NEWS
Fuel Price Hike: Energy Analyst Adeoye Reveals Who Bears The Subsidy Costs
With the pump price of Premium Motor Spirit (PMS) popular in the streets as petrol, hovering around approximately N1000-N1300 per litre, concerns are mounting about the viability of fuel subsidies in Nigeria.
Energy policy analyst, Adeyemi Adeoye, has underscored the critical role of the Nigerian National Petroleum Company Limited (NNPC Ltd) in this issue, shedding light on who bears the subsidy costs.
He shared his views on TVC News on Friday.
Biztellers reports that the pump price of petrol has risen from below N200/litre at at May 29, 2023 to around N1300/litre as at September 20, 2024, with little variations depending the part of Nigeria, consumers are buying from.
Read More: Fuel Pricing Should Serve Public Interest, Not Profit — Yemi Adeoye
He stated, “Only the NNPC can engage in negotiations of this nature. Their partnership with the Dangote Refinery gives them leverage to negotiate from a position of strength.”
Adeoye highlighted that while the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other marketers lack significant influence over prices, the Dangote Refinery prioritizes profitability.
According to him, this makes the NNPC’s negotiations vital, as they are legally required by the Petroleum Industry Act to ensure fuel availability across the country and prevent long queues at gas stations.
Adeoye said, “It is only NNPC that could have gone into that type of negotiation because NNPC is coming to the table from a position of strength because they have a partnership with the Dangote Refinery, and they have other businesses they are supplying crude to, so they can come and say, ‘Look, this has to be this way.’
“The IPMAN and the other marketers cannot do that because Dangote is a profit-making organization; it is not a charity organization. So, the only thing that is important to the Dangote Refinery is to make a profit, which is the same thing that is important to any business.
“So, the NNPC went into these negotiations because it also understands that it is the last resort. In terms of fuel distribution in the country, NNPC is mandated by the Petroleum Industry Act to make sure that there are no queues in the country. So, even if they don’t want to do it, the law mandates NNPC as the supplier, the last resort, to make sure that there is petroleum product across Nigeria.
“That negotiation is such that NNPC took all the calculations in and said, ‘This is a fair pricing that we know we can withstand.’
“Because what NNPC was paying out, which you might call a subsidy or under-recovery, NNPC was paying the difference on behalf of the government, which is under the directive of the president, who has also said he wants to see this situation totally resolved.
“That was why he directed the NNPC to make sure that crude oil to the Dangote Refinery is sold in Naira, because NNPC produces the crude in dollars, and it has to be sold to the Dangote Refinery in Naira, which is good faith.” he added
With the commencement of the rainy season, the Osun State Government has issued modalities for the operations of tractors across farmlands in Osun State.
The state’s Commissioner for Agriculture, Hon Tola Faseru, according to a government house statement on Monday in Osogbo, confirmed the development.
Faseru said interested farmers should reach out to the Permanent Secretary of the Ministry or the General Manager of Osun State Agricultural Development Corporation (OSSADEC) through virtual or physical applications.
He noted that the government was subsidizing the operational rate per acre to lower the cost of farm operations, explaining further that the tractors will be domiciled at the OSSADEC farm centre located across the state.
ALSO READ: Edo Considers Arresting Sponsors Of Armed PDP Thugs
Faseru pointed out that some of the tractors were already in operation in some farmlands, and noted that the ministry was working to set up technical centres at designated locations for maintenance of the tractors.
He narrated further that tractor drivers are being assembled, trained and retrained for seamless operation even as he explained that the administration adopted a public private partnership approach for the management of the tractors.
“We are happy to inform the public that the tractors are out for the rainy season. We are conscious of the question of sustainability, hence the careful approach to inject private sector practices.
“In 14 or so years, this is the first time Osun is having new fleet of tractors. We have learnt from what caused the failure of the past efforts. We won’t repeat the same mistakes.
“We know we are not there yet. But Governor Adeleke has blazed the trail by procuring the first set of tractors. We innovated also because of ongoing issues at the local government level.
“We don’t want it to be managed in unsustainable manner. Hence, Mr Governor insisted the tractors be managed like a business although with public subsidy”, the Commissioner posited.
He stated that the ministry is reaching out to stakeholders among the farming community to ensure accelerated access for users within the state.
Former Minister of Petroleum Resources, Diezani Alison-Madueke, has approached the Federal High Court in Abuja, seeking an order to stop the Economic and Financial Crimes Commission (EFCC) from selling off properties confiscated from her.
