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Oil & Gas

Association advises Dangote, refiners to sell in Naira

By Emmanuella Anokam

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), has advised the Dangote Refinery and Petrochemicals and other modular refineries in the country to sell refined products to oil marketers in Naira.

The association said that “this is imperative as the refiners will also be getting the crude in Naira”.

Its National President Benneth Korie made this appeal while briefing newsmen on Wednesday in Abuja.

The News Agency of Nigeria (NAN) recalls that President Bola Tinubu recently directed the Nigerian National Petroleum Company Ltd. (NNPCL) to sell crude oil to Dangote and other modular refineries in the country’s currency.

“I also want to express our support for the president’s directive to sell crude oil in naira.

“We hope that our refineries will reciprocate by selling refined products in naira, thus stabilising the market”, he said.

Korie said that to ensure a balanced distribution, the Dangote’s refined products should be made available to a broader range of stakeholders.

He listed the stakeholders as the NNPC Trading, NNPC Retail, Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Oil Marketers Association of Nigeria (MOMAN) and Independent Petroleum Marketers Association of Nigeria (IPMAN).

He included others as the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) and NOGASA.
This inclusivity, according to him, would facilitate sustainable and widespread distribution across the country.

He urged the Federal Government to expedite the commencement of the Port Harcourt Refinery slated for September to alleviate the current shortages and ensure that the products were distributed among the same stakeholders.

He called for the reduction in the price of Automotive Gas Oil — diesel — to lower transportation costs and reduce the price of petroleum products.

“With Dangote’s refinery production and crude oil transactions in naira, we expect a reduction in diesel price.

“NNPC Ltd. should leverage its shares in Dangote’s refinery to drive down these costs, which will lower transportation expenses and reduce market prices”, he said.

On issue of smuggling, he said, there was the need to redesign distribution channels to prevent illegal exportation of petroleum products.

Korie, while explaining that “road constitutes 45 per cent of the delay in the delivery of the petroleum products”, urged the government to improve transportation network.

He advised the government to expand and revamp railways for bulk cargo to enhance logistics.

He also urged the federal, states and local governments to discourage the multiple taxation on the nation’s highways.

On inflation, he urged the government at all levels to prioritise agriculture by making farming more attractive, profitable.

According to him, this can be done by subsidising agricultural inputs and equipment to address public apprehension over rising costs.

“Extension workers should also be deployed to educate farmers on modern techniques such as irrigation and fumigation,” he said.(NAN)(www.nannews.ng)

Edited by Kayode Olaitan

Mr Benneth Korie, National President, Natural Oil and Gas Suppliers Association of Nigeria (NOGASA)
Oil & Gas

Declare state of emergency on refineries, NOGASA urges FG

By Emmanuella Anokam

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has called on President Bola Tinubu to declare a state of emergency on the country’s refineries, if the economy must be stabilised.

President of NOGASA, Chief Benneth Korie, made the call on Tuesday at a news conference in Abuja, while assessing current developments in the oil and gas sector.

Though the Federal Government had spent about $3 billion in the rehabilitation of the Port Harcourt, Warri and Kaduna refineries, but Korie said that declaring a state of emergency on the nation’s refineries and making them work, would help to retool the economy.

“It is very important that the Nigerian government declares a state of emergency on our refineries. It will help in stabilising distribution price, not just halting importation,” he said.

According to Korie, the Tinubu administration should do whatever is possible to ensure the refineries work and also stabilise the naira against the dollar.

This, he said, was part of the reasons the refineries were yet to work.

“Whatever it will take for the refineries to work, let them work.

“So, the answer to all these increments is for our refineries to start working optimally, and the products should be sold in naira to marketers.

“The reason our refineries are not coming on stream after rehabilitation is the exchange rate.

“They said the Port Harcourt refinery will start working soon. I think that is the reason it has not started refining products.

“Price of the dollar is hampering a lot of things because nobody knows how much to buy and how much to sell.

