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Showing posts with label Fuel Subsidy. Show all posts
Showing posts with label Fuel Subsidy. Show all posts

'DEAD' Subsidy 'RESURRECTS' As As Petrol Open Market Price Hits N160 Per Litre

'DEAD' Subsidy 'RESURRECTS' As As Petrol Open Market Price Hits N160 Per Litre

Fuel SubsidyNew findings have revealed that the market open price of petrol has hit N160 per litre. This is as a result of the landing cost that is within the region of N138 per litre.

The Guardian, at the weekend gathered that the upward movement of the price was informed by the rise in the price of crude oil at the international market.

With the new development, the Nigerian National Petroleum Corporation (NNPC), which has now assumed the status of sole importer of petrol into the country pays about N750million daily on subsidy of petrol as the price modulation introduced in May last year finally crumbled.


NNPC pays additional N15 per litre on every litre of petrol as the national consumption figure hits 50 million litres during the yuletide period. However, this consumption figure is expected to lower to around 45 million litres from February.

In addition to the landing cost at N138 per litre, there are other costs that include retailers (N6), transporter allowance (N3.36), dealers (N2.36), bridging fund (N6.20), marine transport average (N0.15) and administration charge (N0.30), which come to N18.37. The amount petrol should be sold at the pump price should be N156.37, as claimed bythe importer

In his reaction to the pricing of petrol, the General Secretary of the Nigeria Labour Congress (NLC) and member of the Petroleum Products Pricing Regulatory Agency (PPPRA), Dr Peter Ozo-Eson, said labour would oppose any price increment.
He said: “Our position is very clear. We are opposed to a policy that allows this kind of price increment to take place. We also believe that government can still reverse itself by returning to the managed system until domestic refineries are sufficiently working.

“Relying on importation for this kind of policy will continue to generate the same impact it is generating presently.”

On whether labour is advocating a return of subsidy, Ozo-Eson, said the option is for government to take.

The NLC Scribe also dispelled the insinuation that there is no money to fund subsidy, saying: “It is a choice for government to make. The issue of money is matter of priority for government. We opposed this type of price modulation when they did it and we predicted all that is happening today. Nothing has changed as far as we are concerned.”

On his part, the Director General of the Nigeria Employers Consultative Association (NECA), Olusegun Oshinowo said Nigeria is living a lie.

“We are caught between economic imperative and political expediency. Government had earlier come out to say that it has deregulated the downstream sector. Our own understanding of that is that the entire products in the downstream would now be subjected to the dictate of free market,” he said.

Oshinowo also observed that Nigeria is tending towards regulation again and that would not augur well for the economy.

Oshinowo, who is a member of the PPPRA board, said the agency has not been given the freehand to operate.

He said: “Even though I am on the board of the Petroleum Products Pricing Regulatory Agency (PPPRA), I must say that the agency is culpable. This is because the PPPRA should have been tweaking its template to reflect the actual landing cost of petroleum products. There is a world of difference between indicative price template and price modulation. Indicative price template should reflect the market price of a litre of petrol, which will be an indicative price for anybody that wants to operate in that terrain. That has not happened.”
The NECA Scribe declared that the agency must tell the nation what it is presently spending on fuel subsidy, as it has assumed the sole importer of petrol once again.

He added: “While the NNPC has now come back as the sole importer of petrol, it is yet to tell the country how it has been funding the importation of fuel if the landing price is above the selling price. Has the NNPC been subsidising quietly? What this shows is that since the landing price is above the selling price, somebody is already subsidising the product. To what extent has the NNPC been subsidising? And where do we go from where?”

Oshinowo was quick to exonerate the board of any culpability in the matter, adding, “The members of the board are not culpable because the board only started meeting in December and we have flagged off this issue. We are yet to be given detailed briefing, but at our next meeting, which is slated for the end of this month (January), the management would give us full briefing on it. So, it is still early days for the board to be able to get its fingers round all of these, but we know that these are the issues the board has to face.”

He explained that the PPPRA should set the template on a regular basis, taking into account appropriate variables and review the template, as soon as any of the variables change.

Fuel SubsidyNew findings have revealed that the market open price of petrol has hit N160 per litre. This is as a result of the landing cost that is within the region of N138 per litre.

The Guardian, at the weekend gathered that the upward movement of the price was informed by the rise in the price of crude oil at the international market.

With the new development, the Nigerian National Petroleum Corporation (NNPC), which has now assumed the status of sole importer of petrol into the country pays about N750million daily on subsidy of petrol as the price modulation introduced in May last year finally crumbled.


NNPC pays additional N15 per litre on every litre of petrol as the national consumption figure hits 50 million litres during the yuletide period. However, this consumption figure is expected to lower to around 45 million litres from February.

In addition to the landing cost at N138 per litre, there are other costs that include retailers (N6), transporter allowance (N3.36), dealers (N2.36), bridging fund (N6.20), marine transport average (N0.15) and administration charge (N0.30), which come to N18.37. The amount petrol should be sold at the pump price should be N156.37, as claimed bythe importer

In his reaction to the pricing of petrol, the General Secretary of the Nigeria Labour Congress (NLC) and member of the Petroleum Products Pricing Regulatory Agency (PPPRA), Dr Peter Ozo-Eson, said labour would oppose any price increment.
He said: “Our position is very clear. We are opposed to a policy that allows this kind of price increment to take place. We also believe that government can still reverse itself by returning to the managed system until domestic refineries are sufficiently working.

“Relying on importation for this kind of policy will continue to generate the same impact it is generating presently.”

On whether labour is advocating a return of subsidy, Ozo-Eson, said the option is for government to take.

The NLC Scribe also dispelled the insinuation that there is no money to fund subsidy, saying: “It is a choice for government to make. The issue of money is matter of priority for government. We opposed this type of price modulation when they did it and we predicted all that is happening today. Nothing has changed as far as we are concerned.”

On his part, the Director General of the Nigeria Employers Consultative Association (NECA), Olusegun Oshinowo said Nigeria is living a lie.

“We are caught between economic imperative and political expediency. Government had earlier come out to say that it has deregulated the downstream sector. Our own understanding of that is that the entire products in the downstream would now be subjected to the dictate of free market,” he said.

Oshinowo also observed that Nigeria is tending towards regulation again and that would not augur well for the economy.

Oshinowo, who is a member of the PPPRA board, said the agency has not been given the freehand to operate.

He said: “Even though I am on the board of the Petroleum Products Pricing Regulatory Agency (PPPRA), I must say that the agency is culpable. This is because the PPPRA should have been tweaking its template to reflect the actual landing cost of petroleum products. There is a world of difference between indicative price template and price modulation. Indicative price template should reflect the market price of a litre of petrol, which will be an indicative price for anybody that wants to operate in that terrain. That has not happened.”
The NECA Scribe declared that the agency must tell the nation what it is presently spending on fuel subsidy, as it has assumed the sole importer of petrol once again.

He added: “While the NNPC has now come back as the sole importer of petrol, it is yet to tell the country how it has been funding the importation of fuel if the landing price is above the selling price. Has the NNPC been subsidising quietly? What this shows is that since the landing price is above the selling price, somebody is already subsidising the product. To what extent has the NNPC been subsidising? And where do we go from where?”

Oshinowo was quick to exonerate the board of any culpability in the matter, adding, “The members of the board are not culpable because the board only started meeting in December and we have flagged off this issue. We are yet to be given detailed briefing, but at our next meeting, which is slated for the end of this month (January), the management would give us full briefing on it. So, it is still early days for the board to be able to get its fingers round all of these, but we know that these are the issues the board has to face.”

He explained that the PPPRA should set the template on a regular basis, taking into account appropriate variables and review the template, as soon as any of the variables change.

Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price, See Photos

Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price, See Photos

Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price
The prediction that there would be high competition among marketers and fuel stations when the fuel subsidy was removed by the Federal Government may have begun to come to pass as a fuel station in Badagry, Lagos state currently on petrol sale promotion of N144 per litre against the general N145 per litre.

A senior officer of the fuel station, Jabal Global Oil, Badagry, who preferred anonymity  said they are actually on bonanza sale of N144 per liter. 

Another staff, suspected to be the supervisor of the station also confirmed the bonanza sale and further said he learnt a station is currently selling petrol at N143 per litre.

At the station, the sale representatives were seen even dozing off as very few motorists go in and out to buy the products without any hitch.

The pump meters at the station have been adjusted to N144 per litre.

Dr Ibe Kachikwu, the Minister of State for Petroleum, who also doubles as the Group Managing Director of Nigeria National Petroleum Corporation, NNPC has earlier assured Nigerians that pump price of premium motor spirit (PMS) otherwise called petrol, will fall drastically in the next six months.

Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price
The Filling Station
The Federal Government had announced an end to subsidy regime and capped pump price of petrol at N145 per litre.

During the interview, Kachikwu said; "if you do a price review after six months, you will be amazed at how low the price would have become. We expect the prices to go down because we have provided an opportunity for people to take advantage of government liberalisation policy of the downstream sector and eliminate inefficiencies and losses."

When asked about the reason for the government to have fixed the pump price of petrol in a deregulated market, he explained that "the intention of the government was to achieve what was achieved in diesel by allowing everybody to be able to bring in products and promote competition."

"However, we want to make sure that at the initial stage marketers do not take undue advantage of the situation. That's why we said nobody should sell above N145 per litre.

Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price
An Attendant of the Station relaxing due
to slow pace of sales
Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price
The Pump meter displaying N144 per
litre sale price
"If you look at consumption of diesel, it is not as competitive as petrol. What we have done is an upper cap, but we have not told them what price to sell. We expect that efficiency and market forces will determine their pieces.

"You know we have a price band of N135 to N145 per litre, but reality is that those are guideline prices," he said.

Furthermore, he stated that other factors that may affect pricing include sources of foreign exchange, level of efficiency and how much a marketer is investing in logistics like storage and distribution.

When asked if the government has put measures in place to check marketers who may want to sell at above price cap of N145 per litre, he stated that he expects competition to bridge the gaps and eliminate abnormal profit.

Furthermore, he stated that "the difference you saw during the previous price regime of N87 per litre is just what we are trying to address because of arbitrage."

"The individuals that bought NNPC products and sell at other prices will now start buying their own products and sell on their own. Even NNPC retail stations will sell at competitive prices.

"Within six months, you will be seeing differentials of N1 to N2 per litre but as you go into interlands, NNPC will tend to be selling at between N120 to N130 per litre.

"Refineries will also become competitive. Refineries have not worked efficiently in the past because petroleum products are largely subsidized. Nobody wants to invest in refineries and at the end of the day, the government bears the brunt.

"We will sell the little a produce which is less than 10million per day and we will well at competitive prices," he said.


Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price
The prediction that there would be high competition among marketers and fuel stations when the fuel subsidy was removed by the Federal Government may have begun to come to pass as a fuel station in Badagry, Lagos state currently on petrol sale promotion of N144 per litre against the general N145 per litre.

A senior officer of the fuel station, Jabal Global Oil, Badagry, who preferred anonymity  said they are actually on bonanza sale of N144 per liter. 

Another staff, suspected to be the supervisor of the station also confirmed the bonanza sale and further said he learnt a station is currently selling petrol at N143 per litre.

At the station, the sale representatives were seen even dozing off as very few motorists go in and out to buy the products without any hitch.

The pump meters at the station have been adjusted to N144 per litre.

Dr Ibe Kachikwu, the Minister of State for Petroleum, who also doubles as the Group Managing Director of Nigeria National Petroleum Corporation, NNPC has earlier assured Nigerians that pump price of premium motor spirit (PMS) otherwise called petrol, will fall drastically in the next six months.

Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price
The Filling Station
The Federal Government had announced an end to subsidy regime and capped pump price of petrol at N145 per litre.

During the interview, Kachikwu said; "if you do a price review after six months, you will be amazed at how low the price would have become. We expect the prices to go down because we have provided an opportunity for people to take advantage of government liberalisation policy of the downstream sector and eliminate inefficiencies and losses."

When asked about the reason for the government to have fixed the pump price of petrol in a deregulated market, he explained that "the intention of the government was to achieve what was achieved in diesel by allowing everybody to be able to bring in products and promote competition."

"However, we want to make sure that at the initial stage marketers do not take undue advantage of the situation. That's why we said nobody should sell above N145 per litre.

Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price
An Attendant of the Station relaxing due
to slow pace of sales
Lagos Fuel Station Floats Petrol Bonanza, Sells Below N145 Pump Price
The Pump meter displaying N144 per
litre sale price
"If you look at consumption of diesel, it is not as competitive as petrol. What we have done is an upper cap, but we have not told them what price to sell. We expect that efficiency and market forces will determine their pieces.

"You know we have a price band of N135 to N145 per litre, but reality is that those are guideline prices," he said.

Furthermore, he stated that other factors that may affect pricing include sources of foreign exchange, level of efficiency and how much a marketer is investing in logistics like storage and distribution.

When asked if the government has put measures in place to check marketers who may want to sell at above price cap of N145 per litre, he stated that he expects competition to bridge the gaps and eliminate abnormal profit.

Furthermore, he stated that "the difference you saw during the previous price regime of N87 per litre is just what we are trying to address because of arbitrage."

"The individuals that bought NNPC products and sell at other prices will now start buying their own products and sell on their own. Even NNPC retail stations will sell at competitive prices.

"Within six months, you will be seeing differentials of N1 to N2 per litre but as you go into interlands, NNPC will tend to be selling at between N120 to N130 per litre.

"Refineries will also become competitive. Refineries have not worked efficiently in the past because petroleum products are largely subsidized. Nobody wants to invest in refineries and at the end of the day, the government bears the brunt.

"We will sell the little a produce which is less than 10million per day and we will well at competitive prices," he said.


Fuel Hike: Reps In Rowdy Session, Blocks Kachikwu From Plenary

Fuel Hike: Reps In Rowdy Session, Blocks Kachikwu From Plenary

Fuel Hike: Reps In Rowdy Session, Blocks Kachikwu From Plenary
File Photo from Vanguard
House of representative members Monday, started its special plenary on fuel price hike on a rowdy note, Vanguard News says

The Nation Newspaper's, account has it that members of the opposition in the House of Representatives vehemently opposed the admittance of the Minister of State (Petroleum Resources), Ibe Kachikwu into the chamber Monday afternoon.

Kachikwu was scheduled to address the lawmakers Monday on the latest development over hike in the price of Premium Motor Spirit (PMS).

However, trouble started when plenary resumed and time for the Majority Leader, Femi Gbajabiamila to move for the admittance of the Minister into the Chamber.

After the motion was seconded, the Speaker put the question but the nays were more than the ayes.

The Speaker ruled in favour of the ayes before banging the gavel but before he could drop the gavel, “No, no, All we are saying, save Nigeria and APC shame” rent the air.

After about three minutes, the Majority Leader, Femi Gbajabiamila and Chief Whip, Ado Doguwa approached the Speaker for consultation.

The Deputy Speaker, Yussuff Lasun, who was seen placating his colleagues and the Minority Leader, Leo Ogor later joined the Speaker’s consultation group.

While some members, waving the national flag, started shouting ‘all we are saying save Nigeria,’ others were chanting ‘change’ with mainly PDP Reps shouting ‘shame,’ ‘shame.’ 

At this stage, the Minority Leader, Rep Leo Ogor, approached the Speaker and after a brief chat with him, joined his fellow lawmakers. 

Also, the Majority Leader and some of the lawmakers approached the Speaker, but the noise continued as all appeals by the Majority Whip, Ado Doguwa, to his colleagues fell on deaf ears. Suddenly, frayed tempers disappeared and the Speaker gave the Minority Leader the floor and he immediately moved for a closed-door meeting.

Credits: Vanguard, The Nation
Fuel Hike: Reps In Rowdy Session, Blocks Kachikwu From Plenary
File Photo from Vanguard
House of representative members Monday, started its special plenary on fuel price hike on a rowdy note, Vanguard News says

The Nation Newspaper's, account has it that members of the opposition in the House of Representatives vehemently opposed the admittance of the Minister of State (Petroleum Resources), Ibe Kachikwu into the chamber Monday afternoon.

Kachikwu was scheduled to address the lawmakers Monday on the latest development over hike in the price of Premium Motor Spirit (PMS).

However, trouble started when plenary resumed and time for the Majority Leader, Femi Gbajabiamila to move for the admittance of the Minister into the Chamber.

After the motion was seconded, the Speaker put the question but the nays were more than the ayes.

The Speaker ruled in favour of the ayes before banging the gavel but before he could drop the gavel, “No, no, All we are saying, save Nigeria and APC shame” rent the air.

After about three minutes, the Majority Leader, Femi Gbajabiamila and Chief Whip, Ado Doguwa approached the Speaker for consultation.

The Deputy Speaker, Yussuff Lasun, who was seen placating his colleagues and the Minority Leader, Leo Ogor later joined the Speaker’s consultation group.

While some members, waving the national flag, started shouting ‘all we are saying save Nigeria,’ others were chanting ‘change’ with mainly PDP Reps shouting ‘shame,’ ‘shame.’ 

At this stage, the Minority Leader, Rep Leo Ogor, approached the Speaker and after a brief chat with him, joined his fellow lawmakers. 

Also, the Majority Leader and some of the lawmakers approached the Speaker, but the noise continued as all appeals by the Majority Whip, Ado Doguwa, to his colleagues fell on deaf ears. Suddenly, frayed tempers disappeared and the Speaker gave the Minority Leader the floor and he immediately moved for a closed-door meeting.

Credits: Vanguard, The Nation

Choice of Freedom Over Servitude: Issues And Concern Over New N145 Petrol Pump Price, By AbdulRahman Agboola

Choice of Freedom Over Servitude: Issues And Concern Over New N145 Petrol Pump Price, By AbdulRahman Agboola

As core loyalists of the present administration of President Muhammadu Buhari, in the face of diverse reactions over the petrol pump price recently announced by the Federal Government, silence would have been golden, especially when other co-loyalists have declared their unalloyed support to the policy, but our background doesn’t permit neutrality, we strongly align with the maxim that states that the darkest places in hell are reserved for those who maintain their neutrality in times of moral crisis.

 Expressing views, thoughts and actions at variance with allies could be catastrophic to long built relationships, but leaning towards truth and conscientious deeds provides succor when arguments that could hamper friendship surface and the wave of the moment is a pointer towards that direction, but the beauty of the World is that, Allies today, Enemies tomorrow, the World is a complex place.

It is a common fact that most Nigerians don’t understand the workings of democracy, instead of dissecting issues as it relates to public good, they have too much respect for affinity with people in power and not to be regarded as antagonists, they often admit government policies hook line and sinker, mostly when relationship exist and the rest of the people are declared as opposition whose opinions doesn’t worth to be heard out.

The opposition party is nonexistent in Nigeria as of today, the Peoples Democratic Party is worth just a tissue paper, bunch of misguided elements with no analytical minds and sound intellectual prowess to oppose government policies, compared with what was witnessed when the ruling party was the opposition. In the old order, by now, the heat would have been very unbearable for the government and the best the PDP Platform could offer to the masses as opposition party, is to accuse the actors of the present administration of accepting the removal of subsidies they opposed years ago as opposition, what a shame to the shameless looters of our commonwealth that put us in the present economic mess.

APC emerged with promises of running a Peoples’ Government where the interest of the common man will be protected, it was on this premise that victory of APC was secured through all means possible at the last Presidential Election, it was more of struggle among gladiators backed majority of the electorates that secured the victory in a keenly contested Presidential Election where 31, 746, 490 electorates voted but with less than 3 Million marginal votes that secured the mandate in favour of the current administration and the rest of the populace, 120 Million or thereabout were not voters, let no one in government feels too important to take the masses for granted, yesterday has passed, today is the reality, tomorrow is either mere hope, dream or vision.

The reminder of the marginal victory of President Muhammadu Buhari at the last poll comes to fore, just to caution some of his allies who are gradually growing wings and becoming arrogant, with their perfectionists stance to government policies and unfounded believe of riding on populace heavy strength to Aso Rock, there is a limit to every stretch, one Anti-Masses Policy today, others tomorrow, will fetch peoples anger as witnessed in the past.  To remain in the good book of the populace, their interest must be collectively ultimate in our minds; else the people have means of correcting their mistakes, even with worse mistakes, while they care less, in their carelessness.  

Among the strong support base of the present administration before Presidential Elections and after, were key leaders of Nigeria Labour Congress and notable Civil Society Organisations but today, due to the opposition of the Nigeria Labour Congress to the new #145 petrol pump price announced by government, the Non-State Actors and other government frontiers have commenced actions to break the ranks of NLC over a call for Industrial Strike Action to call the government to order and seek a reversal of the new pump price.

It was the regime of General Ibrahim Badamasi Babangida that successfully weakened the strength of Nigeria Labour Congress before the emergence of Adams Oshiomole that restored the strength of the Congress, as platform for agitations in the best interest of the workforce primarily and the rest of the people secondarily. NLC Leadership has been alleged of several goofs and inactions in their line of duties and calls have been made to discountenance their moves to make the government accountable for the policy, but should we hold the new leadership of NLC accountable for the alleged errors of previous leadership.

In the same manner the adherents of the policies of this present administration strives hard to exonerate present administration led by President Muhammadu Buhari, from all the calamities befalling this Country inherited from previous administrations, in the same manner we must exonerate the present leadership of the Nigeria Labour Congress led by Comrade Aliyu Wabba for inherited liabilities from his predecessors, except we chose to be hypocritical and the issue at stake is a ground for credible comparison.

Some voices resonate than others, the platforms of NLC and Coalition of Civil Society Organisations under the coordination of Joint Action Front have provided several candors for the oppressed citizens in the past, in my humble view, the only offence of present NLC Leadership could be their genuine reasons for craving of masses support for the administration of President Muhammadu Buhari especially the Anti-Corruption Crusade, well applauded by government and their cronies, only to attempt to demonize NLC and denigrate their image, for opposing the government at this critical time they gladly offers their platform to agitate for the rights of the suffering and groaning masses. NLC must not be destroyed, they have outlived many admistrations and their importance to the polity outweighs their irrelevances, they are indispensable and their opinions matters greatly to the progress of this Country. 

Where the opposition of a section of the public to the new petrol pump price is tied to the timing, they echoed that the present hardship will multiply with the policy, we respect their thoughts, though with reservations, others are pursuing vendetta over the roles of several actors of this government against same policy years ago, we respect their thoughts as well, but with deeper reservations. In our opposition to the new petrol pump price, we consider the fact that the full deregulation of the oil downstream sector is long overdue and no time is odd for such an onerous task, but the masses must not be exploited in that process.

We are not disputing the fact that Oil Subsidy amounts to fraud by the Independent Oil Marketers and we are aware that the 2016 Budget did not provides for subsidy, but our grouse with the new petrol pump price is the lack of sincerity by the Management of the Nigeria National Petroleum Corporation. NNPC claimed government have stopped payment of subsidy to oil marketers since January and Nigerians have groaned, but survived that era of intense scarcity and hording of Petrol, where black marketers reigned excessively without appropriate check by the government.

It is not the first time that the Minister of State for Petroleum will be drawing the irk of the masses against the government on petrol issue, but the latest petrol pump price is an abuse of the resilience of the masses that strained themselves and survive the onslaughts of the oil marketers that sold at a range of #190 to #290 per litre informed the decision of government to pronounce the new price regime of #145, with the mindsets that Nigerians can afford to purchase at that price, going the beer palour analysis of the President Obasanjo administration that: if Nigerians can afford to buy a bottle of beer for #150, then they should be able to buy petrol at same rate.

It is against common sense for NNPC to be selling Petrol at 145 Naira as control price and expects other filling stations to sell at the same price without strict monitoring on compliance. Deregulation or open market, it doesn't make sense that black marketers are smiling heavily now, and for any person with affinity or link to this administration to feel the new price regulation is right, you need to think of posterity. Less than 2 hours after the announcement of the new Petrol Pump Price under the guise of deregulation, NNPC started selling at 140 and now 145 naira against 87 Naira. Is NNPC selling new stock or old stock to justify their pump price, we are sure NNPC sold fuel to Nigerians at 145 naira from an existing fuel bank sold at 87 naira before the pronouncement of the new price or how many new arrivals of fuel has occurred in the last few days to justify the action of NNPC, the worst scenario is the fact that most Filling Stations are selling at #160 and above without check by government. Petrol is now available but at exorbitant prices created by lack of machineries to enforce the regulated price with appropriate sanctions against defaulters. 
Dear lovers of APC and President Buhari, tell Mr President the truth, the management of NNPC must not be shrouded in secrecy, Nigerians are been duped, the acclaimed peoples’ government acted wrongly by announcing that killing price, if truly the action was full deregulation, NNPC would have allowed market to determine the price itself. It is imperative for government to keep her respect or lose it wrongly with this policy, government only listened to the presentations of the Management of NNPC without considering other salient facts outside government scope, NNPC Management only expanded their profit range by announcing the new pump price of #145, was NNPC doing the masses favour from January till days ago that they sold at #87 or they were just managing the situation till they got stranded and took the hook off their neck and with faulty analysis attempt to coarse the general public to believe the best pump price is #145 per litre.

We need to know how much gain NNPC is making by selling at #145 or are they still selling at loss, so that we get prepared for higher price soonest, after all we have deregulated and the market can force the price to go as higher as #200 per litre. Some people with retarded knowledge on the crux of the issue at stake attempt to brainwash the general public by making reference to the price of Sim Cards at exorbitant rates years ago in comparison with oil deregulation, what a warped logic. If NNPC that regulated the petrol pump price at #145 per litre under a false claim of total deregulation failed to sell far below that price, then one of the core aims of deregulation is already defeated with the failure of NNPC to provide efficient leadership that can force the market towards a downward price.

The alibi of government is the newly passed Federal Budget which they believe will gain public support and sympathy, as they showcase projects executions and other productive actions of government before the general public, this ideology has its ferocious implication, if the mindsets of the masses don’t align with the projects eventually executed by government, this become sacrosanct with the lack of will by government to pronounce this policy since December 2015 that this crisis has lingered.

Our ultimate concern is that the secrecy shrouded in the operation and management of NNPC must be unraveled in the best interest of Nigeria, the Minister of States opined our refineries will function at optimal productivity level in six months time and he concluded that point will reverse the new price regulation and earn applause for government and if that fails and the exchange rates remain continuously high as present, then he might kill the good image of this administration by this uninformed and misleading policy.

Mass Action for God Governance and Grassroots Development in Nigeria strongly aligns with the call for Mass Actions and Industrial Strikes, by the fronts of genuine struggles- Joint Action Fronts, Nigeria Labour Congress, Trade Union Congress and frontline Civil Society Organisations, in the best interest of the masses. Government must be held accountable and responsible for their actions, the same manner government stakeholders met briefly to announce a new petrol pump price without respect for the concerns of the poor masses, that same way, JAF, NLC, TUC and the rest of us must demand explanations from government.

Contrary to our expectations that the administration of President Muhammadu Buhari would combat corruption without pity and imprison the looters of our common wealth, over 11 Months now, no one is found guilty yet, simply because the President is meticulous and doesn’t want to be labeled as Anti-Democratic or influencing the Judiciary, but that same government is courageous enough not to pity commoners,  I don’t blame Mr President as we remain very loyal, but we will resist any Anti-Peoples Policy.
Signed: 

Comrade AbdulRahman Agboola   Comrade Salahudeen Luqman                                                   
National Coordinator,              Secretary
Mass Action for Good Governance and Grassroots Developments in Nigeria
E-mail: [email protected] 08032813279

          







As core loyalists of the present administration of President Muhammadu Buhari, in the face of diverse reactions over the petrol pump price recently announced by the Federal Government, silence would have been golden, especially when other co-loyalists have declared their unalloyed support to the policy, but our background doesn’t permit neutrality, we strongly align with the maxim that states that the darkest places in hell are reserved for those who maintain their neutrality in times of moral crisis.

 Expressing views, thoughts and actions at variance with allies could be catastrophic to long built relationships, but leaning towards truth and conscientious deeds provides succor when arguments that could hamper friendship surface and the wave of the moment is a pointer towards that direction, but the beauty of the World is that, Allies today, Enemies tomorrow, the World is a complex place.

It is a common fact that most Nigerians don’t understand the workings of democracy, instead of dissecting issues as it relates to public good, they have too much respect for affinity with people in power and not to be regarded as antagonists, they often admit government policies hook line and sinker, mostly when relationship exist and the rest of the people are declared as opposition whose opinions doesn’t worth to be heard out.

The opposition party is nonexistent in Nigeria as of today, the Peoples Democratic Party is worth just a tissue paper, bunch of misguided elements with no analytical minds and sound intellectual prowess to oppose government policies, compared with what was witnessed when the ruling party was the opposition. In the old order, by now, the heat would have been very unbearable for the government and the best the PDP Platform could offer to the masses as opposition party, is to accuse the actors of the present administration of accepting the removal of subsidies they opposed years ago as opposition, what a shame to the shameless looters of our commonwealth that put us in the present economic mess.

APC emerged with promises of running a Peoples’ Government where the interest of the common man will be protected, it was on this premise that victory of APC was secured through all means possible at the last Presidential Election, it was more of struggle among gladiators backed majority of the electorates that secured the victory in a keenly contested Presidential Election where 31, 746, 490 electorates voted but with less than 3 Million marginal votes that secured the mandate in favour of the current administration and the rest of the populace, 120 Million or thereabout were not voters, let no one in government feels too important to take the masses for granted, yesterday has passed, today is the reality, tomorrow is either mere hope, dream or vision.

The reminder of the marginal victory of President Muhammadu Buhari at the last poll comes to fore, just to caution some of his allies who are gradually growing wings and becoming arrogant, with their perfectionists stance to government policies and unfounded believe of riding on populace heavy strength to Aso Rock, there is a limit to every stretch, one Anti-Masses Policy today, others tomorrow, will fetch peoples anger as witnessed in the past.  To remain in the good book of the populace, their interest must be collectively ultimate in our minds; else the people have means of correcting their mistakes, even with worse mistakes, while they care less, in their carelessness.  

Among the strong support base of the present administration before Presidential Elections and after, were key leaders of Nigeria Labour Congress and notable Civil Society Organisations but today, due to the opposition of the Nigeria Labour Congress to the new #145 petrol pump price announced by government, the Non-State Actors and other government frontiers have commenced actions to break the ranks of NLC over a call for Industrial Strike Action to call the government to order and seek a reversal of the new pump price.

It was the regime of General Ibrahim Badamasi Babangida that successfully weakened the strength of Nigeria Labour Congress before the emergence of Adams Oshiomole that restored the strength of the Congress, as platform for agitations in the best interest of the workforce primarily and the rest of the people secondarily. NLC Leadership has been alleged of several goofs and inactions in their line of duties and calls have been made to discountenance their moves to make the government accountable for the policy, but should we hold the new leadership of NLC accountable for the alleged errors of previous leadership.

In the same manner the adherents of the policies of this present administration strives hard to exonerate present administration led by President Muhammadu Buhari, from all the calamities befalling this Country inherited from previous administrations, in the same manner we must exonerate the present leadership of the Nigeria Labour Congress led by Comrade Aliyu Wabba for inherited liabilities from his predecessors, except we chose to be hypocritical and the issue at stake is a ground for credible comparison.

Some voices resonate than others, the platforms of NLC and Coalition of Civil Society Organisations under the coordination of Joint Action Front have provided several candors for the oppressed citizens in the past, in my humble view, the only offence of present NLC Leadership could be their genuine reasons for craving of masses support for the administration of President Muhammadu Buhari especially the Anti-Corruption Crusade, well applauded by government and their cronies, only to attempt to demonize NLC and denigrate their image, for opposing the government at this critical time they gladly offers their platform to agitate for the rights of the suffering and groaning masses. NLC must not be destroyed, they have outlived many admistrations and their importance to the polity outweighs their irrelevances, they are indispensable and their opinions matters greatly to the progress of this Country. 

Where the opposition of a section of the public to the new petrol pump price is tied to the timing, they echoed that the present hardship will multiply with the policy, we respect their thoughts, though with reservations, others are pursuing vendetta over the roles of several actors of this government against same policy years ago, we respect their thoughts as well, but with deeper reservations. In our opposition to the new petrol pump price, we consider the fact that the full deregulation of the oil downstream sector is long overdue and no time is odd for such an onerous task, but the masses must not be exploited in that process.

