Monday

Fuel crisis worsens nation’s power problems

The current nationwide scarcity of refined petroleum products has reached a crisis point with a litre of petrol selling for between N200 and N600 in many parts of the country, while diesel, household kerosene and liquefied natural gas have also become elusive.
Also, with power generation dropping to an all-time low of 1,327 megawatts, most Nigerian households are now living without electricity as they have also run out of fuel to power their generators.
Even before the dip in power generation, most Nigerian households have been relying on generators as the main source of their power supply while using the public power supply as a backup. However, the fuel shortages which started over a week ago, have made it impossible for households to even get fuel to power their generators.
Although, daily fuel consumption nationwide is about 40 million litres per day, it is estimated that a sizeable proportion of the demand goes into fuelling of generators.
“It is now impossible for me to get a four-litre fuel to run   my small generator,” a man who was in the queue in one of the filling stations, told one of our correspondents on Sunday.
Also, a resident of one of the upscale estates in Magodo,who identified himself as John Adebayo, told one of our correspondents that he had been unable to run his generator for three days because he could not get diesel to buy.
“I have money to buy diesel but it is just not available anywhere.   I can’t even pump water, it is really pathetic,”he lamented.
Already, the situation has started affecting companies with some firms like MTN and Airtel saying that they could not get diesel to run generators at base stations.
Unless urgent steps are taken by the Federal Government and all concerned stakeholders, many citizens will find it difficult to get to their various places of work and business as from today (Monday) due to the crippling scarcity of refined petroleum products occasioned by the refusal of marketers to import them and a strike by tanker drivers.
Our correspondents reported on Sunday that petrol had dried up in almost all the filling stations nationwide, while black marketers capitalised on the prevailing scarcity by selling the product in jerry cans for between N200 and N600 per litre in places like Lagos, Ogun, Osun, Kaduna and Oyo states, as well as the Federal Capital Territory.
The situation affected vehicular movements in many parts of Lagos and Ogun states on Sunday, with attendance at religious centres unusually low, while commercial transport operators raised their fares by over 300 per cent.
All the filling stations owned by major oil marketers visited by our correspondents were under lock and key. Majority of the independent petroleum products marketers were also not selling petrol on Sunday.
The very few independent marketers with petrol were selling the product for between N150 and N400 per litre, while black market dealers were selling for between N500 and N600 per litre in some of the stations visited.
A motorist plying the Berger-Mowe route traversing Lagos and Ogun states, who simply identified himself as Ola, expressed disappointment with the slow response of the government to the problem, adding that with the situation on the ground, workers would have to part with a lot of money to get to their offices on Monday (today).
A commercial transport operator in Ikorodu, Lagos, told one of our correspondents that he bought 30 litres of petrol for N12,000 instead of N2,610 at the regulated price of N87 per litre.
It was gathered that virtually all the filling stations in Osun State had run out of petrol as of Sunday, thereby forcing the residents to stay indoors.
A major petroleum products’ marketer told one of our correspondents that the Federal Government had refused to meet them to resolve the lingering issues surrounding the payment of the subsidy arrears owed the marketers.
The marketer, who pleaded anonymity, said since the last meeting they had with the Minister of Finance, Dr. Ngozi Okonjo-Iweala, on May 4, nothing had changed.
The Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Thomas Olawore, said though the marketers had reached out to the President-elect, Muhammadu Buhari, on the lingering fuel supply problems, they had yet to get a positive response.
He confirmed that the marketers were not importing petrol at the moment, because they did not have the wherewithal to do so.
The spokesperson for the Department of Petroleum Resources, Mr. Saidu Muhammed, said the product scarcity was primarily due to the ongoing workers’ strike in the NNPC.
He said, “Products are not coming out from the depots and there’s virtually nothing anybody can do for now. But hopefully, when they resolve the strike, things may become normal.
“The strike by the NNPC workers is affecting all the depots. And until the strike is called off, there will be no loading. There is no loading in almost all the depots across the country and so products are not coming out.”
Meanwhile, the Lagos Chamber of Commerce and Industry has noted with concern the current energy crisis facing the country, which it describes as unprecedented.
In a statement signed by its President, Alhaji Remi Bello, the LCCI called on President Goodluck Johnathan to bring a halt to the imminent collapse of economic and social life in the country.
Bello said, “There should be an immediate engagement of stakeholders in the petroleum industry to discuss the outstanding issues of indebtedness and related labour matters in the interest of the economy and the citizens. The situation should not be allowed to degenerate any further.
“The Lagos Chamber urges the incoming administration to immediately deregulate the oil and gas downstream sector on assumption of office in order to provide an enduring solution to the recurring problem of petroleum products’ scarcity, corruption inherent in the subsidy regime, the collapse of refineries, lack of investment in the downstream sector, loss of jobs and so on.
“Options available to the incoming administration in this matter are very limited. The current regime of subsidy and government’s direct involvement in the operations of oil and gas sector should be discontinued. Government needs to get out of the way, so that the sector and the economy as a whole can make progress. This will pave the way for the restoration of normalcy in the sector and attract private capital, boost investments and create jobs.”
Similarly, a Global System of Mobile communications provider, Airtel Networks Limited, said in a statement that its commitments to delivering best-in-class quality of service and seamless telephony experience to all Nigerians was being affected by its inability to procure diesel for its base stations.
The company stated, “While we are currently doing everything within our means as well as going the extra mile to ensure that all our base stations and switches are up and running, it is sad to note that it is becoming increasingly difficult to replenish current stock of diesel due to the lingering scarcity of the product.
“We are also concerned that, if the situation persists, it may have adverse effects on our network, impacting both voice and data services.”
MTN Nigeria had issued a similar statement on Saturday.
A faction of the Nigeria Labour Congress led by Mr. Joe Ajaero said on Sunday in Kaduna that the current fuel scarcity across the country was a war against Nigerians.
It, therefore, warned that should the scarcity persist, organised labour would have no choice than to embark on an indefinite strike.
This was contained in a statement by the factional Deputy President of the NLC, Alhaji Issa Aremu, which was made available to newsmen in Kaduna on Sunday.

Thursday

President Jonathan Settles His Political Rift With Obasanjo and others.

The trio were seen at the National Council of State meeting . After the meeting, they were seen at various times, separately though, chit-chatting,  which suggests they might have made peace.

According to The Opinionvoices, Obasanjo and Jonathan were seen laughing, shaking, back-slapping and holding hands after the meeting. The President, while waiting for the valedictory photo-session at the fore court of the Presidential Villa, shook hands with the governors around him, and when he saw Amaechi, he playfully hit him severally, while the Rivers State governor bowed, laughing and holding the President’s hand all the while, with the words “Your Excellency” coming out from his mouth.
Jonathan has been at loggerheads with the duo. Obasanjo had publicly tore his membership card of the ruling Peoples Democratic Party (PDP), while Amaechi is one of the aggrieved PDP governors who defected to the All Progressives Congress (APC).
Amaechi ended up as the Director-General of the Muhammadu Buhari Campaign Organisation. A team that defeated Jonathan in the presidential polls.
Amaechi has also had several political brush-up with Jonathan’s wife, First Lady, Dame Patience Jonathan over political issues in Rivers State where the first lady hails from.

Workers block entrance to NNPC headquarters


Wednesday

We’re Inheriting Nigeria’s Worst Economy In History – Vice President, Osinbajo

The Vice President elect, Prof. Yemi Osinbajo, on Wednesday revealed that the incoming Muhammadu Buhari administration will be inheriting a gross debt of $60 billion both foreign and domestic, with a 2015 debt serving bill of N953.6 billion, representing 21 per cent of the 2015 budget from the Goodluck Jonathan administration. 


Speaking at the opening of a two -day policy dialogue on the implementation of the agenda for change, in Abuja. His statement in parts: “We are concerned that our economy is currently in perhaps its worst moment in history. Local and international debt stands at $60 billion. Our debt servicing bill for 2015 is N953.6 billion, about 21 per cent of our Budget. On account of severely dwindled resources, over two-thirds of the states in Nigeria owe salaries. Federal institutions are not in much better shape. Today, the nation borrows to fund recurrent expenditure. “The figures of extreme poverty in our society- 110 million by current estimates- makes it clear that our biggest national problem is the extreme poverty of the majority. Thus, no analysis is required to conclude that dealing with poverty and its implications is a priority”
“In the course of the election campaign, we ran an issues-based campaign that identified certain areas of public policy as high priorities for propelling Nigeria forward. We addressed the challenges of the economy, insecurity, corruption and jobs creation. We spoke on the challenge of providing opportunities for self-actualization to millions of our young people who face an uncertain future with understandable anxiety” “Our goal this morning is to interrogate these positions and propositions before a wider audience and to launch a robust public conversation on policy directions and priorities that will help inform our administration’s approach in the next four years,” he added. Osinbajo said the forum exemplifies the sort of consultative and consensual approach to policy-making that the party and the new administration intend to model in.

Tuesday

MISSING OIL MONEY: Secret Investigation

According to the demand of Goodluck Jonathan, the Nigerian National Petroleum Corporation (NNPC) has made the full report on missing $20bn oil money investigation public.  
The president said that his government has nothing to cover on the matter. Jonathan also rejected accusations credited to the All Progressives Congress (APC) that his officials were boarding on last minute looting.  He reacted to the case via the statement by his Special Adviser on Media and Publicity, Reuben Abati.
The investigation titled “Auditor General for the Federation Investigative Forensic Audit into the Allegations of Unremitted Funds into the Federation Accounts by the NNPC”  has 3 main aims:
1. Analysis of remittance shortfalls from NNPC into the Federation Accounts;
2. Analysis of submissions made by key stakeholders in relation to these alleged shortfalls;
3. Producing an independent Forensic report detailing findings.
The Pricewaterhouse Coopers Limited which has prepared the report notes that authors provide no opinion,attestation or other form of assurance with respect to work or the information upon which their work was based.The Office of the Auditor-General for the Federation(AuGF) engaged PricewaterhouseCoopers Limited(PwC) to investigate any and all crude oil revenues generated by the NigerianNational Petroleum Corporation(“NNPC”)that was withheld or unremitted to the Federation Accounts between 1 January 2012 and 31 July 2013.

At the beginning of the report experts describe timeline of the allegations.
MISSING OIL MONEY: Secret Investigation

The report follows the timeline of events beginning with a letter in September 2013 by the former Governor of the Central Bank of Nigeria Sanusi Lamido to the President of the Federal Republic of Nigeria Goodluck Jonathan statin that from January 2012 to July 2013, NNPC had lifted$65bn worth of crude on behalf of the FGN but remitted only$15.2bn in to the Federation Accounts with$49.8bn as outstanding to the FGN.

In the result of investigation, the experts revealed a lot of serious violations:
1. Total gross revenues generated from FGN crude oil liftings was $69.34bn and NOT$67 billion as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.

2. Total cash remitted into the Federation accounts in relation to crude oil liftings was $50.81 bn and NOT $47bn as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.

3. NNPC has provided information on the difference leading to a potential excess remittance of $0.74 billion(without considering expected remittances from NPDC). Other indirect costs of $2.81billion which were not part of the submission to the Senate Committee hearing have been defrayed to arrive at this position.

4.The resulting potential excess remittance indicates that the Corporation operates an unsustainable model. Forty six percent (46%) of proceeds of domestic crude oil revenues for the review period was spent on operations and subsidies. The Corporation is unable to sustain monthly remittances to the Federation Account Allocation Committee (FAAC), and also meet its operational costs entirely from the proceeds of domestic crude oil revenues, and have had to incur third party liabilities to bridge the funding gap.

Furthermore, the review period recorded international crude oil prices averaging $122.5 per barrel (Average Platts prices for 2012). As at the time of concluding this report, international crude oil prices average about$46.07 per barrel, which is about sixty two percent (62%) reduction when compared to the crude oil prices for the review period. If the NNPC overhead costs and subsidies are maintained (assuming crude oil production volumes are maintained), the corporation may have to exhaust all the proceeds of domestic crude oil sales, and may still require third party liabilities to meet costs of operations and subsidies, and may not be able to make any remittances to FAAC.
The experts therefore recommend tha the NNPC model of operation must be urgently reviewed and restructured, as the current model which has been in operatiosince the creation of the Corporation can not be sustained.

The report reflects the fact that $3.38 billion was spent on DPK subsidy for the review period. It also confirmed using third party vessel tracking platforms that all vessels carrying NNPC cargoes arrived in Nigeria within the periods disclosed by PPPRA.

It is important to note that although PwC has reviewed documents submitted by the key stakeholders involved. Analysts stated that work was conducted independently, and findings are based on the review of documentation, analytically reviews of data, and interviews conducted.

Monday

Ambode extends hand of partnership to Agbaje, others

The Lagos State Governor-elect, Mr. Akinwunmi Ambode, has called on the Peoples Democratic Party governorship candidate, Mr. Jimi Agbaje, and others who contested against him to join hands with his administration to build the state.
Ambode spoke on Sunday while delivering his acceptance speech at the APC secretariat in Lagos shortly after he was declared winner of the governorship election.

Ambode was announced winner of the Saturday election after securing 811,994 votes against his PDP’s closest rival, Agbaje who scored 659,788 votes.
“To my main opponent, Mr. Jimi Agbaje of the PDP, I thank you for a keen contest and invite you, alongside other governorship candidates, to join hands with me in moving Lagos forward,” he said.
Ambode also promised Lagos residents  that his administration would build on the legacy and achievements of his predecessors, Gov. Babatunde Fashola and Chief Bola Tinubu.
“I am humbled that you have placed your trust and faith in me.
“The love of this state and our common belief in what we can accomplish, our belief in what this state already is, and in what it is destined to become binds us together in a social and moral contract of high purpose.
“I shall honour that contract with every fiber of my being.
“This day I pledge to you that I shall devote myself to bringing even greater prosperity, growth and development to every inch of this state.
“I also pledge that I shall build on legacy and progress of my predecessors,” Ambode said.
The governor-elect promised to bring the best of ‎Lagos into his government saying that the people would be proud and glad for choosing him as their governor.
“The people of Lagos have demonstrated that Lagos is not about ethnicity or religion but about a common desire to enthrone good ‎governance.
“Lagos under my watch will not discriminate. It has not in the past, and will not in the present; not even in the future, there will be no political victimisation.
“By affirming your faith in the APC and in me, you have, for the first time in 16 years, married progressive governance at the national level with progressive government at the state level,” he said.
Ambode noted that finally, Lagos  state government and the Federal government would be of one vision, one mind and one accord.
“The ramifications of this harmonious unity are completely positive.
“This is a chance that we have worked toward for many years.

“The joint infrastructural and employment projects and collaboration between the state and the federal will quicken the improvement of our roads, schools, power generation and the entire array of social services.
“This new era of cooperation between the state and federal government promises to be a golden period for Lagos and for all Lagosians to share equally therein,” he said.
Ambode said Lagos would enjoy optimal development and growth through APC governance working in tandem at the state and federal levels.
“This cooperation and enhanced policy harmony will surely pay handsome dividends,” he said.
Ambode congratulated INEC for a job well done and keeping alive Nigeria’s hope for a brighter democracy.

APC wins in 13 states, PDP victorious in four


My ministers must declare their assets –Buhari.