Latest News
The Nigerian National Petroleum Company (NNPC) Limited says it is seeking to engage reputable and credible operations and maintenance (O&M) companies to operate and maintain two refineries.
The refineries are the Warri Refining and Petrochemical Company (WRPC) and the Kaduna Refining and Petrochemical Company (KRPC).
NNPCL, in a statement on its official X handle on Friday, said the decision is to ensure reliability and sustainability to meet the nation’s fuel supply and energy security obligations.
“The O&M tender for WRPC and KRPC will be treated as a single tender through a three stage tender process (expression of interest, EOI, technical and commercial) leveraging on all the possible opportunity costs associated with procurement of consumables, personnel/manpower management, utilisation of computerised maintenance management software (CMMS), warehousing management system (WMS) etc,” the statement reads.
According to NNPC, the O&M contract scope of work will cover, but not be limited to the following: long-term and short-term production and operations planning, production and operations execution, monitoring, reporting and optimisation of operation, maintenance planning (short-term), maintenance execution, and reliability and inspection.
Others include process and controls engineering, quality control, quality assurance and laboratory, specialist engineering, health and safety, environmental management, turnaround maintenance planning and execution, minor projects, non-contractor management, subcontractor management, inventory, and warehouse management.
The oil firm said for any bidder to be eligible for the tender exercise, they are required to “fill out and submit mandatory details through this link http://forms.office.com/r/kjSyVwz3Eg on or before 12 midnight Thursday 12th September 2024”.
“Individual bidders would be duly notified on their registration in NNPC LTD/NipeX tender process portal,” the NNPC said.
“Thereafter the bidder would have access to make their submission on the NNPC LTD/NipeX tender process portal.
“All submission bids should be titled; EOI for the provision of operations and Maintenance (O&M) services for NNPC Limited Refining: Warri Refining and Petrochemical company (WRPC) and Kaduna Refining and Petrochemical Company (KRPC)”.
FINANCIAL REQUIREMENTS
The oil company said applicants must present audited accounts for the past four years (2020 to 2023) that include balance sheet, income and cash flow statements.
“Provide evidence of your company’s latest credit ratings and the name of the rating agency,” the energy firm said.
“Demonstration of a minimum average annual turnover of at least $2 billion USD for the financial years ending: 2020, 2021, 2022, & 2023 respectively.”
TENDER SUBMISSION AND CLOSING DATE
The NNPC also said documents should be submitted online through the electronic NIPEX tender portal on or before 12 pm on September 26.
“The EOIs shall be opened virtually, following the deadline for EOIs submission at 12noon Thursday 10th October 2024 using the Microsoft Teams,” the oil firm said.
“Bidders who have submitted their bids and external observers shall be invited to attend the virtual live stream bid opening session.”
In the event of any unscheduled holiday on the bid submission date, the NNPC said the new deadline for submission of bids will be on the next working day.
Also, the EOI closing date and time will be extended to the next working day and time, the oil company said.
Heineken Lokpobiri, minister of state for petroleum resources (oil), says the federal government has set up a committee to resolve the dispute on domestic crude supply to the Dangote refinery and other local refineries.
In a statement on Thursday, Lokpobiri said the committee will investigate the disagreements among industry stakeholders.
He directed the committee, headed by the permanent secretary, to provide a report between Monday and Tuesday.
The minister stressed that all stakeholders are responsible for enforcing the Petroleum Industry Act (PIA), particularly concerning domestic crude oil supply obligations.
“We remain committed to promoting local refining and creating an enabling environment for players in the sector, fostering a sustainable and thriving oil sector, ensuring compliance with the PIA and safeguarding the interests of all stakeholders,” Lokpobiri said.
“In respect of this, I convened a crucial meeting to address the recent misunderstandings surrounding the regulation on domestic crude supply, which has sparked concerns among industry stakeholders.
“It became evident that a collaborative approach was necessary to resolve the issues at hand, and to this end, a committee has been set up with the task of reviewing the concerns raised by all parties involved.”
In recent months, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Dangote refinery were locked in a conflict over domestic supply.
On August 9, the NUPRC had denied allegations by the refinery of failing to uphold the PIA by not properly enforcing the domestic crude supply obligation (DCSO) regulation to ensure product availability to local refiners.
The commission said it facilitated the supply of 29 million barrels of crude oil to the Dangote refinery between January and June.
However, Anthony Chiejina, group chief, branding and communications officer of Dangote Group, said NUPRC did not facilitate any crude supply, noting that it did not receive 29 million barrels as claimed by the agency.
According to Chiejina, the regulator said it cannot implement its own Act because of the “sanctity of a contract”.
“Aside from the term supply we bilaterally negotiated with NNPCL, so far NUPRC has only facilitated the purchase of one crude cargo from a domestic producer. The rest of the cargoes we have processed were purchased from international traders,” he said.
“All we are asking for is for refineries in Nigeria to buy crude directly from the companies that produce it in Nigeria rather than from international middlemen.”
In July, the federal executive council (FEC) approved a proposal by President Bola Tinubu, directing the Nigerian National Petroleum Company (NNPCL) Limited to sell crude oil to the Dangote refinery and other refineries in naira.
The federal government, on August 15, inaugurated a technical subcommittee to ensure the smooth implementation of President Bola Tinubu’s directive to sell crude to local refineries in naira.
Wale Edun, minister of finance, had said the sale of crude oil to the Dangote refinery in naira will commence on October 1.
The Airline Operators of Nigeria (AON) has commended the policies of Festus Keyamo, the minister of aviation and aerospace development, saying he has a listening ear.
