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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.
I didn’t touch LGA allocations, got no kickback in my eight years as Kano governor - Shekarau
AFOLABI
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.”
Six Foodstuffs Benefit As Customs Begin Implementation Of Tinubu’s Directive On Free Imports (Full Details)
AFOLABI
Following the approval of President Bola Tinubu for the implementation of zero percent import duty and exemption of value-added tax (VAT) on basic food items, the Nigeria Customs Service (NCS) has issued new guidelines for the implementation of the presidential directive.
The approval was confirmed in a letter forwarded by the Ministry of Finance to the Nigeria Customs Service (NCS).
The Customs Service thereafter, in a statement on Wednesday by its spokesperson, Abdullahi Maiwada, listed and identified six food products that will benefit from the Zero Percent Duty Rate (0%) and an exemption from Value Added Tax (VAT) on certain essential food products.
The NCS provided guidelines detailing the eligibility requirements for businesses that want to take part in the zero-duty importation initiative, which is designed to bolster local food security and make essential goods more accessible and affordable.
The guidelines outline the specific food items included in this policy, as well as the compliance requirements that importers are expected to follow.
The fundamental food products that qualify for the zero percent duty rate include husked brown rice, grain sorghum, millet, maize, wheat, and beans.
S/N Item Description ECOWAS CET H.S. Code Previous Duty Rate + Levy New Duty Rate
I. Husked Brown Rice 1006.20.00.00 30% 0%
II. Grain Sorghum – Other 1007.90.00.00 5% 0%
III. Millet – Other 1008.29.00.00 5% 0%
IV. Maize – Other 1005.90.00.00 5% 0%
V. Wheat – Other 1001.19.00.00 20% 0%
VI. Beans 0713.31.90.00 20% 0%
The statement said the measure is aimed at mitigating the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens.
“Drawing from the Presidential directives aimed at alleviating the hardship faced by Nigerians due to high prices of essential food items, the Nigeria Customs Service (NCS) is pleased to announce that His Excellency, the President of the Federal Republic of Nigeria Bola Ahmed Tinubu GCFR through the Honourable Minister of Finance and the Coordinating Minister of the Economy, Olawale Edun has approved the regulation for the implementation of a Zero Percent Duty Rate (0%) and Value Added Tax (VAT) exemption on selected basic food items.
“This measure aims to mitigate the high cost of food items in the Nigerian market by making essential commodities more affordable for citizens.
“The initiative is part of the government’s broader efforts to address food security challenges and ensure that basic foodstuffs are accessible to all Nigerians.
“However, it is important to emphasize that while this temporary measure is intended to address current hardships, it does not undermine the long-term strategies put in place to safeguard local Farmers and protect Manufacturers.
“It is pertinent to note that the implementation of this policy will focus on addressing the national supply gap. To participate in the zero-duty importation of basic food items, a company must be incorporated in Nigeria and have been operational for at least five years. It must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.
“Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with a capacity of at least 100 tons per day, operate for at least four years and have enough farmland for cultivation. Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation.
“The Federal Ministry of Finance will periodically provide the NCS with a list of importers and their approved quotas to facilitate the importation of these basic food items within the framework of this policy.
“The policy requires that at least 75% of imported items be sold through recognized commodities exchanges, with all transactions and storage recorded.
“Companies must keep comprehensive records of all related activities, which the government can request for compliance verification. If a company fails to meet its obligations under the import authorization, it will lose all waivers and must pay the applicable VAT, levies, and import duties.
“This penalty also applies if the company exports the imported items in their original or processed form outside Nigeria,” the statement reads.
The policy will be in effect from July 15, 2024, until December 31, 2024.
The Association of Master Bakers and Caterers of Nigeria in Lagos State has lamented the incessant increase in flour prices in the country.
The association made this known during a protest held in the state on Wednesday.
Addressing newsmen during the protest, the association’s chairman, Chief Ayoola Mathew, said despite the recent approval of a duty-free importation waiver on wheat, maize, and other commodities, flour prices kept rising.
Ayoola also expressed concern over Nigerian millers’ failure to implement the waiver. This, he said, had led to a surge in flour prices, making it difficult for bakeries to operate smoothly.
He said, “In July, the Federal Government of Nigeria announced the approval of a 150-day duty-free window to allow the importation of wheat, maize, and husked brown rice as part of measures to alleviate rising food inflation across the country, effective August 1, 2024. The purpose of the Federal Government’s notable action was to help bring down the prices of food items in the market, making some food items more accessible and affordable for the masses.
“As Nigerians and members of the Master Bakers and Caterers of Nigeria, We sincerely commend the Federal Government upon this approval as part of measures to combat rising food inflation in Nigeria. However, it’s unfortunate to note that the Nigerian millers have yet to implement this relief on price of their commodities.”
He added that the association’s findings revealed that some millers chose to ignore the waiver and instead continued to inflate the price of flour daily.
The body stressed that such an action had not only disregarded the Federal Government’s efforts to alleviate the suffering of Nigerians but also a severe blow to their industry.
“It’s a way of robbing the innocent Nigerians. The millers did not consider our call for price reduction but rather advised us to inflate the price of bread more to inflict pain and hardship on the common man, which is an inhumane action to take.
“This constant increase in the price of flour by millers has made it impossible for bakeries to operate and function smoothly which has also led to the shutdown of many bakeries and their staff being laid off. Lives are at stake when basic needs are scarce. Nigerians complain daily due to a lack of basic needs for survival and bread is one of them. The flour millers are mounting pressure on human beings unnecessarily.”
Matthew stated that the price of flour had increased to N67,000 per bag, up from N8,000 10 years ago, making it challenging for bakeries to produce bread at an affordable price.
The association however appealed to the Ministry of Industry, Trade, and Investment for an urgent intervention in the escalating flour price crisis.
It also urged the government to investigate the activities of Nigerian millers and sugar producers, assess their operations, and enforce price reductions to cushion the effect of hunger on Nigerians.
While demanding a reduction in the prices of sugar, flour, and other baking ingredients, the body also sought surplus distribution and accessibility of commodities to bakers.
According to Mathew, the association proposed a reduced flour price range of between N30,000 and N35,000 per bag and called for proper monitoring and sanctions on non-compliant agencies, groups, or individuals.
The bakers warned that the shutdown of bakeries due to high production costs would exacerbate hunger and unemployment, emphasising the need for urgent government intervention to enforce the waiver and reduce food prices.
“We propose a reduced flour price range of between N30,000 and N35,000 per bag. We also demand a surplus in the distribution and accessibility of commodities to bakers. We urge the Federal Government to take decisive actions to ensure that the waivers on wheat importations are enforced and that the millers comply with the intended purpose of reducing the cost of flour and sugar. The Federal Government waiver should reflect the cost of food items bought,” he concluded.
Former federal lawmaker, who represented Kaduna Central in the 8th Senate, Senator Shehu Sani, has insisted that he received ₦13.5 million during his time while current members of the 10th Senate are receiving ₦21 million monthly.
Naija News reports that this comes amid the controversy over the monthly earnings of federal lawmakers, and the stance of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) that Senators earn N1 million each.
In an interview on Channels Television’s Lunchtime Politics on Wednesday, Shehu Sani maintained that the RMAFC is being economical with the truth and playing with figures.
Sani also cited the statement of Kano Senator, Kawu Ismaila, who attested to receiving ₦21 million monthly.
He said, “I was a Senator and I believe I had correct knowledge about what actually happened at that time and I believe is what is happening now. Well, RMAFC was just playing with figures, they were specific in saying this is the salary of Senators and then they went on to give a breakdown of N20 million which they said was what every Senator earn in four years.
“But I think they are being economical with the truth and I think I understand their fears in terms of telling the truth when they know what is actually happening.
“Before I came to this interview I was going through the papers and I saw a statement credited to one of the Senators from Kano, Distinguished Senator Kawu Ismaila, who confirmed what I said about Senators particularly of this set receiving up to N21 million monthly.
“During my time, I was in the Senate and I was pricked by my conscience as an activist who went to the Senate to unveil what has been made secret for over two decades.
“I believe that taxpayers and Nigerians in general have the right to know how much their legislators are earning and how much they are actually been given. I went on as a serving Senator then to disclose what I do receive monthly, what is credited into my account at that time and it was 13.5 million.”
