…Nigerians groan, lament surge in cost of living

…Tinubu bows to pressure, makes u-turn on proposed N8,000 cash transfer

…Fuel pump price hits N617 per litre, as queues resurface

…N8,000 palliative insult, mockery of Nigerians’ patience — NLC

…NNPCL, IPMAN, NMDPRA attribute price hike to market forces

By Ibiyemi Mathew, Moses Adeniyi, Denis Mathew and others

With the increase in the price of Premium Motor Spirit (PMS) to about N617 per litre in some locations within the country, Nigerians have decried the surge in costs of living noting that it is becoming unbearable.

Some Nigerians who spoke to Nigerian NewsDirect decried the hike in the price of petrol and its impact on their expenses.

Speaking to Nigerian NewsDirect, a staff of the Nigeria Correctional Service, Mr. Habib Mahmoud said, “I was shocked with the rise again in fuel to N617 despite the suffering we are passing through.

“If I had known that the situation will be like this I would have packed my car at home, because I don’t even have money I just bought N6,170 so unfortunate.”

Emeka Chima, a taxi driver decried that all the money he is making for the day will still be used to buy fuel for the following day without saving a penny.

According to him the government is not sympathetic to the agonies Nigerians are facing but just taking decision without due consideration.

On her part, Miss Deborah Timothy a staff of Greenfield Hotel said “My salary is N45,000 monthly and just today I spent N1,200 on transport fare.

“I don’t have choice than quiting the job if the management refused to consider our requests to review our working days down or increase our salary.”

A twitter user @pharoukaleeyou said, “Fuel at 617 naira per litre and dollar hitting 835 naira to 1 USD. Please let the poor breathe @officialABAT”

Tinubu bows to pressure, makes u-turn on proposed N8,000 cash transfer

Following widespread protest against the proposed cash transfer programme by the Federal Government of Nigeria to cushion the harsh effects of the removal of fuel subsidy, President Bola Ahmed Tinubu has made a u-turn on the programme.

President Tinubu, had last week, written a letter to the National Assembly seeking approval  to accomodate a sum of N500billion by adjusting the 2022 Supplementary Budget to offer pallatives of N8,000 monthly for a period of six months to 12 million households each, which according to him was to cushion the effect of removal of fuel subsidy. Alongside, he had demanded the approval of an $800million loan from the World Bank for funding.

Special Adviser to the President on Special Duties, Communications and Strategy to the President, Mr Dele Alake made known the review of the programme in a press statement yesterday.

According to Alake, “You will agree with me that it has become part of the culture of President Bola Ahmed Tinubu administration to constantly dialogue with Nigerians who voted him into office. The President covenanted with Nigerians that their welfare and security will be topmost in the Renewed Hope Agenda of his government.

“In the last few days, the conventional and new media platforms have become awash with stories of the government intending to embark on conditional cash transfer to vulnerable households mostly affected by the painful but necessary decision to remove subsidy from petrol.

“The story has been widely reported that the Federal Government is proposing to give 12 million households from the poorest of the poor N8,000 monthly for a period of six months as government palliative to reduce the discomfort being experienced by Nigerians consequent upon subsidy removal.

“A lot of ill-informed imputations have been read into the programme by not a few naysayers. The Administration believes in the maxim that when there is prohibition, there must be provision. Since subsidy, the hydra-headed monster threatening to kill the economy, has been stopped, government has emplaced a broad spectrum of reliefs to bring help to Nigerians.”

Alake highlighted that President Bola Ahmed Tinubu as a listening leader who has vowed to always put Nigerians at the heart of his policy and programme, the President has directed that the N8,000 conditional cash transfer programmed envisaged to bring succour to most vulnerable households be reviewed immediately.

He also noted that the N8,000 cash transfer is not the only whole gamut of palliative package of government to be unveiled to Nigerians.

He listed other pallaitaive packages to include the release of fertilisers and grains to approximately 50 million farmers and households respectively in all the 36 states and the FCT.

“The President believes government exists to cater for the interest of the people and he has demonstrated this so clearly,” Alake reiterated.