Obiora Okonkwo, spokesperson for the AON and chairman of United Nigeria Airline, spoke during the signing ceremony of the memorandum of understanding (MOU) between Nigeria and Boeing Company in Seattle, the United States.
“When the minister came on board, one thing we continued to see that is an influence is that he has a listening ear,” Okonkwo said.
The AON spokesperson said aviation stakeholders had always emphasised the need for policy “on the few occasions that we have met with him”.
Okonkwo said in those meetings, the AON consistently asked the minister to “remove the blocks, remove the clogs along our way and the rest will flow just easily.”
“We thought we were going to say what we have to say to one of those government officials but we didn’t know how much the minister took in and when he started running, his pace was fantastic,” he said.
“Honorable minister, we are happy that we are here.”
Okonkwo also extended his appreciation to Boeing for its ongoing support and partnership with Nigeria’s aviation sector.
He said at the end of Keyamo’s reforms, he would become “the father of the modern aviation sector in Nigeria.”
“By the end of this whole game, what the minister is doing with Boeing is over, what he is doing with the laws of Nigeria is completed, he eventually, at whatever time he will bow out as a minister, would have become the father of the modern aviation sector in Nigeria,” the AON spokesperson said.
Keyamo, on August 29, announced the signing of an MOU with Boeing to facilitate the acquisition of modern aircraft.
The minister led a delegation which included executives from major airlines under the AON and other key stakeholders in the civil aviation ecosystem.
Details of yesterday’s Police interrogation of the President of Nigeria Labour Congress, NLC, Joe Ajaero, over alleged criminal conspiracy, terrorism financing, treasonable felony, subversion, and cybercrime by the Intelligence Response Team, IRT, arm of the Police, have emerged.
Recall that the Police had on August 19, invited the NLC President to appear at its headquarters for questioning on August 20, over the allegation.
Vanguard exclusively gathered yesterday that the Police “interview” with the NLC President was attended by human rights activists, Femi Falana, SAN, Maxwell Opara, Deji Adeyanju and the leader of IRT, DCP Sanusi Mohammed.
According to sources, operatives of the Department of State Services, DSS, and National Intelligence Agency, NIA, were also at the session.
Source said the interrogation which did not last up to 30 minutes, was essentially on the operator of the Iva Valley Bookshop on the second floor of Labour House.
One of the sources told Vanguard that in response, Ajaero said the suspect was only a tenant of NLC and that their relationship was that of landlord-tenat.
Ajaero was also said to have told his interrogators that the suspect doses not consult for the NLC, neither was there any telephone co0nversation or written communication between them.
“At some point, Comrade Ajaro was almost infuriated because they (interrogators) were just calling Joseph Ajaero without reference to his official position as NLC President.
‘’In a normal situation, the Police ought to have just called the NLC president for the invitation and not write him. They failed to do so because of their sinister motives. In all, it was like a friendly chat that did not last up to 30 minutes,’’ the source said.
Invitation, a distraction, baseless
Meanwhile, addressing journalists at Labour House on his return from Force Headquarters, Ajaero said the whole thing was a distraction because the allegation was baseless, declaring that the labour movement could not be intimidated..
He said: “Comrades, I want to thank every one of you in various state commands who have been praying since the last four days and can now break their fast.
“Comrades, the labour movement is worth dying for because of its patriotism and commitment. Labour movement is one of the biggest pan-Nigerian organizations. Our patriotism from the days of colonial government till even the period of the military was unshakable.
“We are more patriotic than any other institution you can think of in this country and we are going to continue to be that.
“We have gone there (Force Headquartres) and we are back. I just want to confirm to you that as a citizen, I have gone there and we are back here. You can’t do this job (trade unionism) we are doing without this type of hazard, it is expected.
“This is the highlight of the job. Even at the unit level, some of us experience this. As far back as 1997, 1998 I was telling Falana, we were equally together in the cell enjoying ourselves during the time of Abacha.
“Comrades what is important is the circumstances that took us to that place. But whatever the case is, we are out to continue the struggle. We have got minimum wage but it has not been implemented. So we have to press for its implementation as soon as possible.’’
We can’t be intimidated, he says
He also declared that the union would not be intimidated by external pressures, following his appearance at the Intelligence Response Team, IRT, headquarters in Abuja.
“We can’t be intimidated. The allegations against us are baseless and we have nothing to hide,’’ he stated emphatically.
Ajaero explained further that his appearance before the Police was in the interest of transparency and to clear the air on the unfounded accusations levelled against him and the NLC.
He noted that the union would continue to fight for the welfare of workers and stand firm in the face of challenges.
“Our resolve is stronger than ever. We will continue to champion the cause of workers across the nation, no matter the obstacles,’’ he said.
Senior Advocate of Nigeria, Afam Osigwe, has taken his oath of office and has been inaugurated as the 32nd President of the Nigerian Bar Association.
Osigwe will lead the association alongside other newly sworn-in national officers of the bar for the next two years.
He takes over from the immediate past president of the association, Senior Advocate of Nigeria, Yakubu Maikyau.
In his inaugural speech delivered at the swearing-in ceremony in Lagos on Thursday, Osigwe commended his opponents, Tobenna Erojikwe and Senior Advocate of Nigeria, Chukwukwa Ikwazom, for their decorum during the electioneering process and extended a hand of fellowship to them to join him in moving the association forwards
He promised to run an all-inclusive bar that keeps the association not only united but moves the NBA forward.
Osigwe also gave the assurance that under his watch, the NBA will hold the federal and state governments accountable and make sure that their policies deliver good governance to the people.
As of the time of writing this report, Osigwe is still delivering his inaugural speech.
The inauguration of the new President and National Officers of the NBA will bring to a close the week-long annual general conference of the association which began on August 23rd
Seven Polish nationals arrested for allegedly waving Russian flags during the #EndBadGovernance protest in Kano have been released.
They were arrested by the Department of State Services (DSS) on August 5, 2024.
Some tailors accused of sewing Russian flags for #EndBadGovernance protesters were also arrested.
The seven Polish nationals were accused of playing a “suspicious role” in protests against government policies and economic hardship, the DSS said upon their arrest.
However, Poland’s Deputy Foreign Minister, Andrzej Szejna, said the nationals are six students and their lecturer who came to Nigeria from the University of Warsaw for an African studies exchange programme at Bayero University in Kano.
In an X post on Wednesday, Polish Minister of Foreign Affairs, Radosław Sikorski, announced that the arrested nationals had been released.
The post read, “Polish students have been released and are in Kano. The Minister @sikorskiradek spoke today with the representative of parents, Mr. Jacek Półrolniczak, and thanked the students’ families for the good cooperation with the Ministry of Foreign Affairs. Thank you to everyone involved in the release of citizens!”
Olumide Akpata, Labour Party (LP) candidate in the September 21, 2024 governorship election in Edo State, says he can’t be remote-controlled by any political benefactor or godfather if he wins the forthcoming poll.
The former president of the Nigerian Bar Association (NBA) said he is only answerable to the people of the state.
“I have no strings attached. I am not answerable to any godfather. I am not answerable to any political benefactor.
“That is one reason they (Edo people) can trust the Labour Party government because we are answerable to the people,” he said on Channels Television’s Politics Today programme on Thursday.
The forthcoming governorship election in the state has top contenders including Akpata, Asue Ighodalo of the Peoples Democratic Party (PDP), and Monday Okpebholo of the All Progressives Congress (APC).
Akpata said unlike the other candidates attached to former and serving governors, he is not answerable to any political godfather.
The LP candidate also said his campaign is not funded by Governor Godwin Obaseki whose anointed candidate is PDP’s Ighodalo.
“Initially, I was said to be the agent of Governor Obaseki, we were able to debunk that. Today, I was said to be sponsored by the APC. I think it is conspiracy theorising that is most stupid.
“I am funding myself and I have friends who believe in me and that we can do much better in Edo,” he said.
Akpata said the performance of Obaseki in the last eight years has been underwhelming.
“There is a gulf between myself and Governor Obaseki; it’s night and day. I cannot and will not be associated with his government. His performance has been underwhelming.
“I have been attacked, my billboards have been pulled down. Everybody knows that I am not his choice; I am not his Plan Z,” he said.
“I am saying that Governor Obaseki has been a failure; an unmitigated disaster. In failure, there will always be flashes of positives here and there but we are talking about on the whole, in the sum,” he added.
Akpata said the people of Edo need a breath of fresh air. “The reason they (voters) should look at us is that we need a breath of fresh air, you need something different,” he said.
“For 25 years, PDP and APC have been running Edo State. In the last eight years, one man has belonged to both parties.
“It is an abject failure and so we must try something else and the Labour Party presents a different approach to the subject: a people-centric, people-focused, people-impacting approach.
“Every government must ask itself: whatever resources I have available, how will it impact the greatest number of the people? That is the approach of the Labour Party,” the LP candidate explained.
Akpata said if elected, he would start with electricity agriculture, education and healthcare. He said he would call for private-public partnerships to set up power plants around the state.
The former NBA president expressed optimism that he would defeat Ighodalo and Okpebholo at the poll despite that they are backed by Obaseki and former governor Adams Oshiomhole respectively.
Media
The federal government yesterday warned members of the Nigeria Association of Resident Doctors (NARD) that it may be compelled to implement a ‘No Work, No Pay’ order on them should refuse to call of the ongoing warning strike.
In a statement signed by the Assistant Director, Information and Public Relations of the Federal Ministry of Health and Social Welfare, the ministry said that it found the decision of the doctors to proceed on strike action, in the midst of ongoing discussions, deeply regrettable.
It said that over the past months, the ministry, in collaboration with relevant security agencies, including the Office of the National Security Adviser (ONSA) had been working tirelessly to ensure the immediate and safe rescue of Dr Ganiyat Popoola.
It further said High-level discussions and coordinated efforts are currently underway, adding that government remained confident that these measures will lead to a positive outcome.
The statement said: “The ministry finds the decision to proceed with this strike action, in the midst of these ongoing discussions, deeply regrettable. As we believe that continued dialogue is the best approach to resolving any outstanding issues.
“In view of this, the Federal Ministry of Health and Social Welfare wishes to bring to the notice of the Nigerian Association of Resident Doctors (NARD), that in line with extant labour laws, the federal government will evoke the ‘No Work, No Pay’ for the number of days the strike was observed.”.
The ministry said the measure was not intended to undermine the legitimate concerns of medical professionals but to ensure that essential healthcare services were not unduly disrupted to the detriment of the public.
“We encourage all resident doctors to return to the negotiation table so that we can collaboratively find lasting solutions to the challenges facing our healthcare sector.
“As always, the ministry remains open to constructive dialogue and is committed to working together with all stakeholders to achieve a fair and sustainable resolution,’’ the statement added.
Doctors under the auspices of NARD had recently embarked on a one-week warning strike to protest the continued stay of one of their members, in the hands of kidnappers since December 27 last year.
Meanwhile, the leadership of NARD met with the Minister of State for Labour and Employment, Hon. Nkeiruka Onyejeocha late Thursday evening, with the minister pleading with them to call off their warning strike.
