Business
No Subsidy Payment For Audited PMS Stocks – PPPRA
The Petroleum Products Pricing Regulatory Agency (PPPRA) has announced that audited Premium Motor Spirit (PMS) or petrol already in tanks at various depots of petroleum marketers in the country would not qualify for payment of subsidy claims.
The decision was reached at a meeting with operators in the downstream sector, hosted by the PPPRA in Abuja, last week.
The meeting was convened to address crucial issues in the downstream, arising from the deregulation of the PMS market by the Federal Government as announced by the PPPRA on January1 this year.
A document sighted by The Tide source, explained that in determining the subsidy computation for last month, stock of PMS, certified by independent inspectors in tanks belonging to petroleum marketers as at January 1, would not qualify for subsidy claims.
The action, initiated by the PPPRA in line with the transparency regime, initiated by the new Executive Secretary of the agency, Stanley Reginald, was designed to prevent the Federal Government from losing huge revenues through submission of subsidy claims by marketers, who are currently selling the products to the public at deregulated prices.
The document stated that the year-end stock taking exercise at the depots, carried out nationwide on January 1, was done primarily to determine the actual consumption of gasoline nationwide, following the spiraling consumption figures of the product over the years.
It affirmed that the PPPRA’s monthly stock taking exercise at the depots would continue during the regime of deregulation.
According to our source, the meeting was convened by Reginald to solicit the co-operation of all operators for the success of the deregulation policy and to enable him clarify crucial issues relating to the modalities of implementation of the policy.
At the meeting, the PPPRA chief itemised the thrust of the new policy as it related to fuel importation under a deregulated regime and implementation of the indicative benchmark pricing system.
It was resolved that import volume determination by independent cargo inspectors would be maintained for monitoring and data collection purposes by the PPPRA and that the agency would also continue to provide maximum indicative benchmark prices every fortnight for depots and open-market retail sales outlets.
At the meeting, the PPPRA maintained that a pricing template was the final guiding document for importation, storage, transportation and sales of petroleum products in the current deregulated dispensation, stating that no operator was at liberty to alter any of the cost elements.
According to Reginald, following the new pricing regime, marketers who sell above the indicative benchmark price, provided by the PPPRA will be subjected to serious penalty by relevant regulatory agencies, including the revocation of their import or operating licenses by the Department of Petroleum Resources.
The PPPRA, however, noted that all operators should view the current template as a take-off point, while the agency sought means of developing a reactive template that would capture sudden and emerging realities.
The agency charged industry operators to improve on their efficiency since downstream operation was volume-driven and that the current PPPRA pricing template was adequate in ensuring cost-recovery on petroleum product imports by marketers.
The agency also gave an assurance that it would continue to issue quarterly import permits to marketers in the exercise of its regulatory mandate.
Reacting to the position of the PPPRA, industry operators, including members of the Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association and the Independent Petroleum Marketers Association of Nigeria, collectively welcomed the deregulation policy of government, promising to support the policy in full force.
Marketers, however, stressed the need for the Nigerian Police Force to ensure safety of all depots, trucks and retail outlets from possible threats, following post-deregulation protests.
They advised the PPPRA to host a bankers’ forum to address issues relating to petroleum products financing, to boost the confidence of the banking sector in the downstream.
The marketers also called for adequate repair of roads in the country to ensure smooth haulage of products by transporters, calling for the implementation of the FERMA Act, relating to five per cent user charge on petroleum products for road maintenance.
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.
