Buhari Commissions Kajola Locomotive Assembly Plant In Ogun
By Tony Obiechina, Abuja
The Federal Government in demonstration of its commitment to revitalize and ensure sustainability of the ongoing railway modernization project has commissioned the Kajola Wagon Assembly Plant in Ogun State.
President Muhammadu Buhari who performed the commissioning of the project, coordinated by the Federal Ministry of Transportation expressed immense pleasure over project which was conceived and flagged off in November 8, 2019, by the Vice President Prof.Yemi Osibanjo.
Furthermore, the President said it will not only generate the needed employment but will boost economic opportunities for the citizenry as it will promote and develop local capacity in Assembling and Manufacturing of Rolling Stock.
The President who was represented by the Minister of Transportation, Mu’azu Jaji Sambo, said the project is in compliance with the Presidential Executive Order No. 5 that stipulates “companies’ involvement in infrastructure development within the country to ensure transfer of technology to Nigeria”.
It is line with this Order that the Federal Ministry of Transportation in March, 2018 signed an agreement with Messrs. China Civil Engineering Construction Company (CCECC) to facilitate the establishment of the plant with the Federal Government providing an enabling environment and necessary support in terms of Tax Waivers, Utilities (Power and Water Supply), Access Road and Rail Sidings amongst others.
According to the President, the Locomotive and Rolling Depot has the capacity to produce 500 Wagons per year of Open Wagons, Container Flat Wagons and Box Wagons, adding that the first set of Wagons assembled in Nigeria are being rolled out for freight services.
The “advantages of setting up the plant is the potential to be provided by the on-going rail projects in the country and Sub-African Region which will generate significant demand for Nigerians Rolling Stock” Buhari observed.
“With the milestone achieved, we are seriously working to open the first University of Transportation in Daura, Katsina State. The intension of this University is to ensure adequate turn out of graduates, technicians, artisans, researchers on different areas of transportation especially railway transportation to guarantee the sustainability of the massive infrastructural provision of this administration on rail transportation” the President assured.
Also speaking at the occasion, the Permanent Secretary, Federal Ministry of Transportation, Dr. Magdalene Ajani, said: “there is no gainsaying that this is one of the landmark legacies of the Administration of President Muhammadu Buhari, designed to ensure the sustainability of railway development in the country”.
While assuring that the Federal Ministry of Transportation will remain committed to full implementation of Government’s Policy on Railway Modernization and expansion of transportation network, she disclosed that it will be done in an environmentally friendly system that engenders socio-economic development of the country.
In goodwill message, the Vice Chairman, Senate Committee on Marine Transport, Sen. Tolulope Odebiyi, said former Governor of Ogun State, Ibikunle Amosu, should be lauded for ensuring that the assembly plant was built in the State.
Odebiyi said that the establishment of the wagon plant would transfer knowledge required for the sustainability of the infrastructure.
He appreciated President Buhari and the Federal Ministry of Transportation for spending the money appropriated judiciously for the completion of the project.
He lauded President Buhari, saying the infrastructure is a legacy that would never never be forgotten.
On his part, Member, National Assembly, representing Ojo Consistency and House of Representative Committee on Marine Transportation, Tajudeen Obasa, said the commissioning of the wagon plant has restored the glory of Nigeria as Giant of Africa.
In his remarks, the Managing Director, Nigerian Railway Corporation (NRC), Fidet Okhiria, who was obviously overjoyed said the plant was a dream come true, adding that it would serve as a source for replacement of faulty wagons instead of sourcing them overseas.
Okhiria, said some wagons had been delivered to NRC for trials, and have been tested and confirmed as meeting international standards.
CBN Debunks Report of Naira Devaluation
By Tony Obiechina, Abuja
The Central Bank of Nigeria (CBN), has debunked a newspaper report to the effect that it has devalued the Naira to 630/$1.
Reacting to the report in a statement on Thursday CBN Acting Director of Corporate Communications Department, Dr Isa AbdulMumin said the story was an outright falsehood.
The statement reads:
“The attention of the Central Bank of Nigeria (CBN) has been drawn to a news report by Daily Trust Newspaper of June 1, 2023, titled “CBN Devalues Naira To 630/$1”.
“We wish to state categorically that this news report, which in the imagination of the newspaper … is replete with outright FALSEHOODS and destabilizing innuendos, reflecting potentially willful ignorance of the said medium as to the workings of the Nigerian Foreign Exchange Market.
“For the avoidance of doubt, the exchange rate at the Investors’ & Exporters’ (I&E) window traded this morning (June 1, 2023) at N465/US$1 and has been stable around this rate for a while.
“The public is hereby advised to ignore the news report by Daily Trust in its entirety, as it is speculative and calculated at causing panic in the market.
“Media practitioners are advised to verify their facts from the Central Bank of Nigeria before publishing in order not to misinform the public”.
NEITI Hails Fuel Subsidy Removal, Offers Eight Strategic Considerations
The Nigeria Extractive Industries Transparency Initiative (NEITI) has lauded the political will and sincerity of purpose demonstrated by President Bola Tinubu in removing fuel subsidy.
