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NNPC Ltd Clarifies Role In Petroleum Pricing Amid MURIC’s Allegations

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The Nigerian National Petroleum Company Limited (NNPC Ltd) has addressed claims made by the Muslim Rights Concern (MURIC) that it was undermining Dangote Refinery Limited (DRL) by being the sole offtaker of all products from the refinery.

Olufemi Soneye, Chief Corporate Communications Officer of the NNPC Ltd offered  the clarification in a statement on Saturday.

The MURIC had alleged that recent changes to the pump price of Premium Motor Spirit (PMS) would prevent DRL from offering lower prices.

Read Also: Pump Price Needs Market Adjustment, NNPCL Official Declares Amid Fuel Hike

NNPC Ltd categorically denies these claims, stating that the pricing of petroleum products from any refinery, including DRL, is dictated by global market forces.

It stated that the recent adjustments in PMS prices do not restrict DRL or any other domestic refinery from accessing the Nigerian market. Instead, they provide an opportunity for DRL to sell its products at lower prices if current prices are considered high.

The company further emphasized that there is no inherent guarantee of lower prices from domestic refining compared to global pricing frameworks, as confirmed by DRL.

The statement reads, “The attention of the NNPC Ltd has been drawn to a press release by the Muslim Rights Concern, MURIC, which claims that the Dangote Refinery Limited (DRL) is being undermined by actions of the Nigerian National Petroleum Company Limited (NNPC Ltd).

“Specifically, MURIC asserts that recent changes to the pump price of Premium Motor Spirit (PMS) will prevent the Dangote Refinery from offering lower prices and that NNPC Ltd. has become the sole offtaker of all products from the refinery.

“To set the records straight, NNPC Ltd. wishes to further state that the pricing of petroleum products from any refinery, including the Dangote Refinery Ltd. (DRL), is determined by global market forces.

“The recent changes in PMS prices have no impact on the DRL or any other domestic refinery’s access to the Nigerian market. In fact, if current prices are perceived as high, it presents an ideal opportunity for the refinery to sell its products at lower prices in the Nigerian market.

“Furthermore, we emphasize that there is no guarantee of lower prices associated with domestic refining compared to any global parity pricing framework, as confirmed by the DRL. The NNPC Ltd. will only fully offtake PMS from the DRL if the market prices of PMS are higher than the pump prices in Nigeria.

“The DRL and any other domestic refinery are free to sell directly to any marketer on a willing buyer, willing seller basis, which is the current practice for all fully deregulated products. NNPC Ltd. has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole offtaker does not arise.

“The NNPC Ltd. cannot undermine a business in which it holds a billion-dollar stake. As an advocacy group for fair and just treatment, MURIC should have verified the facts before making statements that are entirely flawed and has the potential to incite ordinary Nigerians against the NNPC Ltd.” It added

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NIMC Reports 110m NIN Enrolment

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The number of Nigerians with National Identification Numbers (NIN) has risen to 110 million.

The Director General of the National Identity Management Commission (NIMC), Abisoye Coker-Odusote, made the disclosure in Abuja on Monday.

She was speaking at an ongoing event to commemorate the sixth edition of the National Day of Identity themed, “Digital Public Infrastructure: Enabling Access to Services”.

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The figure represents 2.39 percent increase from the 107.34 million, where it stood as of the end of May 2024.

She attributed the accomplishment to the strategic plan implemented by the current NIMC management, highlighting that the role of DPI has become indispensable to Nigeria’s economic development.

She said, “The role of DPI has become indispensable to Nigeria’s economic development, as it offers a framework that connects citizens to essential services such as social welfare, healthcare, education, and financial inclusion. At the forefront of this transformation is NIMC, responsible for the National Identification Number, which has enrolled over 110 million Nigerians.

“This provides a unique opportunity for the other two pillars of the DPI – data exchange and payment – to be layered on foundational identity for its effective development and adoption.”

The NIMC DG added that the digital infrastructure has also assisted the government and financial institutions in facilitating digital payments, digital money, digital identity and digital processes.

Coker-Odusote maintained that the Student Loan Initiative which has benefitted 257 institutions, registered 332,715 students for loans, and made payments to over 18,000 students showcases how DPI can eliminate financial barriers to education.

“I must say we are on the right path and key strides have been made through collaboration and partnerships with government agencies and private sector players linking of NINs and phone numbers with the telecommunication companies, NIN and Bank Verification Number harmonisation with financial institutions to facilitate digital payments, digital money, digital identity and digital processes, amongst others.

“Furthermore, the Student Loan Initiative showcases how DPI can eliminate financial barriers to education. By collaborating with 257 institutions, 332,715 students have been registered for loans, and over 18,000 students have already received payments through the initiative,” Coker-Odusote added.

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Abiodun Sends Eid-el-Maulud Shout-Out To Muslim Faithful

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Ogun State Governor, Dapo Abiodun has extended warm greetings to the Muslim community in commemoration of Eid-el-Maulud, the birthday of the Holy Prophet Muhammad (SAW).

This was contained in a statement in Abeokuta, on Monday, by his Chief Press Secretary, Lekan Adeniran.

According to Adeniran, his principal considers that the significant occasion serves as a reminder of the values of love, compassion, and tolerance that are essential for harmonious living in a country as diverse as Nigeria.

ALSO READ: LG Poll: ADC Slams Ogun State’s N250,000 Nomination Fee

Gov Abiodun expressed optimism that the celebration would inspire all citizens to embrace the principles of peace and understanding, fostering a culture of respect among various religious groups in the state.

