Energy

Okonjo-Iweala Recalls Nasty Experience with Vicious Fuel Subsidy Cabal (Video)

By Web News 1603

This isn’t the first time the idea of petrol subsidy removal would be mooted. The Jonathan administration under which the incumbent Director General of the World Trade Organization, WTO, Dr Ngozi Okonjo-Iweala, served as Minister of Finance and Coordinating Minister of the Economy also had its fair share of mention in the saga. In fact, former President Jonathan said at that time severally that fuel subsidy was unsustainable and tried unsuccessfully to remove it.

In a video that went viral last week, Okonjo-Iweala is seen narrating how she spearheaded efforts to scrap payment of questionable subsidies and how beneficiaries viciously fought back, culminating in her mother’s kidnapping and demand for her resignation.

“My second example has to do with a very specific one in my country, the clean-up of the fuel scarcity regime in 2012 during my second stay as Finance Minister”, she narrates in the video.

“Nigeria has a physically challenging force of fuel regime, the country exports crude oil and imports fuel because their refineries are in a very bad shape and provides a subsidy for the refined oil as support.

“At the end of 2011, a total of N1.73tr, US $11b equivalent, was submitted as claims for subsidy by 143 marketers, who were importing the product.

“These numbers seemed horrendously large compared to what I had last when I was in government in 2006, which was close to $2b in subsidy.

“So, we decided to study these claims. We audited about $8.4b worth of claims and we found out $2.5b worth of fraud. That is, many of these marketers were trying to claim $2.5b fraudulently.

“With the full backing of the President and the Economic Team, we decided that we were not going to entertain these claims or to pay.

“The pressure from affected marketers was tremendous…not only to say we would not pay but also to say we would clean up the whole mechanism for the subsidy claims and put in place something more transparent, something clearer.

“This did not go down well with them. “When we insisted on our position of non-payment and implementation of the new verification regime, these, and well-connected interests, were angered, and came to blame me personally for this. “There were personal consequences. My 83-year-old mother, a retired professor of sociology, was kidnapped by four young men and held for five days.

“She was totally terrified. She asked them why she had been kidnapped and they told her ‘Because your daughter, the Finance Minister, refused to pay oil marketers their dues’.

“The kidnappers, negotiating with my brother, demanded my resignation, publicly; that I should go on television, publicly and announce my resignation and depart from the country as a condition for my mother’s release.

“Needless to say these were some of the worst days of my life. Imagine when you are in a position, you want your parents, all of whom are here with you today, and your relatives to be proud of you. You want to be a source of good for your family.

“You can imagine how I felt, sitting there and thinking, just because of trying to do something right. To implement a policy that was good for the country, to lead to the taking of my mother’s life. These were some of the worst days of my life.

Watch video

Vanguard/Simeon Ugbodovon

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Energy

Tinubu has not removed subsidy – Keyamo

By Web News 569

The Chief Spokesman for the All Progressives Congress Presidential Campaign, Festus Keyamo, has said President Bola Tinubu did not remove fuel subsidy.

According to him, a section of the media is “mischievously twisting the narrative to read that Tinubu’s government has removed subsidy,” despite President Tinubu proclaiming that subsidy was gone while giving his inaugural speech on May 29.

Keyamo, who is also a former Minister of State for Labour, rather said that Tinubu’s administration only inherited a regime where there was no provision for subsidy in the 2023 Appropriation Act beginning June 2023 and the Petroleum Industry Act, which is now extant, has no provision for subsidy.

In a series of tweets on his official handle, @fkeyamo, he said, “A section of the Press is mischievously twisting the narrative to read that Tinubu’s government has removed subsidy. That is not correct. Tinubu’s govt has merely inherited a regime where there was no provision for subsidy in the 2023 Appropriation Act as of June 2023 and the Petroleum Industry Act which is now extant has no provision for subsidy.

 “President Tinubu merely acknowledged this state of affairs in his inaugural speech at the Eagle Square.

“So, any advocate of subsidy should convince the Nigerian people why President Tinubu should start on a note of illegality by promising to reintroduce something which the law has taken away. They should also convince the Nigerian people why President Tinubu should embark on a present illegality that gulped $10 billion of our scarce or unavailable resources in 2022 alone.”

He added that those claiming to defend the rights or welfare of workers should convince the Nigerian people that the $10 billion injected into the economy annually will not jumpstart the economy enough to create massive jobs and even increase the same minimum wage they complain about.

Punch/ Oluwayemisi Owonikoko

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Energy

Long Queues Surface at Fuel Stations in Ibadan, Other Cities

By Web News 536

By Tawakalit Ibrahim/Adenitan Akinola/ Olajumoke Idowu

Some filling stations within Ibadan metropolis have started experiencing long queues of humans and vehicles. 