President Tinubu also assured Nigerians that the N500 billion approved by parliament to cushion the pain occasioned by the end of subsidy regime will be judiciously utilised.

“The beneficiaries of the reliefs shall be Nigerians irrespective of their ethnic, religious or political affiliation,” He declared.

He promised Nigerians to prioritise their wellbeing while noting that a number of decisions taken so far by his Administration have buttressed his stance.

N8,000 palliative insult, mockery of Nigerians’ patience — NLC

The Nigeria Labour Congress (NLC) has cried foul regarding the proposed N8,000 cash transfer susbsidy palliative declaring that the President Bola Tinubu-led government is on a course of robbing the poor majority to pay the rich.

The NLC cried that the actions of the present government since its inauguration on the 29th day of May, 2023 has continued “inflicting mindless and heartless pains” on the populace one after the other without the decency of embracing the tenets of democracy which, it said, requires wide and deep stakeholder consultation on weighty matters of state.

According to the NLC, though the organised labour decided to act by modesty to suspend the nationwide strike which was earlier scheduled at the onset of the announcement of subsidy removal, the Federal Government has insisted on threading the path of dictatorship and seeking to impoverish the people further by “taking steps that can only be described as robbing the people of Nigeria to pay and feed the Rich.”

The NLC President, Comrade Joe Ajaero, in a statement, on Tuesday, said the Federal Government is already using a dictatorship style to impoverish Nigerians.

The NLC condemned Tinubu’s request to secure $800million from the World Bank as funding for the palliative which it described as “a phantom palliative measure to cushion the effect of its poorly thought-out hike in the prices of Premium Motor Spirit.”

Describing the N8,000 sum as an insults on “our collective intelligence” and “a mockery of our patience,” the NLC condemned in strong terms, the proposal to pay National Assembly members the sum of N70billion and the Judiciary N36billion, describing as “most insensitive, reckless and brazen diversion of our collective patrimony into the pockets of public officers whose sworn responsibility it is to protect our nation’s treasury.”

It concluded that it may be forced to constructively review engagement with the government on what it described as “this vexatious issue” and “take matters into our own hands.”

“We have restrained ourselves from making further comments publicly on the vexatious issues around the recent but unfortunate unilateral hike in the price of Premium Motor Spirit (PMS) in the guise of the so-called subsidy withdrawal which has unleashed predictably as we had earlier warned unimaginable and unprecedented hardship, sorrow, anguish and suffering upon Nigerian workers and masses.

“Our resolve is anchored on our strong and abiding faith in the outcomes of the processes of social dialogue and its mechanisms, especially within a democratic setting which fortunately all the major stakeholders in the nation’s socioeconomic framework pleads to at this particular point in time though some have demonstrably shown that it does not go deeper than the rhetoric.

“However, the government of Nigeria seems to have been misled into believing that resorting to impunity and imperiousness in governance in a democracy is a beneficial option as it pursues its stated and unstated objectives.

“It is this belief that we are sure has continued shaping the actions of this government since its inauguration on the 29th day of May, 2023 to continue inflicting mindless and heartless pains on the populace one after the other without the decency of embracing the tenets of democracy which requires wide and deep stakeholder consultation on weighty matters of state.

“Nigerians would remember that the federal government had called for dialogue in the aftermath of its disastrous forlorn trajectory in the astronomical increase in Petroleum product price and our subsequent call for a nation-wide industrial action. We were also witnesses to the actions of the federal government in procuring an unholy injunction from the Courts which were served us in Gestapo style by trucks laden with fully armed soldiers and Policemen.

“In all of these provocations, we remained committed to the principles of the Rule of Law, good conscience and democracy so that we can continue to be the moral compass for leaders in the public space. This explained our decision to suspend action on the proposed strike.

“As it stands, rather than reciprocate the goodwill of Nigerian workers, the federal government has insisted on threading the path of dictatorship and seeking to impoverish the people further by taking steps that can only be described as robbing the people of Nigeria to pay and feed the Rich.

