
AFOLABI
Governance costs: Tinubu orders cuts in ministers’ convoys, aides
President Bola Tinubu yesterday restricted ministers, ministers of state, and heads of agencies of the Federal Government to a maximum of three vehicles in their official convoys, saying no additional vehicles would be assigned to them for movement.
This came as the Presidency explained late Wednesday night that Nigerians’ perception played a key role in the President’s decision to rejig his cabinet.
The President’s new directive was contained in his Special Adviser on Information and Strategy statement, Bayo Onanuga.
According to the statement, “the cost-cutting measure was announced today (yesterday) in a statement by the President.”
Recall that in January this year, President Tinubu took steps to reduce government expenditures by reducing his entourage on foreign trips from 50 to 20 officials and on local trips to 25 officials.
Similarly, he reduced the Vice President’s entourage to five officials on foreign trips and 15 for local trips.
In the directive issued yesterday, President Tinubu also ordered all ministers, ministers of state, and heads of agencies to have at most five security personnel attached to them.
The security team, according to him, will comprise four police officers and one Department of State Services, DSS, officer.
He said: “No additional security personnel will be assigned.”
The President also instructed the National Security Adviser, NSA, to engage with the military, paramilitary and security agencies to determine a suitable reduction in their vehicle and security personnel deployment.
“All affected officials are expected to comply with these new measures immediately, underscoring the urgency and seriousness of these changes,” the statement added.
Also, following the removal, appointment and redeployment of some members of the Federal Executive Council, NEC, on Wednesday, the Presidency has said the President’s decision was influenced by Nigerians’ perceptions.
This is even as indications emerged yesterday the reason the President retained some key cabinet members, despite multiple media speculations of their rumoured removal.
The President also yesterday wrote the Senate, seeking the screening and subsequent confirmation of appointments of seven ministerial nominees announced in Abuja on Wednesday.
On Wednesday, Tinubu reassigned 10 ministers to new portfolios, relieved five of their duties, and nominated seven new nominees for Senate confirmation.
The President also renamed the Ministry of Niger Delta Development as the Ministry of Regional Development, scrapped the Ministry of Sports Development, and merged the Ministries of Tourism and Arts and Culture, forming the Federal Ministry of Art, Culture, Tourism, and the Creative Economy.
Those dismissed include the Minister of Women Affairs, Uju Kennedy-Ohanenye; Minister of Tourism, Lola Ade-John; Minister of Education, Tahir Mamman; Minister of Youth Development, Dr Jamila Bio Ibrahim; and the Minister of State for Housing and Urban Development, Abdullahi Gwarzo.
How feedback shaped Tinubu’s cabinet reshuffle
Providing more details on the cabinet reshuffle in an interview on Arise TV on Wednesday night, Mr Onanuga, explained that the decision to remove the affected ministers was based on public perception and empirical data.
According to him, the Special Adviser to the President on Policy and Coordination, Hadiza Bala Usman, introduced a technological system that allowed Nigerians to assess the performance of the ministers.
He said: “It wasn’t done arbitrarily. Hadiza Bala Usman brought in technology, asking Nigerians to rate the ministers. So, the removal of these ministers was based on empirical facts, shaped by public perception.
“The scorecards were filled out by the people, and the President acted on those results.
“It wasn’t just about meeting the President’s expectations but also the public. A few weeks ago, during a cabinet meeting, the President urged the ministers to inform Nigerians of their accomplishments because, according to him, there is public perception that the government wasn’t performing.
“The government believed it was, but the ministers weren’t effect-ively communicating their work.’’
Onanuga further mentioned that in addition to dismissing the ministers, the administration was working to reduce the cost of governance.
FG’s expenditure will be reduced soon
“The President will soon announce measures to reduce government expenditure, starting with the ministers. I don’t want to pre-empt the details, but the cuts will be significant to demonstrate the government’s seriousness in reducing the cost of governance.
“The government is aware of what’s required to address the country’s challenges. It’s not about the size of the government, but about having many competent hands to drive its agenda.
“You will hear announcements soon about how the government plans to cut the cost of running its affairs,” the Presidential aide said.
Why Matawalle wasn’t sacked
He also clarified that allegations linking the Minister of State (Defence), Alhaji Bello Matawalle, to the spate of banditry in the North-West were untrue.
