Palliatives: Tinubu, Shettima meet Senate President, Governors
President Bola Tinubu and Vice President Kasshim Shettima yesterday met with President of the Senate, Senator Godswill Akpabio and some state governors as part of efforts to cushion the effects of the petrol subsidy removal on the population.
The meeting was part of the President’s continued consultation with key players on how to get the economy on sound footing.
The meeting held in the office of the President at the State House, Abuja, was attended by some state governors including those of Imo (Senator Hope Uzodinma), Kwara (AbdulRahman AbdulRazaq), Lagos (Babajide Sanwo-Olu) and Ogun (Prince Dapo Abiodun).
Former governor Abdullahi Ganduje of Kano state was also part of the meeting.
Shettima and the three governors thereafte relocated to the Vice President’s wing of the State House for another round of meeting at the Conference room.
They were later joined by Governor Governor Umar of Bago of Niger State.
Speaking to newsmen on the essence of the meeting, Presidential Adviser on special duties, communications and strategy, Mr. Dele Alake, said the meeting with the president also looked at how to finalise arrangement on the distribution of palliatives to cushion the effect of the fuel subsidy removal.
Addressing journalists, Uzodinma stressed that the current hardship occasioned by the price on petroleum products, food and cost of living was being addressed.
According to him, the sub-national governments are working with the federal government and today there would be a National Economic Council to discuss further on that as we dot the i’s and cross the t’s.
The Presidency had on Tuesday evening directed the distribution of grains and fertilizers to 50 million farmers across the country also as part of measures to boost food security in the country.
But the Manufacturers Association of Nigeria (MAN) has identified the removal of binding constraints that have limited the operations of the manufacturing sector of Nigerian economy as the best palliative to Nigerians who are bearing the downside effects of the various reforms of the President Bola Ahmed Tinubu’s administration.
Meanwhile, the National Economic Council (NEC), is expected to hold its monthly meeting in Abuja, today.
The NEC, which is a constitutional advisory economic body of the Federal government, is meeting for the second time since President Tinubu assumed office on May 29, 2023, with Vice President Shettima presiding.
The meeting, billed to hold at the Banquet Hall of the State House, with all the 36 state governor’s in attendance, would also consider the palliatives being proposed by federal government to cushion the effect of the fuel subsidy removal on Nigerians.
This was just as the House of Representatives yesterday summoned the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, alongside independent petrol marketers over petrol pump price increase from N537 to N617 per litre in Abuja.
Consequently, the House set up an ad-hoc committee to investigate circumstances leading to the latest price increase by the NNPC and the marketers as well as the proposed palliative measures to be taken to ameliorate the sufferings of Nigerians and report back to the green chamber within four weeks for further legislative action.
But the Independent Petroleum Marketers Association of Nigeria (IPMAN) has appealed to Nigerians for their understanding following the latest petrol price increase.
The presidential candidate of the Social Democratic Party (SDP) in the 2023 general election, Adewole Adebayo, criticised Tinubu for his alleged hypocrisy concerning fuel subsidy removal.
The NNPC on Tuesday, announced an increase in pump price of petrol in its Abuja filling stations, from N537 per litre to N617.
Kyari, had claimed market forces were responsible for the increase in pump price of petrol and had said there was no shortage in product supply.
Speaking with newsmen yesterday after meeting with Vice President Kashim Shettima at the State House, Abuja, the NNPC boss had explained that the increase was not based on short supply of fuel.
According to him, “They are just prices depending on the market realities. This is the meaning of making sure that the market regulates itself. Prices will go up and sometimes they will come down also.
“No, there is no supply issue. It is not a supply issue. When you go to the market, you buy the product, you come to the market and sell it at its prevailing market price. It has nothing to do with supply. We don’t have supply issues.”
Following the petrol price increase, the Nigeria Labour Congress (NLC) President, Joe Ajaero, had accused the government of callousness. The NLC had also threatened to pull out of ongoing talks with the federal government on how to cushion the effects of the petrol subsidy removal on its members.
