Some social media users have dug out old posts by Olusegun Dada, the special assistant to President Bola Tinubu on social media, in which he called for protests against former President Goodluck Jonathan.
Dada’s old posts started trending on social media, moments after he said protesters would face the “strongest resistance”.
Earlier on Tuesday, Dada, in a post on X, said protesters would meet fierce pushback from supporters of the president.
“Those who want to burn the country down under whatever guise will meet the strongest resistance of their lives,” Dada wrote.
“Not from security agencies, but from the silent majority that gave their mandate to President Bola Ahmed Tinubu for four years in the first instance. We are waiting.”
There have been reports of a planned youth-led nationwide protest over the rising cost of living and economic hardship.
The protest is reportedly slated for August 1 to 15.
Several old X posts of Dada show that the presidential aide was in support of the protest against Jonathan’s administration.
In one of his posts in January 2012, Dada wrote,
“If u know any policeman, advise him not to take shooting orders from anyone. If anyone is shot during our protest, d killer dies! No”.
In another post in February 2014, he wrote,
“maybe we don’t need peaceful protests anymore”.
Dada’s old posts have elicited a plethora of reactions.
There was a rain of curses in Port Harcourt, Rivers State, as residents of the area discovered remains of an a-day-old baby in a manhole.
It was gathered that members of the Diobu vigilante group made the discovery in the early hours of Tuesday and that the dead baby was a boy.
A source disclosed that a dead baby was found in a manhole around Ekwe Street by Ikwerre Road, Mile 3 Diobu, Port Harcourt City Local Government Area.
Mr. Godstime Ihunwo, the Chief Security Officer of Nkpolu Orowurokwo working with Diobu vigilante said the community security team found the baby already dead during their patrol.
He said: “At the early hours of today, 23rd July 2024 at about 5 am, I and my team were on patrol. On getting to Ikwerre Road/Ekwe Street Mile 3 Diobu, Port Harcourt, we discovered that a newborn baby was dumped into a Manhole.
“We discovered that the baby was dead. It was a male. I quickly rushed down to Nkpolu Police Division to make an entry. I also contacted, Prince Wiro who is a human rights activist.”
Meantime, Prince Wiro, who is the National Coordinator of Centre for Basic Rights Protection And Accountability Campaign has condemned the action of the unidentified mother describing it as height of wickedness.
Wiro said: “It is sad that before the vigilante group discovered the infant male, he was already dead. The action of the mother of the child is a crime that is punishable under the Nigeria law.
“We use this opportunity to urge residents who may have useful information about the identity of the child’s mother to report to the Police for necessary action.”
However, the Public Relations Officer of the State Police Command, Grace Iringe-Koko, a Superintendent of Police, has confirmed the incident.
Iringe-Koko said Police have contacted the relevant agency for possible evacuation of the dead body while investigations continue.
She urged residents with useful information on who may have dumped the baby to report to the nearest Police station.
Why depositors will bear the burden of Tinubu’s “ill-thought out” 50% windfall tax on Nigerian banks – Olisa Agbakoba
Admin
Dr. Olisa Agbakoba has explained how the federal government’s proposed 50% windfall tax will negatively impact bank operations and its customers in Nigeria.
Dr. Agbakoba is the Senior Partner and Head of the Alternative Dispute Resolution (ADR) and Arbitration practice group at Olisa Agbakoba Legal (OAL), with expertise in Maritime and Blue Economy Law, Space Law, Environmental, Social and Governance (ESG) Law, Environmental Justice Law, Human Rights Law, among many others.
In an exclusive interview with Nairametrics, Agbakoba sheds light on how the proposed amendment to the Finance Act is ill-thought-out.
What’s your take on the federal government’s plan to tax banks 50% of profits realized from foreign exchange revaluation in 2023 through the proposed amended Finance Act?
So, I completely understand why the government is passing financial legislation because the government really needs revenue to drive its development agenda and to meet all the various expenses that it faces.
But I think the government ought to also understand that there are parameters that are very important to employ to gain not only the confidence of Nigerians but particularly the financial community.
The financial community is a lifeline and the oxygen of the Nigerian economy, and to create a policy that will be contrary to the interests of the financial community might be very precarious and could even backfire.
So, in that context, I would say that the proposed amendment to the Finance Act is completely ill-thought-out legislation.
There are different types of legislation. This particular legislation is known as penal legislation. You will observe that Section 33 of the intended amendment criminalizes failure to comply.
In Guardian Motors vs. the Attorney-General of the Federation, pursuant to a decree made by General Babangida, the Supreme Court laid out the principles under which legislation can be properly made.
I think this is one legislation that is beyond the scope of the National Assembly to enact. The National Assembly has no power to enact legislation that imposes penal sanctions on commercial transactions.
What does this proposed Finance Act imply for customers of Nigerian banks?
The first thing that will happen is that customers will bear the burden of the so-called windfall legislation.
Again, windfall legislation is generally seen as unacceptable to the commercial community. Even in the UK, where there was a proposal to pass windfall legislation in respect of oil profits that Shell and other oil companies were said to be making, there was an uproar.
When you pass windfall legislation taking 50% of somebody else’s earnings, that person will immediately transfer it to those closest to them.
It is obvious that those closest are Nigerians whose money is actually deposited.
So, the issue here is the realized profits. The law states that realized profits will be liable to windfall tax.
If banks make realized profits on accounts, they are likely to find ways to recover the windfall tax because the magnitude proposed by the federal government, 50%, is so huge that they will seek ways to recover it.
There’s no question about that.
If the purpose is to create wealth that the government can use to fund its services, there’s a likelihood that it could lead to inflation. It could be inflationary. It could exacerbate the very problem that the government thinks it is solving.
So, I would honestly urge the government to do two things: first, withdraw the legislation and consider other easier ways to generate revenue. I’ve discussed this several times.
The government can easily generate a lot of revenue without this unnecessary difficulty. One area where the government can generate revenue is the oil and gas sector. A lot of revenue can be generated simply by taking control of the country’s oil and gas resources.
I hope you are aware that Nigeria’s oil and gas resources have been handed over to the International Oil Companies (IOCs). Even Aliko Dangote is complaining.
Dangote is unable, despite having the world’s largest refinery in Lagos, to obtain crude because it is not in the interest of the IOCs to allow him access to crude.
The IOCs prefer the situation where they export crude and we import refined products. Therefore, it is not in their interest to change that. If the government were to stop this and address all the leakages in the oil and gas sector, they would make more money than what the so-called windfall legislation would bring.
And there are several other ways that the government can generate revenue in the maritime industry.
I have said time and again that a proactive government that understands how to generate revenue for Nigeria can easily generate N100 trillion.
So what is the purpose of this? It is ill-thought-out and I would urge them to really consider the negative impact it would have on the Nigerian economy.
The presidency believes the proposed windfall tax will help his government bring more infrastructural development to Nigeria. What do you think?
How? There are no details. They’re just saying it. How? That’s the question. The question I would ask is how? I mean, in principle, tax legislation will bring money into the government’s coffers, but you have to carefully examine the nature of the tax legislation.
Firstly, I’ve told you that windfall taxes tend to be viewed negatively by those on whom they are imposed. So when you impose a windfall tax on someone, they look for ways to pass it on to someone else. That’s number one. So, banks are likely to pass on the windfall tax, of 50% of their profits, to us as consumers. That’s one issue.
Secondly, assuming the windfall tax brings in N10 trillion, for example, there is nothing to suggest that because you have extra income, you will not have extra expenses higher interest rates or increased inflation.
So it’s not enough for the government to say, “We’re going to get more money from this.” If you get more money but the price of rice doubles, does that make sense?
So, I’m not sure how well thought out this legislation has been. Is it really going to be progressive legislation that benefits Nigerians in all aspects? Or is it just a case of the government saying, “We’re going to get money”? It’s not enough to say, “I’m going to get money.”
You have to look at the impact of that money. Is it going to be beneficial? In my view, this law won’t be beneficial because it will have all kinds of implications and it will probably be challenged on the grounds of unconstitutionality anyway.
[Nairametrics]
President Bola Tinubu, on Tuesday, forwarded the Police Act Amendment Bill to the House of Representatives, seeking to amend the tenure of the Inspector General of Police (IGP).
The proposed amendment addresses the contentious issue surrounding the retirement age and tenure of the IGP.
The current IGP, Kayode Egbetokun, appointed in June 2023 for a four-year term, is at the centre of this legislative adjustment.
Earlier in July, the Nigeria Police Force had refuted claims that IGP Egbetokun attempted to lobby the National Assembly for a bill to extend the retirement age of officers.
According to Section 18(8) of the Police Act 2020, Egbetokun, born on September 4, 1964, is mandated to retire in September 2024 when he turns 60, which would cut short his tenure to just one year and three months out of the four-year term.
This issue isn’t new and has also surrounded Egbetokun’s predecessor, Usman Baba, who continued in office beyond his retirement age.
Baba reached the mandatory retirement age of 60 in March 2023 but remained IGP until his replacement by Egbetokun.
The bill, if passed, is expected to provide clarity and stability in the leadership of the Nigerian police force, ensuring that the IGP can serve the full term as appointed without abrupt retirement due to age constraints.
[NaijaNews]
The Inspector General of Police, Kayode Egbetokun, stated on Tuesday that the proposed nationwide protest was ill-advised, urging the citizens to abandon the plan.
His comment was in response to social media campaigns mobilising for a nationwide protest slated for August 1 due to the economic hardship in the country.
Speaking during a meeting with commissioners of police in Abuja, Egbetokun noted that the country has its fair share of violent protests with dastardly consequences.
The IG added that the last #EndSARS protest aggravated crime rates and insecurity in several parts
He said, “Before concluding this address, it is important I address an issue of urgent national importance which appears to have gained some momentum, particularly on social media, in the past few weeks. Some groups of people, self-appointed crusaders and influencers, have been strategising and mobilizing potential protesters to unleash terror in the land under the guise of replicating the recent Kenya protests.
“While the force acknowledges the right to peaceful protest as enshrined in our constitution, we must ensure that these protests do not snowball into violence or disorder. As a nation, we have had more than our fair share of violent protests, with rather dastardly consequences. The last #EndSars protest led to one-tenth destruction of public assets, including police stations, courts, and transport infrastructure, and the loss of several lives.
“Tales of sorrow, tears, and blood followed what was supposedly intended to be a well-intentioned exercise. Rather than lead to any positive outcome, EndSars merely aggravated crime rates and insecurity in several parts of the country. Indeed, we are yet to fully recover from the huge economic losses and deep-seated psychological and emotional trauma inflicted upon our people by these protests.”
He, urged the citizens to jettison the proposed protest, adding that the police have the responsibility to protect citizens and their properties.
Egbetokun said, “Hence, our position is that the proposed violent protests are ill-advised and should be jettisoned fortuitously. We have the responsibility to protect properties and everyone, irrespective of their race, colour, ethnicity, or tribe, who are lawfully embarking on their daily activities. We will therefore not sit back and fold our arms to watch violent activities unleash violence on our peaceful communities or destroy any of our national critical infrastructure and assets again.”
Egbetokun stated that measures are in place to ensure that any hoodlums attempting to disguise themselves as protesters will be apprehended.
He said, “We have mapped out plans to ensure that no individual or group succeeds in fostering a reign of terror and anarchy on other law-abiding and dissolving Nigerians. Consequently, I want to seize this opportunity to sound the note of serious warning to hoodlums who may want to take laws into their own hands in the name of protests. Do not worry.”
[Punch]
CEO of Tesla and SpaceX, Elon Musk has shared a deeply personal experience involving his child’s gender transition, revealing that he felt “tricked” into consenting to puberty blockers.
In a candid interview with psychologist Jordan Peterson, Musk expressed his concerns about the treatment’s long-term effects and the motivations behind its recommendation.
He described the experience as “incredibly evil” and claimed that he “lost” his son, Xavier, now known as Vivian Jenna Wilson, to the “woke mind virus.”
Musk stated: “It’s evil. You’re taking kids who are far below the age of consent.
“It’s very possible for adults to manipulate children who are having an actual identity crisis into believing that they are the wrong gender.”
Musk disclosed: “Well, it happened to one of my older boys. I was essentially tricked into signing documents for one of my older boys, Xavier. This was really before I had any understanding of what was going on, and we had COVID going on, so there was a lot of confusion. And I was told Xavier might commit suicide.”
Peterson, challenging the notion, said: “That was a lie right from the outset. No reliable clinician ever believed that.
“There was never any evidence for that, and also, if there is a higher suicide rate, the reason is the underlying depression and anxiety and not because of the gender dysphoria. And every good clinician knows that, too, and they’re too cowardly to come out and say it.”
Musk added: “It’s incredibly evil. And I agree with you that the people that are promoting this should go to prison.
“I was tricked into doing this. It wasn’t explained to me that puberty blockers are actually just sterilization drugs.
“I lost my son, essentially. They call it ‘deadnaming’ for a reason. The reason they call it ‘deadnaming’ is because your son is dead, so my son, Xavier, is dead, killed by ‘the woke mind’ virus.”
“So I vowed to destroy ‘the woke mind’ virus after that. And we’re making some progress.”
This revelation comes as Musk announced plans to relocate his company’s headquarters from California to Texas, citing the state’s new legislation on gender identity and parental rights as the final straw.
“This is the final straw. Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas,” Musk wrote on X.
Daily Mail reports that Vivian Musk, formerly known as Xavier, publicly announced her transgender identity in June 2022, at the age of 18.
At the same time, she petitioned to legally change her name to Vivian and adopt her mother’s surname.
“I no longer want to be related to my biological father in any way, shape or form,” Vivian said.
[TheNation]
Reduces the time for Periodic Review of Minimum Wage from 5 to 3 years
THE Senate has passed a bill that seeks to amend the National Minimum Wage Act, 2019, to increase the National Minimum Wage from N30,000 upward to the sum of N70,000.
Also passed by the Senate on Tuesday is a bill, inter alia that seeks to reduce the time for periodic review of the National Minimum Wage from Five (5) years to Three (3) years, and for Related Matters.