Onanuga said Matawalle, a former governor of Zamfara State, was not sacked because the office of the National Security Adviser, NSA, investigated allegations bordering on his ties to bandits and found them spurious.
He said the allegations against Matawalle were “mere fabrication” and politically motivated.
“As far as I know, most of those things are just mere allegations. In one of them, I got something like that and sent it to the NSA and asked: ‘Have you heard about this?” The president’s aide said.
Continuing, Onanuga said: ‘’The NSA said ‘No. We have probed a lot of those things; they are not true. People are just bringing out all kinds of fake things and allegations. That is why the man (Matawalle) is still in the cabinet.
“The president, I’m sure, has heard many stories about him. For him to be there shows that… like I have said, some of those things have been probed; they are not true.
“The NSA office has already investigated some of those allegations. They are mere fabrications.”
Why Tinubu retained Gbaja, Edun, Olubunmi-Ojo, others
Meanwhile, contrary to widespread media speculations a few weeks ago about the President removing 11 ministers and reshuffling the presidency’s top leadership, it was gathered that the changes began with the replacement of Tinubu’s Chief Security Officer, Adegboyega Fasasi.
Multiple sources told Vanguard that the reorganization, highly anticipated before Tinubu’s two-week holiday, retained several key officials previously rumoured for removal, including his Chief of Staff, Mr Femi Gbajabiamila; Minister of Budget and Planning Atiku Bagudu; Minister of Interior, Olubunmi Ojo; Minister of Defence, Badaru Abubakar; Minister of State, Defence, Bello Matawalle, and other ministers whose continued presence “reflects the President’s confidence in them.”
Also, key economic team members, including Finance Minister Wale Edun; Budget and Planning Minister, Atiku Bagudu; and Power Minister Adebayo Adelabu; retained their positions, following their scorecards.
Another source disclosed that the retention of Mr Gbajabiamila as Chief of Staff came, despite “intense speculation about his replacement.”
The source said: “Gbajabiamila has weathered recurring media attacks and once received public support from the President himself at a cabinet meeting where he reaffirmed his confidence in his Chief of Staff.
“His survival of numerous media trials is likely due to the sensitivity of his office and his experience as former speaker of the House of Representatives. The same speculation goes for Wale Edun, Bagudu and Adelabu.’’
Another Presidency source said: “The earlier speculation about Wale Edun’s replacement with the Tax Reform Committee Chairman, Taiwo Oyedele, was particularly unfounded, including the suggestion that the President planned to remove the Interior Minister who has got good appraisals everywhere and the biggest joke was the speculation that the President contemplated removing his Chief of Staff, except for those who do not know the premium the President places on Gbaja, let alone their longstanding ties.”
On why the president decided to retain them, the source said: “It was based on the President’s discretion.”
Asked whether there will be further cabinet reshuffle, another source said: “I don’t know but it appears everything has been done, except for ambassadorial and board positions.”
It was further gathered that a significant highlight of the rejig is the appointment of Mrs Bianca Odumegu-Ojukwu as Minister of State for Foreign Affairs.
“This appointment, seen as a strategic move towards national inclusion, has been widely praised as a gesture of reconciliation and recognition of the South-East in the Federal Government.
“As the widow of the late Biafran leader, Dim Chukwuemeka Odumegu-Ojukwu, her appointment signals the administration’s commitment to national unity and inclusive governance,” multiple sources told Vanguard.
Retaining Keyamo reflects Tinubu’s commitment to aviation growth — AON
Speaking on the President’s decision to retain Mr Festus Keyamo as Minister of Aviation and Aerospace Development, the Airline Operators of Nigeria, AON, yesterday, said it reflected Tinubu’s commitment to the growth and advancement of the aviation industry in Nigeria.
President of AON, Alhaji Abdulmunaf Sarina, in a statement, said Keyamo has demonstrated exceptional leadership, setting a new standard for the aviation sector.
Sarina stated that the minister’s efforts in ensuring compliance with international standards facilitated greater access to aircraft financing and leasing.
The statement read: “Since his initial appointment, Keyamo has demonstrated exceptional leadership, setting a new standard for the aviation sector.
“His relentless efforts and advocacy for policies that ensure ease of doing business have brought about significant positive changes. AON members are proud to affirm that, under his stewardship, we have never had it this good.
