Oil and Gas
Fuel Subsidy: CSOs, Professionals insist on removal, task organised labour not to embark on strike
The Civil Society Organisations and Professionals drawn from the various parts of the country have insisted on the the removal of fuel subsidy, saying that the regime was partly responsible for the economic woes of the country.
The group in a communique after a one day national town hall meeting on “removal of fuel subsidy”, in Abuja the fuel subsidy which has existed for decades has been without transparency and accountability, a development that has caused the Federal government to spend a whopping sum of N250 billion monthly.
The communique which was signed by the National Chairman of the group, Isah Abubakar, Secretary, Joe Moses and two other officials and made available to journalists on Monday, said, the town hall meeting which was held on Sunday observed that the removal of fuel subsidy regime as planned would facilitate the implementation of the 2022 national budget of N17.13 trillion.
“The Coalition of Civil Society Organisations and professionals drawn from various parts of the country met on Sunday 9th January, 2022 for a “National Town Hall Meeting on Removal of Petroleum Subsidy”.
“The National Town Hall Meeting on Removal of Petroleum Subsidy has observed that the petroleum subsidy regime which has existed for decades has been without transparency, credibility and accountability in the process leading to payments of claims to the so-called beneficiaries of the arrangement.
“The town hall meeting observed that the monthly payment of over N250 billion monthly has done serious damage to the economy and for decades, the financial burden has retarded the growth and development of the country and if the trend is not reversed, it would continue to degenerate the nation’s revenue until the economy would have been irrevocably damaged.”
The CSOs noted that the subsidy was responsible for fuel smuggling across the borders, arguing that, it is ended, the smuggling challenge would reduce, adding that the subsidy should be completely removed to allow fresh breath in the country.
“That the town hall meeting observed that the petroleum subsidy was responsible for fuel smuggling across the neighbouring countries, such as Benin Republic, Niger, Chad and Cameroon. The situation would abate to a large extent, if the fuel subsidy regime is abolished and would also strengthen availability of fuel in the downstream sector of the economy.
“That the Town Hall Meeting supports absolute removal of fuel subsidy and the funds in the tune of N250 billion be channelled into development of infrastructure across the country.
“The meeting also noted and commended the Nigeria National Petroleum Limited for the construction of 28 Federal Roads across the Federation. Adding that roads are critical infrastructure, hence, if the ongoing roads are completed, the NNPC should as a matter of policy continue to plough funds into reconstruction and rehabilitation of category ‘A’ roads so as to enhance economic development of the country.
While it commended the NNPC management for the implementation of the Petroleum Industry Act, 2021, the group urged the continuous reforms to reposition the oil and gas industry as one of the best in the world.”
They urged the FG to ensure maintenance and rehabilitation of the government refineries in order to meet the local fuel consumption in the country.
“The town hall meeting throw its weight behind the management of the Nigeria National Petroleum Subsidy Limited under the leadership of the Group Managing Director, Mele Kyari for the systematic implementation of the Petroleum Industrial Act (PIA). It further called for continuous reforms that would see the upstream and downstream petroleum sector being the best in the world.
“The meeting further resolved that the Refineries in Port harcourt and Kaduna be reactivated and upgraded to be able to refine fuel at an optimum operations for local consumption and given that the country heavily depends on the oil as its monolithic economic mainstay, the NNPC should continue to roll out policies that would keep the petroleum sector streaming.”
On the palliative, the group tasked the Federal government to ensure payment to citizens, saying that it will cushion the effect of the subsidy removal, while they also urged the Nigeria Labour Congress not to embark on industrial strike, but to allow dialogue.
“That the planned palliative by the Federal government to the citizens in the circumstance that the fuel subsidy regime is fully scrapped is a noble idea, as it would mitigate hardships occasioned by the removal of subsidy that may probably trigger difficulties in the cost of transportation, even as it was further identified that the NNPC should ensure availability of fuel across sales stations and effective fuel price control mechanisms until the shock is curtailed.
“The Town Hall meeting also urged the organised labour to shelve the intended mass protest in the event that the subsidy is removed, given that the nation stands to benefit rather than some oil cartels that have been benefitting from the regime for several years now. Instead, the NLC and other allied labour organisations should engage in objective dialogue with the Federal government.
“That the Group Managing Director of NNPC, Mr Mele Kyari be commended for the courage in the reformation of the NNPC which has seen the country survived the economic meltdown occasioned by the COVID-19 global pandemic and other factors militating against the wellbeing of the country”.
The Nigeria Liquefied Gas on Friday called for energy security to be made a national priority through proactive measure in a manner that the infrastructure and critical assets are protected for the sustainable growth of the oil and gas industry.
Speaking at a panel session titled “Driving Cross-Continental Investments: Scaling Africa’s Energy Frontier” at the 8th Nigeria International Energy Summit (NIES), the Managing Director/Chief Executive Officer of NLNG, Philip Mshelbila stated that there were growing concerns over gas infrastructure security, stressing that while improvements have been recorded in securing oil assets, that gas infrastructure remains vulnerable, and without adequate protection which will lead to underperformance in the industry.
Mshelbina stated that NLNG was focused on boosting both domestic and regional energy access, adding that the company was making smaller-scale investments to retain more gas for local consumption. He noted that a major step in this direction was NLNG’s decision to domesticate 100% of its Liquefied Petroleum Gas (LPG) supply for the Nigerian market.
