Business
FG Spends N150bn On Fuel Subsidy Monthly, NNPC Admits
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has disclosed the Federal Government spends as much as N140billion to N150billion to subsidise premium motor spirit (PMS) otherwise called petrol, monthly.
According to Kyari, the open price of petrol has risen to N256 per litre.
With the present pump price of petrol pegged at N162 per litre, it means government is subsidizing the product by N94 per litre.
Kyari said petrol daily truck out has risen significantly to 103 million per litre.
He said, “If we are to sell at the market today at current exchange rate, we will be selling the product at about N256 to a litre. What we sell today is N162, so, the difference is at a cost to the nation”.
“The difference comes back to as much as N140billion to N150billion cost to the country monthly.
“As long as the volume goes up, that money continues to increase and we have two sets of stress to face, stress of supply and stress of foreign exchange for the NNPC. We may not see foreign exchange cheque taking place for importation”.
Kyari stressed at the meeting which had the Economic and Financial Crimes Commission (EFCC), Department of State Services (DSS), Nigeria Police Force (NPF), Nigeria Customs Service (NCS), Nigeria Security and Civil Defence Corps (NSCDC), and other relevant downstream and upstream stakeholders in attendance, harped on the need to find urgent solution to petrol smuggling challenge in the country.
He explained, “In very recent data, we see what we really want in the beginning of May and June, there was a day we load out about 103 million litres of PMS within one day across the depots. We know it is not required, we know it is inappropriate and we also know that something wrong is happening that somebody is chasing something.
“But we in NNPC, we are not in control of that, we are not in every depot, we don’t keep products in all the depot but when the volume goes down, it comes down to us, when there is tight in supply, it comes back to the NNPC and we solve the problem”.
The NNPC boss said that President Muhammadu Buhari had directed that smuggling must stop, adding that it was the reason for inviting all stakeholders to chart the way forward.
Stakeholders in the downstream sector of the petroleum industry have blamed distribution system and low pump price for the increasing rate of smuggling of petrol, out of Nigeria.
The stakeholders, who include marketers, depot owners and transporters called for synergy to check the activities of smugglers.
Speaking at a stakeholders meeting to work out synergy to tackle incidents of smuggling of petroleum products criminals, the Chairman of the Board of Directors of the Independent Marketers Association of Nigeria (IPMAN), Alhaji Aminu Abdulkadiri urged the Nigerian National Petroleum Corporation (NNPC) to release more products to its members.
Abdulkadiri noted that with over 20,000 filling stations across the country, IPMAM members sell directly to the Nigerian people.
He said, “I have been in this industry for over 30 years and there are underlying issues that I want the GMD to take cognizance of and this will go a long way in chasing who does what.
“One, we have almost 30,000 retail outlets in this country and both major marketers and DAPMAN have about 2000-3000, the rest belong to my members. But the truth there is who is responsible for storing and distributing this product? The bulk of this product is being distributed by DAPMAN.
“NNPC needs to work with IPMAN and DAPMAN ensure that marketers that have retail outlets that are viable for Nigerian consumers should be attached to each depot in this country. That way NNPC can track most of these products that are being either diverted or smuggled out.
“But so long as the source of distribution is not monitored and product are sold indiscriminately, the problem will continue”, he added.
On her part, Chairman, Depot and Petroleum Products Marketers Association of Nigeria (DAPMAN), Mrs. Winifred Akpani, said the group was concerned about the high volume of petrol consumption in Nigeria.
Akpani said it was difficult to determine the actual amount of petrol consumed in the country, pointing out, however, that the Department of Petroleum Resources (DPR) has critical role to play if smuggling was to end in the country.
“We as depot operators do not own all these stations but we sell a lot to people who have the stations. And one thing we always insist is where is your DPR licence not only are you going to show us your DPR licence we are going to cross check with the list that updated periodically and send to each depot by the DPR and it only on that basis that we sell product to you,” she added.
She noted with the resources and technology available in the industry, tracking the movement of trucks should not be a big challenge.
Also speaking, the National President of the Nigerian Association of Road Transport Owners (NARTO), Alhaji Yusuf Lawal Othman, called for closer monitoring truck outs at the depots.
According to him, “The system needs to be reorganized. I don’t see any reason why you have 200 filling stations in a local government that does not consume more than 45,000 litres.
“I also don’t see how the depot which normally do programme per day will programme quite a number of trucks to a local government which does not consume more 45,000 litres per day. It means that we are sleeping”.
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter