Marketers blame supply shortage, NNPC keeps mum

Nigerians have expressed anger and frustration over the prolonged scarcity of Premium Motor Spirit, popularly called petrol, across various states nationwide.

It was observed on Wednesday that the scarcity of petrol led to widespread queues by motorists at filling stations in Abuja, Kaduna, Niger, Adamawa, Kano, Bauchi, and Delta, among others.

Although the queues were not severe in the South-West, findings showed that the cost of petrol in most of the affected states was close to N1,000/litre at filling stations.

Marketers explained that the South-West had fewer queues because petrol normally moves from the coastal areas in the zone to the North, adding that the recent protests halted the free movement of trucks to other regions.

They further noted that suppliers of petrol would first supply their stations in the South-West before moving products to other regions, stressing that the low supply had made it tough to have enough products to take other states far North.

Black marketers took advantage of the situation in states that had severe scarcity, as they sold petrol for between N1,200/litre and N1,500/litre depending on the area of purchase.

This led to a hike in transport fares in the affected states, while many passengers spent several man-hours waiting for vehicles at different bus stops to get to their destinations.

Oil marketers blamed the prolonged petrol scarcity on the limited supply by the Nigerian National Petroleum Company Limited, stressing that the development had become worse to the point that the national oil firm now allegedly rations PMS to one truck per state.

NNPC stayed mute when contacted to speak on the persistent fuel scarcity and the claims by dealers that it was rationing PMS supply.

NNPC is Nigeria’s sole importer of petrol. Other marketers stopped importing the commodity due to their inability to access the United States dollar required for fuel imports.

Some Nigerians on social media asked NNPC to explain why the scarcity has continued to linger.

Since July 27, 2024, when NNPC blamed the fuel scarcity on a hitch in the discharge operations of some vessels, the situation has yet to record any significant improvement.

The Independent Petroleum Marketers Association of Nigeria told The PUNCH on Wednesday that there was no hope of improvement as at Wednesday..

The Vice National President of IPMAN, Hammed Fashola, said marketers can only push out whatever NNPC makes available.

According to Fashola, there is a shortage in fuel supply and marketers have had cause to ration the little they get.

“No hope on fuel scarcity yet. Whatever NNPC brings is what marketers will push out. There is a shortage in supply. We are still managing whatever we have,” he stated.

Asked if there was any formal communication from NNPC on the reason for the scarcity, Fashola replied in the negative but stated that he believed the energy company was working round the clock to restore normalcy.

“No formal communication yet. We believe that NNPC is working round the clock to make sure they wet everywhere with the product. We as marketers are supporting them to ensure that we dispense the fuel to the public appropriately,” he submitted.

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, confirmed Fashola’s position, as he revealed that all his filling stations were empty.

“All my filling stations are empty. I don’t have products to sell. That is the true situation right now. There is no supply from NNPC. So I cannot tell you when the queues are going clear,” he stated.

Asked whether the national oil firm has explained the reason for the scarcity, Gillis-Harry replied, “They have given us no reason, and we are anxiously waiting to know why. But just know that we don’t have the product to sell and it is not the fault of marketers because we don’t import PMS. NNPC is the sole importer.”

Operators had earlier stated that the depots in Apapa, Lagos did not get enough supply from NNPC.

According to them, demand is currently higher than what the sole importer of PMS could bring into the country.

The operators said though vessels were bringing in imported fuel, the supply had remained below what the country needed to get rid of the current fuel crisis.

“There is no fuel at the depots. Whatever is being imported now is not enough to fight the current scarcity. And the price is high because marketers now get petrol at N730/litre from private depot owners. There is nothing we operators can do when there is no supply.

“The supply is not increasing because the importer is incurring too much debt. The more they import, the more the debt on NNPC, so they continue to ration. Everywhere is dry, and even major marketers are affected. NNPC retail outlets are affected. The situation is worse in Abuja, especially at Airport Road,” a dealer, who spoke in confidence due to lack of authorisation to speak on the matter, stated.

Another marketer alleged that the national oil company had started rationing supply to the extent of giving out just one truck per state.