A Bill for an Act to Amend the National Minimum Wage Act, 2019 to increase the National Minimum Wage and reduce the time for periodic review of the national minimum wage from five years to three years and for related matters, 2024, 2024 (SB. 550) was presented by the Senate Leader, Senator Opeyemi Bamidele, APC, Ekiti Central.
The Executive bill forwarded to the Senate by President Bola Tinubu was first presented for the first reading, then scaled second reading and was read the third time and passed.
In his lead debate on the general principles of the bill, Senator Bamidele said, “Mr. President, Distinguished colleagues, I humbly rise to lead the debate on the general principles of the National Minimum Wage (Amendment) Bill, 2024 (SB. 550). The Bill, inter alia seeks to amend the National Minimum Wage Act, 2019, to increase the National Minimum Wage and reduce the time for periodic review of the National Minimum Wage from Five (5) years to Three (3) years, and for Related Matters.
“The Bill was read for the First Time today, 23rd July, 2024.
“You will recall, Mr. President, my dear Colleagues, that in recent times, a plethora of agitations and clamours have been recorded from Organised Labour and another segment of our society, for an increase in the National Minimum Wage given the prevailing economic situation in the country. In response to the agitations and after a series of negotiations between the Federal Government and the Organised Labour, the current National Minimum Wage of N30,000 Naira only has been reviewed upward to the sum of N70,000 Naira only.
Details later…
[Vanguard]
The monetary policy committee of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which benchmarks interest rates, to 27.65 percent — from 26.25 percent
Olayemi Cardoso, governor of the apex bank, announced the rate adjustment on Tuesday at the end of the committee’s 296th meeting in Abuja.
Last week, Nigeria’s inflation rate rose to 34.19 percent amid the surge in food prices.
The MPR is the baseline interest rate in an economy, every other interest rate used within the economy is built on it.
More to follow…
[TheCable]
The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Engr. Mele Kyari, has categorically denied that the oil company owned a blending plant in Malta.
The refuttal came in response to claims made by businessman Aliko Dangote that NNPCL officials were operating an oil facility on the Mediterranean Island.
LEADERSHIP reports that Dangote, while addressing the leadership of the House of Representatives on July 22, claimed that apart from NNPC personnel, oil traders and terminals have established a blending plant in Malta. An oil blending plant, unlike a refinery, blends re-refined oil with additives to produce finished lubricant products.
But, the NNPCL boss took to his X handle (formerly Twitter) on Tuesday to debunk the claims. 
Kyari wrote: “I am inundated by enquiries from family members, friends, and associates on the public declaration by the President of Dangote Group that some NNPC workers have established a blending plant in Malta, thereby impeding procurements from local production of petroleum products.
“To clarify the allegations regarding the blending plant, I do not own or operate any business directly or by proxy anywhere in the world, with the exception of a local mini agric venture. Neither am I aware of any employee of the NNPC who owns or operates a blending plant in Malta or anywhere else in the world.”
He further asserted that such a plant in Malta or anywhere globally has no influence over NNPC’s business operations and strategic actions. “A blending plant in Malta or any part of the world has no influence over NNPC’s business operations and strategic actions,” he added.
Kyari also underscored the company’s commitment to compliance and accountability. “For further assurance, our compliance sanction grid shall apply to any NNPC employee who is established to be involved in doing so if availed, and I strongly recommend that such individuals be declared public and be made known to relevant government security agencies for necessary actions in view of the grave implications for national energy security,” he concluded.
[Leadership]
The President of the African Development Bank Group (AfDB), Akinwumi Adesina, says Nigerian government will be the loser in the wake of criticism targeted at Alhaji Aliko Dangote and his refinery.
He noted that such criticism would discourage foreign investors from coming to the country.
There has been a disagreement between Dangote and Nigerian National Petroleum Company Limited (NNPCL) as well as Nigerian petroleum regulatory authorities over the alleged substandard quality of diesel produced by Dangote Refinery, among other issues.
Adesina, who dismissed claims of Dangote’s monopoly of the country’s manufacturing sector, expressed shock at the controversy, saying it was creating bad waves for Nigeria globally.
Adesina’s remarks are contained in a statement shared on X by business mogul Femi Otedola on Tuesday.
The statement read in part, “Monopoly often exists where there are high barriers to entry or high capital costs. How many individuals or companies can do railways? How many can do refineries of the scale of Dangote Refineries? In a nation that has been importing refined petroleum products for several decades, the abnormal simply became very normal.
“No smart investor would make a $19.5 billion investment and want it to be undermined by importers. To manufacture is extremely expensive and risky. This is even more so in Nigeria, given the very challenging business and economic environment, fraught with policy uncertainties and policy reversals, and where the self-defeating default mode of ‘simply import it’ is always so easily rationalized and chorused to solve any problem.
“…This whole disparaging of Dangote is uncalled for. It is self-defeating. And it is very bad for Nigeria. Who will want to come and invest in a country that disparages and undermines its own largest investor? Investing is tough. Pettiness is easy. It sadly sends a signal that the price for sacrificing for Nigeria is to get sacrificed.”