“His proactive engagements with the industry, his focus on safety, and his commitment to the success of both local and international airlines have restored confidence in the sector. He has the best interests of the nation and the aviation sector at heart.
“The reappointment of Keyamo stands as a testament to President Tinubu’s vision of excellence and progress for Nigeria. We believe every government is ultimately judged by the calibre of individuals appointed to critical positions.
“In Keyamo, the President has made an outstanding choice, ensuring that Nigeria’s aviation sector remains in capable and visionary hands.
“On behalf of all members of AON, we pledge our continued support for Keyamo as he leads us through this era of unprecedented growth and innovation in the aviation industry.
“We also commend President Tinubu for his remarkable foresight and wisdom in entrusting the future of Nigerian aviation to such an able leader. Together, we are confident that the skies of Nigeria will continue to soar higher, and the country’s aviation sector will remain a beacon of excellence on the African continent.”
Tinubu seeks Senate’s confirmation of 7 ministerial nominees
Meanwhile, President Tinubu has written the Senate, seeking the screening and subsequent confirmation of appointments of seven ministerial nominees.
The President’s request was contained in a letter addressed to the President of the Senate, Senator Godswill Akpabio, and read at plenary yesterday.
According to the letter, the ministerial nominees are Dr Nentawe Yilwatda, Minister of Humanitarian Affairs and Poverty Reduction; Muhammadu Maigari Dingyadi, Minister of Labour and Employment; and Bianca Odinaka Odumegu-Ojukwu, Minister of State, Foreign Affairs.
Others include Dr Jumoke Oduwole, Minister of Industry, Trade and Development; Idi Muktar Maiha, Minister of Livestock Development; Yusuf Ata, Minister of State, Housing; and Dr Suwaiba Said Ahmad, Minister of State, Education.
The President in the letter sought expeditious consideration of his request by the Senate.
The Senate President immediately referred the Presidential request to the committee of the whole for consideration.
Akpabio said: “The presidential request is referred to the Committee of the Whole for consideration very soon.”
It was, however, gathered that the Senate may, after getting the required documents on the nominees, commence their screening next Wednesday.
Military Arrests Suspected IPOB Founding Father, Others In South-East
Troops of Operation Udoka have made significant arrests in the South-East, including a suspected founding member of the proscribed Indigenous Peoples of Biafra (IPOB), as announced by the Director of Defence Media Operations, Major Gen Edward Buba.
The arrests occurred in strategic operations across Orsu in Imo State and Amaruku and Arochukwu in Abia State.
During a bi-weekly briefing in Abuja, Major Gen Buba provided details of the military’s recent successes.
He highlighted a sting operation in Orsu, where troops apprehended Mr. Pius Iguh, described as a terrorist leader and a founding father of IPOB responsible for activities in the Orsu area.
In a separate raid in Amaruku, Abia State, security forces successfully detained another key figure, Emmanuel Onwugu, an IPOB commander operating in the Mbano Local Government Area.
This operation further demonstrates the military’s ongoing efforts to dismantle the operational capabilities of IPOB and its affiliated Eastern Security Network (ESN).
Additionally, the troops collaborated with other security agencies to arrest Ifeanyi Rock, a notorious cult leader, along with ten of his associates in Arochukwu Local Government Area.
This arrest underscores the security forces’ commitment to restoring peace and order by targeting not only separatist elements but also other groups contributing to regional instability.
These operations are part of a broader security initiative under Operation Udoka aimed at curtailing the activities of insurgent and criminal groups in the southeast to ensure the safety and security of the local populace.
Tinubu Writes Senate, Seeks Confirmation Of Ministerial Nominees
The Senate has received a request from President Bola Tinubu for the confirmation of the appointments of seven ministerial nominees announced on Wednesday.
President Tinubu’s request seeking expeditious consideration of the requests was contained in a letter addressed to Senate President Godswill Akpabio who read it at the commencement of the plenary on Thursday.
Tinubu urged the Senate to consider and confirm the seven nominees for appointment as ministers.
The ministerial nominees for confirmation include Nentawe Yilwatda (Humanitarian Affairs and Poverty Reduction), Muhammadu Dingyadi (Labour & Employment), Bianca Odumegwu-Ojukwu (State Foreign Affairs), and Jumoke Oduwole (Industry, Trade and Investment).