“They are all waiting for the naira to stabilise against the dollar,” Korie said.

The NOGASA president also called for the reintroduction of bridging claim payment to marketers since the subsidy removal was not yielding any positive result.

He wondered why the government’s projection in the 2024 budget would be N750 to a dollar, while the black market price had moved close to N2,000.

“The dollar might go beyond control if they fail to peg it at the N750 budget estimate.

“We supported the removal of the fuel subsidy but the system is not working well for Nigerians to benefit from it.”

He urged NIMASA and the Nigerian Ports Authority, to henceforth stop demanding payment of services rendered to Nigerians, in dollars.

He said NOGASA members would soon go out of business if things continued the way they were.

“We will all go to jail because of the loans we took from banks with high interest rates of over 30 per cent.

“Move round the country and you will see fuel stations closing shop and being put up for sale; who will buy them? So, the government should look into it before it gets out of control.

“Depot owners are struggling to get money from the banks. Everybody is struggling. Before now, we spent about N1 billion to import a cargo of product, but now, it takes about N15 billion.

“By March 1, we will all run out of business because our members can’t cover their expenses, not to talk about interest; it is a suicide mission,” Korie said.

He urged the government to clear the backlog of unpaid bridging claims still owed oil marketers. (NAN) (www.nannews.ng)

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Edited by Salif Atojoko

Features

Nigeria-Saudi Agreement: Strengthening Nigeria’s economic horizon

Nigeria-Saudi Agreement: Strengthening Nigeria’s economic horizon

By Ismail Abdulaziz, News Agency of Nigeria (NAN)

President Bola Tinubu’s preference for market driven economy has been consistent, and since assumption of office has steered the Nigerian economy towards greater strides with focus on attracting foreign direct investment into the economy.

Under Tinubu, Nigeria has been undertaking its boldest reforms in decades, scrapping the popular petrol subsidy and unifying the country’s multiple exchange rates as part of measures to improve ease of doing business in the country.

The recent Saudi-Africa Summit was an apt platform to push for collaboration and cooperation in various sectors beneficial to the Nigerian economy.

The opportunity was fully exploited by Nigeria to deepen economic relationship with Saudi Arabia which has the largest economy in the Middle East and is the 18th-largest economy in the world.

Saudi Arabia like Nigeria is a member of OPEC, and both have valuable natural resource reserves in petroleum and natural gas. They have also long years of relationship in various fields.

Thus, the signing of a Memorandum of Understanding (MoU) for collaboration in the oil and gas sector, was a major step in strengthening the relationship between the two countries.

“One of the primary benefits anticipated from this landmark agreement is the facilitation of technological exchange.

“With Saudi Arabia boasting advanced technologies in oil and gas exploration and production, Nigeria stands to gain significantly from this knowledge transfer.

“It encompasses joint research and development initiatives, knowledge-sharing platforms and capacity-building programmes.

“This holistic approach aims to empower local talents within Nigeria’s energy sector, fostering a self-sustaining environment where indigenous expertise plays pivotal role in shaping the nation’s energy future.

“This, in turn, is expected to stabilise fuel prices and enhance energy security, providing tangible benefits to Nigerian households and businesses alike,’’ a statement from the Ministry of Petroleum Resources (Oil) disclosed.

President Tinubu used the forum to underscore Nigeria’s commitment to free economy and protection of investments as the country strives to attract more Foreign Direct Investments.

”Nigeria is committed to ensuring the safety of investments based on the sanctity of the rule of law and good returns on investments in the largest economy in Africa”, Tinubu told the Saudi business community.

He said it was important for the two countries to have a business council to drive investment in key economic sectors agreed in the deal.

“In this regard, the benefit attached to the early inauguration of the Nigeria-Saudi Business Council cannot be over-emphasized,” he said.

“Within the past six decades, our bilateral cooperation, which was initially hajj-centric, has witnessed diversification to cover a number of areas of common interest.”