A statement from NEITI House, Abuja on Tuesday, described the move as a positive move by the administration to decisively implement the findings and recommendations contained in the NEITI reports.
The statement, signed by Mrs Obiageli Onuorah, the Deputy Director/Head Communications and Stakeholders Management, said bold step was required to block leakages, grow revenues and advance the ongoing reforms in the oil, gas and mining industries.
President Bola Tinubu, in his inaugural speech on Monday, said the fuel subsidy regime had ended with the commencement of his administration.
Onuorah recalled that its recommendations for the removal of fuel subsidies have remained a persistent request since 2006 given the agency’s concerns about the huge financial burden that the subsidy regime imposed on the growth of the Nigerian economy over the years.
She explained that from the NEITI reports, between 2005 and 2021, the country spent $74.39 billion which translated to N13.69 trillion on subsidy.
According to the NEITI report, a breakdown of these figures showed that in 2005, the government paid $2.6 billion dollars (N351 billion) as subsidy. In 2006 and 2007, it paid $1.99 billion and $2.18 billion (N257 billion and N272 billion) respectively.
The report further pointed out that subsidy payments more than doubled in 2008 and 2010 and witnessed the highest increase ever in 2011 to $13.52 billion (N2.11 trillion).
She said a sharp decline was witnessed in the years 2012, 2013, 2014 and 2015 when it dropped to $3.34 billion (N654 billion) in 2012.
Onuorah said the decline in subsidy expenditure continued in 2016 and 2017 to as low as $473 million dollars (N154 billion) in 2017.
“The reduction was short-lived as the payments skyrocketed to over $3.88 billion (N1.19 trillion) in 2018 and 2021 to $3.58 billion (N1.43 trillion).
“By these figures, Nigeria expended an average of N805.7 billion annually, N67.1 billion monthly or N2.2 billion daily,” she said.
She said the NEITI data also showed that the amount expended on subsidies from 2005 to 2021 was equivalent to the entire budget for health, education, agriculture and defence in the last five years.
Onuorah added the sum equals the capital expenditure for 10 years between 2011 to 2020.
The deputy director explained that it was during this time (2011) that fuel subsidies dwarfed allocations to all critical areas of the economy.
“NEITI ‘s persistent calls for the removal of petroleum subsidies were informed by the fact that the ways of funding the expenditure over these years relied more on federation accounts funds, the Federal Government and sometimes from external borrowing with negative consequences on government overall revenue profiles.
“NEITI was also concerned that the consequences of funding subsidies have resulted in poor development of the downstream sector, declining GDP growth, rise in product theft, pipeline vandalism, environmental pollution and undue pressure on foreign exchange.
“Other challenges imposed on the economy were naira depreciation, low employment generation, the declining balance of payments and worsening national debt,” she said.
Onuorah said in a policy advisory released by NEITI in late 2022 to drive home the urgency to remove subsidy and resubmitted earlier in the year 2023, NEITI recommended eight steps to manage subsidy removal.
She listed the steps to include the urgency to strengthen the implementation of the Petroleum Industry Act (PIA) as a whole and not in parts.
NEITI also underlined the importance of unveiling the implementation of people-oriented welfare programmes to provide relief for the poor and vulnerable and advised on priority attention to be paid to the rehabilitation of the nation’s four refineries currently ongoing.
On other policy considerations, she said government should commission a special report on actual PMS consumption in Nigeria, enforce stringent sanctions for criminal activities in the sector and conduct appropriate stakeholders’ consultations, engagements and enlightenment. (NAN)
Subsidy Removal: PMS Price Jumps to N537 Per Litre
Following Monday’s removal of fuel subsidy by President Bola Ahmed Tinubu, the Nigerian National Petroleum Company Limited (NNPCL), yesterday jerked up pump prices of petrol, also known as Premium Motor Spirit (PMS) from N195 per litre to 537 per litre at its fuel stations nationwdie.
According to a statement signed by the NNPC Ltd’s Chief Corporate Communications Officer, Garba Deen Muhammad, the increment is part of measures to provide the public with quality service.
The statement also said that the NNPC Limited is committed to ensuring a ceaseless supply of products.
“NNPC Limited wishes to inform our esteemed customers that we have adjusted our pump prices of PMS across our retail outlets, in line with current market realities.
“As we strive to provide you with the quality service for which we are known, it is pertinent to note that prices will continue to fluctuate to reflect market dynamics.
“We assure you that NNPC Limited is committed to ensuring a ceaseless supply of products.
“The company sincerely regrets any inconvenience this development may have caused.
“We greatly appreciate your continued patronage, support, and understanding during this time of change and growth,” the statement read.
According to a new price template disclosed by NNPLC yesterday, Lagos State has the least price of N488 per litre, while Maiduguri and Damaturu have the highest pump prices of N577 per litre.
Yesterday, most filling stations in the nation’s capital, Abuja, had adjusted to the new pump price.
Similarly, pump prices had been adjusted across the states.
For instance, in Benue State, the fuel price had been adjusted to N537 per litre.
The price adjustment represents an over 200 per cent increase.
The implication is that nearly all prices of goods and services would drastically increase.