The resolutions of the House of Representatives followed the adoption of a motion on the urgent need to investigate the arbitrary increase of Petrol Pump Price from N537 to N617 by petrol marketers and the NNPC moved by Hon. Ikeagwuonu Onyinye Ugochinyere, at plenary.
Ugochinyere, while presenting the motion noted that section 88 (1) and (2) of the constitution of the Federal Republic of Nigeria, 1999 (As Amended) empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly.
Adding that Section 32 of the Petroleum Industry Act. 2021, saddles the Petroleum Midstream and Downstream Regulatory Authority with the task of regulating and monitoring technical and commercial midstream and downstream petroleum operations in Nigeria.
He further informed the House that on Tuesday 18″ July, 2023 petrol pump Price was increased from N537 to N617, by petrol marketers, without conferring with the relevant agencies of government.
“In view of the current socio-economic challenges being faced by Nigerians, a hike in the price of fuel will heap great suffering and hardship on Nigerians,” he added.
The House thereby resolved to constitute an Adhoc committee whose membership would be drawn from across the 36 states of the Federation to prove into the issue accordingly.
MAN Identifies Removal of Manufacturing Constraints as Best Palliative
MAN identified the removal of binding constraints that have limited the operations of the manufacturing sector of Nigerian economy as the best palliative to Nigerians.
This view was expressed yesterday by the Director General of MAN, Mr. Segun Ajayi-Kadir, who also tasked the federal government to put in place policy initiatives that could ameliorate the hardship caused by the rising price of petrol due to subsidy removal.
Ajayi-Kadir also told THISDAY exclusively that there had been mixed reaction on the recent increase in price of petrol, adding that Nigerians would be concerned with “the second increase within two months as similar increases in the past has led to escalating cost of transportation and trickledown effect on other goods and services.”
He said: “And this is where the manufacturing sector comes in. I would say that the best route to cushion the downside effects of the various policy reforms is to remove the binding constraints that have limited the operations of the manufacturing sector. This will allow for expansion and improved capacity utilisation, more jobs and improved performance of the values chains.”
He also warned that allowing the proposed increase in electricity tariff would worsen an already bad situation because “the knock-down effect of the increase in price of petrol and limited profitability of the sector could be assuaged by voiding the planned increase in the electricity tariff, which is bound to have a damaging and compounding effect on the increase in price of petrol.
“Most Nigerians buy petrol to fuel their generators because of the gross inadequacy of power supply. If the electricity tariff is increased, in the midst of rising cost of petrol and expensive diesel, you are effectively tightening the rope around the livelihood of the average Nigerian and accentuating the lackluster performance of the manufacturing sector.”
The MAN boss said another positive step that could be taken was to address the sudden and debilitating rise in the cost of import.
He said: “This comes with the recent calculation of import duty at the floated rate of the Naira, as against the rate at which the importation was consummated. This will definitely lead to unexpected increase in cost of the consignments yet to be cleared and signal astronomical increase in the prices of the end products of the manufacturers in the near future.”
Petrol Marketers: We Raised Petrol Prices to Keep Members’ Businesses Afloat
The Independent Petroleum Marketers Association of Nigeria (IPMAN) yesterday argued that its members further increased the prices of petrol at the pumps in Nigeria so as to remain afloat, citing the need to align with the reality of the current dynamics in the market.
National President of IPMAN, Chinedu Okoronkwo, who spoke on Channels Television, explained that members of the association were going out of business due to the removal of subsidy on petrol.
He maintained that the petrol marketers have been unable to raise money to load from depots and the NNPC with the previous rate, given the new foreign exchange and crude price dynamics.
“You need to be in business. If you go back, you will go and buy at a new price. Assuming you are selling N520, then there is a sudden change from where you are getting it, you have to still be in business.
“Some of my members have got to the level of putting products in their tankers, all of a sudden, there was an information that the price had changed. They didn’t load them again. Some are even battling now to see how they can load on that old price and now the new price,” he explained.
The IPMAN boss said the timing of the price increment was not the issue but that the government must work on how to mitigate the effect of the price adjustment and ease the pressure on the dollar.