Addressing a peace meeting with the leadership of the doctors in Abuja, the Minister of State for Labour and Employment, Onyejeocha said that government is leaving no stone untouched in the effort to secure freedom for the kidnapped medical personnel.
She also assured that President Bola Tinubu has ordered that security be beefed up around hospital facilities in order to protect health workers and their patients.
The Minister said: ” I have to say here that the government has heard you clearly and Mr. President is feeling disturbed that these things are happening and it is not something he wished to continue.
“That’s why he has been engaging with security agencies every day, discussing issues of protection of lives and properties of the citizens. And so he told me to reach out to you to plead that he and the security agencies are working hard to make sure that this condition do not persist and that he is committed the protection of lives and properties that he promised Nigerians.
“In that stead, I plead with you that work is ongoing, that please rescind the decision to continue the warning strike because that as we speak people who are not kidnapped are dying. I know that you are passionate saving lives of your brothers and sisters who are in the hospitals”.
Earlier the NARD Resident. Dr. Dele Abdulahi Olaitan had recalled that on 27 of December, 2023, news broke that a lady doctor along with her husband and nephew were kidnapped from their house located within the hospital facility – the National Eye Centre in Kaduna.
He regretted that despite all their cries to the security agents to rescue the victim nothing came out of it.
He lamented that the mother of five kids and a breast feeding mother had been in captivity since December 27, 2023 till date.
According to him, though efforts got her husband released, all other efforts so far has yielded no fruit.
He said that the association had undertaken several engagements including protests and media advocacy but that it was when the association was not getting right responses that they decided to go on warning strike.
Nigerians paid N1.048 billion as ransom to kidnappers between July 2023 and June 2024, a report has shown.
The report, released yesterday by the SBM Intelligence, showed that 7,568 people were kidnapped across the country within the period.
SBM Intelligence is an Africa-focused market/security intel gathering consulting firm. Information from its website said it is Nigeria’s leading geopolitical research consultancy outfit, which is “particularly strong in the area of primary data gathering, and analyses of data that provides clarity relating to political, economic and social issues in Nigeria and West Africa”.
According to the report released yesterday by the firm, though abductors demanded N11 billion as ransom within the period, only N1.048bn was paid.
The report, titled ‘Grim Reaping’, highlighted the complex security situation and the rise in kidnapping for ransom in Nigeria.
According to the report, some of the security issues confronting the country include Boko Haram’s resurgence in the North East, armed gangs in the North Central and the North West, secessionist violence in the South East and gang-related issues in the South West.
The report also blamed the rising kidnapping for ransom on economic stagnation, noting that kidnappers increasingly target a broader range of people, starting with high ransom demands that are eventually lowered to what families or social organisations can afford.
It said ransom paid reflected the purchasing power of Nigerians rather than the negotiating skills of the victims’ families.
It further pointed out that amid these diverse threats, kidnapping for ransom had emerged as a pervasive and unifying concern.
The report said the Federal Capital Territory (FCT) recorded the highest ransom demands in the country, with Lagos and Kaduna closely trailing.
An analysis of geopolitical zones showed that the South East leads in both the amount of ransom paid and the rate of successful collections.
It further highlighted a new form of payment demanded by kidnapper-in-kind payments from victims’ families, which vary by region.
In the South, these demands often include food, drinks and cigarettes; while in the North, motorcycles are frequently requested.
The report said: “Also, between July 2023 and June 2024, our research uncovered that at least 7,568 individuals were abducted in 1,130 incidents across Nigeria. The states of Zamfara, Kaduna, and Katsina reported the highest numbers of both incidents and victims. Zamfara experienced 132 incidents with 1,639 victims, Kaduna had 113 incidents involving 1,113 victims and Katsina recorded 119 incidents with 887 victims.
“These states also recorded the highest number of civilian deaths. Over the past year, kidnapping has become increasingly lethal, resulting in 1,056 deaths across 1,130 reported incidents. On average, every attempted kidnapping now results in a fatality,” the SBM Intelligence report pointed out.
“In that same period, kidnappers demanded at least the sum of N10,995,090,000 (approximately $6,871,931) as ransom but received N1,048,110,000, a mere 9.5% of the money demanded, indicating that kidnappers have become less targeted in their victimology.
“Of the 1,130 reported kidnapping cases, Zamfara, Kaduna, and Katsina have the highest numbers of incidents and victims”, it further revealed.
The report also said that Zamfara recorded the highest incidents with 132 cases and 1,639 victims.
“Zamfara recorded 132 incidents with 1,639 victims, Kaduna had 113 incidents with 1,113 victims, and Katsina reported 119 incidents with 887 victims”, it said.
“These three states also have the highest number of civilian deaths. In the year under review in this report, kidnapping has become more lethal, with 1,056 people killed in 1,130 reported kidnap incidents. On average, someone is killed each time there is an attempted kidnap”, it added.
Gombe also recorded the lowest incidents with one case, Jigawa two cases, Bayelsa 3 cases, Kano recorded 4 cases, while Osun state had six cases.
The SBM researchers also said women are more often targeted for kidnapping than men. While the South has witnessed only a modest increase in kidnapping incidents from 2022 to 2024, the North has seen a sharp escalation.
Trend dangerous – Former DSS director
Meanwhile, in an interview with one of our correspondents last night, a retired director of the Department of State Services (DSS), Mike Ejiofor, described development as “dangerous for Nigeria’s economy”.
Ejiofor stressed that even though the lives lost during the period that ransom was paid were more important than the money, it was time for the president to declare a state of emergency on insecurity.