The development is coming barely two days after President Bola Ahmed Tinubu’s inaugural speech, where he said fuel subsidy would be removed.
In the first half of 2023, Nigeria spent N3.6 trillion on fuel subsidy alone.
The country will save close to N6.7 trillion if fuel subsidies payment is discontinued.
Nigeria has spent N13.7 trillion on fuel subsidy in the last 13 years, according to Nigeria Extractive Industries Transparency Initiative.
NLC Kicks over Price Increase
The umbrella body of labour unions in the country, the Nigerian Labour Congress (NLC), yesterday fumed over the adjustment of pump prices by the Nigerian National Petrol Company Limited (NNPCL).
Barely 48 hours after President Bola Tinubu announced an end to the subsidy era during his inaugural speech at Eagle Square, Abuja on Monday, the NNPCL confirmed the hike in the pump price of Premium Motor Spirit also known as petrol.
Since the presidential pronouncement, fuel queues have resurfaced across the country as Nigerians forage for the premium product which was rose from around N185 per litre to between N400 and N600 per litre.
Worried by the situation, the NLC President, Joe Ajaero, issued a statement expressing worry that the national oil company would announce an increment.
Describing the development as unfortunate, Ajaero said the NNPCL’s action was coming on the heels of an ongoing meeting with stakeholders in the oil and gas sector to manage the unilateral but unfortunate announcement by the President.
“It is therefore unacceptable and we seriously condemn it. Good faith negotiation is key to reaching agreement. What the government has done is like holding a gun to the head of Nigerian people and bringing undue pressure on the leaders thus undermine the dialogue,” the NLC President said.
“We call on the federal government to immediately instruct the NNPC to withdraw this vexatious Pricing template to allow free flow of discussions by the parties. Nigerians would not accept any manipulations of any kind from any of the parties especially from the representatives of the Government.
“Our commitment to this process is buoyed on the fact that all the parties would be committed to ensuring that it is carried out within the ambits of liberty without undue pressure. The release of that Template may not allow us to continue if nothing is done to withdraw it so that the dialogue can continue unhindered. It is clear that Government is actually trying to scuttle the process.”
IPMAN Sanctions over 100 Petrol Stations for Price Violation
The Independent Petroleum Marketers Association of Nigeria (IPMAN), has said that over 100 petrol stations have been sanctioned for increasing pump prices.
National Spokesperson of the Association, Yakubu Suleiman, disclosed this yesterday.
Briefly after President Bola Tinubu’s speech on May 29 that the petrol subsidy has been cancelled, panic buying erupted in some parts of the country as some marketers closed shops, leading to large queues in filling stations across the country.
In Lagos, Abuja, and other parts of the country, it was observed that since May 29, some filling stations ceased operations; while those that dispensed petrol increased prices.
Speaking in an interview with Channels Television yesterday, Suleiman said there is a penalty for filling stations increasing pump prices, adding that over 100 sanctions have been placed on defaulters.
“We have a task force that goes around all the filling stations in the country and I want to assure you that they are there, working right from yesterday,” he said.
“Any filling station caught increasing the price just because of this announcement, there has to be a penalty against such stations. We sanction those who default. We close the stations. Our task force is there doing its job.
“As of yesterday, more than 100 filling stations have been sanctioned. Some of them, when we go through their reports, are not real petroleum marketers. Real ones cannot go against the rule of their administration.”
Mike Osatuyi, the national operations controller of IPMAN, had earlier told TheCable that the reflexive action of customers who wanted to stock up on cheap petrol before the price of the product increased, was to be blamed for the unprecedented level of queues.
He advised that, although there is currently enough petroleum stock to supply the nation, there would be a price increase eventually.
Meanwhile, the representatives of the federal government are expected to meet with the leadership of the Nigeria Labour Congress (NLC) today, over the planned removal of the petrol subsidy – the root cause.
NMDPRA: We’re Ready to Issue New Petrol Import Licences
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said it is ready to issue licences to companies interested in petrol importation.
Speaking to newsmen on Tuesday, Farouk Ahmed, chief executive officer of NMDPRA, said the criteria for importing kerosene and diesel will be applicable for the importation of the product.
However, Ahmed said several conditions have to be met before the applicants are granted licences.
“There are a lot of conditions to be met before you are given a licence to import petrol,” he said.
“I cannot give you all the rundown now but I can tell you that just the way marketers import diesel or jet kero, there are conditions for all that and the same condition will apply to those who want to import premium motor spirit (PMS).”
Only companies that are lessees producing crude oil and/or condensates or who are holders of crude oil refining licences are eligible to supply wholesale petroleum liquids (including petrol importation), according to section 197 (2) of the Petroleum Industry Act (PIA) 2021.
While the PIA empowers the NMDPRA to issue licences to refiners or producers of crude oil, the regulation, in sections 73 (3) and 111 (1), provides that the minister of petroleum must approve such licences.
Currently, the Nigerian National Petroleum Company (NNPC) is the last-resort supplier, tasked with importing refined petrol to ensure adequate supply and distribution in the country.
Through the direct sale, direct purchase (DSDP) scheme, the country exports crude oil and exchanges it for refined petroleum products.
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