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N195/Per Litre’ Independent Marketers To Shut Down Filling Stations Nationwide Monday

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N195/Per Litre’ Independent Marketers To Shut Down Filling Stations Nationwide Monday

Independent marketers of Premium Motor Spirit, popularly called petrol, are getting set to shut down operations beginning from Monday once the government starts the enforcement of N195/litre pump price.

It was gathered on Saturday that the Nigerian National Petroleum Company Limited, Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria, security agencies and the downstream regulator had all agreed that petrol be sold at N195/litre.

Oil marketers said the agreement was reached at a meeting in Abuja on Tuesday, as participants resolved that beginning from Monday, February 6, 2023, the pump price of petrol should not exceed N195/litre, a development which dealers, particularly independent marketers, described as tough due to the high ex-depot price of the commodity.

They told our correspondent that to avoid having their outlets sanctioned, many filling stations operated by independent marketers would be shut from Monday as it made no business sense to sell a product lower than the cost price.

This is likely to further prolong the petrol scarcity and queues in many parts of the country as independent marketers control about 80 per cent of filling stations nationwide.

IPMAN’s National President, Debo Ahmed, told journalists that the approved ex-depot price of petrol was recently raised from N148/litre by the NNPCL to N172/litre, but depots hardly dispense the commodity at this cost.

Ahmed, who was reacting to the notice to members issued by the Public Relations Officer, IPMAN Ibadan Depot branch, Mojeed Adesope, stated that marketers were advised to sell the product in stock now before the enforcement begins on Monday.

In the memo, which was sighted on Saturday, Adesope said, “The top management of NNPC, other relevant authorities in the downstream sector of the economy as well as all the security agents in the country met at on Tuesday, January 31, 2023 to begin the enforcement of pump price of PMS at N195/litre at all the filling stations across the country with Immediate effect.

“Towards that end, enforcement will commence effective from Monday, February 6, 2023 to enable you to dispose of all your remaining stock on or before the enforcement date.

“Members are hereby implored not to purchase products that they would not be able to dispense at N195/litre. The above information should be given wider spread/circulation in order not to get any member caught unawares. You are strongly advised to heed this information.”

Commenting on this, the national president of IPMAN said the information was in order as he urged other independent marketers to take note.

Ahmed stated, “The information is in order, because the depots that the NNPC gives products to are selling at a higher price, and IPMAN members will not like to leave their stations idle. And to avoid sanctions, it is better to close your station.

“So what is going to happen in essence is that marketers have to buy products using the NNPCL loading tickets, and if they don’t have the tickets, all they have to do is to close down their stations. You have to buy from the NNPCL in order to sell at the government regulated price.”

He said the NNPCL was the only importer and it often gave the product to DAPPMAN to sell to IPMAN members at a regulated rate.

Ahmed added, “They also give the product to MOMAN to sell through the stations of major marketers, but DAPPMAN has to sell to independent marketers because independent marketers do not have depots.

“The 21 NNPCL depots across the country that we rely on before now are all moribund and not working. So right now, we depend on DAPPMAN depots to get our products at the price approved by the NNPCL.

“But most times, DAPPMAN would increase their price and when you buy from them at such a high price, there is no way you are going to sell at a lower price. So, that memo is telling marketers that if they cannot get the NNPCL product to buy at the controlled price, they better not sell to avoid having their stations sealed.”

When asked for the approved price that the government, through the NNPCL, had asked depot owners to sell, Ahmed replied, “In fact, there is a lot of confusion.

“As of today, we are supposed to buy at N172/litre from the NNPCL designated depots run by DAPPMAN. But if you get there at times, you don’t buy at that price; rather, you buy at higher rates.

“Before it was N148/litre, but all of a sudden, the NNPCL just did what it did and increased the price to N172/litre, which was why they said the retail price should now be N185/litre.”

He explained that the N172 ex-depot price was without the cost of conveying petrol to wherever the marketer was taking the product to.