Okoronkwo also called on the government to develop infrastructure for Compressed Natural Gas (CNG) and consult with industry players in the oil and gas sector on how other alternative energy sources can be deployed.
Furthermore, IPMAN appealed to Nigerians for their understanding following the recent decision by the NNPC to raise the pump price of petrol.
The National Public Relations Officer of IPMAN, Yakubu Suleiman, who made the appeal, said the hike was a result of market prices and foreign exchange fluctuations.
In an interview on the ‘Morning Show’ on Arise News Channels, the broadcast arm of THISDAY Newspapers, Suleiman, yesterday, expressed the dissatisfaction of marketers with the current situation.
He, however called on the authorities to intervene and address the issue of petroleum tanker drivers charging exorbitant fees, which is significantly impacting their operations.
Suleiman, acknowledged that Nigerians would have to face the present reality of increased petrol prices but assured them that prices would be reduced within few months. He also pointed out that although the landing cost of petrol was N565, which was unfavorable to marketers, there would still be an adequate supply of petrol.
Regarding the government’s palliative initiatives, Suleiman expressed his preference for funds to be allocated to social services that benefit the poor, rather than directly giving money to individuals. He emphasised the need for optimal utilisation of funds to mitigate the impact of the price increase on the public.
“As a person, I do not support money given to people. I will say teach people how to fish rather than give them the fish. I will rather prefer that the money be put into social services where the poor people can benefit from and not just sharing N1,000 monthly to people.
“If the government can use that money optimally, people will not feel the impact of the price increase,” he said.
Esele Says Retailers Taking Undue Advantage of Situation
In his remarks, a former President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Peter Esele, accused the petrol marketers of taking advantage of the situation to make extra profit.
He argued that it was only morally right that marketers sold their old stock at the old price.
However, he blamed the increase in crude oil prices in the international market and the drop in the value of the naira for being responsible for the latest hike in prices.
He explained that since Nigeria is still depending on importation of petrol, it is expected that the pump price would also go up, since the market has become deregulated and open to market realities.
The former labour leader pointed out that the need to bring in the product by marketers who are now being granted licences by the NNPC was also putting pressure on the foreign exchange.
“The international oil prices have also gone up and you have a fallen naira, so, it’s more like a double whammy; we are being buffeted from right to left. These challenges are our new reality,” Esele stressed.
According to him, prices will continue to rise if the exchange rate increases as marketers need it to be able to import petrol.
“The reality is that the price of petrol will continue to go up and down and also vary from state to state,” he explained.
Esele noted that marketers who have old stock ought to apply morality by sticking to the old price until they get a new one instead of maximising profit while impoverishing the masses.
“What you have is that marketers are making a kill to retail. They don’t buy petrol every day, they don’t go to the depot to collect from NNPC every day. They already have the product in the house and then they decide to maximise profit,” he said.
He called on the government to hasten the plan to produce petrol locally, to reduce the growing pressure on foreign exchange and bring down the cost for Nigerians.
Petrol Subsidy Removal: You Are a Hypocrite, Adebayo Tackles Tinubu
Weighing in on the matter, the presidential candidate of the SDP in the 2023 general election, Adebayo, criticised Tinubu for his alleged hypocrisy concerning fuel subsidy removal. Adebayo argued that Tinubu who had opposed a smaller subsidy adjustment during former President Goodluck Jonathan’s tenure, came around to remove same petrol subsidy.
Adebayo who was also a guest on the Arise News Channel yesterday, disagreed with the federal government over the removal of fuel subsidy, citing the adverse effect on the cost of living and increased poverty levels.
He referred to the proposed palliative measures as a “bandage for a decapitated person,” and mere temporary solutions without addressing the underlying issues.
To alleviate the hardship faced by Nigerians, Adebayo suggested that palliatives be removed from the value chain of petrol. He emphasised the importance of ensuring that the price of petrol does not hinder people’s ability to commute.