Tinubu said that both Nigeria and Saudi Arabia have been interacting as members of the UN, OPEC, the International Energy Forum, G77, Islamic Development Bank, and Digital Cooperation Organisation among others.

“My administration has undertaken bold economic reforms by removing wasteful subsidies on petroleum and the merging of our foreign exchange market, among other incentives aimed at improving the ease of doing business in Nigeria.”

In response to the assurances, the Saudi investors pledged to provide funding to revamp Nigeria’s refineries and substantially support the Central Bank of Nigeria in its ongoing reforms of the foreign exchange regime.

Mr Muhammad Idris, Minister of Information and National Orientation, said the Saudi Government would make available a substantial deposit of foreign exchange to boost Nigeria’s forex liquidity.

Similarly, Saudi Crown Prince, Salman, further said Saudi Arabia would invest in Agriculture and Renewable Energy to help Nigeria attain food and energy security.

The Crown Prince said that the investment in Nigeria`s refinery would be led by Saudi Aramco, and the intervention would be completed within two to three years.

The two leaders vowed to work together over the next six months to develop a comprehensive roadmap and blueprint to deliver on the deal.

At the summit, Tinubu said that all impediments to doing business in Nigeria would be removed.

“When I took office, I declared the immediate commencement of bold and fundamental economic reforms. We have executed them, and we’ll sustain the reform process.

“I believe in the full application of free market economics. Your money will flow easily in and easily out.

“The arbitrage around our nation’s old foreign exchange policy regime and the corruption that was associated with it is also gone.

“We took on those bold endeavours from day one in preparation for serious investors like you seated here. The greatest opportunity for any entity to prosper lies in its human capital,” the President told the Saudi business community.

Saudi Arabia’s Trade and Investment Minister, Khalid El-Falih, assured that the business community would respond with new investments across several sectors of the Nigerian economy.

“We know you are ready for business, so we do not want to come to Nigeria for any exploratory discussion. We are coming for implementation. It is an action visit,” Falih said.

“We will prepare well with your team and our investors will align with your officials, beginning now, to develop a concrete work plan of investments in the key sectors for take-off when we meet again.

“We will also use the opportunity to formally inaugurate the Nigeria-Saudi Business Council,” the minister added.

Also, Saudi Commerce Minister, Majid bin Abdullah Al Qasabi, said they would contribute to the soft infrastructural reforms needed to unlock game-changing foreign direct investment in Nigeria.

“We have signed an agreement with the World Economic Forum on the reform of the services sector in Africa.

“In developed economies, the services sector contributes enormously to GDP, but in the developing world, we tend to focus on goods.

”So, we would like to make Nigeria the pilot country in this agreement with WEF to study Nigeria’s service challenges to make it seamless and make the supply chains across sectors streamlined and raised to international standard to enhance Nigeria’s economic and investment viability over the long-term.”

At the Investor Roundtable, proposals were made for tangible collaboration by Chief Executive Officers from several Saudi conglomerates specialising in construction, finance, energy, healthcare, agriculture, mining, aviation, telecommunication, creative arts, and hospitality.

Tinubu assured them that Nigeria was determined to be their partners.

“Nigeria will reward your faith. Our people are ready, and we will not dissappoint.”

He said, “the prospect of the country is yet to blossom to the level that we require.

“It needs hard work and consistent prayers by each and every one of us. We are committed to use our strength to bring out this potential for the benefit of all Nigerians.”

President Tinubu also advanced negotiations for a multi-billion-dollar infrastructure finance facility from the Islamic Development Bank (IDB) to fund a multi-sectoral portfolios of infrastructure projects.

After the discussions witn the Vice-President (Country Programmes) of the IDB, Dr Mansur Muhtar, the bank said “we are ready to work with you. We are ready to support big investments in Nigeria. We agree that if Nigeria succeeds, Africa succeeds. And the world needs Africa to succeed.”