“If you are taking it further than 400 kilometres from the place of purchase, you are going to get the bridging claims or price equalisation. But if you are taking it within 120 kilometres or around that distance, you will get some little allowance to make you sell at a controlled price.

“But, the truth is that we don’t get the product at the controlled price of N172, which is why you see a lot of areas where they sell at higher prices.

“However, for MOMAN, because they get it at the controlled price, they take it from their depots to their stations and sell it at lower prices compared to independent marketers. Mind you, independent marketers control about 80 per cent of retail outlets in Nigeria.”

In Lagos, most of the outlets that sold the product on Saturday had long queues of desperate motorists, with some selling for between N280 and N350 per litre.

A similar situation was prevalent in Ogun State, where motorists struggled to get petrol from the few filling stations that had the product. Some stations on the Lagos-Ibadan Expressway sold the product for between N320 and N380 per litre.

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A commercial motorist, Idris Adewale, said he had banked on getting petrol at the Nipco filling station at Magboro for N195 per litre, but was disappointed to discover that the station was under lock and key. He also claimed that the Rainoil station at Ibafo did not sell the product and he only succeeded in filling his vehicle’s tank before the Sagamu interchange for N340 per litre.

A desperate motorist, Nnamdi Goodman, claimed to have bought 10 litres for N7,000 on Airport Road in Lagos on Saturday.

On Thursday, the Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, and the Group Chief Executive Officer, NNPC Limited, Mele Kyari, disclosed that several measures were being taken to enforce the approved price of petrol and to stop the diversion of the product.

The NMDPRA boss, while speaking on sanctions against downstream operators who flouted the approved regulations, stated that over 270 filling stations and seven depots had been closed down.

“On top of shutting the depots, we also shut down over 270 retail outlets. We are doing our work and this has brought some respite in some areas,” Ahmed stated.

On his part, Kyari said the Federal Government was now deploying operatives of the Department of State Services to monitor tankers conveying petrol to filling stations in order to halt the diversion and smuggling of the product.

He stated that already, over 120 DSS officers had been deployed to follow fuel tankers to the various retail outlets in Abuja, as more security agencies were being drafted for the exercise for nationwide coverage.

“So much is going on; there are government security interventions. I know the kind of work that we do with the security agencies; for instance, in Abuja alone, we have over 120 DSS officers following every truck to fuel stations and we are activating this across the country,” Kyari said.

Meanwhile, the Chairman, IPMAN, Enugu Depot Community in charge of Anambra, Ebonyi and Enugu states, Mr Chinedu Anyaso, has said the prevailing shortage in the supply of PMS in the South-East may not end soon because of the challenges facing marketers in procuring the product.

He said this in an interview with the News Agency of Nigeria in Awka on Saturday.

NAN reports that petrol now sells for between N400 and N450 per litre and between N500 and N600 in the black market in Akwa, Anambra State.

As of Saturday, most filling stations in the city were closed for lack of petrol, while the few that had the product were selling at very high prices with long queues of motorists.

Anyaso said the quantity of the product coming to the South-East had reduced by more than 50 per cent compared to the supply in normal time.

According to him, at the moment, nothing suggests the easing of the problems as some of the marketers have yet to get supplies they paid for over a month ago, except the Federal Government takes a drastic action to flood the country with the product.

Anyaso stated, “Our members, who got NNPC allocation last year, paid for the product since December, up till now they have not received their supply; rather, they asked them to pay additional money for which most of them made overdraft of between N1.4m and N1.6m.

“As you can see, most filling stations in the zone have shut down because they can no longer source petrol normally, those that have, pay through their nose to get it; that is why there are abnormal rates because they have to recover their cost and make some profits.

“It is impossible for the authorities to enforce price now; our people are making extra effort to ensure that we have the product to buy even if it is expensive.”

Anyaso said in addition to the hardship the people were facing as a result of scarcity and high prices, thousands of workers stood to lose their jobs if the problems persisted as no marketer would continue to pay workers when they were not in business.