He said: “Nothing has surprised me at all. In fact, it appears this might just be the beginning except drastic steps are taken. It appears as if the government is not aware of what we call monetary neutrality. When you have no food, means of transportation or medical care, throwing money at you is not going to increase the number of service providers or goods in the market. What it will result in is wastage and the money will not be well utilised. “
According to Adebayo, “How to go about this is, for example, from the transportation and logistics point of view, it should be ensured that the price of petrol does not impact on the ability of people to commute.”
Adebayo therefore urged the present administration to ensure that majority of Nigerians are not affected by petrol price hike and recommended that public transportation be made easily accessible to the masses.
College of Education Lecturers to Work 2 Days Weekly
Academic Staff of Colleges of Education will now go to work only two days per week.
The National leadership of Colleges of Education Academic Staff Union said it has directed its members nationwide to observe two days of academic work weekly in view of the rising cost transportation due to fuel price hike
A statement signed by President of COEASU, Dr. Smart Olugbeko, stated that the union at, “its extraordinary meeting held on Tuesday, 18th July 2023, agreed to direct its members to go to work two days weekly until federal government yields to its demand of 200 percent increase in salary amidst the difficulty of members to get to work as a result of hike in the price of petrol.”
According to the union, the implementation of removal of fuel subsidy by the federal government two months ago had raised the price of a litre of petrol by 250 per cent.
“This worsened the inflationary rate on the cost of transportation, food and other essential commodities and impoverished the Nigerian people.
“Workers, including staff of Colleges of Education, kept faith with government and chose to endure the untold hardship thinking it would be only for a while as government promised to roll out palliative measures including significant increase in salaries.
“Alas! While our capabilities to sustain hope were already exhausted, the price of petrol rose further to N650 per litre. Now, the leadership of the union has been inundated by members’ complaints that they could no longer go to work as a result of hike in the price of petrol and resultant high cost of transportation.
“Against this backdrop, it has become inevitable for the union to direct members to go to work only two days weekly while an emergency NEC meeting shall be convened to ratify this decision and decide on the specific days of the week members are to go to work.”
The union stated that the present salary of staff of Colleges of Education was approved in the year 2010, which is 13 years ago.
“This means we have been on same salary since 2010 while petrol price rose intermittently from N65/N70 in 2010 to N650 in 2023 (tenfold increase). Our salary structure which is subject to renegotiation at 3-year interval has remained static for 13 years, skipping four due renegotiations.
“It is ludicrous that government has refused to return to the negotiation table on the welfare package for staff after the union, prior to the removal of fuel subsidy, had proposed 200 per cent increase in salary as against government offer of a ridiculous 35 per cent for Chief Lecturers and 23 per cent for other cadres.
“We call on the federal government to urgently do the needful because the inevitable action of the union against this hardship will have devastating effects on the students as it will lead to a prolonged academic calendar – a semester of 16 weeks will become 32 weeks or more; while Teaching Practice exercise of 6 months will become 12 months.
“We call on President Bola Ahmed Tinubu to quickly address the issue of salary adjustment for staff of Colleges of Education.
“We believe in the capacity of the President to address this problem as he did when he was the Governor of Lagos State where he so generously increased the salaries of staff in the then Lagos State-owned Colleges of Education that they became the highest paid nationwide, it said.
Anambra Residents Abandon Vehicles, Resort to Trekking
In Anambra, with the sudden rise in price of petrol, residents have abandoned their vehicles and resorted to trekking.
THISDAY monitored development in the state and observed that many vehicle owners parked their cars at home and now prefer to walk short distances, or take public transport to work.
The increase in the price of petrol led to a hike in the price of transport fares.
THISDAY visited petrol stations in the capital city of Awka yesterday, where the product was sold around N600 per litre.
A resident, Mr. Calistus Ezenwa said: “I bought fuel on Tuesday morning at N530 per litre, to go to Aguleri. I was still in Aguleri when I heard that there had been an increment in price of fuel. So, I have parked my car for now. My problem is that transport fare is also not affordable.
“Just look at the roads and see how dry they are on a Wednesday morning. You would even think today is sit-at-home day.”
However, a group, the Coalition of South East Youth Leaders (COSEYL), has threatened to organise a massive protest across the country if Tinubu fails to revert to the old price of N198 per litre.