According to him, manning Nigeria’s land borders properly will go a long way in checking the cross-border movement of the kidnappers and other criminals engaging in the activities.
“If that report is anything to go by, that is very dangerous, both for our economy and for our other spheres of life. It is a danger that must be checked.
“Money raked in is not even the problem, what about the numbers of lives lost? We should not be talking about money but the numbers of lives lost first. It is high time the government did something quickly.
“The way forward is the citizens’ participation. People must be involved. We shouldn’t be waiting for our security agencies alone to do it.
“Government should also prioritise or declare an emergency on security, and give proper funding, training, among others to security agencies, and collaborate with other foreign interests and groups because what is going on now is that, we have this trans-border crimes and trans-border movement.
work. It is painful and a disgrace for any government to admit it is paying ransom. It is an abnormality we are going to live with for sometime. We need to invest more and restructure our intelligence architecture”, he said.
[DailyTrust]
The pan-Yoruba socio-political organization, Afenifere, yesterday, urged the Federal Government to allow graduates performing their mandatory one-year programme in the National Youths Service Corps, NYSC, to serve within their geopolitical zones.
Afenifere advised the Federal Government given the increasing rate of kidnapping and banditry across the country.
While commending the Federal Government and security agencies for rescuing kidnapped NYSC members who were on their way from Akwa Ibom to Sokoto State, the organization urged the government to equip security agents better for optimum performance.
Afenifere, in a statement by its National Publicity Secretary, Mr Jare Ajayi, reiterated its advocacy for enrollees to the NYSC scheme to serve within their geopolitical zones rather than going from one part of the country to the other.
The association further observed that these pockets of ‘achievements’ appear to be dwarfed by the avalanche of security challenges people are facing in different parts of the country.
Alluding to recent incidents, Ajayi noted that fear of kidnappers and attacks by bandits including cattle rustlers, are now rampant.
The Afenifere spokesman, who observed that kidnappers now seem to go for groups and high-profile individuals, called the attention of those concerned to factors responsible for banditry and kidnapping.
The organization stressed that attention should be given to the prevalence of ungoverned or under-governed spaces where the government’s control is ineffective.
Afenifere added that absence or paucity of government presence in such areas makes people of the area vulnerable to exploitation by terrorist groups, traffickers and other criminal elements.
He said: “The porosity of the borders has increased the influx of small arms and light weapons from the Sahel region – thus heightening the incentives for crimes and banditry.
“Illegal mining has created room for poor governance in the areas affected – resulting in poor service delivery, displacement of the local people, increasing unemployment as farmers and youths are forced out of their farmlands – a situation that is making these set of people to be ready recruits for banditry.”
More...
The Federal Competition and Consumer Protection Commission (FCCPC) has granted a one-month moratorium to traders and other market stakeholders involved in exploitative pricing, urging them to reduce the prices of goods.
Mr. Tunji Bello, the newly appointed Executive Vice Chairman of the FCCPC, made this announcement during a one-day stakeholders’ engagement on exploitative pricing held on Thursday in Abuja.
Bello stated that the Commission would begin enforcement actions once the moratorium period ends.
He explained that the meeting was convened to address the increasing trend of unreasonable pricing of consumer goods and services, as well as the unethical practices by market associations.
What the FCCPC is saying
In his remarks, Bello cited a finding by the Commission, highlighting that a fruit blender known as Ninja, priced at $89 (N140,000) in a popular supermarket in Texas, was being sold for N944,999 in a supermarket located in Victoria Island, Lagos.
Bello wondered about the basis for the arbitrary hike in the price of the blender compared to Texas, United States of America.
He said the unwholesome practices including price fixing were threatening the stability of the economy.
”Under Section 155, violators whether individuals or corporate entities face severe penalties including substantial fines and imprisonment if found guilty by the court.
”This is intended to deter all parties involved in such illicit activities.
”However, our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation.
”It is in this spirit that we are giving a moratorium of one month before the Commission will start firm enforcement,” he said.
More Insights
On his part, Ifeanyi Okonkwo, the Chairman of the National Association of Nigerian Traders, FCT Chapter, noted that the charges on imported goods at the ports have also played a significant role in the surge in prices.
He urged the Commission to establish a task force and include the association in its enforcement efforts.
Meanwhile, the FCCPC boss said the government was aware of most of the problems raised by the market stakeholders.
“We have heard and you have genuine issues and the government has the responsibility to address the problems but generally, let us talk to ourselves too.
”There are also gang-ups to exploit consumers by traders,” he added.
Moreover, other market stakeholders who spoke at the engagement said that the high cost of transportation, insecurity, and multiple taxation among others were reasons for the continuous increase in prices of goods and services.
Residents of Owerri, the capital city of Imo State, have lamented the continuous rise in the pump price of premium motor spirit as the price of the product continues to skyrocket daily.
Residents were seen trekking to work as commercial bus drivers, especially Keke bus drivers, temporarily halted their services within the metropolis in protest over the continuous rise in the price of fuel in the country.
The development came on the heels of the further hike in fuel prices in parts of the state from N850 to between N900 and N1000 per litre as of Monday this week.
People were seen in the rush hours of yesterday morning trekking to work in their numbers along some of the popular roads in the metropolis, as only a few commercial buses were seen plying the road.
This was the case along the busy Owerri-Okigwe Road and Wetheral Road, among others.
DAILY POST learnt that the high price of fuel compelled commercial bus drivers to further hike fares for various destinations in the city of Owerri and parts of the state.
Some residents who spoke with DAILY POST revealed that the hardship caused by the hike in fuel pump price is affecting every sector in the state.
Chinedu Ofoha, a bus driver, said that they don’t feel happy increasing the price of transportation but that it became inevitable due to the increase in the price of petroleum products.
“It became worrisome when the fuel price started rising on a daily basis. Some filling stations are selling between N850 and N900 and some are selling at the price of N1000. Still when you go to some of the stations,
they will tell you that they are not selling,” he lamented.
DAILY POST learnt that it is only NNPC filling stations that are selling at N600 per litre. As a result, there are always long queues of motorists at every NNPC station.
“Sometimes we sleep at the station to be the first person to attend to when they reopen the next day,” Ofoha further said.
A fruit seller at World Bank Market, Rosemary Emenike, said that fruit sellers are experiencing low patronage from buyers because of the changes in their prices as a result of the increase in transport fares.
“When we go to the rural markets to purchase the fruits, conveying them to town becomes a problem as drivers charge us beyond what we can afford. When you ask why, they will tell you, are you not in the country? So for us to meet up, we increase the prices of the fruits,” she said.
DAILY POST recalls that fuel price has risen astronomically since President Bola Tinubu announced the removal of subsidy on fuel on May 29, 2023, during his inaugural speech as president.
Many Nigerians have blamed the persistent rise in fuel price and high cost of goods and services in the country on the president’s hasty removal of subsidy on fuel, given the country’s dependence on imported fuel.
[DailyPost]
- President has given approval, says minister
Relief is on the way for tertiary institutions and teaching hospitals reeling under huge electricity bills.
President Bola Ahmed Tinubu has approved a 50 per cent subsidy for electricity used by these institutions.
To benefit are Federal universities, polytechnics and colleges of education.
The various teaching hospitals will also enjoy the subsidy regime.
Minister of State for Health, Dr. Tunji Alausa, broke the news yesterday in Kaduna.
“President Bola Ahmed Tinubu has magnanimously approved 50 per cent electricity subsidy to all public hospitals and universities, polytechnic and colleges of education,” he said.
Dr. Alausa said the Ministry of Power is already working out the subsidy payment modalities.
Tertiary institutions have been complaining about astronomical electricity bill increases.
The rise in power costs followed subsidy reduction in the sector.
Some of them have been disconnected by the Distribution Companies (DisCos).
In some instances, students have protested against the attempt by the authorities to alternate electricity supply to reduce costs.
The University College Hospital (UCH), Ibadan disagreed with the Ibadan Electricity Distribution Company (IBEDC) over an accumulated N400 million bill.
Ahmadu Bello University (ABU) Zaria cried out over a monthly bill of N300 million which will make it indebted to the Kaduna Electricity Distribution Company (KADCO) to the tune of N3.6 billion annually.
Eko Electricity Distribution Company (EKEDC) disconnected the University of Lagos this week for owing over N1 billion. The varsity said it had paid N180 million.
The annual electricity budget for 10 varsities is estimated at N247.7 billion.
The 10 public institutions with the highest budgets for this year, according to a publication by the Electricity Hub, are University of Nigeria Nsukka (N36.6 billion), University of Calabar (N29.5 billion), ABU (N29.2 billion), Nnamdi Azikiwe University Awka (N26.3 billion), University of Benin (N24.2 billion), University of Ibadan (N23.4 billion), University of Maiduguri (N22.3 billion), University of Port Harcourt (N19.6 billion), University of Lagos (N19.4 billion) and Obafemi Awolowo University (N17.1 billion).
However, analysts are asking many questions, such as: “Why can’t the experts and professors in relevant disciplines in the universities develop alternative power supply?
“Instead of relying on power supply by the DisCos, why can’t the experts develop other sources of power generation, such solar, wind and hydro, among others?
“What has happened to the initiative for power supply to some of the leading universities during the Muhammadu Buhari Administration as launched at different times by then Minister for Power Mr. Babatunde Fashola?
“How relevant is the research in the universities to the society at large if the institutions cannot generate power?”
Minister inaugurates medical facilities in Kaduna
Dr. Alausa, who spoke during the inauguration of the National Ear Care Centre and other critical health sector projects in Kaduna, said they align with the Renewed Hope Agenda (RHA) to provide affordable and comprehensive healthcare to Nigerians.
He described the newly-launched facilities, including an auditorium, student hostel, oxygen plant, molecular laboratory and others as crucial.
The minister also addressed the ongoing challenges in the healthcare sector, particularly the impact of the Japa syndrome.
He spoke of the ongoing efforts to increase training quotas and improve remuneration for healthcare workers to discourage them from jetting out in search of better welfare.
Dr. Alausa further outlined the Federal Ministry of Health’s plans to implement a national electronic medical system to revolutionise patient care and data management.
He said: “President Bola Ahmed Tinubu is committed to revamping all the sectors of our economy, especially in the health sector where he is giving us all we want.
“Our country is in the right direction and I want to implore the citizens to be patient with this president. He knows what he is doing.
“Every promise he made to Nigerians, he will fulfil them and he’s already fulfilling a lot of his promises.
“Our country is on the right trajectory now and I want to implore fellow citizens to be positive about our country.
“This is the only country we have and this negativity must stop.”
Kaduna State Governor Uba Sani, represented by Deputy Governor Hadiza Balarabe, commended the leadership of the President in the provision of the National Ear Care Centre.
She assured the Centre of continued support from the Kaduna State Government to maintain its status as a leading institution in ENT care and research.
Dr. Balarabe said: “Together, we can work towards ensuring that all Nigerians have access to high-quality healthcare services and that the National Ear Care Centre remains a beacon of excellence in the field of ENT.”