The IDB further announced the provision of 50 billion Dollars of new investments for the African continent from the Arab Coordination Group (ACG).

“As the largest market and the largest economy in Africa, Nigeria will certainly receive a significant share. We look forward to supporting Nigeria’s economic transformation,” Mukhtar said.

Faith Nwadishi, the executive director of the Center for Transparency Advocacy in Abuja, welcomes the Saudi deal.

“Considering the success that Saudi Arabia has made with their refineries and the natural resources that they have, one thing this will be able to achieve is to help Nigeria meet its production quota, help Nigeria resolve some of the conflicts around this issue of subsidy and non-operationalisation of the four refineries that we have,” said Nwadishi.

Emmanuel Afimia, founder of Enermics, a Lagos based oil and gas consulting firm, said the administration “is showing a reasonable level of political will to make things happen.”

Tinubu’s Saudi trip has therefore been a huge success and has set the stage for bigger engagements for the benefit of both countries.

When the Nigeria-Saudi Business Council is inaugurated, the expectation is that it will unlock the funding of several sectors of the Nigerian economy, facilitate access to modern technologies, and growth of telecommunications, energy, oil, gas and agriculture sectors.

Experts believe that Nigeria will attract multi-billion-dollar “immediate” investment flows from the Saudi Kingdom.

It is thus, safe to say that Tinubu has so far shown the strength of character and experience in engaging genuine investors across the globe to revive the Nigerian economy.

The deal with the Saudis is indeed a huge step in addressing the country’s economic challenges. (NANFeatures)

**If used please credit the writer and the News Agency of Nigeria (NAN)

Dr Yetunde Aladeitan, Senior Lecturer, Department of Chemical Engineering, University of Abuja
Oil & Gas

Academic urges CNG dev., operational refineries to address Nigeria’s energy challenges

By Emmanuella Anokam

An Academic, Dr Yetunde Aladeitan has urged a comprehensive energy strategy that combines Compressed Natural Gas (CNG), improved refinery operations, and investment in renewable energy sources to address Nigeria’s energy challenges.

Aladeitan urged the Federal Government to consider the long-term sustainability and affordability of these energy solutions while addressing the concerns of the citizens.

Aladeitan, a Senior Lecturer, Department of Chemical Engineering, University of Abuja, said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

According to her, the solutions are the most effective approach to addressing Nigeria’s energy challenges.

NAN reports that the Federal Government through the Presidential Compressed Natural Gas (CNG) Initiative Steering Committee recently said seven CNG conversion centres had been established in the country.

The establishment of the CNG conversion centres symbolised the commitment of President Bola Tinubu administration to spearhead energy revolution in the country.

According to Aladeitan, the introduction of CNG-powered engines as a means to offset the removal of fuel subsidies and mitigate high Premium Motor Spirit (PMS) prices in Nigeria is a strategic move.

She said it had the potential to reduce the economic burden on the government and consumers while promoting a more sustainable and cost-effective energy source.

“This transition could have various benefits, including reduced environmental impact and energy security.

“The establishment of CNG conversion and refilling centres for vehicles can be a viable option for improving energy sustainability in Nigeria.

“CNG is a cleaner and more environmentally friendly fuel compared to traditional gasoline or diesel. It can help reduce emissions and air pollution.

“However, whether its the best solution depends on a variety of factors, and it may not be the only solution to Nigeria’s energy crisis.

“Making refineries work is also important for energy sustainability, as Nigeria has significant oil reserves,’’ the university don said.

She said ensuring the efficient operation of refineries would contribute to domestic fuel production and energy security.

She however, emphasised the need to address the issues and challenges within the existing oil and gas sector to make the option effective.

She further said that the concerns about the cost of CNG compared to PMS were valid.

