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Fuel Subsidy: Nigeria Loses Trillions Of Infrastructure Development – NNPCL

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The Nigerian National Petroleum Company Limited (NNPCL) has said Nigerians have missed enormous infrastructure development due to the protracted fuel subsidy regime in the country.
The NNPCL disclosed that the amount spent on fuel subsidy payment could provide 7,500km of road network at N400 million per kilometre and 37 well-equipped 120 Beds Tertiary Health Centres at N32 billion per hospital annually.
Senior Business Advisor to the GCEO, NNPCL, Mr Lawal Musa,  disclosed this in Abuja at a joint National Association of Nigerian Students (NANS)/Civil Society Organisations (CSOs) sensitisation workshop on the NNPCL Operations.
Musa, in a presentation entitled “Petroleum Industry Act (PIA) and the Nigerian Economy’’, said the Federal Government spent as much as N4.8 trillion annually on fuel subsidy at the expense of the wellbeing of Nigerians.
In an analysis of the opportunity cost of the subsidy spending, he said deregulation could deliver 500,000 new houses and education and skill up of two million Nigerian students, among others.
He said it could deliver N12 trillion in four years to Nigeria while annual Premium Motor Spirit (PMS) under recovery would escalate to N3 trillion.
He said the cost of fuel subsidy outweighed the direct benefits particularly to the masses.
He further said deregulation could provide additional 27,000 megawatts of electricity to Nigerians and build and equip 2,400 hospitals in 774 LGAs.
“Nigeria is the largest producer of crude oil in Africa, possessing 28 per cent of Africa’s reserve, with petroleum contributing significantly to the country’s economy.
“The benefits derived have over the years been eroded due to the amount paid on subsidy, a regime has been fuelling the vicious circle of poverty in the country”, he said.
Musa explained that the PMS (fuel) was sold lowest price in Nigeria among most West African countries in spite of the average cost of $2.7 per litre globally, which amounted to up N570 per litre.
According to him, verifiable PMS demand data is critical to National planning and energy security.
In an overview of the PIA and New NNPCL structure, Mrs Oritsemeyiwa Eyesan, the Chief Strategy and Sustainability Officer, NNPCL, said the new entity was incorporated as a commercial company to be run like any other private company in the country, following the provision of the PIA 2021.
Eyesan, represented by Mr Vincent Ogbu, her Business Advisor said NNPCL’s activities were guided by three core values namely integrity, excellence and sustainability.
She explained that the signing of PIA into law overhauled the institutional, regulatory and fiscal framework for the Nigerian petroleum industry and provided structured approach for managing host community development and investments.
She further said significantly, the PIA mandated incorporation of old NNPC and established NNPCL as a fully commercial entity.
“Under the Act, NNPCL is to conduct affairs without recourse to government fund. The new NNPCL is being owned by 200 million Nigerians with Ministries of Finance and Petroleum Resources as major shareholders”, she said.
Earlier, the NNPCL Group Chief Communications Officer, Garbadeen Muhammad, said the NNPC was engaging with students as critical stakeholders in the new organisation which belonged to over 200 million Nigerians including the Nigerian students.
Muhammad said the engagement which would be done annually, was aimed to enlighten the students and CSOs on the NNPCL as a new entity registered by the Corporate Affairs Commission under the Company and Allied Matters Act.
Also speaking, the National President of NANS, Usman Barambu, thanked the NNPC for the enlightenment workshop which had exposed the students on the new structure and operations of the oil company.
Barambu urged the company to ensure availability of fuel and tackle fuel scarcity in the country as well as opening of opportunities for ordinary Nigerian graduates to gain employment in the company.
Chief Convener, Civil Society for Justice and Equity, Mr Olayemi Success, called for the removal of the fuel subsidy and urged government to channel the money towards improving the education sector.

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TTP Trains Customs Agents, Freight Forwarders On Eto App 

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In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.

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NECA Holds MSME Fair To Drive Growth 

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Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.

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Over 2m Passengers Board Blue Rail Train – Commissioner 

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The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.

Nkpemenyie Mcdominic, Lagos

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