creation of State police against the backdrop of the success of the regional community based security outfits, which have been effective in intelligence gathering.

The governors, the communique further stated, resolved to remain united and committed to oneness of purpose, noting that the physical boundaries that divide the people of the south could not be compare to the strong bonds of enterprise, resilience and culture that they share just as they have resolved to be deliberate and intentional about intra region trade, partnerships and investment facilitation and promotion which was agreed would require a structured and coordinated collaborative approach.

The members of the Forum commended Mr President Tinubu for the food palliative support to States and the laudable economic recovery reforms and policies through the implementation of the Renewed Hope Agenda pledging to support him in his unwavering resolve to reposition the country and build a greater future for all.

It would be recalled that at the end of the meeting, Prince Dapo Abiodun was chosen to provide the needed leadership as Chairman of the Forum, while Professor Charles Chukwuma Soludo, the governor of Anambra State was appointed as the Vice Chairman.

The communique concluded that quarterly meetings of the Forum would be held and rotated among member states.

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Africa losing $88.6bn to illicit financial flows —  EFCC Boss

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The Executive Chairman of the Economic and Financial Crimes Commission (EFCC),  Mr. Olanipekun Olukoyede, has disclosed that a whopping $88.6billion is lost to illicit financial flows in Africa annually.

He stated this in Tunis, Tunisia on Thursday,  June 27, 2024 while delivering a keynote address at the Pan-African Conference on Illicit Financial Flows (IFFs) and Taxation.

Speaking on the theme “Africa’s Tax Agenda in Combating Illicit Financial Flows: From Words to Action,” the EFCC’s boss emphasised the grave challenge posed by Illicit Financial Flows to Africa’s economic stability and development. He noted that over $88.6 billion is illicitly syphoned from the continent annually, funds that could otherwise be channelled towards critical infrastructure, healthcare, and education.

At the conference that brought together key stakeholders to discuss pioneering approaches to asset recovery and financial reintegration in Africa, Olukoyede discussed the role of the Common African Position on Asset Recovery (CAPAR) in providing a unified stance for African nations. He also underscored the importance of international cooperation, citing the Stolen Asset Recovery Initiative (StAR), a partnership between the World Bank and the United Nations Office on Drugs and Crime (UNODC), as pivotal in facilitating these efforts.

The EFCC’s boss shared notable success stories, including Nigeria’s repatriation of $311 million of the Abacha loot from the United States in 2020. This recovery,  he said, was achieved through collaboration with international partners and has been allocated to vital infrastructure projects such as the Second Niger Bridge and the Lagos-Ibadan Expressway. He detailed how Nigeria is utilising these funds for developmental projects aligned with the African Union’s Agenda 2063.

Olukoyede also incorporated outcomes from the recent high-level technical stakeholders meeting which held in Addis Ababa from May 28-30, 2024. This meeting, organised by the African Union Advisory Board against Corruption (AUABC) and the African Union Commission – Political Affairs, Peace and Security Department (AUC-PAPS), in collaboration with the GIZ Global Program on Illicit Financial Flows (GP-IFF), focused on the establishment of the Pan-African Asset Recovery Practitioners Forum.

Addressing the challenges and obstacles in asset recovery, Olukoyede highlighted the technical, legal, and political hurdles that complicate the process of tracing, freezing, and repatriating illicit funds. He called for the strengthening of legal and institutional frameworks across African countries to better combat IFFs.

He also stressed the need for capacity building, robust legal frameworks, and enhanced coordination and cooperation at national, regional, and international levels. He advocated for the use of advanced technologies such as data analytics, blockchain, and artificial intelligence to improve asset tracking and recovery efforts.

While rounding up his presentation, the anti-graft czar called for continuous advocacy and international pressure to ensure cooperation from tax havens and low-tax jurisdictions. He emphasised the importance of stopping resources from leaving Africa in the first place, urging collective efforts to turn words into action for the betterment of the continent.

The Pan-African Conference on Illicit Financial Flows and Taxation, is holding from June 26-28, 2024, and aims to address the significant challenge of Illicit Financial Flows (IFFs) from Africa, which undermine economic development and governance.

The event provides a platform for sharing success stories, identifying obstacles, and formulating strategic recommendations to enhance the continent’s capacity to combat IFFs and reclaim its assets.

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