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PPPRA, Finance Minister blamed for petrol scarcity in Nigeria, N141bn owed to oil marketers

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ABUJA:  In the struggle to uncover the mystery behind the current situation in the Nigerian oil industry as regards to fuel scarcity, the Minister of finance, Okonjo Ngozi-Iweala, and the Petroleum Products Pricing and Regulatory Agency has been blamed for the con-current epidemic surrounding petroleum  scarcity in the oil-producing Nation.

This assertion was premise to the very fact that the Minister of Finance and the PPPRA were in the position to contain the situation from escalating as it is now.
According to report, the House of Representatives Committee on Petroleum Resources, downstream, declared that the relentless scarcity in the country would extend to next year if the outstanding debt of N141billion is not cleared with the oil marketers.
As a result of this delay, marketers enthusiasm has dwindled as banks refuse to extend further loans for their operations. According to the Chairman of the Committee, Dakuku Peterside, who made this ascertions, The report urges Nigerians to hold strong and prepare for the worst because it appears they will be an extended scarcity of Premium Motor Spirit (PMS) since Banks have refused to give out more credit to the marketers.
It also informed that System 2B has collapsed, system 2B distributes about 70 per cent of petroleum products from Lagos, Mosimi, Ejigbo, Ibadan, Ore, and Ilorin.
The report was presented to the House yesterday by the Chairman of the Committee, Dakuku Peterside.
The report further lamented the situation, which the Ministry of Finance has withheld payments of marketers under investigation as well as the inadequate provision in the 2012 budget for payment of subsidy. It also said not more than N306billion was allocated to PMS in the N888billion reserved for payment of subsidy
“The delay in payment to petroleum marketers traceable to the Ministry of Finance is adversely affecting the availability of reduced and credit worthiness of marketers. At a point, it took not less than six months to process payment due importers, it said.
“The collapse of Syatem 2B which distribute about 70 per cent of petroleum products starting from Lagos, Mosimi, Ejigbo, Ibadan, Ore and Ilorin severely affected the distribution system.
“Too many inconclusive investigations are affecting the willingness of banks to give credit, and thus importers given allocations by PPPRA cannot perform. For instance, out of 37 companies that was given fourth quarter allocation, only 19 performed by bringing the product into the country.
“There is a marked decline in investment in the downstream sector due to very low profit margin that has been gradually building up due to lack of storage facilities as has been observed over time.”
The Committee recommended the following,
1.     ”That the Ministry of Finance pay every marketer being owed and whose claims have been verified by all relevant authorities immediately.
2.    “That in 2013 budget, the Petroleum Support Fund (PSF) should be skewed in favour in PMS by the Ministry of Petroleum.
3.    “That all investigations carried out by the Presidency in the oil and gas industry should be concluded within a time limit.
4.    “That PPPRA should give allocation to only marketers that had performed
5.    “All necessary steps should be taken to determine the actual quantity of daily consumption of PMS that will enable the country plan ahead.”
A report from the House of Representatives Committee on Petroleum Resources (Downstream) stated on Wednesday that the persistent fuel scarcity in the country is expected to last until next year.
 The report confirmed that one of the reasons for the fuel scarcity is the outstanding debts owed oil marketers, the debts are over N141billion.
The report said the debts have weakened the spirit of oil marketers, saying the marketers hardly import the product because banks are no more willing to extend further credit to them.
It further blamed the Minister of Finance, Dr Okonjo Ngozi-Iweala and the Petroleum Products Pricing and Regulatory Agency (PPPRA) for the scarcity, adding that it was their responsibility to see to the problem.
The report from the House of Representatives Committee on Petroleum Resources (Downstream) was released following persistent long queues in filling stations across the country.
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Energy

Asharami Synergy Unveils Fuelling Solutions In Omagwa

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In line with its commitment to driving access to quality petroleum products, Asharami Synergy Limited, a leading Sahara Group downstream company, has said the public can now access exceptional fuelling solutions at its newly commissioned retail station in Omagwa, Rivers State.

Situated strategically along the Airport Road in Omagwa, the station, which features a storage capacity of 45,000 litres each for Automotive Gas Oil (AGO, also known as diesel) and Premium Motor Spirit (PMS, also known as petrol) is equipped with two pumps and four discharge nozzles for PMS and AGO.

The facility also has ample space for sundry services in a bid to ensure consumers get more “miles and smiles” as well as the energy to “go further” with Asharami’s world-class products.

“The Asharami Omagwa Retail Station is fully operational, offering a range of premium products and services. It’s a one-stop shop that also gives our esteemed customers eat-in and take-out restaurant services, shopping, as well as the Asha lubricants and Asha Service experience which will ensure premium care for all classes of automobiles and engines,” said Oladimeji Williams, Head, Government Relations and Business Development at Asharami Synergy.

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At the Commissioning, Willaims said the new station represents an important step in Asharami Synergy’s expansion plan aimed at reaching and serving more communities responsibly. “This station is strategically positioned close to the airport, serving as the gateway for powering socio-economic development in the community and those close to it, while enabling Asharami Synergy integrate all aspects of its downstream business towards ensuring efficiency and value for our customers,” he stated.

Williams commended the Federal Airport Authority of Nigeria (FAAN) and the Omagwa community leaders for their support and collaboration throughout the project’s duration, describing it as a “seamless and productive process that highlights Asharami’s corporate stewardship and social impact” in the community.

Similarly, Ifesinachi Ezike, Regional General Manager (South South), FAAN, emphasized the broader significance of the new station, stating, “This occasion marks a significant milestone not just for Asharami Synergy but for the airport and the entire community. It marks not just an opening of a new facility but the beginning of a renewed commitment to enhancing the travel experience of all our passengers and stakeholders”.

In a move that underscores its commitment to sustainability and community development, Asharami Synergy also commissioned a solar-powered borehole during the launch. The borehole is set to improve access to clean and reliable water for residents, marking a tangible contribution to the local community.

“At Sahara, we are always making a difference—not just through our business operations; we are unwavering in our commitment to driving sustainable development and building partnerships that enhance the well-being of our host communities,” Williams added.

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Energy

Awards Galore For Shell, Staff At NAPE 2024 Conference

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The Shell companies in Nigeria and staff won awards in recognition of their robust participation at the 42nd Annual International Conference and Exhibition of the National Association of Petroleum Explorationists (NAPE), held in Lagos.

At the closing dinner of the event, the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), Ronald Adams pledged sustained efforts by the company to address “the Nigerian energy trilemma by powering progress towards energy security in a sustainable manner”.

On the awards, the Shell was declared Best Overall Exhibitor and Best Exhibiting Energy company (International) just as Geophysicist Somime Oguntola took home the Award of Excellence for Oral Paper (second place).

The icing on the cake was a Shell staff, Johnbosco Uche, being installed as the new President of the NAPE.

It was gathered that the Shell companies in Nigeria have supported NAPE since its founding in 1975, using the skills and expertise of the large pool of energy professionals in its employment to improve its activities especially educational and mentoring programmes.

In addition to being a major sponsor of the 2024 conference, Shell mounted a high-profile exhibition, featuring among other things, career counselling, engagements on Nigerian Content and Contractor development and panel sessions on Women in Industry and Sustainability Energy Challenge.

A highlight was the Shell medical stand which attended to more than more than 500 conference participants and members of the public over the four days of the annual event. The doctors and nurses offered a wide range of services including laboratory tests, deworming, medical consultation as well as ophthalmology checks and distribution of nearly 300 eyeglasses.

Adams referred to the operations of SNEPCo as an example of Shell’s contribution to energy security in Nigeria. “As a result of sustained production from Bonga, we have provided funds to finance development, created a new generation of Nigerian Deepwater professionals, empowered indigenous contractors and service providers, and implemented social investments that have touched lives in the six geo-political zones of the country,” he said.

Adams added, “SNEPCo and indeed Shell are in Nigeria for the long haul. Our commitment is reflected in both our current and growth plans, all of which are grounded in principles of safety, affordability, and competitive performance.”

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Energy

Accugas Denies Culpability In Akwa Ibom’s Power Outage

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Owing to the persistent power outage, which has crippled economic and social life in most parts of Akwa Ibom State and environs, Accugas Limited has washed its hands off the ugly situation.

This was contained in a statement under the signature of its Communications Manager, Okwudili Onyia, in which the company traced the anomaly to a “fault in the 132-KV Aba-Itu transmission line”.

To ameliorate the situation, the company maintained that “It is imperative that the restoration of the Aba-Itu line is completed as soon as possible.”

In addition, the company pledged thus, “Accugas will continue to partner with, and support, the government of Akwa Ibom State towards achieving the government’s agenda for economic development and prosperity of the state.”

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The statement reads, “Accugas Limited, a subsidiary of Savannah Energy, wishes to strongly deny the misinformation concerning its alleged involvement in the current power outage in Akwa Ibom State.

“The power cut in Akwa Ibom State is entirely due to the reported fault in the 132-KV Aba-Itu transmission line, which, unfortunately, is preventing power being transmitted from the National Grid into the State. It is imperative that the restoration of the Aba-Itu line is completed as soon as possible.

“Ibom Power Company (“IPC”) is one of 23 thermal power generation companies which channel power to the National Grid, which in turn disseminates all accumulated power to each State of the Federation through the electricity distribution companies (“Discos”). Indeed, Accugas supplies gas to enable c. 20% of Nigeria’s thermal generation capacity and, as such, is a critical enabler of the Nigerian economy.

“Within Akwa Ibom State, Accugas has been the sole supplier of gas to IPC since 2014 and, together with other Savannah subsidiaries, has invested over US$1.5 billion in gas development within the state. Furthermore, Savannah has recently invested c. US$45 million in a gas compression project at Accugas’ Uquo central processing facility at Esit Eket. Accugas’ commitments also extend to several social investment projects in the state. All the foregoing investments and projects, including other imminent investments Accugas intends to make in the State, demonstrate the Company’s long-term commitment to Akwa Ibom State and Nigeria.

“Accugas will continue to partner with, and support, the government of Akwa Ibom State towards achieving the government’s agenda for economic development and prosperity of the state.”

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