[DailyTrust]
More...
Senate President Natasha Apoti-Uduaghan has apologized to the Chairman of Senate Committee on Local Content, Natasha Akpoti-Uduaghan, for rebuking her.
Last week Thursday, Akpabio had cautioned Akpoti-Uduaghan on the floor of the Senate, saying she was not in the night club.
The Senate was in session when Akpabio said those in favour of the second reading of a bill to say ‘Aye’, while those against should say ‘Nay’.
The ‘Nay’ response came the loudest and as the Senate President contemplated his next action, Akpoti-Uduaghan rose to explain why she and some others were against the second reading of the proposal.
“Mr President, we don’t want it to be killed. We just want a bit of modification. We don’t want the bill killed but there should be slight modification.”
Responding to her, Akpabio said, “You see Senator Natasha, in the chamber, you have to be recognized before you speak. We’re not in a nightclub.”
However, Akpabio has said his “night club” remark was reported out of context.
Speaking on the floor of the Senate on Tuesday, the Senate President said: “We are still learning, even those of us who have been in the Senate for 16 years, we are still learning.
“But in the cause of speaking with one of my distinguished sisters on not speaking when not recognized, I made reference to the fact that we are not in a night club where people have to shout above the noise of the music.
“The social media went agog, my wife called me that they published her number and she received around 2,000 to 3,000 calls per day.
“I’m happy with the interest generated by Nigerians with what goes on in this chambers because we are here for their interest.
“The communication was totally misunderstood, instead of making meaning with what we said, they went into private abuses; I don’t want to say what they did to me.
“I will not intentionally denigrate any woman, I have a wife and four daughters and I always pray that God will lift a girl to the highest zenith in Nigeria politically and in business. So Senator Natasha I want to apologize to you if you felt offended.
“There is nothing I will say that would not be misrepresented, I felt I should tender a public apology to you.”
[DailyPost]
•NNPC mum as dealers insist government still paying subsidy, Reps probe crude shortage
•Dangote eyes foreign markets for refinery products, FG meets Kyari, Dangote over dispute
With a landing cost of N1,117 per litre for Premium Motor Spirit, popularly called petrol, the monthly subsidy on the commodity has increased to about N707bn, oil marketers projected on Monday.
It was also gathered that as the Dangote Petroleum Refinery begins petrol production in August, the company might export the product following the crude oil supply crisis and other regulatory challenges confronting the $21bn firm.
This came as the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, met with officials of Dangote refinery, Nigerian National Petroleum Company Limited, Nigerian Upstream Petroleum Regulatory Commission and Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The meeting in Abuja on Monday bordered on the recent concerns between Dangote refinery and oil sector regulators and operators.
Also, the House of Representatives inaugurated an investigative committee to look into the non-availability of crude oil to domestic refineries and allegations of deliberate hike in the cost of the product for profiteering.
Last Wednesday, the Major Energies Marketers Association of Nigeria stated that the landing cost of petrol as of the preceding day was N1,117/litre.
This came as the Independent Petroleum Marketers Association of Nigeria insisted that the Federal Government was still subsidising PMS. IPMAN stressed that this was not sustainable and might lead to an increase in the pump prices of petrol soon.
MEMAN also revealed last week that the landing cost of diesel was N1,157/litre, while that of aviation fuel was N1,127/litre.
While the pump prices of diesel and aviation fuel are considerably higher than their landing costs, the pump price of petrol is way lower than its landing cost.
Although retail outlets operated by the Nigerian National Petroleum Company Limited and some major marketers dispense petrol at between N617/litre and N670/litre, dealers said the ex-depot price of the commodity by NNPC is N585/litre.
Idependent marketers hardly get the product at the N585/litre ex-depot price. They mostly buy from private depot owners at higher rates findings show. This makes their pump prices much higher. Some of them dispense the commodity above N700/litre.
NNPC is Nigeria’s sole importer of petrol. Other dealers stopped importing the commodity due to their inability to access the United States dollar, required for PMS imports.
The difference between the landing cost of N1,117 and an ex-depot price of N585 is N532. This implies that every litre of petrol consumed in Nigeria is subsidised by about N532.
Nigeria consumes tens of millions of litres of petrol daily. There are different petrol consumption figures from various agencies of the Federal Government.
NNPC, Nigerian Midstream and Downstream Petroleum Regulatory Authority, and the Federal Ministry of Petroleum Resources, have stated different figures ranging from 66.8 million litres in September 2022 to 44.3 million litres in October 2023.
When the most recent daily PMS consumption figure of 44.3 million litres is multiplied by the N532 subsidy reportedly paid on each litre of petrol, it gives N23.57bn as the daily subsidy spending.
This means that in 30 days, the petrol subsidy should gulp about N707bn.
The Secretary of IPMAN, Abuja-Suleja, Mohammed Shuaibu, said though the Federal Government and NNPC had claimed that there was no subsidy on petrol, the latest figures by MEMAN proved otherwise.
He said petrol subsidy was over N700bn monthly considering the landing cost of the commodity as revealed by MEMAN.
“Petrol price is determined by the forces of demand and supply in the international market. When there is a global price increase, we should experience it in Nigeria. Therefore the N1,117/litre is not just based on our foreign exchange rate, but also the global PMS cost. The sole importer of this product is NNPC and the company is not telling us the truth.
“But data sourced by our counterparts, the major marketers, showed clearly that the landing cost of petrol is above N1,100/litre. This means that the monthly subsidy has crossed N700bn. That also means we should be prepared so that any time the price of petrol jumps, we should not be surprised because they have already told us,” Shuaibu stated.
The IPMAN official insisted that if government was not subsidising petrol, it should have allowed the full deregulation of the downstream sector.
“Of course, you know NNPC will hide this information from you. Former Kaduna State Governor, Nasir El-Rufai, stated a few months ago that the Nigerian government is not telling Nigerians the truth about fuel subsidies because they are still paying subsidies.
“If they are not paying, why is it that up till now only NNPC is importing petrol when they claim that they have liberalised the market? They should open the market to competition by allowing investors to come in and compete favourably. This will crash the price of the product.
“But where only one entity controls the importation of PMS then the sector has not been deregulated. That is why we feel NNPC is economical with the truth by saying that it is not subsidising petrol,” Shuaibu added.
In April, El-Rufai told journalists in Maiduguri that many citizens were not aware that the government had reintroduced the PMS subsidy.
“The Federal Government is now subsidising fuel; many people don’t know this. It is the right policy. I have always supported the withdrawal of oil subsidies; but in the course of implementing the policy, the government realised that subsidy has to be back; right now, the government is paying a lot of money for subsidy, even more than before.
“You start implementing a policy because you are sure it is the right policy, but in the course of implementation, you come across bottlenecks and you modify.
“The keyword in leadership, in my view, is pragmatism. You should be pragmatic. So, when you make a policy, you start implementing it, and if it doesn’t seem to work well, you should have the humility to stand back and say this is not working, and you modify it,” El-Rufai had stated.
NNPC mum
The Chief Corporate Communications Officer, NNPC, Olufemi Soneye, did not respond to an enquiry on whether the national oil company was subsidising petrol based on the latest revelation of MEMAN.
However, Soneye had earlier insisted that the national oil firm had stopped subsidising petrol.
“We are recovering our full costs from the products we import. It is important to emphasise that the subsidy is no longer in place. Contrary to allegations, the petrol subsidy has not been reinstated,” the NNPC spokesperson had stated.
Before the recent revelation by MEMAN on the N1,117/litre landing cost of petrol, the GCEO of NNPC, Malam Mele Kyari, had told state house correspondents after an audience with the President at the Aso Rock Villa a few months ago that fuel subsidy had not been returned.
“No subsidy whatsoever. We are recovering our full cost from the products that we import. We sell to the market, and we understand why the marketers are unable to import. We hope that they do it very quickly and these are some of the interventions the government is doing. There is no subsidy,” Kyari had stated.
But the Public Relations Officer of IPMAN, Chief Ukadike Chinedu, insisted that petrol prices at the pumps should be over N900/litre if the commodity was not subsidised.
“I’ve said before that the PMS subsidy had been returned, and the government said it was a lie. I said before that the government is subsidising PMS and it is on till this moment. I said before that what the government was doing was quasi-subsidy and that has not changed,” Ukadike stated.
He said the N1,117/litre landing cost for petrol as revealed by MEMAN is a clear indication that subsidy on petrol is still implemented by the government through NNPC.
Petrol export
It was also gathered that as the Dangote refinery begins petrol production in the next couple of weeks, the company might be forced to export the product out of the country.
The PUNCH reliably gathered that the company was contemplating selling its product to other countries as it failed to get crude oil from International Oil Companies operating in Nigeria.
Multiple sources within the organisation told one of our correspondents that the cost of importing crude oil from the United States was impacting the cost of production, making the product more expensive than the one imported by NNPC.
Some fuel marketers also stated that because Nigerians may not buy high-priced petrol, the Dangote Group was considering exporting PMS to countries where it would not be seen as too expensive.
Dangote refinery recently disclosed that it had exported about 3.5 billion litres of refined petroleum products, which, according to the firm, constituted about 90 per cent of its total productions so far.
A top official of the refinery, who spoke on condition of anonymity because he wasn’t authorised to speak on the matter, maintained that the much-awaited PMS might go the way of other products being exported to other countries.
