Connect with us

COVER

Fuel Pump Price, Saudi Arabia and Grubby Arguments

Published

on

Share



By Jerome-Mario Utomi

While waiting for the independence anniversary broadcast by President Muhammadu Buhari, on Thursday morning October 1, 2020, I stumbled on a statement by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirate and Ruler of Dubai, where he stated thus:

God blessed UAE with a leadership of achievers, not egotists.

When we compare our development experience in the United Arab Emirates with others, we find that there are some leaders who destroy their countries, while others promote the status and prosperity of their people.

“Our leaders walk down the street without armoured cars and a large entourage of cars and motorcycles because they are not afraid of their people – they are one with them.

They feel and understand the pulse of the man in the street. With such a close and deep relationship between the leadership and the people, any decision taken by the former will be in the interest of the latter.

This is the basis of a true vision – it is in the interest of the people”. To be sure, I listened afterwards with real curiosity to Mr. President’s broadcast while reflecting on the above.

Placing  Al Maktoum words beside the content of Mr President’s broadcast enables one to understand more fully the essential ingredients of leadership foresights and objective.

At the end, not only did the analysis assisted me in understanding their priorities, but further clarified the age-long belief that the interest subjects take in their leader does not lie in the leader’s physical and intellectual abilities, but rather in what he can add to their lots in life’. Now, let’s be clear about what happened.

President Buhari during the broadcast, among other things, declared, in the circumstances, a responsible government must face realities and take tough decisions. Petroleum prices in Nigeria are to be adjusted. We sell now at N161 per litre.

A comparison with our neighbours will illustrate the point. Chad, which is an oil producing country, charges N362 per litre; Niger, also an oil producing country, sells a litre at N346. In Ghana, another oil producing country, petroleum pump price is N326 per litre.

Further afield, Egypt charges N211 per litre. Saudi Arabia charges N168 per litre. It makes no sense for oil to be cheaper in Nigeria than in Saudi Arabia. Clearly, Buhari’s arguments are well understood but not without difficulties. 

And it will be naïve to proceed without spot incongruities while underlining his (Buhari) created ‘realities and the actual realities confronting the nation’.

To add context to the discourse, there is absolutely nothing wrong with comparing, admiring/copying other people/nation’s progress. Afterall, Tam-David West encouraged humanity to appreciate and admire the success of those who have really succeeded. And examples abound. First and very key, it is documented that before World War 11, Japan copied its corporate system from the West.

There were capitalists and labourers, haves and haves not. The big capitalists came into being in the late 19th century as a direct result of the Meiji government’s determination to catch up with the strong Western nations. Copying is by no means limited to Japan. When China discovered its potential to become a modern economy, it copied other nations by joining the World Trade Organisation, WTO.

Today, China has experienced a period of economic growth, the likes of which the world had never seen before. Its model blazes a new trail for other developing countries to copy and achieve modernisation as well as offers a new option for other countries which want to speed up their development. But there is a very big distinction to make.

In the present circumstance, there is a reason for concern that Mr. President’s recent comparison and inconsiderate declaration that it makes no sense for oil to be cheaper in Nigeria than in Saudi Arabia, suggests that what the nation is experiencing is no longer the first half of a reoccuring cycle but rather the beginning of something new.

And if we fail to change this mindset, chances are that we may as a nation continue in this thought-system that allows poverty, powerlessness and economic stagnation to thrive. It rings apprehension that the nation will continue to face new challenges.

Indeed, when one critically examines Mr. President ‘comparative analysis’, which for yet to be identified reason(s) was silent on the steps Saudi leadership is taking to reduce cost of governance and improve the life chances of citizens, it again amplifies the claim by Nigerians that if our founders could see the current state of their generation’s handiwork and access the quality of the present administration, they would be amazed at what leadership has become in the country.

At this point, it is important to ask: what suddenly informed the choice of Saudi Arabia as benchmark for determining petrol pump price in Nigeria as against market forces earlier claimed by the Federal Government?

Has President Buhari forgotten that unlike Nigeria, small scale businesses in Saudi Arabia are not petrol-dependent for their daily operation and the masses not preoccupied with buying of fuels for their cars/vehicles as Saudi Arabia is blessed with stable electricity and efficient transportation network?

At the moment, this is what this piece is proposing. If we must copy, let the Federal Government of Nigeria first copy the fact that Saudi Arabia, going by reports is dotted with the following refineries (government and private), all producing in various installed capacities and replicate same here at home: Riyadh Refinery 120,000 bbl/d (19,000 m3/d); Rabigh Refinery, 400,000 bbl/d (64,000 m3/d); Jeddah Refinery, 100,000 bbl/d (16,000 m3/d); Ras Tanura Refinery 550,000 bbl/d (87,000 m3/d); Yanbu’ Refinery, 225,000 bbl/d (35,800 m3/d); Yanbu’ Refinery (SAMREF) (Saudi Aramco/Exxon Mobil), 400,000 bbl/d (64,000 m3/d); Jubail Refinery (SATORP) (Saudi Aramco/Total), 400,000 bbl/d (64,000 m3/d); YASREF Refinery (Yanbu, KSA) (Saudi Aramco/Sinopec), 400,000 bbl/d (64,000 m3/d);  Jazan Refinery (Saudi Aramco, opens 2016), 400,000 bbl/d (64,000 m3/d) and Jubail Refinery (SASREF) (Saudi Aramco/Shell), 305,000 bbl/d (48,500 m3/d). Again, as a country that had in the past met with challenges Nigeria still battles with, let Mr. President begin by asking Saudi Arabia how they are able to get the International Oil Companies, IOCs, to build refineries in the country.

And find out how their governments’ refineries function seamlessly, producing in their installed capacities unlike ours that gulp billions of Naira without result.

Most importantly, as part of the 60th Independence gift to Nigerians, the Federal Government urgently needs to understand why leaders in UAE can walk down the street without being afraid of their people instead of moving in  armoured cars and large convoys of cars and motorcycles as is the case in Nigeria. This is the crux of this piece.

Utomi, is a Lagos-based media consultant, could be reached on jeromeutomi@yahoo.com

COVER

Federation Account Garners N7trn Revenue in Six Months – RMAFC

Published

on

RMFARC
Share

By Tony Obiechina, Abuja

Revenue Mobilization Allocation and Fiscal Commission (RMAFC) yesterday disclosed that a total sum of N7.31 trillion accrued to the Federation Account between July and Dec. 2023.This was captured in the monthly report to the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN) under the caption “CBN Federation Account Component Statement”.

This amount is higher than the sum of N5.
244 trillion realised in the first half of year 2023, according to a statement signed by the RMAFC Chairman, Mr. Mohammed Bello Shehu and made available to the media in Abuja.The chairman disclosed that out of the total gross revenue inflows into the Federation Account, the sum of N1,692 trillion was transferred to the Exchange Gain Differential Account, thus leaving a balance of N5.
475 billion for distribution.He added that from the amount stated above, the sum of N3.26 trillion was deducted as approved statutory deductions by the OAGF, leaving a net balance of N2.2 trillion for distribution to the three tiers of government within the period under review.The chairman explained that out of the N3.267 trillion statutory deduction indicated above, N2.251 trillion was transferred to the Non-Oil Excess Account as savings, thus leaving a net statutory deduction of N1.016 trillion with further augmentations for sharing among the three tiers of government received from some “reserve accounts.”The statement added that within the period under review, the net sum of N4 trillion was shared with the three tiers of government, an amount higher than the total sum of N3.06 trillion.In terms of percentages, the chairman stressed that “the statutory deduction in the second half of the year constituted 44.12 percent of the total gross inflow into the Federation Account in the six-month period, which was higher than the first half deductions of 42.31 percent (inclusive of transfer to the Non-Oil Excess Account).”On remittances by Revenue Generating Agencies (RGAs), the RMAFC chairman disclosed that out of the total gross revenue inflows into the Federation Account, the Nigerian National Petroleum Company Limited (NNPCL) remitted N874 64 billion in the second half of the year as against the zero-remittance made in the first half of the year.Similarly, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted the sum of N1.56 trillion while the Federal Inland Revenue Service (FIRS) remitted N3.65 trillion