He emphasised that the strength of Ogun State lies in its diversity, urging citizens to come together to promote a peaceful coexistence that transcends religious boundaries.

Gov Abiodun said, “As we celebrate Eid-el-Maulud, let us reflect on the teachings of the Prophet Muhammad (SAW), which emphasise kindness, charity, and respect for one another.

“We must continue to build bridges of understanding and friendship among our different faiths, ensuring that Ogun State remains a beacon of peace and unity.”

He took advantage of the occasion to urge all religious leaders to play a vital role in promoting peaceful dialogue and understanding within their communities.

He noted that the teachings of love and tolerance should guide the actions of all citizens, contributing to a more harmonious society.

Gov Abiodun also urged the Muslim faithful to continue praying for the success of his administration and that of President Bola Ahmed Tinubu, adding that concerted efforts are being made to make Nigeria a better place for all.

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SERAP Sues Tinubu Over Petrol Price Hike, Demands Probe Of NNPCL

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The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against President Bola Tinubu for failing to order the Nigerian National Petroleum Company Limited (NNPCL) to reverse the controversial petrol price increase.

The organization is also calling for an investigation into allegations of corruption and mismanagement within the NNPCL.

SERAP Deputy Director, Kolawole Oluwadare disclosed this in a statement released on Sunday.

Read Also: NNPC Limited fixes minimum petrol price @ N950 a liter

The lawsuit, filed last Friday at the Federal High Court in Abuja (FHC/ABJ/CS/1361/2024), lists the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, along with the NNPCL, as respondents.

SERAP is urging the court to mandate Tinubu to direct the NNPCL to revert the petrol price from N845 to N600 per litre, labeling the hike as “unjust, illegal, unconstitutional, and unreasonable.”

Additionally, SERAP is asking the court to compel the president to investigate the alleged corruption in the NNPCL.

This includes probing how the company spent $300 million in bailout funds from the government in August 2024 and the NNPCL’s $6 billion debt to suppliers, amid claims of its failure to remit oil revenues to the national treasury.

In its argument, SERAP states that the price hike is worsening the already dire economic conditions in Nigeria, pushing more people into poverty.

It contends that holding the NNPCL accountable for mismanagement would benefit public interest and fulfill Nigeria’s obligations under its constitution and international human rights laws.

The legal filing, prepared by SERAP’s lawyer Ebun-Olu Adegboruwa, SAN, argues that the petrol price increase violates constitutional rights and undermines basic human dignity.

It reads in part, “The increase in petrol price constitutes a fundamental breach of constitutional guarantees and the country’s international human rights obligations.

“Corruption in the oil sector and the lack of transparency and accountability in the use of public funds to support the operations of the NNPC have resulted in persistent and unlawful hike in petrol prices.

“Increasing petrol prices at a time when millions of Nigerians continue to face worsening economic conditions is entirely inconsistent with constitutional and international obligations to ensure the minimum living conditions compatible with human dignity.

“The arbitrary increase has placed a disproportionate burden on the marginalized and most vulnerable sectors of society, particularly those disadvantaged by poverty.

“The increase is seriously jeopardizing their living conditions, as well as individuals’ physical, emotional, and individual development, and intensifying and worsening socioeconomic conditions in the country.

“The increase constitutes a serious human rights problem because of the intensity with which it undermines the enjoyment and exercise by Nigerians of their human rights and renders their civic participation illusory.

“The fundamental right to life includes not only the right of every Nigerian not to be deprived of his/her life arbitrarily, but also the right that he/she will not be prevented from having access to the conditions that guarantee a dignified existence.

“The growing poverty and inequality in the country has continued to adversely affect the right of Nigerians to participatory democracy, and impede their ability to participate in their own government.

“Nigerians have for far too long been denied justice and the opportunity to get to the bottom of why they continue to pay the price for corruption in the oil sector. The increase in petrol price has rendered already impoverished citizens incapable of satisfying their minimum needs for survival.

“The increase is not inevitable, as it stems from the persistent failure of successive governments to address the allegations of corruption and mismanagement in the oil sector and the impunity of suspected perpetrators.

“Persistent increase in petrol prices keep people in poverty which in turn perpetuates discriminatory attitudes and practices against them.

“The government has a legal obligation to mobilize the maximum of the country’s available resources to ensure people’s socio-economic rights and to protect the most vulnerable and disadvantaged Nigerians.

“The government also has the legal obligations to probe and prosecute allegations of corruption and mismanagement in the NNPC, and to ensure access to justice and effective remedies for victims of corruption.

“Investigating and prosecuting the allegations of corruption and mismanagement in the oil sector would be entirely consistent with the Nigerian Constitution 1999 [as amended], and the country’s international anti-corruption obligations.

“Section 13 of the Nigerian Constitution imposes clear responsibility on the government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on the government to ‘abolish all corrupt practices’ including in the NNPC.

“Under Section 16(1) of the Constitution, the government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’

“Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.

“According to our information, the Nigerian National Petroleum Company (NNPC) Limited recently increased the price of premium motor spirit (PMS), also known as petrol, across its retail outlets.

“The price of the product increased to N855 per litre, from about N600, and in some instances above N900 per litre. The apparently unlawful increase in petrol price followed a scarcity caused by the reported refusal by suppliers to import petroleum products for the NNPCL over a $6 billion debt.

“The NNPC allegedly failed to remit USD$2.04 billion and N164 billion of oil revenues into the public treasury, as documented in the recently published 2020 annual report by the Auditor-General of the Federation.” it added

A hearing date for the suit has not yet been scheduled.

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