The Kano State government has said those who invaded the State High Court during the nationwide protest carted away some of the documents used in the corruption trial of former Governor Abdullahi Ganduje.
Daily Trust reports that Kano government had dragged Ganduje, his wife, Hafsat, Umar, his Son, Umar Abdullahi, and five others to the court over 8 charges bothering on misappropriation, and diversion of funds during his eight-year tenure as governor.
The court is among the properties vandalised and looted by hoodlums during the #EndBadGovernance protest.
On Wednesday, Governor Abba Kabir Yusuf visited the court to assess the damages.
The governor was conducted round the court premises by the Attorney General and Commissioner of Justice, Barrister Haruna Isah Dederi, Chief Registrar of the High Court, Alhaji Abdullahi Ado Bayero, and some judges.
According to the governor’s spokesperson, Sunusi Bature Dawakin Tofa, Yusuf described the vandalization as a staged-managed mission in which hired miscreants carted away corruption charges documents of Ganduje who is facing multiple charges before the court.
“It is very unfortunate that enemies of Kano State hired undesirable elements to vandalized one of the historic public buildings with a mission of averting corruption charges against the Ag. National Chairman of APC and former governor of the state Dr. Abdullahi Umar Ganduje, his family and aides,” Tofa said in a statement.
The statement added that the miscreants destroyed virtually all units of the High Court including the office of the state Chief Judge with loss accruing to more than N1 billion through stealing of office equipment, destroying offices, burning cars and other relevant materials crucial to the dispensation of justice.
Yusuf called on youth in the state to desist from being used by detractors to engage in violence.
He advised them to rather concentrate on skill acquisitions for better future, emphasizing that government would not relent in securing the lives and property of people of Kano.
He commiserated with the Chief Judge, Dije Abdu Aboki and the entire Judiciary family for the ugly incident, urging them to brace up to cover what was lost in the courts proceedings for the benefit of the common man.
He also commended people of the state for their support and cooperation to present administration, and prayed for sustenance of the tempo for peace, stability, and prosperity, and economic development.
[DailyTrust]
The House of Representatives tribunal has sacked the member representing Igboeze North/Udenu federal constituency, Simon Atigwe.
The tribunal also declared Dennis Nnamdi Agbo of the Labour Party, LP, the actual winner of the Igbo Eze North/ Udenu Federal constituency rerun election.
The Independent National Electoral Commission, INEC, declared Atigwe of the Peoples Democratic Party, PDP, the winner of the re-run election held on February 3rd, 2024.
INEC announced that the PDP’s candidate polled 23863 votes to defeat Agbo who secured 23226 votes.
Agbo who had earlier won the February 25th, 2023 election but was sacked by the appellate court proceeded to the tribunal to challenge Atigwe’s declaration.
His lawyers argued that the rerun election was marred by wrong computation of results and substantial non-compliance to the electoral act among others.
In their ruling on Wednesday, 14th August, the Tribunal headed by Justice H N Kunaza said that the petition had merit and declared Dennis Nnamdi Agbo the actual winner of Igbo Eze North/ Udenu Federal constituency.
Justice Kunaza’s panel declared invalid, null and void the 2000 votes added to the PDP candidate and restored the votes of 25th February 2023 of 14229 for the PDP and 28870 for the LP candidate Rt. Hon Dennis Agbo.
It also held that Atigwe was not duly elected by the valid votes cast as the petitioner won with 23,221 and PDP 21,863 votes and as such, the certificate of return issued to Atigwe should be withdrawn and issued to Agbo.
[DailyPost]
The Nigerian Customs Service has disclosed that the federal government is set to forfeit approximately N187 billion due to the recent directive to suspend import duties on staple food items for six months. This information was revealed by the Comptroller General of Customs, Bashir Adewale Adeniyi, during the 2nd Economic Confidential lecture and book presentation in his honour, titled “Impactful Public Relations in Customs Management,” held in Abuja.
Adeniyi explained that the suspension of customs duties and levies on key food staples, including beans, maize, rice, and wheat, is part of the government’s strategy to reduce the cost of food items. However, this policy will result in significant revenue losses for the federal government. He noted that between 2020 and 2023, these food imports generated around N3.81 trillion in revenue, including N189 billion in customs duties and over N500 billion from various government levies.