The lecturer advised that the pricing and affordability of alternative fuels like CNG must be carefully managed to ensure they are accessible and affordable to the general population. (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams

Defence/Security

Air strikes destroy over 30 illegal oil refining sites in Rivers – NAF

 

By Sumaila Ogbaje

The Air Component of Operation Delta Safe has in the last two months, destroyed more than 30 illegal oil refining site in the strikes around Cawthorne Channel and Bille, in Degema Local Government Area of Rivers.

The Director of Public Relations and Information, NAF, Air Commodore Edward Gabkwet, made this known in a statement on Sunday in Abuja.

Gabkwet said the air strikes ramped up efforts at denying oil thieves and operators of illegal oil refining sites the opportunity to burst pipelines, operate their illegal oil refineries sites while damaging the environment.

He said the air strikes conducted at Cawthorne Channel on Friday, destroyed four active illegal refining sites with dug out reservoirs and surface storage tanks suspected to be containing illegal refined products.

According to him, similar air strikes were also conducted at Bille on Saturday and early hours of Sunday which destroyed three illegal oil refining sites with storage tanks and reservoirs were destroyed.

“In one of the sites, a Cotonou boat suspected to be siphoning crude oil from a flow station was engaged in several passes and destroyed.

“In the last two months, Cawthorne Channel and Bille have accounted for the majority of oil theft and illegal oil refining activities in Rivers State.

“Within this period, over 30 illegal oil refining sites in these two locations have been destroyed by the Land, Maritime and Air Components of Operation Delta Safe.

“These efforts will be sustained in these locations and others until oil thieves and their accomplices desist from their illegal activities,” the statement added. (NAN) (www.nannews.ng)

Edited by Yinusa Ishola/Isaac Aregbesola

Port Harcourt refinery
Oil & Gas

Resuscitate oil refineries – NASU urges FG

By Fatima Mohammed-Lawal

The Non-Academic Staff Union of Educational and Associated Institutions (NASU) has urged the Federal Government to resuscitate its four oil refineries and make them operational.

Mr Peters Adeyemi, the General Secretary of NASU, made the call on Monday during an interview with newsmen on the sidelines of the 2023 Quadrennial Delegates Conference/Election in Ilorin, Kwara.

The programme consist of Universities and Inter-University Centres Trade Group Council, held at the University of Ilorin (Unilorin)

Adeyemi appealed that Nigerian oil refineries must start working to ensure that the country produced what the citizens consumed.

He urged the government to investigate all monies committed to refineries repairs in the country and ensure adequate security to prevent the smuggling of Premium Motor Spirit (PMS) to neighbouring countries.

The NASU general secretary decried the treatment of members by the government, saying “we are yet to receive their outstanding salaries during the strike actions we were forced into”.

He added that the issue of Integrated Payroll and Personnel information system (IPPIS) has created crisis in salaries of members, including delayed payment, haphazard payment, allowance omission and lack of payment.

Adeyemi explained that the conference was expected to deliberate on finding lasting solutions to issues such as the hardship associated with the removal of subsidy and setting agenda for the next four years.

Prof. Wahab Egbewole, the Vice Chancellor of Unilorin, said that tertiary education was going through turbulent times.

Egbewole, who was represented by Prof. Olubunmi Omotesho, the Deputy Vice Chancellor (Academics) of the university, stated that NASU had become a crucial component of universities and Inter-University union.

He called on the unions to collaborate and work together to move the education system forward, saying that no country can develop without addressing problem confronting its education.

He urged the union to therefore, deliberate on challenges of access to education and autonomy of universities.

“Financial issues, curriculum and ‘Japa syndrome’ must be addressed. A lot of staff are leaving the country and it is becoming difficult to replace them.

“The state of the tertiary education in Nigeria is tied to the state of the economy. No country can make progress without developing the state of its education,” he said.

Mrs Roseline Adebayo, the Chairperson, Kwara State Chapter of NASU, observed that the recent removal of subsidy on petrol amidst high inflation had resulted to increase in price of other commodities in the market.