We are not disputing the fact that Oil Subsidy amounts to fraud by the Independent Oil Marketers and we are aware that the 2016 Budget did not provides for subsidy, but our grouse with the new petrol pump price is the lack of sincerity by the Management of the Nigeria National Petroleum Corporation. NNPC claimed government have stopped payment of subsidy to oil marketers since January and Nigerians have groaned, but survived that era of intense scarcity and hording of Petrol, where black marketers reigned excessively without appropriate check by the government.

It is not the first time that the Minister of State for Petroleum will be drawing the irk of the masses against the government on petrol issue, but the latest petrol pump price is an abuse of the resilience of the masses that strained themselves and survive the onslaughts of the oil marketers that sold at a range of #190 to #290 per litre informed the decision of government to pronounce the new price regime of #145, with the mindsets that Nigerians can afford to purchase at that price, going the beer palour analysis of the President Obasanjo administration that: if Nigerians can afford to buy a bottle of beer for #150, then they should be able to buy petrol at same rate.

It is against common sense for NNPC to be selling Petrol at 145 Naira as control price and expects other filling stations to sell at the same price without strict monitoring on compliance. Deregulation or open market, it doesn't make sense that black marketers are smiling heavily now, and for any person with affinity or link to this administration to feel the new price regulation is right, you need to think of posterity. Less than 2 hours after the announcement of the new Petrol Pump Price under the guise of deregulation, NNPC started selling at 140 and now 145 naira against 87 Naira. Is NNPC selling new stock or old stock to justify their pump price, we are sure NNPC sold fuel to Nigerians at 145 naira from an existing fuel bank sold at 87 naira before the pronouncement of the new price or how many new arrivals of fuel has occurred in the last few days to justify the action of NNPC, the worst scenario is the fact that most Filling Stations are selling at #160 and above without check by government. Petrol is now available but at exorbitant prices created by lack of machineries to enforce the regulated price with appropriate sanctions against defaulters. 
Dear lovers of APC and President Buhari, tell Mr President the truth, the management of NNPC must not be shrouded in secrecy, Nigerians are been duped, the acclaimed peoples’ government acted wrongly by announcing that killing price, if truly the action was full deregulation, NNPC would have allowed market to determine the price itself. It is imperative for government to keep her respect or lose it wrongly with this policy, government only listened to the presentations of the Management of NNPC without considering other salient facts outside government scope, NNPC Management only expanded their profit range by announcing the new pump price of #145, was NNPC doing the masses favour from January till days ago that they sold at #87 or they were just managing the situation till they got stranded and took the hook off their neck and with faulty analysis attempt to coarse the general public to believe the best pump price is #145 per litre.

We need to know how much gain NNPC is making by selling at #145 or are they still selling at loss, so that we get prepared for higher price soonest, after all we have deregulated and the market can force the price to go as higher as #200 per litre. Some people with retarded knowledge on the crux of the issue at stake attempt to brainwash the general public by making reference to the price of Sim Cards at exorbitant rates years ago in comparison with oil deregulation, what a warped logic. If NNPC that regulated the petrol pump price at #145 per litre under a false claim of total deregulation failed to sell far below that price, then one of the core aims of deregulation is already defeated with the failure of NNPC to provide efficient leadership that can force the market towards a downward price.

The alibi of government is the newly passed Federal Budget which they believe will gain public support and sympathy, as they showcase projects executions and other productive actions of government before the general public, this ideology has its ferocious implication, if the mindsets of the masses don’t align with the projects eventually executed by government, this become sacrosanct with the lack of will by government to pronounce this policy since December 2015 that this crisis has lingered.

Our ultimate concern is that the secrecy shrouded in the operation and management of NNPC must be unraveled in the best interest of Nigeria, the Minister of States opined our refineries will function at optimal productivity level in six months time and he concluded that point will reverse the new price regulation and earn applause for government and if that fails and the exchange rates remain continuously high as present, then he might kill the good image of this administration by this uninformed and misleading policy.

Mass Action for God Governance and Grassroots Development in Nigeria strongly aligns with the call for Mass Actions and Industrial Strikes, by the fronts of genuine struggles- Joint Action Fronts, Nigeria Labour Congress, Trade Union Congress and frontline Civil Society Organisations, in the best interest of the masses. Government must be held accountable and responsible for their actions, the same manner government stakeholders met briefly to announce a new petrol pump price without respect for the concerns of the poor masses, that same way, JAF, NLC, TUC and the rest of us must demand explanations from government.

Contrary to our expectations that the administration of President Muhammadu Buhari would combat corruption without pity and imprison the looters of our common wealth, over 11 Months now, no one is found guilty yet, simply because the President is meticulous and doesn’t want to be labeled as Anti-Democratic or influencing the Judiciary, but that same government is courageous enough not to pity commoners,  I don’t blame Mr President as we remain very loyal, but we will resist any Anti-Peoples Policy.
Signed: 

Comrade AbdulRahman Agboola   Comrade Salahudeen Luqman                                                   
National Coordinator,              Secretary
Mass Action for Good Governance and Grassroots Developments in Nigeria
E-mail: [email protected] 08032813279

          







Fuel Hike: NLC, TUC Planned STRIKE Cripples As Private sector, Aviation Workers, Back Out

Fuel Hike: NLC, TUC Planned STRIKE Cripples As Private sector, Aviation Workers, Back Out

The planned industrial action by the Nigeria Labour Congress, NLC, The Trade Union Congress, TUC and other affiliate trade unions may have already begun to cripple barely three days to the commencement as the umbrella body for private-sector workers, Nigeria Employers’ Consultative Association, NECA, and that of aviation workers, National Association of Aircraft Pilots and Engineers, NAAPE, have backed out of the planned strike, Orijo Reporters says


Describing the federal government’s latest decision on the oil sector, and the attendant price hike as a welcome development that will grow the economy and free the country from the firm grip of cabal, the Director General, NECA, Mr. Olusegun Oshinowo said: “the policy is a crucial first step in the resolution of the perennial dependence of Nigeria on imported petroleum products.”

Mr. Oshinwo said NECA’s members saw the merit in the attempt by the federal government to tilt towards deregulating the oil sector, and stood by them on it.

He called on the association’s members to shun the Labour planned strike slated for Wednesday.

In a similar vein, the umbrella body of pilots and aircraft engineers, the National Association of Aircraft Pilots and Engineers (NAAPE), on Sunday, unanimously expressed their resolve to back out from the planned strike on the premise that the federal government’s move on the fuel price hike was commendable, adding that oil subsidy was a fraud.

“As far as we are concerned, Nigerians should go ahead with their travel plans. The truth is that the industry itself is already being affected by the current challenges in the country and any move to shut down the aviation sector will lead to a total collapse of the sector.

“The government should use the money that will be saved to put in place infrastructures that will create jobs for Nigerians; ensuring that our refineries are working optimally, and encouraging local production to ameliorate the temporary hardship the citizen are going through.

“We need more jobs to be created for our pilots and engineers, while reiterating our unalloyed support for this novel and bold decision the federal government has taken to secure the future of Nigeria,” NAAPE President, Isaac Balami, said.

It would be recalled that the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), supported the federal government’s decision to stop the payment of petrol subsidy.

Latest Related News: Under Pressure FG Agrees To Reduce Petrol Price To ... Over Workers' Threat To Shutdown The Economy

The planned industrial action by the Nigeria Labour Congress, NLC, The Trade Union Congress, TUC and other affiliate trade unions may have already begun to cripple barely three days to the commencement as the umbrella body for private-sector workers, Nigeria Employers’ Consultative Association, NECA, and that of aviation workers, National Association of Aircraft Pilots and Engineers, NAAPE, have backed out of the planned strike, Orijo Reporters says


Describing the federal government’s latest decision on the oil sector, and the attendant price hike as a welcome development that will grow the economy and free the country from the firm grip of cabal, the Director General, NECA, Mr. Olusegun Oshinowo said: “the policy is a crucial first step in the resolution of the perennial dependence of Nigeria on imported petroleum products.”

Mr. Oshinwo said NECA’s members saw the merit in the attempt by the federal government to tilt towards deregulating the oil sector, and stood by them on it.

He called on the association’s members to shun the Labour planned strike slated for Wednesday.

In a similar vein, the umbrella body of pilots and aircraft engineers, the National Association of Aircraft Pilots and Engineers (NAAPE), on Sunday, unanimously expressed their resolve to back out from the planned strike on the premise that the federal government’s move on the fuel price hike was commendable, adding that oil subsidy was a fraud.

“As far as we are concerned, Nigerians should go ahead with their travel plans. The truth is that the industry itself is already being affected by the current challenges in the country and any move to shut down the aviation sector will lead to a total collapse of the sector.

“The government should use the money that will be saved to put in place infrastructures that will create jobs for Nigerians; ensuring that our refineries are working optimally, and encouraging local production to ameliorate the temporary hardship the citizen are going through.

“We need more jobs to be created for our pilots and engineers, while reiterating our unalloyed support for this novel and bold decision the federal government has taken to secure the future of Nigeria,” NAAPE President, Isaac Balami, said.

It would be recalled that the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), supported the federal government’s decision to stop the payment of petrol subsidy.

Latest Related News: Under Pressure FG Agrees To Reduce Petrol Price To ... Over Workers' Threat To Shutdown The Economy

Why I Withdrew My Support For 'The Demon' Veiled As Subsidy - Tinubu Tells It All

Why I Withdrew My Support For 'The Demon' Veiled As Subsidy - Tinubu Tells It All

The vocal national leader of the ruling All progressives Congress, APC, Asiwaju Bola Ahmed Tinubu has once again lend his voice in support of the Federal Government's decision to end the subsidy regime when it announced few days ago that the Premium Motor Spirit, PMS, popularly known as petrol would hence be sold at N145 against the initial pump price of N87/per in the new deregulated price regime. 

Tinubu via his personal confirmed twitter handle, @AsiwajuTinubu confirmed that though he was truly a proponent of subsidy regime, but current reality has made him redecided against it. The APC henchman in several tweets minutes ago opined that Instead, it is better to end the subsidy and use the funds to establish well-targeted anti-poverty programs that actually assist the people. 

Tinubu said; "For some time, I have been a proponent of this action. I believed ending of subsidy was the only sure way to put to sleep the myriad demons that had invaded the subsidy process, sucking the blood of Nigeria, swallowing much of our needed money" 

"I am hopeful but also realistic about this measure. I am also mindful of D situation of our people.This change will mean higher fuel costs I would be lying if I said this will cause no pain or dislocation."

" However, the day, hours of waiting for fuel will be a thing of the past. Thus, I ask everyone to take a step back to coolly and objectively assess what has been decided." 

"We must not make the mistake of allowing our political and sympathetic attachment to the subsidy blind us to the hard fact that the purpose and benefits of the subsidy had long ago been taken from the common man to reside in the purse of an elite few."