The group in a statement by its President General, Mr. Goodluck Ibem and Publicity Secretary, Okey Nwaoru notified all labour unions of their intention to hold the protest.
The statement read: “We are alarmed over the new fuel price hike from N520 to N617 by the federal government headed by President Bola Ahmed Tinubu. This is gross insensitivity and wickedness of the highest order.
“The recent fuel price hike has proved beyond every reasonable doubt that the previous fuel price increment from N198 to N520 was not as a result of subsidy removal but it is a well calculated attempt to impoverish Nigerians so that they will not have the energy and strength to challenge the federal government in whatever way.
“We therefore call on the NLC, the Trade Union Congress (TUC), Nigerian youths, all traders and businessmen/women, all trade unions and all Nigerians students in the entire nation to come out enmasse for a protest march against this evil and wickedness brought upon Nigerians by President Bola Tinubu.”
Diri Unveils 106 Vehicles to Ease Transportation in Yenagoa
Governor of Bayelsa State, Senator Douye Diri, has unveiled a new transport scheme in a bid to alleviate the suffering of commuters in the state occasioned by the federal government’s removal of fuel subsidy and the ban on the operations of commercial tricycles at night.
The governor also reaffirmed that the restriction on commercial tricycles at night was still in force and that the taxis and buses were an effective replacement.
Diri, who inaugurated 100 cabs and six luxury buses at the DSP Alamieyeseigha Banquet Hall premises yesterday, said the initiative was his administration’s palliative to boost the transportation sector.
The governor equally acknowledged the hardship on Bayelsans due to the removal of the subsidy on petrol and Keke operators’ restrictions.
Diri, who said his ‘Prosperity Administration’ had completed and inaugurated the Bayelsa State Transport Terminal started by his predecessor, and stressed that the launch of the transport scheme would make the terminal functional.
His words: “This is another historic day as we launch this fleet of transport vehicles to alleviate the suffering of our people.
“For those who have been crying over the ban on commercial tricycles at night, this is an effective replacement. The ban is however still in force.
“Now, we have taxis that will run within the city of Yenagoa and environs to the Niger Delta University at Amassoma, to the airport and the Federal University, Otuoke and other towns.
“I appreciate all Bayelsans for their patience. You know that your government has your welfare at heart.”
The Bayelsa helmsman called on youths of the state to take full advantage of the initiative to empower themselves just as he projected that over 100 youths would be engaged as drivers in the intra-state and intra-city transport scheme.
Ogun to Start Conversion of Fuel Consumption Vehicles to CNG Powered Engines
A team of technical engineers from India, has arrived in Ogun State to begin the process of converting vehicles from fuel consumption engine, to Compressed Natural Gas (CNG) powered engines.
The move signaled the commencement of the E-Mobility and Gas Mobility Programme of the state government, which involves the conversion of mass transit buses.
The project, would also involve conversion of tricycles and motorcycles from fuel consumption to electric powered machines.
According to a statement made available to journalists, the four-man technical team, would work on the pilot project, initiate the first phase of the Gas Mobility Programme and further prepare a process map to scale up and do a phase-wise implementation on all the commercial buses in the state.
The Prince Dapo Abiodun-led administration had in March this year, in partnership with Nigerian Transport Solutions Limited (NGTSL), took delivery of the CNG conversion kits for the pilot phase of the state’s mass transit buses to be fueled by the CNG.
Secretary to the State Government (SSG), Mr Tokunbo Talabi, in a statement, said the state’s mass transit buses would start running on CNG in the coming days, in line with the promise by Abiodun that the project would commence in the first week of August.
“The aim is to improve and modernise bus operations in Ogun State through conversion of buses to Compressed Natural Gas by equipping them with the latest technology to improve environmental and operational performance.
“Moreover, the newly fitted buses are expected to improve public transportation reliability, safety and efficiency and reduce polluting air emissions. The pilot project will commence with the conversion of twenty buses from diesel to CNG and exploring the performance before rolling out the programme,” he explained.