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N195/Per Litre’ Independent Marketers To Shut Down Filling Stations Nationwide Monday

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N70,000 Wage Not Solution to Economic Issues

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N70,000 Wage Not Solution to Economic Issues

N70,000 Wage Not Solution to Economic Issues

By Halima Abdulkadiri

Chairman of the Labour Party (LP) in Oyo State, Sadiq Atayese, has stated that the newly-approved N70,000 minimum wage for Nigerian workers is not the solution to the country’s economic challenges.

Atayese made this assertion in an interview with the News Agency of Nigeria (NAN) on Sunday in Ibadan.

He emphasized that sustainable solutions to the cost of living require positive economic policies from the government. Atayese highlighted the exchange rate as a key factor influencing fuel costs and subsidies.

He stressed that the government must prioritize fighting corruption and implementing policies beyond just increasing the minimum wage. According to Atayese, corruption in high places accounts for over 90 percent of corruption cases in Nigeria.

“Will this new minimum wage actually assuage the daily rising costs of foods and services? Can it bring a stable solution to the nation’s economic challenges? The answer is No,” he said.

Atayese also urged the government to focus on agricultural development and address issues such as security and funding for effective farming. He believes that addressing these critical issues would have more significant benefits than even a minimum wage of N150,000.

“Labour Party will continue to stand for the wellbeing of the people and development of the society,” he said.

The Federal Government and labor unions recently agreed on N70,000 as the new minimum wage for Nigerian workers. Initially, the government proposed N60,000, which was raised to N62,000, while labor demanded N494,000 before revising it to N250,000. Labor leaders agreed to the N70,000 offer due to additional incentives attached.

N70,000 Wage Not Solution to Economic Issues

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NDA 29th Regular Combatant Course Reunites in Maiduguri, Pledges Continued Nation-Building Efforts

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NDA 29th Regular Combatant Course Reunites in Maiduguri, Pledges Continued Nation-Building Efforts

NDA 29th Regular Combatant Course Reunites in Maiduguri, Pledges Continued Nation-Building Efforts

…as Buratai Lauds President Tinubu’s Increased Support in Counterinsurgency Operations

By Lawrence Audu

Maiduguri, the Borno State capital, played host to the 29th Regular Combatant Course of the Nigerian Defence Academy NDA as they gathered for their 2024 Annual General Meeting. The event was a celebration of their rich heritage and a reunion of old colleagues.

The evening was filled with cultural dances, jokes, and sumptuous meals, creating a relaxing atmosphere for the members.

Former Chief of Army Staff and former Nigerian Ambassador to the Republic of Benin, Lieutenant General Tukur Buratai, commended the federal government for the support in the war against insurgency.

“Nine years ago, we would never have had the opportunity to gather like this here in Borno and in Maiduguri in particular. Once it is 2 o’clock as someone said, everyone goes inside and remains there till the following morning probably nine or ten. The restrictions were heavy, the atmosphere was charged with so much insecurity. But today, to the Glory of Almighty God, we are thankful to God for the sustained counterinsurgency operations leading to the sustainable security being achieved and being experienced today in the Northeast,” he said.

“We must appreciate the previous administration of President Muhammadu Buhari and thank President Bola Ahmed Tinubu for the increased support to the Armed Forces to prosecute the counterinsurgency operations against Boko Haram and its subsequent version of ISWAP.”

Buratai also praised the members for their support during his tenure as Army Chief. “You have been wonderful for over forty years precisely 44 years when we met together for the first time 3rd January 1981 and we have maintained that relationship. I want to thank you for your support to me in particular.

“You stood by me when I was Chief of Army Staff in a very difficult period, the time of the Boko Haram rampage and it was a period that was volatile, uncertain, complex and of course ambiguous environment and times as well. The environments were charged with so much opposition and mischief that is within the sociopolitical environment and within the geographical environment of the northeast also was tensed with the various attacks that have been going on in this area but you stood by me and supported me and together, we succeeded.” He adds.