Radio Nigeria Premier FM reporter, who monitored the situation, observed that some of the filling stations around Apete, Sango, Mokola, Idi-Ishin Jericho, Akobo, Apata and Molete now witnessed the heavy presence of both commercial and private motorists. 

While wondering what could be the cause of the sudden queues, some of the motorists who did not want their names mentioned suggested that the development could be a result of the remarks from the Inaugural Speech of President Bola Tinubu on the removal of fuel Subsidy.

The motorists lamented that they woke to the increase in pump price from the official rate if 180 Naira per litre to between 240 to 270 Naira per litre this morning.

Our Correspondent gathered that while some stations sold the product, others shut their gate against customers, and this made many people abandon their vehicles at the stations.

Petrol attendants in some of the stations who spoke with Radio Nigeria could not give any reason for the development, noting that they only work with directives.

Efforts to speak with the Nigeria Midstream and Downstream Petroleum Regulatory Authority and the Independent Petroleum Marketers Association of Nigeria IPMAN on the issue were to no avail.

Osun State

The case is not different as queues have resurfaced at many fuel stations across Osogbo, the Osun State Capital.

Radio Nigeria Correspondent who went around some locations in the town said there were long queues in a few petrol stations dispensing fuel.

At the stations dispensing fuel along OgoOluwa, Dada Estate, Ring Road and Ikirun Road, pump prices have suddenly increased between 250 naira and 300 hundred naira. 

Some of the motorists who spoke to Radio Nigeria including Mr Duro Later and Hakeem Abolude attributed the development to panic buying.

Some motorists accused some marketers of deliberately hoarding petrol to sell it at exorbitant prices.

They called on the State government to protect the people from shylock businessmen.

Ogun State

Similarly, long queue of vehicles disrupted the free flow of traffic today on major roads in Abeokuta, the Ogun state capital as work resumes after the public holiday declared by the federal government in commemoration of the inauguration of a new administration in the country.

Some residents who spoke with Radio Nigeria attributed the long queues to panic buying of premium motor spirit, also known as petrol, sequel to the announcement by President Bola Tinubu to remove fuel subsidy.

Apart from the filling stations with long queues, many petrol station operators did not sell the product to customers, while some marketers increased their prices from 185 naira per litre to sell for between 250 and 300 naira per litre.

A commercial driver, Mr Akeem Olawale who lamented about the hoarding of fuel by operators, said the situation would lead to hike in transport fares and appealed to President Tinubu to avoid another round of economic torture on the people. 

Also, a business owner, Mrs Tolani Akinsanya said the removal of fuel subsidy would have a great impact on food items, stressing that there was need for the new government to tread with caution to ameliorate the suffering of Nigerians.

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Energy

IPMAN Kicks Against Tinubu’s Planned Fuel Subsidy Removal

By Web News 1382

The Independent Petroleum Marketers Association of Nigeria, IPMAN, has opposed the plan by President Bola Tinubu to enforce his predecessor’s decision to remove fuel subsidy by June end.

Tinubu had earlier on Monday, in Abuja, affirmed that his administration would not continue to pay subsidy on petroleum products.

He said given the high opportunity cost the Federal Government was suffering to fund subsidies, it was no longer justifiable to continue.

“The fuel subsidy is gone!” Tinubu exclaimed during his inaugural address at Eagle Square, Abuja, shortly after he was sworn in as the 16th President of Nigeria.

The President said “Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care, and jobs that will materially improve the lives of millions.

“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor.”

Tinubu said since there was no provision for subsidy in the budget from June 2023, it stands removed.

However, reacting on Monday, IPMAN said it was opposed to the new president’s subsidy removal plan

The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, said the new government should dialogue with marketers before taking the decision to remove subsidy.

“We are not in support of the removal of fuel subsidy at this time. We have said it repeatedly that our refineries should be fixed before taking such a decision that will cause galloping inflation and inflict more hardship on the masses.

“The government of President Tinubu should not adopt what is in the transition document handed over to it by the administration of former President Muhammadu Buhari. Someone (Buhari) who for eight years did not remove subsidy is advising a new government to remove it.

“That is not fair and should not be adopted. Rather the new government should sit and discuss with marketers and other stakeholders on how to manage the fuel subsidy regime. We now have the Dangote Refinery, but all our refineries are still not working, so we don’t think removing subsidy is the right thing to do now,” Ukadike stated.

He said IPMAN was ready to work with the new government and would proffer measures to address the fuel subsidy regime, instead of effecting an outright halt in subsidy.

Punch/ Oluwayemisi Owonikoko

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Economy

Shelve Idea of Fuel Subsidy Removal Totally – MMPN Advises FG

By Web News 626

Muslim Media Practitioners of Nigeria, MMPN has called on the Federal Government to shelve totally the idea of fuel subsidy removal in the interest of the impoverished masses.

This is contained in a communique issued in Ibadan by the Chairman, MMPN, Oyo State Chapter, Alhaji Ridwan Fasasi at the end of the monthly meeting of the Association held at NTA, Ibadan Zonal Station. 

The Association appreciated the federal government for suspending the planned removal of fuel subsidy following the public outcry noting that adding burden of hike in fuel pump price at the last stage of the administration of President Muhammadu Buhari is tantamount to inflicting more hardship on the suffering masses.

It urged the Federal Government to concentrate more on ensuring that all refineries are put to 100 percent utilization, which will permanently address the tales of fuel subsidy. 

The Association similarly expressed concern over indiscriminate citing of filling and gas station outlets in residential areas in the country and wondered why the government would trade the safety of the people by approving such locations all in the name of revenue generations.

MMPN called on the government to employ or involve indigenous professionals in solving the nation’s protracted problems emphasising that such step remained the best approach at this period. 

The Association also enjoined the Federal Government to address the problems in the health sector stressing that if care is not taken, the brain drain currently being experienced in the sector will adversely affect the healthcare delivery in the country.

It observed with concern as well the increasing cases of rituals in the country and Get-Rich-Quick syndrome among the youths which the Association believes it’s as a result of loss of value and lack of parental care. 

Ridwan Fasasi

News

NLC Planned Protest Forced FG to Suspend Fuel Subsidy Removal – Ekiti Chairman

By Web News 528

The Nigeria Labour Congress, NLC Ekiti State Chapter has hailed the decision of the Federal Government to suspend the planned removal of fuel subsidy.

Chairman of the Congress, Comrade Olatunde Kolapo who made this known in Ado Ekiti while briefing newsmen affirmed that NLC planned protest forced government to rescind its plans.

He appreciated members of the congress, all affiliates of NLC and Civil Society Organizations for their support which according to him prevailed on Federal Government to shelve the planned increment.

He said “I want to thank all the NEC SEC and SAC members, civil society groups, allies of NLC for your cooperation.

“This is the first time every worker in the country spoke with one voice and this actually gave us victory.

“If not for the proposed protest, government would have announced the new price of fuel to 340 and Nigerians would have been thrown into additional bondage and sufferings.

Kolapo said Ekiti NLC would continue to do everything possible to agitate for better welfare packages for workers in the state.

Speaking on some workers who were sacked at the Ekiti State House of Assembly, the NLC Chairman confirmed that there issue had been tendered before Governor Kayode Fayemi  for possible reinstatement.

He called on government to look into the issue of outstanding gratuity of pensioners particularly some workers who retired from the defunct College of Education Ikere Ekiti, saying some of them who retired since 1993 were yet to get their benefits.

He hoped that in 2022 Ekiti workers would rejoice and enjoy better welfare packages because necessary arrangement have been made with government and resolutions have been reached for payment of outstanding benefits of workers as well as remittance of various deductions to appropriate quarters.

Niyi Alade

Economy

Fuel Subsidy: ASCSN Threatens Showdown

By Web News 537

National Executive Council, NEC, will today consider the adoption of a report by its ad hoc committee on fuel subsidy removal and the increase of petrol price to N302 per litre.

Vice-President Yemi Osinbajo is expected to preside over the meeting, to be attended by all the governors and other federal officials.

The Trade Union Congress will on Thursday also take a position on the planned removal of the fuel subsidy by the Federal Government.

The TUC Deputy Secretary, Nuhu Toro, told newsmen in Abuja on Wednesday, that the congress would hold a meeting over the subsidy issue.

Also speaking, the Association of Senior Civil Servants of Nigeria opposed the plan by the Federal Government to remove the fuel subsidy and increase the pump price.

The ASCSN President, Tommy Okon, said his association and Nigerians would resist the move.

He said, “Of course, Nigerians are resting assured that they would be defended by our union; that’s why we are here and that’s why we are saying it is a wrong decision to take at this time when workers’ wages are still stagnant. No increase, they have not made any provision.

“The transport system has not been looked into. So, you just wake up and say you are removing fuel subsidies. Where in other climes has this been done? Even when you give the subsidy, is it not the wealthy few that still hijacked it? The fight is not about workers, it is what Nigerians must rise and resist.”

Okon stated that the union had already taken a position on the issue, insisting that “no sane government should at this point of economic harshness decide to impoverish the people.”

There have been fears of likely fuel price increase since the Minister of Finance and National Planning, Zainab Ahmed, announced the plan to remove petrol subsidy last June.

According to an online news medium, reported on Wednesday that a committee of the National Economic Council had recommended that petrol should be sold at N302 per litre from February when the government would cease to subsidize the petroleum products in the country.

The report explained that NEC made the recommendations last November. The recommendations were reportedly put forward by the NEC ad-hoc committee interfacing with the Nigerian National Petroleum Corporation on the appropriate pricing of PMS in Nigeria.

Punch/Taiwo Akinola