The Centre’s Medical Director, Dr. Mustapha Yaro, outlined the newly completed projects, which are part of a broader effort to enhance healthcare infrastructure and services.
He added that among the key projects unveiled were a 200-capacity auditorium and a one-storey student hostel for the School of Post-Basic ORL Nursing.
[TheNation]
The Federal Competition and Consumer Protection Commission, FCCPC, gave a month’s notice to traders and other market stakeholders involved in exploitative pricing to crash the prices of goods.
The Executive Vice-Chairman of the FCCPC, Mr. Tunji Bello, gave the order at a one-day stakeholders’ engagement on exploitative pricing yesterday in Abuja.
According to Bello, the commission will begin enforcement after the expiration of the notice.
He said the meeting was to address the growing trend of unreasonable pricing of consumer goods and services and unwholesome practices of market associations.
Bello said: “The issue of critical national importance of the day is the growing trend of unreasonable pricing of consumer goods and services across the country, and the unwholesome practice of market associations engaged in price fixing.
‘’As a responsive organization, we have carried out discreet market surveys extensively across the country in the past few weeks. Our findings are quite disturbing, to put it mildly. Therefore, our gathering here today (yesterday) is to underscore the gravity of the situation and the urgency of the need to work together to check this unwholesome development.
“As a statutory body whose mandate is to cater to consumer rights, we cannot allow this unhealthy trend to continue. To be sure, we quite recognize that an unfavourable exchange rate has negatively impacted the cost of production in local currency. However, the margin in pricing goods and services is unreasonable or excessive in a few cases.
‘’We have observed, for instance, that the margin in the prices of imported goods are very disproportionate in many cases; and in the case of locally produced goods, excessively inflated. This is an untenable situation, particularly in the retail segment, where we have identified patterns of price fixing perpetrated by some market associations, price gouging, and other anti-consumer practices.
Widespread price fixing
‘’For proper understanding, price fixing refers to an unholy agreement between competing businesses to set prices at a certain level. This can be done either explicitly or implicitly, and it prevents healthy competition that is otherwise expected to drive prices down and improve quality.
‘’Price gouging on the other hand occurs when sellers significantly increase the price of goods or services during a crisis or a period of economic challenge. This practice takes undue advantage of consumers.
‘’To illustrate, let me give you some glimpses of our findings. For instance, our check just two days ago at a popular supermarket chain in Texas, United States, revealed that a fruit blender called Ninja, is displayed on the shelf at $89 (roughly N140,000), just two days ago.
‘’Meanwhile, the same product was displayed at a popular supermarket on Victoria Island in Lagos for N944,999 on the same day and at the same hour. This represents more than 500 per cent inflation of the cost.
‘’Interestingly, when our undercover officer visited the same supermarket two weeks earlier, this same blender was on display with the price tag of N750,000.
‘’The question then arises: what is the basis for this arbitrary hike in the price of the blender, compared to the United States? What business principle can justify this level of profiteering?
‘’Perhaps, I should cite a few more of the unpleasant discoveries we made during our investigation. In some notable supermarkets surveyed discreetly in Abuja, Kano, Port Harcourt and Lagos, we also found that prices were arbitrarily jerked up from time to time without any justifiable reason.
‘’In one particular big supermarket in Abuja, for instance, consumers were being charged N2,600 for an imported toilet soap at the payment point as the price tag was not displayed as earlier mandated by FCCPC. The same toilet soap was displayed for sale at N1,950 at a popular supermarket in Lekki, Lagos, the same day. That already constitutes a double offence.
“From our findings, the penchant to hike prices arbitrarily is also common among sellers of food items and transport operators. When the foodstuff sellers were engaged, their common response was that the cost of transportation had increased.
‘’But how justifiable is it for the tomato seller to double the price of a basket of tomatoes simply because they paid higher transport fare? Whereas the price of the same basket of tomatoes was far cheaper at another market within the same jurisdiction surveyed by our field officers. Now, the question: did the seller who sold at a lower price not also pay the transport fare?
‘How price-fixing happens’
‘’In a typical foodstuff market environment, this is how price fixing happens. A trailer-load of yam tubers arrives at Wuse market in Abuja from, say, Benue State. Rather than allow free trade, the market cartel then inserts themselves between the produce farmers and the retailers.
‘’They buy in large quantities from the producer at cheap rate and, in turn, sell to market retailers at much higher price. And the retailers, in turn, sell to consumers at cut-throat rate.
‘’Such price fixing is no longer acceptable and FCCPC will, henceforth, crack down on those involved in this profiteering scheme.
‘’In the case of public transportation, again how justifiable is it for the bus driver to double their fare simply because they paid slightly higher for petrol? Of course, this will only result in a spiral of arbitrary hike in the prices of other services.
‘’The landlord who pays more for transport will probably seek to double their rent as a survival strategy. The school-owner asked to pay higher rent will also likely increase fees they charge students. That way, we all end up being losers with the cost of living becoming unbearable for everyone.
‘’In view of the current situation in Nigeria, let me, however, be very unequivocal. Price gouging and price fixing are not only unethical, but patently illegal under the FCCPA. As such, the FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers.
“However, our approach today is not punitive or adversarial. To start with, we intentionally resolved to withhold the names of the aforementioned errant supermarkets, believing that, after this exposition, they will turn a new leaf and adjust their prices downward to a reasonable level.
‘’This approach is borne out of our conviction that dialogue and collaboration are equally important tools in fostering a fair marketplace. We believe that through constructive engagement, we can establish a framework for reasonable pricing that benefits all stakeholders, particularly the consumers who are the backbone of our economy.