“I can confirm that we will supply PMS in August. That is certain. But I don’t know if we will sell to the Nigerian market. The refusal of the IOCs to supply us with crude oil is affecting the cost of production, and that will make the product more expensive compared to what the government is selling. To avoid issues, it is better to send our PMS to other countries. We have the market out there. West Africa alone is a big market for us.
“The main issue we have is crude oil. Importing it from the US is not easy. I guess Nigerians will understand; nobody wants to sell below the cost price. Everybody wants to buy cheaper fuel, but the cost of crude import is high. If we take the product to the market and the government keeps subsidising the imported one, what do you think will happen? There is no way anybody can survive in the face of government subsidy. If we don’t get crude locally, most likely, our PMS won’t be sold in Nigeria.
“If we can stop fuel importation, we will save our dollar and reduce the pressure on the naira, but sadly, this is turning out to be the way it is,” our source stated.
The source further stated that this was why the Dangote refinery had yet to release the price of its PMS.
“We ought to have met with marketers to disclose the price of our product, but we have yet to do so because of this situation and we are not even sure if the product will be sold in Nigeria. The situation is too dicey. Alhaji (Aliko Dangote) wants to end importation of PMS and give Nigerians cheaper access to energy, but there’s a mafia who don’t want that to succeed,” the source stated.
However, when asked if there are conditions that may make Dangote refinery to export its petrol instead of selling it locally, the spokesperson for the company, Mr Tony Chiejina, simply said, “Our policy is: Nigeria first.”
Experts react
Reacting, an energy expert, Prof Wumi Iledare, said the Dangote refinery was in a free trade zone and the export of PMS should not be seen as a problem as long as regulations were not violated.
“Dangote does not necessarily have to sell to the Nigerian market if the Nigerian market does not want it. NNPC could decide to get their petroleum products and decide to sell them in Nigeria. If you look at the regulation, what they call the domestic crude supply obligation, it is willing-seller, willing-buyer; the government cannot dictate the price of crude. It is going to be a negotiation between the two of them. I think people are just being sentimental about this issue,” Iledare stated.
“If Nigerians are willing to pay for whatever other people will pay for PMS, why will Dangote not sell it for them?”
He stated that by selling the product in Nigeria, the refinery would save the cost of transporting the same product, but would not sell the commodity lower than what the Nigerian market can support.
“The gap between the cost of diesel and petrol in Nigeria is much. It’s never like that all over the world. That means something is wrong. Dangote doesn’t mind selling if you are going to pay the subsidy for him to supply to the Nigerian market.
“I don’t know if NNPC is paying subsidies or not, but somebody is absorbing the difference. You can call it under-recovery or subsidy, but the price of petrol today does not reflect the market cost of producing a litre of petrol,” Iledare disclosed.
The $20bn Dangote refinery located in Lekki, Lagos State, is expected to begin the sale of petrol in August.
The President of the Dangote Group, Aliko Dangote, had said his refinery would stop the importation of refined petroleum products into Nigeria and Africa.
However, the company has repeatedly raised concerns over the alleged refusal of International Oil Companies to sell crude to the refinery.
“It’s like the IOCs’ objective is to ensure that our petroleum refinery fails. It is either they are deliberately asking for ridiculous/humongous premium or they simply state that crude is not available. At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production,” Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, stated recently.
Reps wade in
The Speaker of the House of Representatives, Tajudeen Abbas, said the quality of petroleum products imported into the country must comply with global standards.
He spoke at the National Assembly Complex in Abuja on Monday during the inauguration of the House joint investigative committee assigned to carry out a forensic investigation into the allegations of domestic production and importation of substandard petroleum products into the country.
The investigating panel, made up of the House Committees on Petroleum Resources (Upstream and Midstream), is also looking into the non-availability of crude oil to domestic refineries and allegations of deliberate hike in the cost of the product for profiteering.
Addressing the committee members, Abbas, represented by the Deputy Speaker, Benjamin Kalu, condemned the resurgence of fuel queues at petrol stations, the increasing cost of PMS, and the unavailability of feedstock for the local refineries.
He said, “The quality of petroleum products imported into Nigeria has come under scrutiny, and we must ensure compliance with global standards. The Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Standards Organisation of Nigeria must guarantee that petrol imported into this country is rigorously tested in laboratories to meet the standard sulphur and octane levels.
“It is unacceptable that the petrol imported into the country contains high sulphur levels, and has low octane levels — as we notably experienced in the recent past that even led to socio-economic losses on a national scale including the knocking down of the engines of vehicles of Nigerians in their hundreds.”
In his speech at the event, co-chair of the committee and Chairman of the Committee on Petroleum Resources (Downstream), Ikenga Ugochinyere, listed the tasks before the panel to include “Carrying out a legislative forensic investigation into the resurgence of fuel queues in petrol stations, allegations of high cost of PMS, unavailability of fuel stock for downstream domestic refineries and disruption of distribution of the product.”