'We cannot persist in this imbalance Instead, it is better to end the subsidy and use the funds to establish well-targeted anti-poverty programs that actually assist the people"

See some of Tinubu's Tweets:












Tinubu was a strong supporter of subsidy regime, especially during the reign of former President Goodluck Jonathan.
The vocal national leader of the ruling All progressives Congress, APC, Asiwaju Bola Ahmed Tinubu has once again lend his voice in support of the Federal Government's decision to end the subsidy regime when it announced few days ago that the Premium Motor Spirit, PMS, popularly known as petrol would hence be sold at N145 against the initial pump price of N87/per in the new deregulated price regime. 

Tinubu via his personal confirmed twitter handle, @AsiwajuTinubu confirmed that though he was truly a proponent of subsidy regime, but current reality has made him redecided against it. The APC henchman in several tweets minutes ago opined that Instead, it is better to end the subsidy and use the funds to establish well-targeted anti-poverty programs that actually assist the people. 

Tinubu said; "For some time, I have been a proponent of this action. I believed ending of subsidy was the only sure way to put to sleep the myriad demons that had invaded the subsidy process, sucking the blood of Nigeria, swallowing much of our needed money" 

"I am hopeful but also realistic about this measure. I am also mindful of D situation of our people.This change will mean higher fuel costs I would be lying if I said this will cause no pain or dislocation."

" However, the day, hours of waiting for fuel will be a thing of the past. Thus, I ask everyone to take a step back to coolly and objectively assess what has been decided." 

"We must not make the mistake of allowing our political and sympathetic attachment to the subsidy blind us to the hard fact that the purpose and benefits of the subsidy had long ago been taken from the common man to reside in the purse of an elite few."

'We cannot persist in this imbalance Instead, it is better to end the subsidy and use the funds to establish well-targeted anti-poverty programs that actually assist the people"

See some of Tinubu's Tweets:












Tinubu was a strong supporter of subsidy regime, especially during the reign of former President Goodluck Jonathan.

TOP SECRET: How Kachikwu, Governors Pressured, Forced 'Helpless' Buhari To Hike Fuel Price

TOP SECRET: How Kachikwu, Governors Pressured, Forced 'Helpless' Buhari To Hike Fuel Price

An untold top secret has emerged on how the Junior Minister on Petroleum, Dr. Ibe Kachikwu in connivance with State governors mount undue pressure on President Muhammadu Buhari, thereby forcing the later to support the infectious hike of Petroleum pump price.

A top government official told journalists in Abuja last night that Buhari eventually succumbed  to hike fuel price from N86.50 to N145 per litre on the pressure mounted him by Kachikwu and governors, Daily Trust on Sunday reported

According to our source, the official, who pleaded anonymity, said Buhari, who was concerned about the effect of fuel price hike on the average Nigerian, had strongly resisted the proposal by Kachikwu for several months but “succumbed reluctantly this month when he (Buhari) was presented with the stark reality of the dropping oil earnings and foreign reserves situation.”

The official said apart from this, “pressure from state governors whose allocation from FAAC has been dropping was also a significant factor that swayed the president.”

He said Buhari would not have agreed to the new fuel pricing regime if he had not been presented with the compelling evidence that Nigeria’s declining foreign earnings from oil would be further devastated unless independent oil marketers and other interested entities are encouraged to import fuel.

He said: “The amount required for fuel importation alone will easily take about more than half of the $550m foreign earnings. If the country continues doing that the oil revenue left for FAAC sharing would be significantly reduced with the possibility that a situation where there would be nothing left to share between federal government, states and local governments exists in the near future.

“Although NNPC is meant to supply only 50 per cent of the local fuel supply and independent marketers making up the balance, none of the marketers has been able to source forex from the CBN this year and therefore cannot sell at the prevailing price regime and make a profit. If the federal government continues with NNPC alone importing oil, and trying to fill the gap left by the independent marketers by dedicating more export crude for domestic consumption, the depleting impact on the oil earnings would continue to worsen. And when this is added to the fact that already about 27 states cannot pay salaries because of the dwindling foreign earnings, the situation becomes even worse. Even some oil producing states like Bayelsa are affected,” he said.

He added: “With the drastic reduction in the foreign earnings in April, what would be shared at the next FAAC is expected to be the least ever, when the meagre $550m oil earnings are converted to Naira. The sharp reduction in government revenue particularly from oil earnings due to low price regime in the international market has been exacerbated by domestic factors such as recent sabotage by disgruntled and faceless militants in the Niger Delta”.

An untold top secret has emerged on how the Junior Minister on Petroleum, Dr. Ibe Kachikwu in connivance with State governors mount undue pressure on President Muhammadu Buhari, thereby forcing the later to support the infectious hike of Petroleum pump price.

A top government official told journalists in Abuja last night that Buhari eventually succumbed  to hike fuel price from N86.50 to N145 per litre on the pressure mounted him by Kachikwu and governors, Daily Trust on Sunday reported

According to our source, the official, who pleaded anonymity, said Buhari, who was concerned about the effect of fuel price hike on the average Nigerian, had strongly resisted the proposal by Kachikwu for several months but “succumbed reluctantly this month when he (Buhari) was presented with the stark reality of the dropping oil earnings and foreign reserves situation.”

The official said apart from this, “pressure from state governors whose allocation from FAAC has been dropping was also a significant factor that swayed the president.”

He said Buhari would not have agreed to the new fuel pricing regime if he had not been presented with the compelling evidence that Nigeria’s declining foreign earnings from oil would be further devastated unless independent oil marketers and other interested entities are encouraged to import fuel.

He said: “The amount required for fuel importation alone will easily take about more than half of the $550m foreign earnings. If the country continues doing that the oil revenue left for FAAC sharing would be significantly reduced with the possibility that a situation where there would be nothing left to share between federal government, states and local governments exists in the near future.

“Although NNPC is meant to supply only 50 per cent of the local fuel supply and independent marketers making up the balance, none of the marketers has been able to source forex from the CBN this year and therefore cannot sell at the prevailing price regime and make a profit. If the federal government continues with NNPC alone importing oil, and trying to fill the gap left by the independent marketers by dedicating more export crude for domestic consumption, the depleting impact on the oil earnings would continue to worsen. And when this is added to the fact that already about 27 states cannot pay salaries because of the dwindling foreign earnings, the situation becomes even worse. Even some oil producing states like Bayelsa are affected,” he said.

He added: “With the drastic reduction in the foreign earnings in April, what would be shared at the next FAAC is expected to be the least ever, when the meagre $550m oil earnings are converted to Naira. The sharp reduction in government revenue particularly from oil earnings due to low price regime in the international market has been exacerbated by domestic factors such as recent sabotage by disgruntled and faceless militants in the Niger Delta”.

Fuel Price Hike: Naira Falls YAKATA Against The Dollar

Fuel Price Hike: Naira Falls YAKATA Against The Dollar

Following the hike in pump prices of Petroleum products, the naira has drastically fallen against the United Stae dollar in parallel markets.

As at yesterday, the dollar was exchanged at the rate of N365 to a dollar at parallel markets as fuel price hits N145 per litre, Daily Trust Newspaper confirms from Bureau De Change operators

As reported by Daily Trust, a source, who craved anonymity, recounted how the exchange rate spiked said, before news broke that the new fuel price will be N145 per liter on Wednesday, a dollar was bought at the rate of N320 and sold at N323. But when the news went public by the evening, the dollar became scarce. 

By Thursday, the dollar was exchanging at N324 or N325 and sold at N330. But by the evening, it was bought at N330 and sold N340, Daily Trust gathered. However, there was no established standard buying price by yesterday morning and before evening, the dollar was selling at N363.  

On why the exchanged rate rose, one of our sources said: “The information we got was that government has authorised businessmen to source for their own forex to import fuel and not sell above N145 per liter.” He added that many people were leaving the foreign exchange business because their primary source of forex was from the government. 

“We buy from government and sell in the industry. Now the business is not thriving and many of us, including myself have gone into other businesses. I only do business with those that call me to find out about the market and I get my commission. The business is no longer attractive. It is a saturated market.” he said.

Following the hike in pump prices of Petroleum products, the naira has drastically fallen against the United Stae dollar in parallel markets.

As at yesterday, the dollar was exchanged at the rate of N365 to a dollar at parallel markets as fuel price hits N145 per litre, Daily Trust Newspaper confirms from Bureau De Change operators

As reported by Daily Trust, a source, who craved anonymity, recounted how the exchange rate spiked said, before news broke that the new fuel price will be N145 per liter on Wednesday, a dollar was bought at the rate of N320 and sold at N323. But when the news went public by the evening, the dollar became scarce. 

By Thursday, the dollar was exchanging at N324 or N325 and sold at N330. But by the evening, it was bought at N330 and sold N340, Daily Trust gathered. However, there was no established standard buying price by yesterday morning and before evening, the dollar was selling at N363.  

On why the exchanged rate rose, one of our sources said: “The information we got was that government has authorised businessmen to source for their own forex to import fuel and not sell above N145 per liter.” He added that many people were leaving the foreign exchange business because their primary source of forex was from the government. 

“We buy from government and sell in the industry. Now the business is not thriving and many of us, including myself have gone into other businesses. I only do business with those that call me to find out about the market and I get my commission. The business is no longer attractive. It is a saturated market.” he said.

N145 New Fuel Price Hike NOT About Subsidy REMOVAL - VP Osinbajo

N145 New Fuel Price Hike NOT About Subsidy REMOVAL - VP Osinbajo

Vice President Yemi Osinbajo yesterday alleged “many misconceptions” about the new petrol price of N145 per litre, stressing that  the new regime has nothing to do with subsidy removal.

The new price came into effect on Wednesday from the former N86.50

Osinbajo, is a statement titled ‘The Fuel Pricing Debate: Our Story’ and  personally signed by him, said the price was caused essentially by  foreign exchange problem in the face of dwindling earnings.

He said: “I have read the various observations about the fuel pricing regime and the attendant issues generated. All certainly have strong points.

“The most important issue of course is how to shield the poor from the worst effects of the policy.  I will hopefully address that in another note.

“Permit me an explanation of the policy. First, the real issue  is not a removal of subsidy. At $40 a barrel there isn’t much of a subsidy to remove.

“In any event, the President is probably one of the most convinced pro-subsidy advocates.

“What happened is as follows: our local consumption of fuel is almost entirely imported. The NNPC exchanges crude from its joint venture share to provide about 50% of local fuel consumption. The remaining 50% is imported by major and independent marketers.

“These marketers, up until three months ago, sourced their foreign exchange from the Central Bank of Nigeria at the official rate. However, since late last year, independent marketers have brought in little or no fuel because they have been unable to get foreign exchange from the CBN. The CBN simply did not have enough. (In April, oil earnings dipped to $550 million. The amount required for fuel importation alone is about $225million!) .

“Meanwhile, NNPC tried to cover the 50% shortfall by dedicating more export crude for domestic consumption. Besides the short term depletion of the Federation Account, which is where the FG and States are paid from, and further cash-call debts pilling up, NNPC also lacked the capacity to distribute 100% of local consumption around the country. Previously, they were responsible for only about 50%. (Partly the reason for the lingering scarcity).”