‘’Please note that this new initiative by the FCCPC aligns with the renewed hope agenda of President Bola Tinubu, which prioritises the welfare of the Nigerian people in all economic activities. We are determined to uphold this agenda by ensuring that market practices do not exacerbate the economic challenges faced by our citizens at this time.
‘’Good enough, as a sensitive leader who cares for the welfare of the citizens, President Bola Tinubu has already graciously taken some pragmatic steps to ease food security in the country, including the provision of fertilizer to farmers as well as removal of tariffs on the importation of selected staple food items.
‘’It is only just and reasonable that distributors and traders pass down the gains to Nigerian consumers by reducing prices in the coming weeks.
‘’As we move forward, I therefore call on all stakeholders to embrace the spirit of patriotism and cooperation. Let us talk to ourselves. The law empowers the commission to impose heavy fine for breaches and also prosecute offenders which could lead to jail terms.
‘’For instance, Section 107 (4a.) of FCCPA clearly states: “Where the undertaking is a natural person, is liable on conviction to imprisonment for a term not exceeding three years or to payment of a fine not exceeding N10,000,000.00 (N10m) or to both the fine and imprisonment.
‘’Section 107 (4b.) also states that, “Where the undertaking is a body corporate, is liable on conviction to a fine not exceeding 10% of its turnover in the preceding business year.
“But in the spirit of democracy, we are first exploring the option of dialogue. It is also in this spirit that we are giving a moratorium of one month (that is, September) before the commission will start firm enforcement. Let us work together to create a marketplace that is not only competitive but also fair and just.
‘’The FCCPC is committed to continuing these dialogues, monitoring compliance, and taking decisive action where necessary.’’
Why prices go up, by sellers
Some of the market stakeholders who spoke at the engagement, said high cost of transportation, insecurity, multiple taxation, among others, were reasons for the continuous increase in prices of goods and services.
Mr Ifeanyi Okonkwo, the Chairman, National Association of Nigerian Traders, FCT chapter, said charges on imported goods at the ports had also contributed to the hike in prices.
Okonkwo appealed to the commission to set up a taskforce and involve the association in its enforcement.
Mr Emmanuel Odugwu from Kugbo Spare Parts market, said the initial cost of transportation of a trailer load of tyres from Lagos to Abuja was N450,000, noting it now cost over one million naira to transport same.
Ms Kemi Ashiri, the Liaison Manager, Flour Mills, said fines by regulators need to be harmonised for businesses to thrive.
Ikenna Ubaka, who spoke on behalf of supermarket owners, alleged that banks’ interest rates to them were over 30 per cent, and that rent increments and hike in prices by distribution/ supply chains were reasons for the high cost of goods.
Ubaka also alleged that electricity distribution companies were charging supermarkets exorbitantly.
Mr Solomon Ukeme, who represented Master Bakers Association, said rapid increment of major ingredients such as flour, sugar and butter, contributed to the high cost of confectioneries.
He said a bag of flour formerly sold for N34,000, was now being sold for N74,000, noting also that multiple taxation remained the major cause for the high cost of bread.
Price reduction, a mirage unless insecurity, high transportation costs are reduced — TUC
Reacting to the development yesterday, 1st Deputy President, Trade Union Congress of Nigeria, TUC, Dr. Tommy Okon, said until the issue of insecurity and high cost of transportation of goods and services were addressed, any talk of reduction of price within a month or more would be a mirage.
‘’Farmers pay to access their farms and also pay for transportation as well as extortion by security agencies and touts along the highways. All these are factored into the prices of goods. Until all the variables are addresed by government, there is no way prices of goods will come down..’’
‘Direct price control can create shortages’
Reacting, Clifford Egbomeade, Public Analyst and Communications Expert, said: “The Federal Competition and Consumer Protection Commission’s initiative to force traders to lower prices, amid inflation and economic hardship, while well-intentioned, could have unintended consequences.
‘’Direct price controls often disrupt the natural balance of supply and demand, leading to potential shortages as traders might find it unprofitable to sell at the mandated prices. This kind of intervention risks distorting the market and may not address the root causes of inflation.
“For small and medium-sized enterprises, SMEs, which typically operate with slim profit margins, such controls could be particularly damaging. Many SMEs might struggle to sustain their businesses under enforced price reductions, leading to closures and job losses, which would have a broader negative impact on the economy.
‘’The informal sector, a significant part of the Nigerian economy, could be disproportionately affected by these measures.“A more sustainable approach might involve strengthening social safety nets and improving supply chains to reduce costs naturally. Supporting local production and implementing targeted subsidies for essential goods could also help mitigate the impact of inflation without distorting market dynamics.
‘’Ultimately, while the FCCPC’s efforts may provide temporary relief, addressing the underlying economic factors driving inflation would lead to more lasting solutions.”
FG has no right to force traders to crash prices- Barr Onwuka
In her reaction, a human rights activist, Barrister Charity Onwuka, said: “This is very appalling really, another mess up by the APC-led administration.
The federal government has no right whatsoever to force traders to crash prices because the traders bought the commodities or items at a very high rate. According to her, this will lead to artificial scarcity because traders will rather hoard their goods than sell at a very low rate to their detriment.
She said: ‘’The government should rather have a more practical and pragmatic approach to resolve the inflation in the economy.
‘’As a citizen of Nigeria, I suggest, as is being widely advocated, that the cost of governance should be crashed to the barest minimum and experienced economic experts should be consulted to advise on the way forward, rather than compensating political faithful and family members by giving them key positions wherein they can’t make positive impacts for the good of everyone in the country!”
[Vanguard]