“Wheat alone generated N3 trillion, maize N340 billion, rice N195 billion, and beans N146 billion. Therefore, the estimated revenue forfeiture from the suspension of import duties on these staple food items for six months is about N187 billion,” Adeniyi stated.
He added that the Customs Service awaits guidelines from the Ministry of Finance and will ensure proper implementation by designing special corridors for clearing food imports.
Vice President Kashim Shettima, represented by Dr. Tope Fasua, Special Adviser to the President on Economic Matters, expressed optimism that the government’s food reforms would soon positively impact the economy.
Comptroller General Adewale Adeniyi also handed over his vice chairmanship of the World Customs Organisation, North and Central African region, to his Malian counterpart, Ahmadou Kounate, during an official ceremony in Abuja. Adeniyi emphasized the need for technology to advance customs practices, while Kounate pledged to enhance transparency, implement strategic action plans, and improve manpower development to boost trade facilitation.
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EXPLAINER: Abuse politicians, recite old anthem, risk 10-year jail term, N5m fine in counter subversion bill
AFOLABI
On Tuesday, a controversial document entitled the Counter Subversion Bill 2024 went viral on social media.
The bill was sponsored by the Speaker of the House, Tajudeen Abbas, and it scaled through the first reading and proceeded to the second, where its general principles would be debated on July 23.
It aims to impose stringent penalties on Nigerians who fail to recite the newly approved national anthem or abuse politicians or community leaders.
According to the bill, anyone found guilty shall be fined up to N5 million and would face five to 10 years prison sentence or both.
Meanwhile, Nigerians have begun calling for the abolishment of the bill while describing it as “anti-people” and a “decree in democratic society”.
What the bill stipulates
The Bill “stipulates that anyone found guilty of destroying national symbols, refusing to recite the national anthem and pledge, defacing a place of worship with intent to incite violence, or undermining the Federal Government shall face a fine of N5 million, a 10-year prison sentence, or both.”
The Bill also “states that anyone who sets up an illegal roadblock, performs unauthorised traffic duties, imposes an illegal curfew, or organises an unlawful procession will be subject to a fine of N2 million, five years in prison, or both upon conviction”.
Also, any person who “forcefully takes over any place of worship, town hall, school, premises, public or private place, arena, or a similar place through duress, undue influence, subterfuge or other similar activities, commits an offence and is liable on conviction to a fine of N5 million or imprisonment for a term of 10 years or both.”
“A person who professes loyalty, pledges or agrees to belong to an organisation that disregards the sovereignty of Nigeria, commits an offence and is liable on conviction to a fine of N3 million or imprisonment for a term of four years or both.”
“If you protest or set up an illegal roadblock, or perform unauthorised traffic duties, impose an illegal curfew, or organise an “unlawful” procession, you will be subjected to 5 years in prison with N2m fine or both upon conviction,” it added among others.
Why the introduction?
The bill was introduced to target activities perceived as threats to national security, stability, or public order.
Before now, many politicians, including executives and legislators believed that social media have been a platform where Nigerians express their freedom of speech without hassle as they could barely see many of them. However, there have been insinuations that infiltrators are using the same platform to destabilise the peace of the country without minding the authorities involved.
The recent example is the mixed reactions that followed the statement of the Senate President, Godswill Akpabio, who reportedly said that hunger protesters should go ahead with their demonstration while they (politicians) will be home eating.
Another scenario is the knocks that trailed the statement of the Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, who proclaimed that social media needs to be regulated.
According to him, social media has become a societal menace and must be regulated.
“As many people do not understand that once the send button is hit, there is a potential to reach millions of people around the world, which is capable of causing a great danger not just in the society but even unintended consequences to the individuals that are receiving information which may include security of life,” the statement quoted Gbajabiamila as saying.
The implementation of the amended Cybercrime Act 2015 seems to be devoid of what the Counter Subversion bill is pushing with its distinct punishments and punitive clauses.
Speaker Abbass’ defence on the bill
On Wednesday, Abbas, in his defence, said the bill was chiefly sponsored to cater to the critical aspects of national security.
According to him, the Counter Subversion Bill was introduced in the House of Representatives on July 23, 2024 and not Tuesday.