He said that the government realised that it was left with only one option: to allow independent marketers and any Nigerian entity to source their own foreign exchange and import fuel.

Accordingly, government expected the marketers  to source foreign exchange at an average of about N285 to the dollar, (current interbank rate).

“They would then be restricted to selling at a price between N135 and N145 per litre,” he said.

“We expect that with competition, more private refineries, and NNPC refineries working at full capacity, prices will drop considerably. Our target is that by Q4 2018 we should be producing 70% of our fuel needs locally. At the moment, even if all the refineries are working optimally, they will produce just about 40% of our domestic fuel needs.

“You will notice that I have not mentioned other details of the PPPRA cost template. I wanted to focus on the cost component largely responsible for the substantial rise, namely foreign exchange. This is therefore not a subsidy removal issue but a foreign exchange problem, in the face of dwindling earnings.”
Vice President Yemi Osinbajo yesterday alleged “many misconceptions” about the new petrol price of N145 per litre, stressing that  the new regime has nothing to do with subsidy removal.

The new price came into effect on Wednesday from the former N86.50

Osinbajo, is a statement titled ‘The Fuel Pricing Debate: Our Story’ and  personally signed by him, said the price was caused essentially by  foreign exchange problem in the face of dwindling earnings.

He said: “I have read the various observations about the fuel pricing regime and the attendant issues generated. All certainly have strong points.

“The most important issue of course is how to shield the poor from the worst effects of the policy.  I will hopefully address that in another note.

“Permit me an explanation of the policy. First, the real issue  is not a removal of subsidy. At $40 a barrel there isn’t much of a subsidy to remove.

“In any event, the President is probably one of the most convinced pro-subsidy advocates.

“What happened is as follows: our local consumption of fuel is almost entirely imported. The NNPC exchanges crude from its joint venture share to provide about 50% of local fuel consumption. The remaining 50% is imported by major and independent marketers.

“These marketers, up until three months ago, sourced their foreign exchange from the Central Bank of Nigeria at the official rate. However, since late last year, independent marketers have brought in little or no fuel because they have been unable to get foreign exchange from the CBN. The CBN simply did not have enough. (In April, oil earnings dipped to $550 million. The amount required for fuel importation alone is about $225million!) .

“Meanwhile, NNPC tried to cover the 50% shortfall by dedicating more export crude for domestic consumption. Besides the short term depletion of the Federation Account, which is where the FG and States are paid from, and further cash-call debts pilling up, NNPC also lacked the capacity to distribute 100% of local consumption around the country. Previously, they were responsible for only about 50%. (Partly the reason for the lingering scarcity).”

He said that the government realised that it was left with only one option: to allow independent marketers and any Nigerian entity to source their own foreign exchange and import fuel.

Accordingly, government expected the marketers  to source foreign exchange at an average of about N285 to the dollar, (current interbank rate).

“They would then be restricted to selling at a price between N135 and N145 per litre,” he said.

“We expect that with competition, more private refineries, and NNPC refineries working at full capacity, prices will drop considerably. Our target is that by Q4 2018 we should be producing 70% of our fuel needs locally. At the moment, even if all the refineries are working optimally, they will produce just about 40% of our domestic fuel needs.

“You will notice that I have not mentioned other details of the PPPRA cost template. I wanted to focus on the cost component largely responsible for the substantial rise, namely foreign exchange. This is therefore not a subsidy removal issue but a foreign exchange problem, in the face of dwindling earnings.”

Fuel Subsidy: National Youth Council Of Nigeria REJECTS N145 New Fuel Price - Press Statement

Fuel Subsidy: National Youth Council Of Nigeria REJECTS N145 New Fuel Price - Press Statement

NATIONAL YOUTH COUNCIL OF NIGERIA
NATIONAL SECRETARIAT, ABUJA
12th May, 2016
PRESS RELEASE:
CLARION CALL ON FEDERAL GOVERNMENT FOR A REVIEW OF NEW PMS 145 NAIRA PUMP PRICE


Governance is ultimately about the interest of the entire populace, democracy as a form of government compels government to ensure policies are formulated not only to strengthen the authorities or protect the incapacitations of people in power but to ensure the masses are not thrown into servitude and penury as a result of government policies.


As the umbrella body of the entire Youths of Nigeria and the mouthpiece of the most vulnerable to the hardship to trail the new policy on the pump price of petrol designed to ensure the complete deregulation of the downstream sector, we view the policy as antithetical to the real purpose of deregulation. Deregulation is a process of removing constraints, in real sense, it is defined as government-imposed economic regulation aimed at protecting the interest of the governed against exploitations and threats.


Every successive government since 1976 have mismanaged the Petroleum Industry, our government has failed to maximize the opportunities offered to this Country as a large Oil Producing Country where the Pump Prices of Petrol Products ought to be available for domestic consumption at lowest rate which will facilitate ease of commodities, trades cum purchase and supply.


Instead of government to ensure the availability of our abundant natural resources to create comfort for the masses, a high level of retardation has traded the handling of petroleum products by allowing some oil cabals to determine the fates of the masses with the malfunctioning of local refineries. Oil subsidy payment to oil marketers have been a subject of review over the years, previous attempt to remove the subsidy failed as it translated to higher cost of purchase at pump price which informs our extensive study of the intricacies surrounding the oil subsidy and deregulation of the oil sector.


It is the responsibility of the Nigeria National Petroleum Corporation to efficiently manage our oil sector and ensure the oil products are available at an affordable cost for domestic and industrial usage. The low functionalities of our refineries have doomed the Country for Crude Exportation to foreign refineries through a process often shrouded in secrecy to dupe Nigerians in spite of common knowledge of price of crude per barrel time to time.


The beneficiaries of oil subsidy payments and the NNPC have always subjected the masses to exploitations by fixing Pump Prices often static for a long period against fluctuations of price of crude which amount to rape on the purse of commoners. A Government of the People has once again acted against the norms of democracy that commandeer proper consultations and explanations of policy for peoples understanding and trust before pronouncement of such sensitive policy at a period when the masses are enduring economic hardship.


The government has failed to announce the indices and parameters engaged in arriving at such an alarming pump price of 145 Naira. Considering expertise and common sense, if Crude currently sells at 46.23 Dollar per barrel, Nigerians deserve to know the cost of refining per barrel, transportation expenses, products availability, volumes distributed and consumptions.


We are not convinced that the removal of oil subsidy translates to an increase in pump price as usually claimed by government. The issue at stake is domestic usage and not foreign exchange or oil trade, payment for our crude to be refined and transported back to the Country for proper distributions and efficient usage shouldn’t be shrouded in secrecy, the whole details should be available to the people without element of deceit to justify proper pump price regulations.


In a Country of few people of good conscience, the Federal Government got it extremely wrong to regulate the pump price at 145 Naira considering the absence of means of ensuring the masses are not subjected to exploitations by oil marketers and filling stations owners that will buy lesser than imagined and sell at outrageous rates under the regulation. We do not consider the removal of oil subsidy as translating to increase in pump price and as such, there is no justification for the 145 Naira Pump Price Regulations.


We understand the good intention of government to deregulate the oil industry, create competition and block leakages in the interest of the masses but the government has not acted rightly by not informing appropriately on the indices used to arrive at that alarming pump price which inform our opposition to the new pump price announced by government. Putting all factors into proper considerations, we are strongly convinced that the intention of government is still attainable within a regulate pump price below 95 Naira even with the removal of subsidy and before we can hold a different view, government must come forward to give details to justify their claim in an engaging forum with experts from Civil Societies, Labour and Youth Movements.


We demand an immediate downward review of the pump price and call on government that necessary machineries be conveyed to guide against exploitations of the masses by the oil dealers and guard against deprivations of the masses of the gains of the full deregulation of the downstream sector. This is the time for Mr President to prove his sensitivities to the plight of Nigerians and not be glued to uniformed decisions of the handlers of petroleum industry under his watch and supervision.


A Peoples’ Oriented Government will ensure that the people are not subjected to economic servitude under any guise; we demand serious explanations from our government. In the past, we witnessed situations where oil dealers were gaining more than 40percent or more profit on a litre at pump price and the government has just opened another window for the oil dealers to even make 60percent profit in this new order of 145 Naira at Pump Price which is not only an aberration but grievous exploitation of the downtrodden.


Signed:
For over 70 Million Nigeria Youths:


Comrade Ibukunoluwa Oluwole           Comrade Balarabe Rufai

Chairman, NYCN Caretaker Committee           Secretary, NYCN Caretaker Committee  

NATIONAL YOUTH COUNCIL OF NIGERIA
NATIONAL SECRETARIAT, ABUJA
12th May, 2016
PRESS RELEASE:
CLARION CALL ON FEDERAL GOVERNMENT FOR A REVIEW OF NEW PMS 145 NAIRA PUMP PRICE


Governance is ultimately about the interest of the entire populace, democracy as a form of government compels government to ensure policies are formulated not only to strengthen the authorities or protect the incapacitations of people in power but to ensure the masses are not thrown into servitude and penury as a result of government policies.


As the umbrella body of the entire Youths of Nigeria and the mouthpiece of the most vulnerable to the hardship to trail the new policy on the pump price of petrol designed to ensure the complete deregulation of the downstream sector, we view the policy as antithetical to the real purpose of deregulation. Deregulation is a process of removing constraints, in real sense, it is defined as government-imposed economic regulation aimed at protecting the interest of the governed against exploitations and threats.


Every successive government since 1976 have mismanaged the Petroleum Industry, our government has failed to maximize the opportunities offered to this Country as a large Oil Producing Country where the Pump Prices of Petrol Products ought to be available for domestic consumption at lowest rate which will facilitate ease of commodities, trades cum purchase and supply.


Instead of government to ensure the availability of our abundant natural resources to create comfort for the masses, a high level of retardation has traded the handling of petroleum products by allowing some oil cabals to determine the fates of the masses with the malfunctioning of local refineries. Oil subsidy payment to oil marketers have been a subject of review over the years, previous attempt to remove the subsidy failed as it translated to higher cost of purchase at pump price which informs our extensive study of the intricacies surrounding the oil subsidy and deregulation of the oil sector.


It is the responsibility of the Nigeria National Petroleum Corporation to efficiently manage our oil sector and ensure the oil products are available at an affordable cost for domestic and industrial usage. The low functionalities of our refineries have doomed the Country for Crude Exportation to foreign refineries through a process often shrouded in secrecy to dupe Nigerians in spite of common knowledge of price of crude per barrel time to time.


The beneficiaries of oil subsidy payments and the NNPC have always subjected the masses to exploitations by fixing Pump Prices often static for a long period against fluctuations of price of crude which amount to rape on the purse of commoners. A Government of the People has once again acted against the norms of democracy that commandeer proper consultations and explanations of policy for peoples understanding and trust before pronouncement of such sensitive policy at a period when the masses are enduring economic hardship.


The government has failed to announce the indices and parameters engaged in arriving at such an alarming pump price of 145 Naira. Considering expertise and common sense, if Crude currently sells at 46.23 Dollar per barrel, Nigerians deserve to know the cost of refining per barrel, transportation expenses, products availability, volumes distributed and consumptions.


We are not convinced that the removal of oil subsidy translates to an increase in pump price as usually claimed by government. The issue at stake is domestic usage and not foreign exchange or oil trade, payment for our crude to be refined and transported back to the Country for proper distributions and efficient usage shouldn’t be shrouded in secrecy, the whole details should be available to the people without element of deceit to justify proper pump price regulations.


In a Country of few people of good conscience, the Federal Government got it extremely wrong to regulate the pump price at 145 Naira considering the absence of means of ensuring the masses are not subjected to exploitations by oil marketers and filling stations owners that will buy lesser than imagined and sell at outrageous rates under the regulation. We do not consider the removal of oil subsidy as translating to increase in pump price and as such, there is no justification for the 145 Naira Pump Price Regulations.


We understand the good intention of government to deregulate the oil industry, create competition and block leakages in the interest of the masses but the government has not acted rightly by not informing appropriately on the indices used to arrive at that alarming pump price which inform our opposition to the new pump price announced by government. Putting all factors into proper considerations, we are strongly convinced that the intention of government is still attainable within a regulate pump price below 95 Naira even with the removal of subsidy and before we can hold a different view, government must come forward to give details to justify their claim in an engaging forum with experts from Civil Societies, Labour and Youth Movements.


We demand an immediate downward review of the pump price and call on government that necessary machineries be conveyed to guide against exploitations of the masses by the oil dealers and guard against deprivations of the masses of the gains of the full deregulation of the downstream sector. This is the time for Mr President to prove his sensitivities to the plight of Nigerians and not be glued to uniformed decisions of the handlers of petroleum industry under his watch and supervision.


A Peoples’ Oriented Government will ensure that the people are not subjected to economic servitude under any guise; we demand serious explanations from our government. In the past, we witnessed situations where oil dealers were gaining more than 40percent or more profit on a litre at pump price and the government has just opened another window for the oil dealers to even make 60percent profit in this new order of 145 Naira at Pump Price which is not only an aberration but grievous exploitation of the downtrodden.


Signed:
For over 70 Million Nigeria Youths:


Comrade Ibukunoluwa Oluwole           Comrade Balarabe Rufai

Chairman, NYCN Caretaker Committee           Secretary, NYCN Caretaker Committee  

Fuel Price Hike: Tinubu, Falana In Sharp Disagreement

Fuel Price Hike: Tinubu, Falana In Sharp Disagreement

Following the outright removal of the petroleum products subsidy by the federal government, which has already ushered in another fuel price regime in Nigeria, there arose a sharp disagreement between a former governor of Lagos State, Asiwaju Bola Ahmed Tinubu, who is also a national leader of the ruling All progressives Congress, APC and a renown Lagos based Human Right Lawyer and activist, Chief Femi Falana.

Tinubu described the decision of the President Buhari-led Federal Government to remove petrol subsidy as courageous.


Tinubu air his view vis a statement in Lagos on Thursday, said though the decision was a difficult one, it would ultimately become beneficial to the generality of the people instead of enriching the pockets of a few Nigerians, who enjoyed the fraud of the subsidy regime.

In furtherance of his argument, Tinubu, however, said that the subsidy regime on petrol had been bastardised beyond redemption, saying it would be a waste of time to attempt to sanitise subsidy payments.

The ex-governor added, “The president’s decision to reallocate funds once earmarked for the fuel subsidy and commit those funds to other more socially productive services and undertakings was a difficult decision. It was also a necessary one.

“Over the years, the operation of the measure was distorted to where it no longer functioned for the benefit of the masses but for the undue enrichment of a small club of businessmen, some legitimate in their work, some not.

“Instead of remaining a positive aspect of the social contract, the subsidy was transformed into an opaque haven of intrigue and malfeasance. It was turned into a shadowy process from which the unscrupulous extracted large sums of money without providing the services and products duly paid for. Fake businessmen became true billionaires over- night as if by supernatural force.

“To allow this unfairness to continue would have been a breach of the promise made by this government to the people.”

Tinubu added that the way out of the fraud inherent in the payment of subsidy on petroleum products was to end it altogether.

He stated, “It became a weapon of profiteering. The machinery of the subsidy had become so polluted that it was no longer feasible to talk about reforming it. Either it had to cease or we would have to surrender to the corruption now inherent in it.

“President Buhari has, with this decision, put an abrupt and just end to this assault against our economy and political system. He has made a courageous and prudent decision. It is time to end the fuel subsidy and to begin to subsidise the true needs of the people.
“To Mr. President, I say congratulation for having the courage to remove the subsidy.”

The ex-governor added, for some time, I have been a proponent of this action. I believed ending of subsidy was the only sure way to put to sleep the myriad demons that had invaded the subsidy process, sucking the blood of Nigeria, swallowing much of our needed money.’’
He argued that the action would put an end to agonising queues at filling stations while some unscrupulous businessmen’s bank accounts swelled at the detriment of the people.

The APC national leader said the current situation would also attract investors to the sector.

“Nigeria has taken the historic step needed to create a competitive environment that will eliminate smuggling, provide incentives for private refineries and attract foreign investments in the downstream sector and create employment,’’ he stated.

Tinubu admitted that the removal of subsidy meant “higher fuel costs generally”, saying, “I would be lying if I said this will cause no pain or dislocation.”

He noted that the President did not end the subsidy regime essentially to save money but “for the nobler purpose of putting those same funds to fairer, more equitable use in order that government might better serve those of us who are truly in utmost need.”

The APC chief added, “Thus, I ask everyone to take a step back to coolly and objectively assess what has been decided.

“We must not make the mistake of allowing our political and sympathetic attachment to the subsidy blind us to the hard fact that the purpose and benefits of the subsidy had long ago been taken from the common man to reside in the purse of elite few.

“We cannot persist in this imbalance and think it will help us to development. Instead, it is better to end the subsidy and use the funds to establish well-targeted anti-poverty programmes that actually assist the people in need.”

On the contrary, the human rights lawyer, Mr. Femi Falana, disagreed with Tinubu’s position, condemning the Federal Government decision on the price increase and described the action as illegal and immoral.

Falana, a Senior Advocate of Nigeria warned Buhari not to allow the “parasitic ruling class” to hijack his administration.

Like Tinubu, Falana also, in a statement on Thursday, said the hike in the petrol pump price was contrary to the promise made by Buhari to the Nigerian masses while campaigning to be President.

He said by deregulating the downstream sector, the Federal Government was  disobeying a court  judgment obtained by the late human rights lawyer, Bamidele Aturu, against the Federal Government in a suit, marked FHC/ABJ/CS/591/2009.

According to Falana, the court had declared as unlawful the deregulation of the downstream sector of the petroleum industry because it was contrary to the combined provisions of the Price Control Act and the Petroleum Act.

Falana wondered why the Federal Government removed subsidy, after the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, had recently claimed that the government had scrapped subsidy and was, as a result, saving $1bn and another $1bn on fuel importation.
Why urging Buhari to reverse the increase, which he described as provocative, Falana said, “At this stage President Buhari ought to prevent neo-liberal ideologues from hijacking the administration for the purpose of punishing the Nigerian people for the looting of the treasury and mismanagement of the national economy.

“Contrary to the position of the parasitic ruling class that prices of goods and services be fixed by market forces, the Federal Government has a legal obligation to protect the people from exploitation.

‘‘For instance, the virtual collapse of electricity supply has forced many corporate bodies and individuals to invest heavily in generators and diesel throughout the country.’’
Following the outright removal of the petroleum products subsidy by the federal government, which has already ushered in another fuel price regime in Nigeria, there arose a sharp disagreement between a former governor of Lagos State, Asiwaju Bola Ahmed Tinubu, who is also a national leader of the ruling All progressives Congress, APC and a renown Lagos based Human Right Lawyer and activist, Chief Femi Falana.

Tinubu described the decision of the President Buhari-led Federal Government to remove petrol subsidy as courageous.


Tinubu air his view vis a statement in Lagos on Thursday, said though the decision was a difficult one, it would ultimately become beneficial to the generality of the people instead of enriching the pockets of a few Nigerians, who enjoyed the fraud of the subsidy regime.

In furtherance of his argument, Tinubu, however, said that the subsidy regime on petrol had been bastardised beyond redemption, saying it would be a waste of time to attempt to sanitise subsidy payments.

The ex-governor added, “The president’s decision to reallocate funds once earmarked for the fuel subsidy and commit those funds to other more socially productive services and undertakings was a difficult decision. It was also a necessary one.

“Over the years, the operation of the measure was distorted to where it no longer functioned for the benefit of the masses but for the undue enrichment of a small club of businessmen, some legitimate in their work, some not.

“Instead of remaining a positive aspect of the social contract, the subsidy was transformed into an opaque haven of intrigue and malfeasance. It was turned into a shadowy process from which the unscrupulous extracted large sums of money without providing the services and products duly paid for. Fake businessmen became true billionaires over- night as if by supernatural force.

“To allow this unfairness to continue would have been a breach of the promise made by this government to the people.”

Tinubu added that the way out of the fraud inherent in the payment of subsidy on petroleum products was to end it altogether.

He stated, “It became a weapon of profiteering. The machinery of the subsidy had become so polluted that it was no longer feasible to talk about reforming it. Either it had to cease or we would have to surrender to the corruption now inherent in it.

“President Buhari has, with this decision, put an abrupt and just end to this assault against our economy and political system. He has made a courageous and prudent decision. It is time to end the fuel subsidy and to begin to subsidise the true needs of the people.
“To Mr. President, I say congratulation for having the courage to remove the subsidy.”

The ex-governor added, for some time, I have been a proponent of this action. I believed ending of subsidy was the only sure way to put to sleep the myriad demons that had invaded the subsidy process, sucking the blood of Nigeria, swallowing much of our needed money.’’
He argued that the action would put an end to agonising queues at filling stations while some unscrupulous businessmen’s bank accounts swelled at the detriment of the people.

The APC national leader said the current situation would also attract investors to the sector.

“Nigeria has taken the historic step needed to create a competitive environment that will eliminate smuggling, provide incentives for private refineries and attract foreign investments in the downstream sector and create employment,’’ he stated.

Tinubu admitted that the removal of subsidy meant “higher fuel costs generally”, saying, “I would be lying if I said this will cause no pain or dislocation.”

He noted that the President did not end the subsidy regime essentially to save money but “for the nobler purpose of putting those same funds to fairer, more equitable use in order that government might better serve those of us who are truly in utmost need.”

The APC chief added, “Thus, I ask everyone to take a step back to coolly and objectively assess what has been decided.

“We must not make the mistake of allowing our political and sympathetic attachment to the subsidy blind us to the hard fact that the purpose and benefits of the subsidy had long ago been taken from the common man to reside in the purse of elite few.

“We cannot persist in this imbalance and think it will help us to development. Instead, it is better to end the subsidy and use the funds to establish well-targeted anti-poverty programmes that actually assist the people in need.”

On the contrary, the human rights lawyer, Mr. Femi Falana, disagreed with Tinubu’s position, condemning the Federal Government decision on the price increase and described the action as illegal and immoral.

Falana, a Senior Advocate of Nigeria warned Buhari not to allow the “parasitic ruling class” to hijack his administration.

Like Tinubu, Falana also, in a statement on Thursday, said the hike in the petrol pump price was contrary to the promise made by Buhari to the Nigerian masses while campaigning to be President.

He said by deregulating the downstream sector, the Federal Government was  disobeying a court  judgment obtained by the late human rights lawyer, Bamidele Aturu, against the Federal Government in a suit, marked FHC/ABJ/CS/591/2009.

According to Falana, the court had declared as unlawful the deregulation of the downstream sector of the petroleum industry because it was contrary to the combined provisions of the Price Control Act and the Petroleum Act.

Falana wondered why the Federal Government removed subsidy, after the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, had recently claimed that the government had scrapped subsidy and was, as a result, saving $1bn and another $1bn on fuel importation.
Why urging Buhari to reverse the increase, which he described as provocative, Falana said, “At this stage President Buhari ought to prevent neo-liberal ideologues from hijacking the administration for the purpose of punishing the Nigerian people for the looting of the treasury and mismanagement of the national economy.

“Contrary to the position of the parasitic ruling class that prices of goods and services be fixed by market forces, the Federal Government has a legal obligation to protect the people from exploitation.

‘‘For instance, the virtual collapse of electricity supply has forced many corporate bodies and individuals to invest heavily in generators and diesel throughout the country.’’

New Fuel Price Hike: The Economic Criminals Have Won Again, By Sahara Reporters' Publisher

New Fuel Price Hike: The Economic Criminals Have Won Again, By Sahara Reporters' Publisher

Why I am Opposed To The Fuel Price Increase Or "Deregulation" by Omoyele Sowore

I have read the reason(s) adduced by the Nigerian government to justify the increase in prices of petroleum products, particularly Gasoline/Petrol/PMS. I was a student activist in the 90's when the military regime tried to convince people why an increase in prices of these commodities was necessary. A ridiculous one I remember the most was the argument that since bottled water was pricier, then petrol prices needed to go up. This was under the IBB regime.

We need not go into the rest, yesterday, the argument for the latest increase in the pump price of petrol was blamed on a range of criminal elements within our society. They included militants, smugglers, hoarders and saboteurs within the government. While the government hasn't increased the price of engaging in these crimes, it is simply callous to pass the same on to the mass of our people who are themselves victims of these highly connected criminals.

Also, you can't deregulate and regulate at the same time. The regulation in the latest deregulation is the fixed cap of N145 above which no marketer is allowed to sell gasoline per liter, however, our recent experience is that these marketers are above the law, the smugglers are above the law, the NNPC fat cats are above the law of the land, and the NPA criminals and demurrage manipulators are also above the law, under the new regime of prices, they will only increase their stakes and profit margins, it is simple law of demand and supply. Whenever they want more profit, they simply create artificial scarcity.

ALL the argument adduced yesterday were canvassed 25 years ago, and they were the same used by Abacha, Obasanjo, Yar'adua, Jonathan and now the Buhari regime.

The most ludicrous are the arguments that the money "saved' from non-payment of subsidies would be applied to develop infrastructure, that's a lie. The government has over N2trillion deficit to overcome, the 2016 budget never included payment of subsidies anyways, so there is nothing to save. I am opposed to any government policy that puts more money in the pockets criminal elements at the expense of the poor. Members of Nigeria's larger-than-life oil cabal are the greatest beneficiaries.

Remember, Kerosene is totally deregulated but you still can't find it in the market because criminals are diverting them away from the masses.

The economic criminals have won again!

What is ur opinion?
Why I am Opposed To The Fuel Price Increase Or "Deregulation" by Omoyele Sowore

I have read the reason(s) adduced by the Nigerian government to justify the increase in prices of petroleum products, particularly Gasoline/Petrol/PMS. I was a student activist in the 90's when the military regime tried to convince people why an increase in prices of these commodities was necessary. A ridiculous one I remember the most was the argument that since bottled water was pricier, then petrol prices needed to go up. This was under the IBB regime.

We need not go into the rest, yesterday, the argument for the latest increase in the pump price of petrol was blamed on a range of criminal elements within our society. They included militants, smugglers, hoarders and saboteurs within the government. While the government hasn't increased the price of engaging in these crimes, it is simply callous to pass the same on to the mass of our people who are themselves victims of these highly connected criminals.

Also, you can't deregulate and regulate at the same time. The regulation in the latest deregulation is the fixed cap of N145 above which no marketer is allowed to sell gasoline per liter, however, our recent experience is that these marketers are above the law, the smugglers are above the law, the NNPC fat cats are above the law of the land, and the NPA criminals and demurrage manipulators are also above the law, under the new regime of prices, they will only increase their stakes and profit margins, it is simple law of demand and supply. Whenever they want more profit, they simply create artificial scarcity.

ALL the argument adduced yesterday were canvassed 25 years ago, and they were the same used by Abacha, Obasanjo, Yar'adua, Jonathan and now the Buhari regime.

The most ludicrous are the arguments that the money "saved' from non-payment of subsidies would be applied to develop infrastructure, that's a lie. The government has over N2trillion deficit to overcome, the 2016 budget never included payment of subsidies anyways, so there is nothing to save. I am opposed to any government policy that puts more money in the pockets criminal elements at the expense of the poor. Members of Nigeria's larger-than-life oil cabal are the greatest beneficiaries.

Remember, Kerosene is totally deregulated but you still can't find it in the market because criminals are diverting them away from the masses.

The economic criminals have won again!

What is ur opinion?

Petrol Price'll Fall In 6 Months - FG

Petrol Price'll Fall In 6 Months - FG

“If you left the environment free for people to perform, you will be amazed at what will happen with pricing. I will almost take a bet with you that in six months time when you review this price, you will be amazed at what will happen to your N145 price because it will go downwards”
The above is a quote excerpted from the Minister of State for Petroleum, who also doubles as the Group Managing Director of Nigeria National Petroleum Corporation, NNPC on a live television programme on ChannelsTv, Sunrise Daily, monitored by News Punch earlier today.

Dr Ibe Kachikwu, has assured Nigerians that pump price of premium motor spirit (PMS) otherwise called petrol, will fall drastically in the next six months.

The Federal Government had announced an end to subsidy regime and capped pump price of petrol at N145 per litre.

During the interview, Kachikwu said; "if you do a price review after six months, you will be amazed at how low the price would have become. We expect the prices to go down because we have provided an opportunity for people to take advantage of government liberalisation policy of the downstream sector and eliminate inefficiencies and losses."

When asked about the reason for the government to have fixed the pump price of petrol in a deregulated market, he explained that "the intention of the government was to achieve what was achieved in diesel by allowing everybody to be able to bring in products and promote competition."

"However, we want to make sure that at the initial stage marketers do not take undue advantage of the situation. That's why we said nobody should sell above N145 per litre.

"If you look at consumption of diesel, it is not as competitive as petrol. What we have done is an upper cap, but we have not told them what price to sell. We expect that efficiency and market forces will determine their pieces.

"You know we have a price band of N135 to N145 per litre, but reality is that those are guideline prices," he said.

Furthermore, he stated that other factors that may affect pricing include sources of foreign exchange, level of efficiency and how much a marketer is investing in logistics like storage and distribution.

When asked if the government has put measures in place to check marketers who may want to sell at above price cap of N145 per litre, he stated that he expects competition to bridge the gaps and eliminate abnormal profit.

Furthermore, he stated that "the difference you saw during the previous price regime of N87 per litre is just what we are trying to address because of arbitrage."

"The individuals that bought NNPC products and sell at other prices will now start buying their own products and sell on their own. Even NNPC retail stations will sell at competitive prices.

"Within six months, you will be seeing differentials of N1 to N2 per litre but as you go into interlands, NNPC will tend to be selling at between N120 to N130 per litre.

"Refineries will also become competitive. Refineries have not worked efficiently in the past because petroleum products are largely subsidized. Nobody wants to invest in refineries and at the end of the day, the government bears the brunt.

"We will sell the little a produce which is less than 10million per day and we will well at competitive prices," he said.
“If you left the environment free for people to perform, you will be amazed at what will happen with pricing. I will almost take a bet with you that in six months time when you review this price, you will be amazed at what will happen to your N145 price because it will go downwards”
The above is a quote excerpted from the Minister of State for Petroleum, who also doubles as the Group Managing Director of Nigeria National Petroleum Corporation, NNPC on a live television programme on ChannelsTv, Sunrise Daily, monitored by News Punch earlier today.

Dr Ibe Kachikwu, has assured Nigerians that pump price of premium motor spirit (PMS) otherwise called petrol, will fall drastically in the next six months.

The Federal Government had announced an end to subsidy regime and capped pump price of petrol at N145 per litre.

During the interview, Kachikwu said; "if you do a price review after six months, you will be amazed at how low the price would have become. We expect the prices to go down because we have provided an opportunity for people to take advantage of government liberalisation policy of the downstream sector and eliminate inefficiencies and losses."

When asked about the reason for the government to have fixed the pump price of petrol in a deregulated market, he explained that "the intention of the government was to achieve what was achieved in diesel by allowing everybody to be able to bring in products and promote competition."

"However, we want to make sure that at the initial stage marketers do not take undue advantage of the situation. That's why we said nobody should sell above N145 per litre.

"If you look at consumption of diesel, it is not as competitive as petrol. What we have done is an upper cap, but we have not told them what price to sell. We expect that efficiency and market forces will determine their pieces.

"You know we have a price band of N135 to N145 per litre, but reality is that those are guideline prices," he said.

Furthermore, he stated that other factors that may affect pricing include sources of foreign exchange, level of efficiency and how much a marketer is investing in logistics like storage and distribution.

When asked if the government has put measures in place to check marketers who may want to sell at above price cap of N145 per litre, he stated that he expects competition to bridge the gaps and eliminate abnormal profit.

Furthermore, he stated that "the difference you saw during the previous price regime of N87 per litre is just what we are trying to address because of arbitrage."

"The individuals that bought NNPC products and sell at other prices will now start buying their own products and sell on their own. Even NNPC retail stations will sell at competitive prices.

"Within six months, you will be seeing differentials of N1 to N2 per litre but as you go into interlands, NNPC will tend to be selling at between N120 to N130 per litre.

"Refineries will also become competitive. Refineries have not worked efficiently in the past because petroleum products are largely subsidized. Nobody wants to invest in refineries and at the end of the day, the government bears the brunt.

"We will sell the little a produce which is less than 10million per day and we will well at competitive prices," he said.

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