“As at when there was enough supply, marketers get as much as they can buy. If there are 3,000 filling stations in a state and each of them can buy a truck, they are ordinarily meant to get it.

“But what we saw in Lagos on Wednesday was that NNPC was giving out just one truck per state. And if this is not addressed as soon as possible, the scarcity will ground activities nationwide,” the dealer stated.

  Northern states

In Adamawa State, transport fares skyrocketed on Wednesday as the price of petrol increased in filling stations in Yola, the state capital. Some filling stations dispensed PMS at between N870/litre and N900/litre.

At Optima Oil located along Yola-Mubi road, a litre of petrol cost N900, while at NUT filling station it was N870. At MRS filling station located along Yola-Numan road, the cost was N850, while at Ned Oil it was N890.

Out of the more than 10 NNPC mega stations in the state capital, only one sold petrol on Wednesday as it witnessed long queues of motorists.

On the black market, the cost of petrol was between N1,500 and N1,700, depending on the area of purchase.

This affected the cost of transportation, as the fare from Yola to Mubi that used to cost N4,500 before, increased to N7,000 per passenger on Wednesday. From Yola to Numan, the fare was N1,500 before, but rose to N2,500.

Fuel scarcity resurfaced in Kaduna, leaving motorists stranded and frustrated in the state capital on Wednesday.

Long queues were seen at fuel stations where petrol was available, while many independent marketers claimed to be out of stock.

At NNPC mega stations around Aliyu Makama road by Living Faith Church Barnawa, motorists waited in endless lines, causing traffic congestion and forcing other road users to take alternative routes.

The fuel was sold at N620/litre at the NNPC mega station, a price significantly lower than the N930 to N950/litre charged at other stations in the metropolis.

Motorists expressed frustration and confusion, wondering why the scarcity persisted despite the high prices.

“We’re buying petrol at a cut-throat rate, yet it’s out of sight. Why?” asked John Ayaga, who had been waiting in line since early morning.

The scarcity has led to a boom in black market sales, with petrol sold at exorbitant prices of N1000 to N1300/litre and N4500 to N5000 per gallon, depending on the location.

Sule Ahmed, a black marketer, revealed that they source their fuel from fuel attendants, who sell it to them for resale to desperate motorists. “Fuel attendants sell it to us, and we in turn sell to other motorists,” he said.

This illicit trade is flourishing due to the shortage, causing hardship for many residents who are forced to pay inflated prices in the state.

The development has had a ripple effect on transportation costs, with fares soaring to unprecedented heights. The cost of a tricycle (Keke Napep) ride from GT Barnawa to Central Market (Sheikh Gumi Central Market) has increased significantly, now ranging from N350 to N400, up from the previous N200 to N250.

Fuel queues grounded activities in Niger State as motorists spent hours at filling stations waiting to purchase the product that was not available

In the past, the scenario was that there would be fuel with few motorists queuing to purchase the product.

In Minna the state capital, residents waited for hours for the product only to find out later that the product was not even available.

A motorist, Kunle Afolabi who spoke to The PUNCH said he had been to about two other stations before coming to the third to find out the situation was still the same.

“The situation is the same in all the fuel stations, there is no fuel anywhere and the pump price has risen again. We have been buying it for N850 for some time now but it is now N950 in most of the fuel stations. Even the Federal Government station which used to be less than N700 is now N850.

“In most of the fuel stations, the attendants will tell you that they are expecting a supply of the product. After spending hours waiting for fuel, motorists have no option than to leave. This thing is disturbing. The government does not seem to have any solution to the problem,” he said.

The PUNCH visited the fuel stations at the Mobil junction where there are several stations, including the Mobil, Total, A.A Rano, Shafa, Eternal, and Optima, among others. Few vehicles were seen waiting endlessly for the stations to commence the sale of fuel.

Following an observation conducted by our correspondent in Bauchi, it is confirmed that queues had returned to filling stations across the state.

While most filling stations were closed, the ones that dispensed petrol in Bauchi sold it at about N900/litre.

In Abuja, residents stated that fuel queues have plagued the city for about two months, leaving commuters and drivers stranded.