Others are Idi Mukhtar Maiha (Livestock Development), Yusuf Ata (State, Housing and Urban Development), and Suwaiba Ahmad (State Education).
Akpabio referred the nominees to the Committee of the Whole for further legislative action as soon as possible.
Nigeria’s Super Eagles Soar In Latest FIFA Rankings, Move Three Places Higher
The Super Eagles have moved up three places in the latest FIFA rankings, soaring to 36th in the global pecking order.
Nigeria who defeated Libya by a lone goal in a 2025 Africa Cup of Nations (AFCON) qualifier earlier in the month are now fourth on the continental rankings. The return fixture in the North African country was moved following unsportsmanly behaviour by the Libyan authorities.
On the overall continental rankings, the Atlas Lions of Morocco led Africa. They are 13th in the world and followed by Senegal who are 20th.
Egypt (30th), Nigeria (36th), and Algeria (37th) complete the top five teams on the continent.
“There is further cause for celebration for Africa as two other CAF teams have climbed the most places (10) in this edition of the ranking, namely Comoros (108th) and Sudan (110th), who came out on top against Tunisia and Ghana, respectively, in their recent home-and-away duels as part of the Africa Cup of Nations 2025 qualifiers,” FIFA wrote on its website while announcing the latest rankings on Thursday.
On the global scene, Argentina still occupy the top spot and are followed by France. Spain took the third position while England, Brazil, and Belgium make up the top six in that order.
Portugal are number seven, the Netherlands are eighth, Italy taking ninth and Colombia are 10th on the global rankings.
Some of the biggest movers in the latest rankings include Algeria (37th, up 4), Peru (38th, up 5) and Greece (42nd, up 6).
Cameroon also returned to the top 50, moving up four places to take the 49th position globally.
The October 2024 rankings came days after a busy month across the world with teams vying for places for the 2026 World Cup, and Africa Cup of Nations.
“Thirty-two qualifiers for the FIFA World Cup 26, 47 for the CAF Africa Cup of Nations 2025, 79 Nations League matches and 17 friendlies were played during the recent international window, making October 2024 a particularly busy month of football and one that has led to a number of changes in the FIFA/Coca-Cola Men’s World Ranking,” FIFA said.
How Nigerians’ feedback shaped Tinubu’s cabinet reshuffle — Presidency
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, has stated that Nigerians’ perception played a key role in President Bola Tinubu’s decision to dismiss five ministers from his cabinet.
On Wednesday, Tinubu approved the reassignment of 10 ministers to new portfolios, relieved five of their duties, and nominated seven new individuals for Senate confirmation.
The President also renamed the Ministry of Niger Delta Development as the Ministry of Regional Development, scrapped the Ministry of Sports Development, and merged the Ministries of Tourism and Arts and Culture, forming the Federal Ministry of Art, Culture, Tourism, and the Creative Economy.
The ministers dismissed from their roles include the Minister of Women Affairs, Uju Kennedy-Ohanenye; Minister of Tourism, Lola Ade-John; Minister of Education, Tahir Mamman; Minister of Youth Development, Dr Jamila Bio Ibrahim; and the Minister of State for Housing and Urban Development, Abdullahi Gwarzo.
Providing more details on the cabinet reshuffle, Onanuga explained that the decision to remove these ministers was based on public perception and empirical data.
According to Onanuga, the Special Adviser to the President on Policy and Coordination, Hadiza Bala Usman, introduced a technological system that allowed Nigerians to assess the performance of the ministers.
“It wasn’t done arbitrarily. Hadiza Bala Usman brought in technology, asking Nigerians to rate the ministers. So, the removal of these ministers was based on empirical facts, shaped by the public’s perception. The scorecards were filled out by the people, and the President acted on those results,” Onanuga said in an interview on Wednesday night.
“It wasn’t just about meeting the President’s expectations but also the public’s. A few weeks ago, during a cabinet meeting, the President urged the ministers to inform Nigerians of their accomplishments, because, according to him, there was a public perception that the government wasn’t performing. The government believed it was, but the ministers weren’t effectively communicating their work,” he added.