“It is on this basis that the NLC strongly condemns the decision of the Tinubu-led administration to seek the approval of the National Assembly to obtain another tranche of external loans worth N500billion from the World Bank for the purposes of carrying out a phantom palliative measure to cushion the effect of its poorly thought-out hike in the prices of Premium Motor Spirit.

“Remember that the $800 million which was already proposed before the devaluation of the Naira by this government was worth about N400 billion then but is now worth about N650 billion after devaluation. It is from this, it proposes to bring out N500 billion for distribution.

“The proposal to pay N8,000 to each of the so-called 12 million poorest Nigerian households for a period of six months insults our collective intelligence and makes a mockery of our patience and abiding faith in social dialogue which the government may have alluded to albeit pretentiously.

“The further proposal to pay National Assembly members the sum of N70 billion and the Judiciary N36billion is the most insensitive, reckless and brazen diversion of our collective patrimony into the pockets of public officers whose sworn responsibility it is to protect our nation’s treasury. We believe that this may amount to hush money and outright bribery of the other arms of government to acquiesce the aberration.

“It is unconscionable that a government that has foisted so much hardship on the people within nearly two months of coming into office will make a proposal that clearly rewards the rich in public office to the detriment of the poor. What this means all this while is that the government is seeking ways of robbing the very poor Nigerians so that the rich can become richer.

“There is no other way to explain the proposal to pay a misery sum of N8,000 Naira to each of the mysterious poorest 12 million Households for six months which amounts to N48,000 and pay just 469 National Legislators N70billion or about N149million each while the Judiciary that has about 72 Appeal Court Judges, 33 National Industrial Court Judges, 75 Federal High Court Judges and 21 Supreme Court Judges and a total of about 201 Judges receives a total of N35billion or N174million each. If these other two arms are projected to receive this, what members of the Executive Council will receive is better left to the imagination of Nigerians perhaps, the balance of N150billion will go to them.

“We reiterate that we do not have confidence in how the data for the never changing 12million poorest households was generated neither do we have confidence in the mechanisms being pursued for the distribution of the cash transfers. The history of such transfers especially the school feeding programmes even while the children were at home due to the COVID-19 pandemic and the Trader Moni saga fills Nigerians with trepidation reminding us of the continued heist of our collective resources by those in Public office.

“We have continually demanded that this register be made public but, it seems to have become an instrument of the occult shrouded in mystery and wielded by the grandmasters whenever opportunities like this present themselves.

“We do not want to provide a cover for the government to get away with the hardship it has imposed on the people. We do not want to legitimise impunity.

“As a result, if the government does not want to stop these fortuitous actions that it is pursuing in the name of palliatives, we will be forced to constructively review our engagement with the government on this vexatious issue and take matters into our own hands,” the statement read.

Fuel pump price hits N617 per litre as queues resurface in Lagos

Barely 24 hours after the Nigeria Bureau of Statistics (NBC) announced the skyrocketed inflation rate at 22.79 per cent for the month of June, 2023, the price of  Petroleum Motor Spirit (PMS) otherwise known as petrol or fuel rose from N539 official pump price to N617 per litre across major filling stations in the Federal Capital Territory, Abuja and Lagos.

A survey conducted by our correspondent  to  Nigerian National Petroleum Corporation (NNPC) filling stations within Abuja metropolis confirmed the fuel price adjustment from N539 to N617 per litre and other mega filling stations like AA Rano, Mobil, A.Y Shafa, Salbas etc.

Our correspondents in Lagos who also moved round the metropolis, observed that most filling stations had adjusted their pump price.

Our correspondent gathered that fuel is sold between N580 and N600 at most filling stations, owned by both major and independent marketers.

The hike in price of petrol is sequel to the increase in ex-depot price of petrol from N446.57 per litre to N580 per liter.

However, the situation has triggered panic buying as motorists raced to filling stations to buy petrol.

There were queues at Mobil Filling Station on Ikorodu Road, TotalEnergies at Mobolaji, Amuf at Bariga and Conoil in Ikorodu while there were vehicles on a long stretch within and outside most of the facilities.