Alison-Madueke, through her legal team led by Chief Mike Ozekhome (SAN), also requested the court to compel the EFCC to recover any assets already auctioned.
She accused the anti-graft agency of violating her fundamental right to a fair hearing, arguing that the sales were conducted without due legal process.
READ ALSO: Court Backs Diezani&’s Request To Amend Lawsuit Over EFCC’s Asset Forfeiture
She claimed the EFCC relied on final forfeiture orders obtained from various courts but failed to serve her with any charges, proof of evidence, or court summons regarding the seized properties.
According to her, the forfeiture orders were secured through “misstatements, misrepresentations, non-disclosure, concealment, and suppression of material facts.”
“In many cases, the final forfeiture orders were made against properties which affected the Applicant’s interest, the courts were misled into making the final order of forfeiture against the Applicant, based on suppression or non-disclosure of material facts,” she stated.
The former minister further argued that the courts which issued the forfeiture orders lacked jurisdiction and failed to respect her constitutional right to a fair hearing.
She insisted that she was outside Nigeria for medical treatment since 2015 and had no access to Nigerian newspapers where the forfeiture notices were reportedly published.
Alison-Madueke also maintained that she had not been convicted of any crime, making the forfeiture and subsequent sale of her properties unjustifiable.
“Only a court of law can declare an act as constituting unlawful activities and there was no such order that had declared the alleged conduct of the Applicant to be unlawful,” she argued.
In a counter-affidavit, the EFCC insisted that the properties were lawfully forfeited following extensive investigations into Alison-Madueke’s tenure as a public official.
The agency cited two criminal cases against her, including suit FHC/ABJ/CR/208/2018 filed in November 2018 and HC/ADYL/56c/2017 filed in July 2017.
The EFCC stated that the asset sales were conducted based on final forfeiture orders issued by Justices C.A. Obiozor and I.N. Oweibo in 2019.
It maintained that all necessary legal procedures were followed, including public notices in newspapers inviting interested parties to contest the forfeitures.
“The final forfeiture orders pursuant to which the sale of the properties was conducted are still in force and have not been set aside. The forfeited properties were disposed of in accordance with the due process of law,” the agency stated.
During Monday’s proceedings, Alison-Madueke’s lawyer, Godwin Iyibor, requested additional time to respond to the EFCC’s counter-affidavit, which was served on March 14. EFCC’s counsel, Divine Okoro, acknowledged delays in filing but assured the court of the agency’s commitment to the case.
Justice Inyang Ekwo adjourned the matter to March 27 for a definite hearing, warning that no further delays would be entertained. “The case has been pending since 2023,” the judge noted.
Alison-Madueke’s legal battle with the EFCC also includes a separate ₦100 billion defamation lawsuit against the agency.
In that suit, she alleged that the EFCC had authored and sponsored publications portraying her as a treasury looter, which she claimed subjected her to “public ridicule, odium, contempt, derision, and obloquy.”
Kano State Governor, Abba Yusuf, has issued a three-month ultimatum to individuals who purchased houses in Kwankwasiyya, Amana, and Bandirawo cities, warning that failure to either occupy or rent them out will lead to revocation and reallocation.
The directive was announced on Monday during the swearing-in ceremony of the newly appointed Commissioner for Housing Development, Ibrahim Adamu, a former Managing Director of the Kano Urban Property Development Authority.
READ MORE: EFCC Re-Arrests Popular Kano TikToker For Naira Abuse
Governor Yusuf expressed concern over the large number of vacant houses in these estates, which were developed during the administration of former Governor Rabi’u Kwankwaso and later sold to private buyers.
Many of the homes, however, remain unoccupied, raising fears of deterioration and potential security threats.
“We are giving all those who purchased houses in these cities, especially Kwankwasiyya and Amana, an ultimatum—either occupy them or rent them out. If not, the government will revoke the allocation and sell them to those willing to live in them,” the governor declared.
He emphasized that his administration would not allow these estates to become hideouts for criminals, stressing the need to maximize available housing to address the state’s accommodation challenges.
Governor Yusuf also tasked the new Commissioner for Housing Development with tackling Kano’s housing deficit, reaffirming that the ministry was created to address both urban and rural housing needs.
Additionally, he commended the Kano State House of Assembly for their support and cooperation in governance.
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