Continue Reading

COVER

PDP NEC Meeting Ends with Damagum as Acting Chairman

Published

on

Share

By Johnson Eyiangho, Abuja

Peoples Democratic Party (PDP) 98th National Executive Committee (NEC) meeting yesterday ended without a word on the much talked-about replacement of the party’s Acting National Chairman, Amb. Iliya Damagum, an indication that he will continue to function in that position.

In an interview with newsmen after the meeting, the PDP spokesman, Hon.
Debo Ologunagba said for now, the party is focusing on issues of reconciliation and its stability, adding that the issue of the Acting National Chairmanship had been “deferred to the next NEC meeting, which is tentatively scheduled for August 15, 2024″.
Also speaking, the Governor of Bauchi State and Chairman of the PDP Governors’ Forum, Bala Mohammed said the party is united as there was no dissension and rancour.
In his words, “It was planned that the party would have an implosion. PDP is more than that. We have gone beyond all that. This party is united, guided by experience and constitutionality.”There were a lot of permutations and mischievous thinking outside there. But we looked at all the issues and we worked along our guidelines and constitution.“There is no problem or dissension and problem among members,” Mohammed said.The well attended NEC meeting was held amid tight security as police and personnel of the Department of State Services (DSS) condoned off roads leading to the PDP Secretariat, Abuja and diverted vehicular traffic.It will be recalled that the PDP National Working Committee (NWC) had passed a vote of confidence on Damagum during its meeting on Tuesday.A communique issued at the end of the three hours meeting commended all the organs of the party for their collective resilience, steadfastness and commitment towards the unity, stability and sustenance the party despite daunting challenges.The communique commended the efforts of the NWC in its effort towards rebranding the party and urged all party members to continue to work together for the success of the PDP for the benefit of Nigerians and sustenance of democracy in our country.

The document which was read by the PDP National Publicity Secretary, Ologunagba, however, expressed concern over what it described as the ill-implemented policies of the APC administration, leading to worsening insecurity, harrowing economic hardship, soaring unemployment rate, high cost of food and other necessities of life with pervading misery and despondency across the country.”NEC expresses serious apprehension over the spate of acts of terrorism and violence including the escalated cases of mindless killings, mass abduction of innocent Nigerians and marauding of communities in various parts of the country.”NEC condemns the insensitivity, nonchalance, incompetence and arrogance in failure of the APC administration which continues to conduct itself in a manner that shows that it has no iota of interest or commitment towards the wellbeing of Nigerians.”NEC also condemns the creeping totalitarianism and tendencies towards a One-Party State which is inimical to the peace, stability and corporate existence of our nation as well as the development of Democracy and good governance in the country,” it said.The communique demanded that President Bola Tinubu should urgently convene a special National Security Council meeting to proffer a holistic solution and measures to curb the disturbing insecurity with its attendant negative consequences on the nation.It also called on the president to “immediately rejig his Economic Team to bring in persons of proven integrity and competence without bias and vested interest to assist in repositioning the economy.”NEC further demands that the Federal Government should review all policies and programmes which are stifling the economy with suffocating effect on the lives of citizens; including the increase in price of fuel without cushioning measures, hike in electricity tariff, increased taxation and implementation of adverse fiscal policies,” the communique added.Present at the meeting were FCT Minister Nyesom Wike, former Vice President Atiku Abubakar and many other past and presently elected members of the PDP.