A visit to Northwest Station in Gbagada showed N570 per litre, Mobil at Anthony, N580, Amuf in Palmgrove, N558 and Conoil in Ikeja, N590.

Also some of the NNPCL retail outlets monitored were selling at N600 per litre.

Consequently, queues extended to the roads from the facilities, compounding traffic woe.

NNPCL, IPMAN, NMDPRA attribute price hike to market forces 

The Nigerian National Petroleum Company Limited (NNPCL), Independent Petroleum Marketers Association of Nigeria (IPMAN), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have attributed the increase in the price of Premium Motor Spirit (PMS) also known as petrol to the market realities.

The NNPCL Group Chief Executive Officer, Malam Mele Kyari in an interview with journalists shortly after a private meeting with the Vice President, Kashim Shettima, at the Presidential Villa, on Tuesday in Abuja explained that the increase in the price of PMS has nothing to do with supply issue, adding that there is a robust supply of the product in the country.

“I don’t have the details this moment. You know we have the Marketing Wing of the company, they adjust prices depending on the market realities.

“And this is the meaning of making sure that the market regulates itself so that prices will go up and sometimes they will come down also and this is really what we are seeing in reality this is how the market works.

“There is no supply issue completely when you go to the market you buy the product you come to the market and sell it at prevailing market price there is nothing to do with supply we don’t have supply issues.

“There is a robust supply, we have over 32 days supply in the country, that’s not a problem. What I know is that the market forces will regulate the market, prices will go down sometimes and sometime it will go up but there will be stability of supply.”

He assured Nigerians that the policy was the best way for the country going forward.

“And I am also assuring Nigerians that this is the best way to go forward so that we can adjust prices when market comes.

“I know that a number of companies have imported petroleum PMS so many of them are online. Market forces have started to play, people have confidence in the market and private sector people are now importing product.

“And there is no way they can recover their cost if they cannot take market reflective cost,” Kyari said.

Operations Controller, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr Mike Osatuyi reacting to the hike in prices said, “NNPCL is no longer in charge of control of price. Now, it is what marketers buy they will sell with their margin.  So, it’s not deliberate act of NNPCL to increase price anyhow or reduce price, but it is based on market forces.

“All marketers will do same. As we speak, crude has gone up and dollar is also up. Forex is at N803 per dollar on Import and Export windows that is CBN rate.

“So, the figure on new template will make the pricing to go up. If the crude reduces and dollar rate also reduces, it will also affect the price downward.

“Increase and reduction in price is determined by market forces.

“It is the market forces that determine the prices and it is an act of deregulation.

“It’s about the market because everyone is into market to make profit,” he added.

On his part, Alhaji, Farouk Ahmed, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the authority doesn’t set price of the product but that the market determines itself.

“As a regulator you know I told you back in May we are not going to be setting price. The market will determine itself and as you saw back in early June when prices came out it was based on the cost of importation plus other logistics of distribution and of course the profit margin by the importer.

“This market is deregulated, is open to all participants. As I mentioned also yesterday (Monday) when I was in Lagos we have about 56 marketing companies that have applied for and obtained license to import.

“Out of those, 10 of them have indicated to supply within the third quarter which is July, August and September. And out of those already we received some cargoes from some of these Marketers.

“Prudent Energy, AYM Shafa and Emadeb Cargo is arriving tomorrow (Wednesday), So this is like just an encouragement to see that the market is liberated and everyone is free to import so long you are working within the framework especially in tems of quality.”

He insisted that the authority as a regulator would not put cap on the price because it was not part of those importing the product.

“But the pricing as a regulator we are not going to put the cap on the price because we are not part of those importing, we are not a marketing company, we are just a regulator.

“So when you say market forces are working basically, what it means is that you can see the price of the Crude Oil going up, couple of week ago recovering around 70 dollars per barrel now is around 80 dollars per barrel.

“So, of course, the crude price also drives the product price, you know? This is because all the importers are importing is based on the cost of importation plus other cost elements in terms of local distribution,”  he explained.