The Betara of Biu equally applauded the Theatre Commander Major General Wahidi Shuaibu, the other components as well as troops for their resilience and sacrifice.

Commodore MB Teidi (Retd), President of the Association, reflected on the journey that began over four decades ago. “Let me take a moment to reflect on the journey that has brought us to this moment. The history of NDA 29th Regular Course started on 3rd January 1981 when 155 young men reported for military training at the Nigerian Defence Academy. Most of us received the Presidential Commission and thereafter were posted to various services in the Nigerian Army, the Nigerian Navy and the Nigerian Air Force to pursue their Military career, while some opted out of the training to pursue their next best destined options.

“The inaugural meeting of this association was initiated by Major TY Buratai when most of the members were on Staff Course at the Command and Staff College Jaji. It was not until 2014 after the burial of one of our course mates, that the idea of a formal body with a constitution was muted. Since then the association has enjoyed consistent yearly meetings in line with its constitution.”

The event brought together former colleagues from across the services and the business community, including serving military personnel such as Major General Wahidi Shuaibu, Theater Commander, Operation Hadin Kai, and the Air Component Commander.

The reunion demonstrated the strong bonds and camaraderie forged during their military careers. As they reminisced about their past experiences, they celebrated their achievements and the progress made in the fight against insurgency.

The 29th Regular Combatant Course of the Nigerian Defence Academy is no doubt, a shining example of the power of friendship and service to the nation. As they look to the future, they continue to stand together, committed to their objectives and to the development of the nation.

NDA 29th Regular Combatant Course Reunites in Maiduguri, Pledges Continued Nation-Building Efforts

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Reps Probe Cement Price Hike, Summon Companies

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Reps Probe Cement Price Hike, Summon Companies

Reps Probe Cement Price Hike, Summon Companies

By Halima Abdulkadiri

The House of Representatives Joint Committee has initiated an investigation into the rising cost of cement in Nigeria, summoning major producers, including Dangote Cement Company and Lafarge Africa PLC, to present detailed production cost documents.

During a public hearing on Friday, Committee Chairman Rep. Jonathan Gaza (APC-Nasarawa) emphasized the need for transparency in the production costs from 2020 to the present, to assess whether the current market price of over N10,000 per bag is justified. The committee plans to visit production plants after reviewing the companies’ financial records.

The committee has requested information on the average daily consumption of raw materials such as coal, gas, gypsum, limestone, clay, and laterite, as well as daily cement production figures.

Additionally, they seek details on the prices of imported and local components used in cement production, monthly production quantities, and the companies’ audited accounts, including customs duties and tax incentives received.

Rep. Dabo Ismail (APC-Bauchi) highlighted the significant profits reported by Dangote Cement Company, with profits of N524 billion in 2022, N553 billion in 2023, and N166.4 billion so far in 2024. He questioned the continuous price hike in the market despite the company’s substantial local sourcing of raw materials.

Dangote Cement’s Group Managing Director, Mr. Arvind Pathack, attributed the price increases to the rising costs of imported and forex-linked materials, which have seen 100 to 333 percent hikes. He cited logistics challenges, forex shortages, and high-interest loans as contributing factors to the increased production costs.

Pathack noted that, despite the average selling price of N7,200 per bag, prices above N10,000 were due to retailer markups beyond the company’s control. He compared Nigeria’s cement prices to those in neighboring countries, where they are higher when converted to dollars.

The committee urged the companies to reconsider their pricing policies to alleviate the burden on Nigerian consumers. Rep. Gaza also criticized the Federal Competition and Consumer Protection Commission (FCCPC) for failing to curb middlemen’s excessive pricing, which has significantly inflated market prices.

“We are hopeful that this engagement will lead to a reduction in the price of cement,” Gaza stated, blaming the FCCPC’s inaction for the current price escalation.

The committee’s investigation aims to ensure fair pricing and protect Nigerian consumers from unjustified cost increases.

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