On Wednesday morning, passengers were seen waiting at Bwari and Dutse axis of the capital city as drivers searched for fuel.

Despite the presence of at least four NNPC fuel stations and others between Bwari and Dutse, none were queue-free. NNPC dispensed its product at fuel at N617/litre. Other fuel stations like Optima sold fuel at N649/litre, while some others sold theirs for as high as N700/litre.

Shaibu Mazua, a driver, shared his experience. “I couldn’t get fuel to buy today and I was running late for work. I had to buy from the black market at N1,000/litre.”

The situation was similar at Jabi, where NIPCO fuel station and others were crowded with vehicles waiting for fuel. A driver at Utako discharged his passengers, lamenting the losses he would incur due to the scarcity.

“My fuel is finished, and I doubt I can continue working today because the queue here is long,” he said, returning the fare he had earlier charged his passengers.

Fuel scarcity in Abuja has been a recurring issue. Nigeria’s reliance on imported fuel and limited refining capacity contribute to the problem. The government has been working to address the issue, but the situation remains dire for many Nigerians.

In Plateau State, motorists and commuters lamented the harsh conditions caused by the high cost of fuel.

A random survey of petrol stations within the city showed that the prices ranged from N900 to N950 on Wednesday, while the retail outlets of the NNPC continued to sell the product for N670 per litre.

There were long queues at the NNPC mega station located at the Dogon Karfe road as anxious motorists scrambled for fuel at the filling station.

Most motorists who could not bear to stay in queues at the filling stations resorted to patronizing the black marketers, who sold for N1,300 per litre.

Also in Kano, the product sold for between N900 and N950 per litre as most of the filling stations in Kano city remained shut while the few that sold the commodity were beset by a long queue of vehicles. Commericial transport operators increased their fares by about 100 per cent.

There were long queues across various filling stations in Gombe State on Wednesday as most NNPC stations, which sold for less than N700, were amongst those shut.

In Katsina, The PUNCH learnt that fuel price at the NNPC mega stations went for N665  while other fuel stations that previously sold for N830 sold for N900. Most fuel stations in the area were locked as most residents resorted to government-approved NNPC mega stations.

In Damaturu, the Yobe State capital, the pump price sold between N950 and N1000 across major filling stations in the state as against the N637 per litre the NNPC retail outlet sold.

A visit to the Damaturu Metropolitan Motor Park by one of our correspondents showed that transport fare from Damaturu to Potiskum, a distance of 100km, was charged at N1800 while Damaturu to Kano was N8000 following the soaring cost of the product.

In Sokoto, a litre of fuel hit N950, with only the NNPC filling stations selling the product at the official rate of N620.

In Makurdi, the Benue State capital, it sold for between N950 and N970 per litre, while the NNPC station at Kashim Ibrahim Road sold the product for N645 per litre.

A short distance that used to attract N200 now goes for N300 just as many pedestrians resorted to trekking.

A fuel attendant at Prime Power filling station at Ankpa Quarters, who identified herself simply as Debby, said, “For the past one week, we have not received any supply and our boss said we should be rationing what we have. On Monday we sold the product at N920 per litre but today (Wednesday) it’s N970 per litre.”

The product sold between N650 and N800 per litre in many stations in towns and villages in Ondo State on Wednesday, while NNPC sold at N580.

Also many filling stations were still under lock and key while there were long queues at NNPC stations.

In Osogbo, Osun State, a handful of filling stations belonging to major marketers sold the product between N660 and N700 per litre.

Queues were observed at filling stations selling the product for N660 while independent marketers, dispensing the fuel for prices ranging from N750 to N850, had few motorists patronising them.

Independent marketers in Benin City, Edo State increased their pump price from N750 to between N800 and N900, while the major marketers sold for between N685 and N700.

The only filling station where motorists queued for the product was at the NNPCL mega station on Sapele Road.

Black marketers had a field day in the twin metropolitan cities of Warri and Effurun on Wednesday selling petrol to motorists at N1,100 per litre as most of the filling stations ran out of stock.

Majority of the fuel stations had failed to re-stock out of fear that the much expected Dangote products might be pushed into the market this week, at yet to be decided prices.

The various filling stations visited on Wednesday by our correspondent along Warri-Sapele road, including AP, Mobil, A&E, TotalEnergies, ConOil and NNPC, did not dispense fuel.

However, it was dispensed at N939 per litre at the Mobil station, which compelled motorists to patronise the black marketers, who were happy to sell for N1,100.

Fuel sells at 870 as queues resurface at NNPC stations

In Owerri, the stations sold for N870 per litre in some areas, while others sold at N900, particularly those on the highways.

Residents deserted the private stations for the NNPC stations, which sold for N592.

In Enugu it ranged from N780 to N880 per litre with commercial transporters buying fuel anywhere, preferring to avoid delays in stations owned by major marketers and NNPC.

Areas available

In Maiduguri, residents confirmed to The PUNCH the availability of petroleum products even though they lamented price instability. 

Abdullahi Hassan, a resident, said stations sold for between N900 and N920 naira per litre.

“There is no queue at all, but the price is what we are not comfortable with,” he said.

A shop owner in Maiduguri, Yagana Mohammed, added, “I bought for N850 per litre this week but today (Wednesday) I heard some people bought it N900. Our major problem is not scarcity but price instability and the fact that almost every station have their own price of the product”

The product sold between N670 and N800 per litre in Ilorin, the Kwara State capital.

There were no queues at stations located in different areas of the state capital as Bovas sold at N670 per litre, Shafa Petrol at N730, NIPCO at N690, Young Legacy at N850 and NNPC at N850.

Meanwhile, a group, the Civil Society Network on Economic and Social Advancement, has called for the immediate removal of NNPC’s Group Managing Director, Mele Kyari, over the lingering fuel scarcity across the country.

The group made the call at a press briefing in Abuja on Wednesday, noting that despite Kyari’s promise to make the refineries work before the expiration of former President Muhammadu Buhari’s administration, they remained non-functional, while a litre of fuel now sold for N1,500 in some parts of Nigeria, including Abuja, causing long queues at fuel stations across the country.

The national spokesperson of the group, Abubakar Yale, explained that although President Bola Tinubu meant well for Nigerians, Kyari’s disregard for the President’s directive to sell crude oil to Dangote refinery in naira, painted the Tinubu-led administration in bad light, adding that this disregard undermined Nigeria’s efforts to support local refining capacity and reduce Nigeria’s reliance on imported petroleum products.

“Sadly, it is even more concerning that Mele Kyari, who allegedly short-changed every Nigerian through under-remittance to the federation, has been allowed to remain in charge of the NNPC while heads of other important departments and the EFCC have been sacked, arrested and proven. This raises questions of why the case of the NNPC Limited led by Mele Kyari is being treated differently. If the government is genuinely committed to fighting malfeasance which we know that President Tinubu has been doing very well, then Mele Kyari should not be allowed to continue in his position,” he said.

The group also said they would launch a nationwide campaign to collect one million signatures to drive home their demand, as well as a peaceful protest at the NNPC Headquarters August 22 to signify a clear demonstration of the people’s resolve to end the reign of mismanagement and corruption at NNPC.

“Fellow Nigerians, the time for action is now. We the members of the Civil Society Network on Economic and Social Advancement call on all concerned citizens to join us in demanding the immediate removal of Mele Kyari from his position as the GCEO of NNPC Limited. We are launching a nationwide campaign to collect one million signatures, which we will present to the President of the Federal Republic of Nigeria, His Excellency, President Bola Ahmed Tinubu, as a clear demonstration of the people’s resolve to end the reign of mismanagement and corruption at NNPC Limited.

“We call for a protest so that we can occupy the NNPC headquarters on Thursday August 22, 2024, until President Tinubu heeds the people’s demand and removes Mele Kyari from his position. We urge all Nigerians, regardless of their political affiliations to join us in this peaceful demonstration to send a strong message that we will no longer tolerate the continued mismanagement within the NNPC Limited,” Yale added.

A French court has authorized the seizure of three presidential jets linked to the Federal Government of Nigeria as part of a legal battle involving Zhongshan, a Chinese company.
The company had a business dispute with the Ogun State government, which led to this significant legal action, sources familiar with the matter have told Premium Times.

The three seized jets include a Dassault Falcon 7X at Le Bourget airport in Paris, a Boeing 737, and an Airbus 330 located at Basel-Mulhouse airport in Switzerland.

All three aircraft are part of Nigeria’s presidential air fleet and are currently undergoing maintenance.

Two of the jets were recently put up for sale, while the Airbus 330 was purchased by Nigeria but had not yet been delivered. The Nigerian government reportedly paid over $100 million for the Airbus.

The seizure stems from a 2016 decision by the Ogun State government to revoke Zhongshan’s export processing zone management contract.

Following this revocation, an independent arbitral tribunal, chaired by a former UK Supreme Court President, awarded Zhongshan $74.5 million in compensation.

However, the Ogun State government has yet to honor the award, leading Zhongshan to seek enforcement against Nigerian assets abroad.

The French court’s order prohibits the movement, sale, or purchase of the seized jets until the $74.5 million compensation is paid to Zhongshan.

Bailiffs have already served legal papers for each aircraft, signaling a significant escalation in the ongoing legal dispute.

This development follows a similar incident in which Nigerian-owned properties in Liverpool, England, were seized by a UK court in connection with the same dispute.

Zhongshan secured charging orders against two properties in Liverpool—15 Aigburth Hall Road and Beech Lodge, 49 Calderstones Road—which are estimated to be worth between £1.3 million and £1.7 million.

Naija News understands that the Nigerian government is yet to comment on the seizures.

Ibrahim Shekarau, former governor of Kano, says he had less than N100,000 in his account when he contested the 2003 gubernatorial election in the state.

Shekarau spoke in Abuja on Wednesday during a press conference ahead of the Muslim Students’ Society of Nigeria’s (MSSN) 70th anniversary, slated for October 12.

Shekarau, who was the governor of Kano from 2003 to 2011, was responding to a question on the recent financial autonomy granted to the LGAs in the country by the supreme court.

The former Kano governor said his participation in politics was from a place of “persuasion” and not by choice.

Shekarau added that he did not spend LGA allocations or receive kickbacks from contractors during his eight years in office.

“I have never taken any negotiating percentages with any contractor,” he said.

“I always challenge them; if any contractor who has worked with me in the last 44 years knows that I have asked him for a percentage or brought any money, let him come out and say so.

“Secondly, none of my commissioners has ever brought one naira to me in the name of feedback from a contractor.

“No local government chairman, during my eight years as governor, has ever given me one naira. I have never tampered with their allocations.

“Up until the end of my second term in 2007, I had no house of my own.

“I remember an elder statesman, who was my former teacher, coming to me two months before the election, saying, ‘governor, I want to delve into your personal affairs’.

“He asked, ‘suppose you lose in the election; which house will you go to?’  I said I would go back to a rented house. I left a rented house to move into the government house.”

The Executive Chairman of the National Hajj Commission of Nigeria, Jalal Arabi, and the commission’s secretary, Abdullahi Kontagora, are currently in the custody of the Economic and Financial Crimes Commission over the alleged mismanagement of the N90bn 2024 Hajj subsidy, The PUNCH learnt on Wednesday.

In a document sighted by our correspondent on Wednesday, the anti-graft agency said, “A total of

SR314,098 was recovered,” from the NAHCON chairman and other ranking officials.

The EFCC said its investigation revealed that from the N90bn Hajj subsidy, Arabi, fraudulently overpaid himself and others the necessary operational cost.

Commissioner of Police arrive at Ojota Park during the protest #endbadgovernanceinnigeria | Punch0.00 / 0.00

Also according to the document, the approved 2024 Hajj operational cost for the Chairman/CEO

Commissioners, Secretary and Directors/Chief of Staff in the 2024 budget are stipulated as $4,250, $12,750, $3,825 and $15,300, respectively.

The EFCC, however, alleged that: “The chairman fraudulently overpaid himself, the commissioners, secretary and directors for the 2024 hajj operational cost.