He added, “To ensure a thorough and transparent investigation, the committee will undertake detailed laboratory investigations at all local refineries, marketers and importers facilities, regulatory agencies, state oil companies and other players in the sector.
“We will visit various filling stations, depots and tank farms to take samples in line with international standards, verify the quality of imported products and assess the testing capacities of all refineries and all refined product handling outfits.
“The collection of samples will be done transparently and in line with global best practices and would be in specimens for independent testing in different standard, accredited laboratories. This will include that of stakeholders involved in the refining and importation of refined petroleum products.”
Ugochinyere, who represents Ideato North/Ideato South Federal Constituency, Imo State, added that middlemen involved in shady marketing of crude oil as well as indiscriminate issuance of licenses would be traced and brought to book by the committee.
He added, “The committee will also conduct a legislative forensic investigation into the presence of middlemen in crude trading, indiscriminate issuance of licenses, alleged unavailability of international standard laboratories to check adulterated products and the influx of contaminated products into the country,
“There is also the allegation of non-domestication of profits realised from crude marketing sales in local banks, abuse of the Pro Forma Invoice regime, importation of products already being produced in Nigeria and use of international trading companies to resell fuel stock to local refineries at high mark up prices,” he added.
The House of Representatives had at the plenary on July 9 adopted a motion on “Urgent need to carry out a legislative forensic investigation into the challenges affecting the downstream and midstream petroleum sectors in Nigeria and other related matters to find out a lasting solution to all challenges.”
The committee is starting its mandate barely 24 hours after Speaker Abbas led a delegation of the legislative body to Lagos, headquarters of the Dangote refinery, for the spot assessment of controversy on the non-supply of crude to the indigenous company.
Lokpobiri intervenes
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, held a meeting with the leadership of Dangote refinery, NMDPRA, NUPRC and NNPC on Monday in Abuja.
Lokpobiri’s media aide, Nneamaka Okafor, said the minister convened the “high-level meeting with key stakeholders to address and resolve the ongoing issues surrounding the Dangote refinery.”
Present at the meeting, according to a statement by Okafor, were “Mr Aliko Dangote, Chairman and CEO of Dangote Group; Farouk Ahmed, Chief Executive of NMDPRA; Mr Gbenga Komolafe, Chief Executive of NUPRC; and Mr Mele Kyari, Group Chief Executive Officer of NNPC.”
The stakeholders expressed gratitude to the minister for his intervention in facilitating the dialogue.
“The meeting focused on finding a sustainable and lasting solution to the current impasse affecting the Dangote refinery, with all parties demonstrating a commitment to collaborative and proactive problem-solving.
“The minister emphasised the importance of cooperation and synergy among all stakeholders to ensure the success and optimal performance of the oil and gas sector, which is pivotal for Nigeria’s economic growth and energy security.
“This meeting marks a significant step towards resolving the challenges and underscores the minister’s dedication to fostering a conducive environment for Nigeria’s oil and gas sector,” the statement stated.
Sgt. Cynthia Maurice of the Nigerian Airforce has made history by becoming the country’s first Professional female golfer in the military.
The News Agency of Nigeria (NAN) reports that the week-long Professional Examinations which held from July 14 to July 20 took place at HSD Golf Club Bayelsa.
The examinations sanctioned by the Professional Golfers Association of Nigeria (PGAN) consisted of playing ability tests, written and oral.
Pro Emmanuel Odoh, the Assistant Resident Head Professional, TYB International Golf Resort and Country Club told NAN that Maurice’s journey was a testament to her resilience, perseverance, and determination.
Odoh said that her achievement had indeed paved the way for other female golfers in the military and inspired young girls to pursue careers in sports.
He noted that it also highlights the progress made in promoting gender equality and diversity in the Nigerian military.
“Just four years ago, Cynthia took up golf, inspired by the professionals she saw on the course. She set her sights on becoming a pro herself, refusing to settle for amateur status.
“With unwavering dedication, she channeled her mind and body towards her goal, sacrificing tirelessly to hone her skills.
“From a 36-handicap beginner to a professional golfer, Cynthia’s transformation is a remarkable achievement. Her hard work, discipline, and courage have earned her the crown of bravery, resilience, and honor.
“Today, we celebrate Cynthia’s remarkable journey, her perseverance, and her refusal to accept anything less than excellence. Congratulations, Pro Cynthia Maurice,” he said.
(NAN)
The Naira yesterday depreciated to N1,585 per dollar in the parallel market from N1,575 last week Friday. Similarly, the Naira appreciated to N1,500.32 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.
Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,500.32 per dollar from N1,596.92 per dollar last weekend, indicating N96.6 appreciation for the naira. The volume of dollars traded (turnover) in the market grew by 7.6 per cent to $269.88 million from $250.67 million traded last week Friday.
Consequently, the margin between the parallel market and NAFEM rates widened to N84.64 per dollar from N21.92 last weekend.