He said, “The Bill aims to strengthen Nigeria’s anti-terrorism framework by addressing subversive activities carried out by various groups, including associations, organisations, militias, cults, bandits, and other proscribed entities.
“This is in line with similar legislation in countries like the United Kingdom, Spain, India, Turkey, Canada, and Australia.”
The Speaker, also reaffirmed the House of Representatives as the “People’s House,” welcomed robust public engagement and discussions on the contents of the Bill.
He stressed that concerns and suggestions from Nigerians are crucial in shaping the final outcome of the legislation.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has identified 22,074 suspicious personnel on the Federal Government’s payroll.
This is despite the implementation of the Integrated Payroll and Personnel Information System (IPPIS).
The commission found that last year, the government disbursed N37,103,337,614.40 to these suspicious employees.
These personnel were found across various Ministries, Departments, Agencies, tertiary institutions, and notably, the Nigeria Police Force (NPF), which was allegedly the most implicated.
In the Ministries, Departments, and Agencies (MDAs), there were 12,714 personnel listed on the payroll who were not included in the service-wide nominal roll from January to December of last year.
The total financial impact of these 12,174 personnel was estimated at N34,808,740,634.37.
Additionally, approximately 4,190 former police officers were found on the IPPIS payroll.
These findings were shown in a report that resulted from a comprehensive review of the IPPIS conducted by the commission as part of the anti-corruption system assessment initiated by President Bola Ahmed Tinubu’s administration.
Investigators have revealed that the IPPIS has been subjected to tampering, manipulation, and alleged padding with ghost workers or suspicious personnel.
According to investigators from the ICPC, numerous instances of fraud have been identified in the IPPIS payrolls of the Ministries, Departments, Agencies (MDAs), and the Nigeria Police Force (NPF).
Corrupt practices observed in 20 MDAs include double salary payments, inclusion of fictitious names on the IPPIS, the use of fake identities to embezzle public funds, the operation of two IPPIS accounts, and the presence of ghost workers.
For example, approximately 95 personnel across various MDAs were found to have names listed on both the payroll and the nominal roll, yet discrepancies arose when their identities were verified through banking applications.
Among these 95 suspicious beneficiaries, eight share the same family name, and one individual is connected to two different IPPIS accounts.
Twenty-four workers from approximately 20 MDAs were reportedly receiving double salaries from their respective agencies, and in some cases, from additional sources.
At the Ministry of Works, 212 officers listed on the IPPIS payroll, with a combined monthly salary amounting to N31,986,324.40, were found to be absent from both the ministry’s nominal roll and the service-wide nominal roll of IPPIS.
The commission said: “The general overview of the Nominal Roll and Payroll of MDAs furnished by IPPIS and subjected to an analysis established a quantum disparity of 12, 174 personnel between the two parameters (nominal roll and payroll) used in the analysis.
“The said 12,174 personnel were visibly on the payroll but not on the service wide nominal roll between January and December 2023,
“The monetary value of the 12, 174 personnel is put at N34,808,740,634.37within the period under review. Included in the service wide disparity between the payroll and the nominal roll were the specific discoveries made from some MDAs used as a pilot scheme.”
“But the fraud was allegedly more entrenched in the Nigeria Police Force with thousands of ex-employees on the payroll.
The report added: “The analysis of NPF payroll focused on December 2023 nominal and payroll obtained from IPPIS for the purpose of comparison. The nominal and payroll have populated names of 350,028 and 312,047 respectively.
“It was discovered on the nominal roll that 37, 160 staff were described as “ex-employees. However, on the same nominal roll spreadsheet, 37,129 were described as “inactive” whilst the balance of 31 staff were also categorized as having “Active” status.
“Furthermore, 4,190 staff of NPF, described as “ex-employees” were found on the payroll of IPPIS to have received December 2023 salary amounting to N980,273,690.51.
“It was discovered that 3, 228 of the 4, 190 have their records consistent in all parameters used for validation on the payroll such as the names, IPPIS numbers and account numbers.
“Conversely, the account numbers of the remainder 962 staff were compared with that on the payroll and the findings revealed that the names of staff and bank names were inconsistent.
“It was also discovered that none of the IPPIS numbers of the aforementioned number of staff on the payroll was found on the nominal roll.