According to her, the increase has eroded all gains of the New Minimum Wage approved by the administration of former President Muhammadu Buhari.

“This precarious situation is a serious threat that could have truncated the delegates journeys and made the National Secretariat call for ratification of tenure elongation for all levels of officers serving our union in this critical time.

“Universities and Inter-Universities Trade Group is key to NASU operation and our leaders cannot treat matters concerning this trade group with kid glove,” she said.

Earlier in his welcome, Mr Suberu Ibrahim, the Unilorin Branch Chairman, commended members for their perseverance, diligence and sacrifice and also thanked them for the support giving to his executive.

He advised members to be more proactive and pragmatic in their approach to ensure that NASU realised its lofty goals and ideas without losing her long-sustained accomplishment and fame. (NAN)(www.nannews.ng)

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Edited by Benson Iziama/Muhammad Suleiman Tola

Mr Benneth Korie, National President, Natural Oil and Gas Suppliers Association of Nigeria (NOGASA)
Oil & Gas

Fuel Price: NOGASA wants FG to fix bad roads, forex, refineries others

By Emmanuella Anokam

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has urged the Federal Government to fix bad roads and encourage private and modular refineries to enable affordable petroleum products.

NOGASA also called on the government to reduce Value Added Taxes on imported products, especially the Automotive Gasoline Oil (AGO), called diesel, to reduce cost of transporting petroleum products.

Mr Benneth Korie, President, NOGASA, while briefing newsmen on Wednesday in Abuja, said petroleum tankers spent days on the road while transporting products while flooding had ravaged many parts of the highways causing more delays.

Korie, while calling for quick intervention, said to facilitate mobility, he had expended N50 million in the rehabilitation of some sections of east west road to aid transportation of petroleum products.

He also emphasised that the AGO was important in building the nation’s economy, adding that the rising cost of the product would drastically affect hike of transportation on land and sea.

According to him, since deregulation is now in the pipeline, government should reduce taxes on imported products to give suppliers and consumers a palatable platform.

Korie decried the fall in naira to dollar in the exchange rate, saying this has contributed to the dependence of Nigeria in importation of petroleum and other commodities.

He, therefore, urged the Federal Government to, as a matter of urgency, declare a state of emergency on all Nigerian refineries to hasten repairs and improve naira value in the foreign exchange market.

Korie, while pledging to support the Federal Government to mitigate the effect of fuel subsidy removal, also promised to support government to tackle difficulties associated with the removal.

He said that the association was expecting the Federal Government to bring critical stakeholders together to design alternative sources of energy that could be evenly distributed across the country.

“NOGASA is ready to collaborate with the government anytime it is called upon and will deliver every assignment within its ambit of power,” he said.

He underscored the importance of exploring Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) to cushion the subsidy removal effect, adding that they have become competitive and viable options.

Korie reiterated the association’s readiness to partner with the Federal Government in terms of provision of manpower and gas facilities station nationwide, as well as the training and convention centres to achieve desired targets.

“The need for an increase in manpower is an urgent issue that bothers on economic stability, there is need for government to expedite action to achieve the desire goal.

“From the large sum of money realised from fuel subsidy removal, government could provide buses that use CNG and normal fossil oil, for fare reduction in order not to kill investments in fossil oil business.

“The National Gas Expansion Programme Committee should be called back to continue their good work of bringing sellers and suppliers of CNG equipment together, and boost quality assurance,” he said.

He also suggested that refineries should be overhauled under close government supervision and that the National Gas Expansion Programme Committee should continue its work to ensure sustainable growth.

He also called on the Federal Government to avoid marketers and suppliers slipping into the hands of Nigeria National Petroleum Company Limited ( NNPCL) as the company remained the major importers of petroleum products in the country.