“The chairman was entitled to SR15,929 but he got SR50,000; three commissioners who were meant to get SR 15,929 each received SR 40,000 each. The secretary got SR 30,000 instead of SR14,336. Directors/Chief of Staff received SR 30,000 instead of the SR2,550 they were entitled to. The total of

SR314,098 were recovered from all of them.”

The anti-graft agency had first grilled Arabi for hours on July 29 and released him on bail.

Also, last week Wednesday, some top officials of the Hajj commission were arrested by the Independent Corrupt Practices and Other Related Offences Commission over alleged mismanagement or diversion of the N90bn subsidy.

On Wednesday, a source in the EFCC told our correspondent that the NAHCON Chairman was taken in again on Wednesday for questioning and was detained.

“The Secretary and Chairman of the commission are in our custody and are facing serious interrogations on the N90bn subsidy, among other allegations,” the source said on condition of anonymity because they could not speak officially.

A document exclusively sighted by our correspondent revealed that SR 8,614,175.27 cash withdrawal out of the N90bn released by the Federal Government to the commission is yet to be accounted for by NAHCON.

The document partly read, “The sum of N90bn was released by the Federal Government of Nigeria to the National Hajj Commission to subsidise the 2024 Hajj Operations by the Federal Government of Nigeria.

“The total sum of N1, 764,705,937.62 was deducted by the Central Bank of Nigeria as bank charges.

“The sum of N88, 235,294,063.72 was subsequently converted into United States dollars at the rate of N1,416.13, which amounted to USD 62,307,164.48 and thereafter transferred into NAHCON British SAAB Account in Saudi Arabia.

“The sum of USD 62,307,164.48 was converted to Saudi Riyal at the rate of N3,748, which amounted to the sum of SR 233,527,252.47.

“That the opening balance of the IBAN-E track for 2024 Hajj activities was SR 19,813,810.89 and has an inflow of SR 485,000,000.00 from NAHCON with a closing balance of SR 78,985,266.03.

“That the closing balance is inclusive of the SR20,637,908.23 refunded from the Ministry of Hajj and Umrah Saudi Arabia.

“That the total sum of SR 22, 815,367.74 was withdrawn cash from the British SAAB account by one Abubakar Muhammed Lamin in Saudi Arabia during the 2024 Hajj operation.

“The expected cash payment for services and allowances to staff and stakeholders is SR 14,905,910.47.

“That the total sum of SR 8,614,175.27 cash withdrawal is yet to be accounted for by NAHCON.”

Meanwhile, an investigation into the commission’s activities since 2022 resulted in the recovery of estacodes paid to staff who did not undertake study tours and payments made to Shuraka’a al-Khair Group Ltd for services that were not rendered.

The document stated, “While investigation commenced on the criminal aspect which has led to the recovery of Estacodes paid to staff, who did not travel to Indonesia for study tour, also recoveries were made for services not rendered of the sum of SR 1,026,000.00 and SR 1,780,019.99, being purported 7.5% of consultancy paid to Shuraka’a al-Khair Group Ltd for debt recover of the sum SR20, 637,908.23 from the Ministry of Hajj and Umrah Saudi Arabia.”

The document stated that all supporting documents for payment of the consultancy services, including the Executive Chairman’s approval, were fraudulently backdated to January 23, 2024, to enable the payment of the sum of SAR 780, 019, 59 to Shuraka’a al-Khair Group Ltd on April 14, 2024.

“The first suspect, Jalal Arabi, confessed that the consultant did not render any services.

“A meeting of the Expanded Transitional Exco was held on 25th January 2024 with seven members and 18 staff in attendance but the payment of the consultancy services to Shuraka’a al-Khair Group Ltd was not discussed.

“The commission’s secretary slotted the approval for the payment of the 7.5% consultancy to Shuraka’a al-Khair Group Ltd in the minutes of the Expanded Transitional Exco meeting as item 10 under AOB to enable the perfection of the documentation to steal the funds.

“That the said sum of SR1,026,000.00, equivalent to about N430,920,000 Million, was also recovered from one Eastern Gulf Company Kingdom of Saudi Arabia.”