“Further analysis revealed that the names, IPPIS numbers and account numbers of 20 staff , who were not on the nominal roll, were found on the payroll given by IPPIS amounting to payment of N5,585, 256.13.
It was also discovered that 40 different staff on the 2023 payroll had different IPPIS numbers that had one account linked to the different names. Of the 40 staff, 21 received double salary.
“Furthermore, an account number linked to two officers revealed that the account is in the name of a company, Don Aks Ikoro Global. Some names do not match the account name on the nominal and payroll.”
The Port Harcourt Refining Company, a refinery under the management of the Nigerian National Petroleum Company Limited in Rivers State, has again failed to commence operations after about six postponements, The PUNCH reports.
It was observed that promises made to Nigerians by the Federal Ministry of Petroleum Resources and NNPC about the refinery have continued to witness multiple failures.
Since December 2023, NNPC, which is in charge of all the government refineries, has given Nigerians different dates, assuring citizens that the refinery would begin the sale of refined products soon.
In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated categorically that the refinery would come into operation in early August.
The same Kyari said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former President Muhammadu Buhari’s administration.
While appearing before the senate recently in July, Kyari boasted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.
“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna, but that of Port Harcourt will commence production early August this year.”
However, as August nears midpoint, the refinery has yet to commence operations, creating concerns that this might be another failed promise from NNPC.
Replying to inquiries from our correspondent on Tuesday, the NNPC said it was on course, even when the early August promise has expired.
In a chat with our correspondent, the NNPC spokesperson, Olufemi Soneye, tersely replied, “We are on course.”
Soneye did not reply to further questions, asking if he meant the refinery would still operate this month.
The PUNCH recalls that the 210,000 barrels per day refinery was said to have reached what the NNPC called mechanical completion of rehabilitation work in December.
It stated that the facility would start refining 60,000 barrels of crude oil daily after last year’s Christmas break.
Later in January, Kyari said the refinery was being tested and would be ready by the end of January.
During the second month of the year, the Shell Petroleum Development Company of Nigeria Limited completed the supply of 475,000 barrels of crude oil to the Port Harcourt refinery, raising the expectations of marketers that production was set to commence.
This came a few weeks after NNPC said in January it was seeking to engage reputable and credible operations and maintenance companies to run the Port Harcourt refinery. NNPC did not disclose whether or not it had secured bidders to run the refinery.
In mid-March, Kyari said the Port Harcourt refinery would commence operations in two weeks, April.
“We are serving this country with honour and dignity. And we will make sure that the promises we make on the rehabilitation of these refineries will take place,” Kyari stated after he appeared before the Senate Ad-hoc Committee investigating the various turnaround maintenance projects of the country’s refineries.
As the April deadline elapsed, independent petroleum marketers told The PUNCH that the facility would begin production by the end of July.
Commenting on this, NNPC’s Chief Corporate Communications Officer, Soneye, said regulatory approvals from international bodies were the only impediment stalling the operational commencement of the refinery.
“We have said that the mechanical completion has been done and every other thing is done. There is crude oil and all the pipes are working; we are only waiting for regulatory approvals. As I said, some of our materials and the things we use have to do with nuclear, and we need the nuclear authorities to give us approval to use all those things at the site.
“And some of these approvals come from bodies outside of Nigeria. Until they give us those approvals, we can’t begin operations. We are ready to go but if something happens without it, which would be another issue. Everything has been completed in terms of our work, and once we get those approvals, it will start operations,” Soneye revealed in May.
Some Nigerians have expressed disappointment that the nation’s refineries have remained moribund for years. The country has since depended on imported fuel as it lacks refining capacity, spending up to N2tn monthly.
The President of the Dangote Group, Aliko Dangote, said $4bn had been spent by the Federal Government in an attempt to revive the nation’s refineries.
Obasanjo talks tough
While addressing some House of Representatives members who visited him in Abeokuta on Friday, former President Olusegun Obasanjo recalled how Shell refused his pleas to help run the refineries when he invited them during his days as the President, blaming corruption and poor management.
According to Obasanjo, some Nigerians later paid $750m to take over the refineries, however, his successor turned it back.
“I ran to him, I said, ‘You know this is not right’. He said, ‘Well, NNPC said they can do it’. I said ‘NNPC cannot do it’. I told my successor that ‘the refineries, from what I heard and know, will not work and when you want to sell them, you will not get anybody to buy them at $200m as scrap’. And that is the situation we are in.
“So, why do we do this kind of thing to ourselves? NNPC knew that they could not do it, but they knew they could eat and carry on with the corruption that was going on in NNPC. When people were there to do it, they put pressure. In a civilized society, those people should be in jail,” Obasanjo posited.
He told the lawmakers that he was aware they were investigating the $1.5bn the NNPC has spent on the Port Harcourt refinery.
The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years. The Alesa Eleme refinery complex is approximately 25km east of Port Harcourt.
In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery; a move that was criticised by former Vice President Atiku Abubakar, who advocated the sale of all government refineries.
While reacting to the plan to hand the refinery over to private managers, Atiku tackled former President Muhammadu Buhari and the incumbent President Bola Tinubu for failing to heed his advice that the refinery and others owned by the government should be sold to private individuals.
Earlier, NNPC disclosed that it signed an agreement with the African Refinery Port Harcourt Limited for the subscription of 15 per cent equity by ARPHL in the Port Harcourt Refining Company.
Parties in the deal said the agreement would lead to an increase in the refining capacity of the Port Harcourt refinery from 210,000 barrels per day to 310,000bpd.
PHRC is one of the three national refineries under the management of NNPC.
Meanwhile, the Senate has raised questions over the $1.5bn approved in 2021 for the renovation of the refinery.
The upper chamber lamented that it is “unfair and wrong to treat government businesses or public companies as an orphan while private businesses were flourishing and thriving.”
The Senate Leader and Chairman of the Senate ad-hoc Committee to investigate the alleged economic sabotage in the Nigerian Petroleum Industry, Opeyemi Bamidele, raised the questions at a session with stakeholders in the industry in Abuja.
At the session, Bamidele expressed concerns over the dysfunctionality of the government-owned refineries despite investments to carry out turn-around maintenance.
Nigerians are hopeful that the refinery will stop fuel importation and crash the pump price of petrol when completed.
The Nigerian government under President Bola Tinubu‘s administration has entered into 26 Memoranda of Understanding (MoUs) with various foreign countries and agencies, securing commitments valued at more than ₦4.2 trillion.
These agreements span multiple sectors, including infrastructure, education, trade, investment, tourism, security, information technology, culture, energy, gas, and sports.
The agreements’ total value may be higher, as several MoUs did not disclose their financial details, according to a document from the Ministry of Foreign Affairs.
One notable agreement was signed with India in February 2024 to enhance trade between the two nations. In November 2023, Nigeria signed a $500 million deal with Germany focused on renewable energy and gas. Additionally, a significant MoU with Russia on nuclear energy was finalized on September 27, 2023.
Regarding infrastructure, Nigeria signed a $2 billion deal with China on October 20, 2023, to develop various projects. Another MoU with China, signed on December 9, 2023, involves establishing a $150 million Lithium-Ion battery manufacturing and processing facility in Nigeria.
In the education sector, Nigeria secured MoUs with Russia and Qatar on December 22, 2023, and March 3, 2024, respectively.
In trade and investment, Nigeria signed an agreement with India in February 2024 to further increase trade between the two countries. On March 3, 2024, an MoU was signed with Qatar to establish a Joint Business Council between NACCIMA and the Qatar Chamber.
Another MoU, signed on March 19, 2024, with Lab Four, aims to create 50,000 full-time business process outsourcing jobs in Nigeria over the next three years.
To strengthen national security, Nigeria signed two agreements with the United Nations Office on Counter-Terrorism on August 30, 2023, focusing on countering terrorism and violent extremism.
Additionally, on January 30, 2024, an MoU was signed with the United States to train commanders of the Police Special Intervention Squad in combating banditry and other crimes.
For cultural preservation, an MoU was signed with the United States on February 16, 2024, to focus on preserving a UNESCO Cultural Heritage Site in Adamawa State.
In technology, Nigeria secured a $600 million I-DICE Financial Agreement with France on November 3, 2023, to support digital and creative enterprises.