According to him, government should be wary of slipping back into the subsidy regime because prices are still rising. (NAN)(www.nannews.ng)

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Edited by Vincent Obi

An Economist, Yusha’u Aliyu
Oil & Gas

Nigerians want functional refineries as solution to economic woes – Expert

By Emmanuella Anokam

An economic expert, Mr Yusha’u Aliyu, says that Nigerians are expecting functional refineries to cushion the effects of subsidy removal on Premium Motor Spirit (PMS) also known as fuel.

Aliyu said this in an interview with the News Agency of Nigeria (NAN) in Abuja, in reaction to President Bola Tinubu’s live broadcast on Monday, on the country’s economic situation.

NAN reports that Nigerians have been faced with hardship and sufferings occasioned by the removal of subsidy on PMS by the current administration, while the country’s refineries in Port Harcourt, Warri and Kaduna are yet to begin operation.

Aliyu said that functional refineries would have solved all the contending issues surrounding the general inefficiency of the oil sector, but on the contrary, nothing of such was mentioned.

“The president was technical on inflation, even though it is the most disturbing factor militating against targeted prosperity.

“The best time for the president to intervene is now.

“Revisiting the Central Bank of Nigeria’s (CBN) importers window will guarantee a temporary stability of PMS pricing and moderation of inflationary trends,” he said.

Aliyu expressed regrets on the president’s remarks on economic issues like subsidy, palliative, preferential exchange rate system among others, noting that they were the most disturbing in recent times.

He, however, said that the simple terms required should have been functional refineries for lasting solution.

It would be recalled that fuel was sold at N195 per litre before the deregulation but swiftly rose to N540 per litre shortly after the removal of subsidy which affected Nigeria’s economic situation.

In July, fuel pump price was further increased from N540 per litre to N617 per litre and the increment was attributed to market realities.

Hence goods and services skyrocketed as nothing was on ground to cushion the effect of the fuel subsidy removal.

Transportation fares also increased astronomically as motorists complained bitterly about the situation after seeing fuel worth N20,000 lasting only for a few days.

The Federal Government and labour unions engagement on implementation framework to cushion the effect is yet to be actualised but the citizens living conditions are becoming worse which have necessitated the current protest by the unions. (NAN)(www.nannews.ng)

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Edited by Ekemini Ladejobi

Economy/Business

IPMAN urges FG to allow investors run Nation refineries

By Nana Musa
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has advised the Federal Government to allow investors to take over the running of the country’s three refineries.

Alhaji Danladi Pasali, National Secretary of IPMAN, stated this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja.

He spoke while reacting to a report that the pump price of petrol might likely get to N190 per litre and the price of crude oil hit 60 dollars per barrel in the international market.

Speaking at the official launch of Nigerian Upstream Cost Optimisation Programme in Abuja, Minister State for Petroleum Resources, Chief Timipre Sylva said with no provision of subsidy in the 2021 budget, the Nigerian National Petroleum Corporation, cannot continue to bear the cost of under-recovery.

At present, the pump price of petrol ranges from N160 –N165, the price band set when crude traded just above 43 dollars per barrel four months ago.

Pasali, commending government’s efforts, said that IPMAN controlled 80 per cent of the downstream sectors.

“IPMAN controls 80 per cent of the downstream sectors of the industry and with our investments running into trillion, government should give us the three refineries.

“We can run it successful in collaboration with our foreign investors,” he said.

Pasali said that allowing investors to take over would help in making the government’s job easy and improve the economic development.

He said increasing petrol price for now was not a good thing, as the economic index shows that the county was in economic hardship.

“The capacity of people buying the products is low now compared to before, for example some people buy petrol of N1,500 for their cars but it was not like that in the past.”

Pasali also advised the government to call for stakeholders’ meeting to help solve the problem.

“We can look at other means because there are so many things in the oil template, for example to see how we can reduce the tension.

“There are so many charges in the template like the unnecessary marine charges that can be reduced and it can help reduce the tension, among other suggestions.”