Beyond the domestic market, Mshelbila remarked that the Company was also working towards enhancing regional energy security. He revealed that, as part of the Train 7 project, the company was constructing a third jetty to support small-scale vessels in supplying gas across Africa’s coastal markets.
Additionally, he said the company was supporting the Federal Government of Nigeria (FGN) in connecting Bonny Island to the mainland to facilitate LPG trucking, thereby strengthening domestic gas distribution. This initiative is expected to boost West Africa’s energy distribution network, positioning NLNG as a key player in the region’s energy landscape, he noted.
Mshelbila also emphasised the need for clear and consistent regulatory frameworks to attract long-term investments.
Through proactive methane reduction, low-carbon innovations, and impactful social initiatives, Mshelbila remarked that NLNG’s commitment to local content and sustainability aligned with global energy transition priorities, stating that NLNG was building investor confidence and demonstrating long-term value.
The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, NEITI, Dr. Orji Ogbonnaya Orji has said, the sum of $200 billion is needed to be injected into Nigeria’s gas infrastructure for its development and maximization of the natural resources as the ninth largest gas producer in the world as number one in Africa.
He pointed this out in the 2021 – 2023 reports on Oil, Gas and Solid Minerals presented to the Public Accounts Committee chaired by Senator Aliyu Wadada Ahmed, saying the required infrastructure for maximization of gas resources in the country are not there.
He said, there was need for the injection of $20 billion yearly into gas infrastructure for a period of ten years for construction of gas pipelines along and across West African sub-region, and beyond which is a huge expenditure”, he said.
Orji said: “In Nigeria, what we need, is to invest in gas infrastructure to evacuate gas as our study shows that we need an initial investment of $20 billion annually for 10 years to be able to generate the kind of gas infrastructure required to provide gas for the whole of Africa and beyond.
A member of Senate Committee on Public Accounts, Senator Abdul Ningi asked, “what NEITI is doing on alleged $8.5billion unremitted into the consolidated revenue fund by Nigerian National Petroleum Company Limited, Federal Inland Revenue Service and Nigerian Upstream Petroleum Regulatory Commission in 2023”, the NEITI boss said the Economic and Financial Crime Commission, EFCC , is already probing the agencies involved.
Senate panel were further irked by the submission in the NEITI’s report that less than 1% of solid minerals is remitted into Federal Government’s Consolidated Revenue Fund account.
Chairman of Senate Committee on Public Accounts, speaking on remittances of Solid Minerals into the Consolidated Revenue Fund decried the less than 1% contribution of proceeds from the sector on yearly basis.
Other members were unanimous that, NEITI’s report on solid minerals, is not reflective of what is going on in the solid mineral sector.
They wondered why only States like Ogun, Osun, Kogi, Edo, Ebonyi, Rivers, Cross Rivers and FCT, were mentioned in the report excluding Nasarawa , Zamfara , Kebbi , Plateau, Bauchi etc .
Specifically the Chairman of the Committee, Senator Wadada described the less than one 1% contribution of solid minerals to GDP as quite ridiculous and unacceptable.
“This definitely must not continue, there must be complete overhaul of the sector “, he said
Oil and Gas
Niger Tanker Explosion: NUPENG urges government to repair roads, senditise citizens on danger of fuel scooping
The national secretariat of the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has urged the Federal Government to repair roads to avert tanker tragedies across the country.
NUPENG made the call in reaction to the recent tragic tanker explosion in Suleja, Niger State.
A statement jointly signed by Williams Akporeha and Olawale Afolabi, respectively, President and General Secretary stated that the union was “deeply saddened by the loss of lives, the destruction of properties, and the injuries sustained by many in this devastating incident.”
The statement, issued to newsmen in Abuja on Sunday, also appealed to the Federal Government to urgently address the poor condition of federal roads.
The statement read in part: “The Union takes this opportunity to urgently appeal to the Federal Government to repair bad roads to prevent such incidents and to intensify efforts in sensitising the public about the dangers of scooping fuel from petroleum truck accidents.
“Our thoughts and prayers are with the victims and their loved ones during this traumatic and challenging time.”
NUPENG further sppealed to the Federal Government to take urgent steps to repair federal roads which it noted were in bad shape.
It also tasked the Federal Government to mandate its relevant agencies to seize the initiative towards sensitising Nigerians on the danger of scooping fuel from scenes of petrol tanker accidents.
The statement further reads in part:”The Union takes this opportunity to urgently appeal to the Federal government to repazir bad roads to prevent such incidents and to intensify efforts in sensitizing the public about the dangers of scooping fuel from accidental situations of petroleum trucks on highways.
“As a responsible organization, NUPENG collaborates annually with relevant agencies, including the Federal Road Safety Corps, the Police, and State Traffic Management agencies, to train our drivers on road safety. The Union is committed to continuously training and retraining our members on best driving and safety practices.
“We stand in solidarity with the affected families and the entire Dikko community in Niger State. We commend the emergency responders who bravely extinguished the fire and rescued many injured victims.
“We urge all relevant authorities to provide the necessary support and medical care to those injured and to take measures to prevent future tragedies.
“May the souls of the departed rest in peace, and may their families find the strength to bear these irreparable losses.”
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