Onanuga further mentioned that in addition to dismissing the ministers, the administration is working to reduce the cost of governance.
“The President will soon announce measures to reduce government expenditure, starting with the ministers. I don’t want to pre-empt the details, but the cuts will be significant to demonstrate the government’s seriousness in reducing the cost of governance.”
“The government is aware of what’s required to address the country’s challenges. It’s not about the size of the government, but about having many competent hands to drive its agenda. You will hear announcements soon about how the government plans to cut the cost of running its affairs,” he concluded.
Pinnick Reveals When CAF Will Rule on Super Eagles vs Libya Saga
FULL LIST: Wike, Matawalle, Oyetola, 28 Others Who Survived Cabinet Shake-Up
President Bola Tinubu wielded his big stick on Wednesday, and like a surgeon in a theatre, he used his surgical knife, yanked off five ministers, redeployed 10 and appointed seven fresh nominees as ministers to replace the sacked ones as well as two others — Betta Edu who was initially suspended, and Simon Lalong who left his cabinet to join the Senate.
Tinubu, ex-Lagos governor, appointed 48 ministers in August 2023, three months after his inauguration. The Senate immediately screened and confirmed the ministers. One of the ministers, Betta Edu, was suspended in January while ex-Plateau State governor, Simon Lalong, resigned and moved to the upper legislative chamber.
There have been growing calls for the President to reshuffle his cabinet as many Nigerians are not impressed by the performance of some of the ministers, especially in the face of unprecedented inflation, excruciating economic situation and rising insecurity.
Despite the shake-up on Wednesday, 31 ministers were not affected; they were not sacked or redeployed.
They are:
1 | MINISTER OF POWER – ADEBAYO ADELABU |
2 | MINISTER OF DEFENCE – MOHAMMED BADARU |
3 | MINISTER OF STATE, DEFENCE – BELLO MATAWALLE |
4 | MINISTER OF HOUSING & URBAN DEVELOPMENT – AHMED M. DANGIWA |
5 | MINISTER OF BUDGET & ECONOMIC PLANNING – ATIKU BAGUDU |
6 | MINISTER OF WATER RESOURCES & SANITATION – JOSEPH UTSEV |
7 | MINISTER OF POLICE AFFAIRS – IBRAHIM GEIDAM |
8 | MINISTER OF STEEL DEVELOPMENT – SHUAIBU A. AUDU |
9 | MINISTER OF STATE, ENVIRONMENT – IZIAQ ADEKUNLE SALAKO |
10 | MINISTER OF FEDERAL CAPITAL TERRITORY (FCT) – NYESOM WIKE |
11 | MINISTER OF TRANSPORTATION – SA’IDU ALKALI |
12 | MINISTER OF STATE (GAS) PETROLEUM RESOURCES – EKPERIPE EKPO |
13 | MINISTER OF ENVIRONMENT – BALARABE ABBAS LAWAL |
14 | MINISTER OF AGRICULTURE AND FOOD SECURITY – ABUBAKAR KYARI |
15 | MINISTER OF STATE, AGRICULTURE AND FOOD SECURITY – ALIYU SABI ABDULLAHI |
16 | MINISTER OF INTERIOR – OLUBUNMI TUNJI-OJO |
17 | MINISTER OF FOREIGN AFFAIRS – YUSUF M. TUGGAR |
18 | COORDINATING MINISTER OF HEALTH AND SOCIAL WELFARE – ALI PATE |
19 | MINISTER OF AVIATION AND AEROSPACE DEVELOPMENT – FESTUS KEYAMO |
20 | MINISTER OF WORKS – DAVID UMAHI |
21 | MINISTER OF STATE (OIL) PETROLEUM RESOURCES – HEINEKEN LOKPOBIRI |
22 | MINISTER OF INNOVATION, SCIENCE AND TECHNOLOGY – UCHE NNAJI |
23 | MINISTER OF SOLID MINERALS DEVELOPMENT – DELE ALAKE |
24 | MINISTER OF INFORMATION AND NATIONAL ORIENTATION – MUHAMMED IDRIS |
25 | ATTORNEY GENERAL OF THE FEDERATION AND MINISTER OF JUSTICE – LATEEF FAGBEMI |
26 | MINISTER OF NIGER DELTA AFFAIRS – ABUBAKAR MOMOH |
27 | MINISTER OF STATE, LABOUR AND EMPLOYMENT– NKIRUKA ONYEJEOCHA |
28 | MINISTER OF SPECIAL DUTIES AND INTER-GOVERNMENTAL AFFAIRS – ZEPHANIAH JISALO |
29 | MINISTER OF COMMUNICATIONS, INNOVATION AND DIGITAL ECONOMY – BOSUN TIJANI |
30 | MINISTER OF FINANCE AND COORDINATING MINISTER OF THE ECONOMY – WALE EDUN |
31 | MINISTER OF MARINE AND BLUE ECONOMY – ADEGBOYEGA OYETOLA |
Fury Expects To Knock Out Usyk In Heavyweight Title Rematch
Tyson Fury said he will knock out Oleksandr Usyk in a rematch of their undisputed heavyweight champion of the world bout after losing his undefeated record to the Ukrainian.
Usyk won a split decision on points when the pair first met in May and will battle again for the WBA, WBC and WBO titles in Riyadh on December 21.
Fury had gone 35 professional fights without defeat before facing Usyk in the Saudi capital and vowed to gain revenge in style if his history in rematches is anything to go by.
The Englishman knocked out Deontay Wilder and Derek Chisora when meeting them for a second and third time in the past after going the full 12 rounds against both in his first bout.
“I have to be a little bit more focused and smart to get the victory,” said Fury at a press conference in London on Wednesday.
“My rematches with people, I always end up knocking them out, so I’m envisaging something similar against Usyk.”
Usyk remains unbeaten in his 22 professional bouts and took the opportunity to have some fun at Fury’s expense in front of the cameras.
Dressed in a black suit, red tie and black leather gloves, the 37-year-old produced a photo of him landing a punch on Fury from a suitcase and got his opponent to sign the picture.
However, it was Fury who did most of the talking as he reiterated his belief that he has learned from the shock of defeat.
“I believe it’s my time this time and all things that happen, positive or negative, are lessons and we must learn from these things as humans,” added Fury.
“What we know is to go out there and knock each other out, and to put on a show for the paying customer.”
Unlike the first fight between the pair, all four heavyweight title belts are not on the line as Usyk vacated the IBF title in June to Daniel Dubois, who knocked out Anthony Joshua last month at Wembley.
Fuel Marketers Begin Direct Purchase Of Petrol From Dangote Refinery
The Dangote Petroleum Refinery has begun supplying Premium Motor Spirit (PMS), commonly known as petrol, directly to some oil marketers, bypassing the Nigerian National Petroleum Company Limited (NNPC).
Reports indicate that more marketers are seeking to purchase PMS directly from the refinery, while others continue importing the product, with hundreds of millions of liters of imported petrol expected to arrive in Nigeria in the coming weeks.
Earlier, The PUNCH reported that at least four vessels carrying imported PMS had docked at Nigerian ports between October 18 and October 20, with around 123.4 million liters of PMS unloaded at two seaports to help stabilize nationwide fuel supply.
This move by marketers comes in addition to the $20 billion Dangote refinery’s output, providing further support to the market.
Marketers have now begun lifting PMS directly from the Dangote plant in Lekki, Lagos, signaling a significant change in Nigeria’s fuel supply chain.
According to a senior refinery official, this direct purchase arrangement operates on a willing-buyer, willing-seller basis, allowing oil marketers to bypass third-party suppliers and engage directly with the refinery.
“Marketers are already coming to the refinery to lift PMS directly, and agreements have been made with some marketers. If the price wasn’t favorable, they wouldn’t be coming to us,” the official said, indicating that Dangote’s pricing is competitive enough to attract interest.
“Some of the trucks you saw there today were from marketers purchasing the product directly from Dangote, without recourse to NNPC. So the direct sale has started,” another source told The PUNCH.
Officials also revealed that the refinery is dedicating around 53% of its crude oil supply to PMS production due to high demand for petrol in Nigeria and other countries.
The proportion of crude used for PMS may change if demand for other products grows, but for now, petrol remains the primary focus.
“This could be reviewed in future if the demand for other finished products increases more than the demand for petrol, but right now about 53 per cent of our crude is used for petrol production, while other products account for the remaining percentage,” the official stated.
When asked if marketers had started the direct purchase of petrol from Dangote without recourse to NNPC, one of the notable major marketers in the country replied in the affirmative.
“Yes, everyone is in the process. This was advised that it would happen soon and is a normal business transaction,” the source stated.
This direct sale initiative follows earlier claims that the NNPC would be the sole off-taker of PMS from the Dangote refinery starting September 15.
However, a recent announcement from the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency, headed by Finance Minister Wale Edun, confirmed that marketers can now purchase PMS directly from local refineries, fostering competition and improving market efficiency.
Although some Independent Petroleum Marketers Association of Nigeria (IPMAN) officials, led by Vice President Hammed Fashola, are still in discussions about logistics and modalities for lifting PMS from Dangote, refinery officials confirmed that direct sales to certain marketers have already commenced.
Meanwhile, the refinery has dismissed claims that it sold PMS to NNPC at N898 per liter when sales began in mid-September, labeling such reports as misleading.
The refinery maintains that the official naira-for-crude committee will eventually announce the product’s price, but as of October 22, no such announcement has been made.
FEC approves N740bn to construct Kano-Abuja road
The federal executive council (FEC) has approved N740 billion for the construction of the Kano-Abuja road project.
The approval was given on Wednesday during the weekly FEC meeting presided over by President Bola Tinubu at the State House in Abuja.
David Umahi, minister of works, who briefed State House correspondents after the meeting, said the government is working on managing the extensive backlog of infrastructure projects.
According to Umahi, the Abuja-Kano road, previously slated for a tax credit arrangement, “will now be procured without such a provision, with the 162-kilometer Berger section already approved for N740 billion”.
The minister also announced that the Shagamu-Benin road is undergoing critical rehabilitation, while procurement processes are being finalised for its full reconstruction using reinforced concrete pavement.
He highlighted other projects undergoing review, including the commencement of construction on the Sokoto-Badagry road, with the Sokoto section to be flagged off imminently.
Umahi also said works on the Oyo-Ogbomosho road, a project stalled for 18 years, will resume, and the Makurdi-Katsina-Ala road will undergo significant repairs.
“FEC also tackled the inherited debt profile of N1.6 trillion tied to 2,604 projects, with a total contract value of N13 trillion,” Umahi said.
To manage the backlog, the minister said the ministry of works has initiated a phased approach to project completion based on available funding.
Umahi said examples of projects in the category are the phasing of the Biu-Kangiwa-Kamba-Kaya Niger Republic road in Kebbi state, the Yola-Hong-Mubi road in Adamawa state, and the Kachako-Dambazua road in Kano state.
On July 29, the FEC approved N1.4 trillion for some road projects across the country.
‘30% ADVANCE PAYMENT TO CONTRACTORS’
Umahi said the council approved advanced payment mechanisms to combat inflation and rising costs driven by fluctuating exchange rates and petroleum prices.
“And finally, we presented a memo to FEC that where there is proof of funds, there is available funds, the Procurement Act allows MDAs to pay a maximum of 30 percent advance payments. And let me emphasise that this advanced payment. When you read the law, it say may pay,” Umahi said.
“And so when people are giving contracts and they don’t mobilise, and they said, I’ve not paid mobilisation, it is not legally binding, because the word says may pay. And so some people turn it (to) shall pay. So no, it’s may pay.
“So where we have funds, and they will have a valuable fund beyond this 30% so what we are, you know, we requested from FEC is approved, that we first pay 30% which is the Procurement Act, and not more, and then when the contractor has started work, and to the satisfaction of the Ministry of works, we should be allowed to pay additional funds.
“Yes, the law allows us to pay in terms of you know, materials on site. But we are asking beyond that, what is the essence of this? Is to mitigate a lot of fluctuation and inflation, because we have a lot of you know, indices that affect the ministry of works like the petroleum you know it affects it.”
The minister also said the dollar exchange rate affected negotiations, adding that the ministry is “doing everything to manage the resources within the available funds so that we mitigate inflation”.
Year-to-date, the naira has depreciated by 59.79 percent in the official window, declining from N1,035.12 per dollar on January 3, to N1,654.09/$ on October 23.
In the parallel market, the naira has depreciated by 40.65 percent, from N1,230/$ to N1,730 per dollar, within the same period.