Continue Reading

COVER

CBN Reduces Banks’ Lending Rate to 50 Percent

Published

on

dailyasset-greetings
Share

By Tony Obiechina, Abuja

Central Bank of Nigeria (CBN) yesterday announced a review of the loan-to-deposit ratio (LDR) for banks from 65 percent to 50 percent to align with the current monetary tightening.

LDR is used to assess a bank’s liquidity by comparing its total loans to its total deposits.

An increase in the loan-to-deposit ratio allows banks to expand their credits to businesses and individuals, however, a decline in LDR reduces their ability to loan customers from depositors’ funds.

CBN disclosed the increase in a circular titled “Re: Regulatory Measures to Improve Lending to the Sector of the Nigerian Economy”, signed by Adetona Adedeji, CBN Acting Director, Banking Supervision Department.

“Following a shift in the b  ank’s policy stance towards a more contractionary approach, it is imperative to review the loan-to-deposit ratio (LDR) policy to align with the current monetary tightening by the CBN,” the apex bank said.

“Accordingly, the CBN has decided to reduce the LDR by 15 percentage points to 50%, in a similar proportion to the increase in the CRR rate for banks.

“All DMBs are required to maintain this level and are further advised that average daily figures shall continue to be applied to assess compliance.”At the last monetary policy committee (MPC) meeting on March 26, the CBN retained the CRR at 45 percent and the liquidity rate at 30 percent.

Continue Reading

Read Our ePaper

Top Stories

NEWS5 mins ago

Enugu Embarks on Inspection of Smart Schools, Healthcare Projects Across State

ShareFrom Sylvia Udegbunam, Enugu Governor of Enugu State, Peter Mbah has charged contractors and the site engineers handling construction of...

NEWS11 mins ago

Benue Govt Abandoned Foreign Exchange Programme Due to N3mn Bursary – DG BEQA

ShareFrom Attah Ede, Makurdi The Director-General, Benue State Education Quality Assurance Agency, BEQA, Dr. Terna Francis, on Thursday, said the...

NEWS17 mins ago

Tinubu Establishes National Education Data System

SharePresident Bola Tinubu has approved system-wide policies to comprehensively overhaul the education sector to improve learning and skill development, increase...

NEWS30 mins ago

ADAS Programmes Set to Establish Digital Structure, Database for Farmers, Farmlands

ShareFrom Yagana Ali, Yola The Adamawa State Agribusiness Support Programme ADAS-P has concluded arrangements to establish standard & digital structure/database...

NEWS35 mins ago

Absence of Diplomacy Responsible for Secessionist Agitations in Nigeria – INM

ShareFrom Marcel Duru, Owerri Igbo National Movement, a sociopolitical pressure group, has said that absence of diplomacy is responsible for...

NEWS42 mins ago

N20m Bounty on Kidnappers: Wike Fulfills Promise to FCT Police Command

ShareBy Laide Akinboade, Abuja The Commissioner of Police, FCT, CP Benneth C. Igweh, expresses heartfelt gratitude on behalf of the...

NEWS47 mins ago

Presidential Amnesty: Bank Accepts Responsibility for Stipends Delay

ShareFrom Mike Tayese, Yenagoa One of the Bank offering services to the Presidential Amnesty Programme (PAP) has explained the reason...

NEWS55 mins ago

Enugu State Justice Reform Team Commends Mbah, Calls for Enhance Justice System

ShareFrom Sylvia Udegbunam, Enugu The Enugu State Justice Reform Team (ESJRT) has commended the administration of Dr. Peter Ndubuisi Mbah...

POLITICS1 hour ago

IDidn’t Abandon Mandate – LP Candidate

ShareFrom Marcel Duru, Owerri The Labour Party Candidate in the 2023 general elections for Mbaitoli-Ikeduru Federal Constituency, Rt Hon Uche...

POLITICS1 hour ago

Deliberate Litigations Stall Efforts to Resolve PDP’s Leadership Challenges – BoT

ShareBy Johnson Eyiangho, Abuja The Board of Trustee (BoT) of the Peoples Democratic Party (PDP) has said that the solutions...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc