Afrobeats superstar, David Adeleke, popularly known as Davido, said that outcome of elections in Nigeria is determined by the most rugged individual or political entity.
In a series of tweets on his X handle on Wednesday, the singer made a comment about the Nigerian electoral processes amid the ongoing Presidential Election Petition Tribunal.
He said: “Nigeria Election nah by who rugged pass.”
In another post, he also called for unity in the political system, saying:
“A divided house cannot stand …… everybody long throat .. well.”
Recall that the Presidential Election Petition Tribunal convened in Abuja on Wednesday to rule in the charges brought by the standard bearers of the Peoples Democratic Party and the Labour Party, Atiku Abubakar and Peter Obi respectively against President Bola Tinubu of the All Progressives Congress.
Justice Haruna Tsammani’s five-man-led tribunal has ruled in favour of Tinubu over the 25% victory claimed by Obi in the presidential election and Chicago’s drug-dealing forfeiture brought by Atiku, among others.
Super Falcons star striker, Asisat Oshoala has been nominated for the 2023 Ballon d’Or women’s player of the year award following her impressive season with FC Barcelona Femini in the Spanish League and the Super Falcons of Nigeria.
Oshoala, who is the reigning Africa women’s player of the year, scored 21 goals in just 28 games to lead FC Barcelona to the 2022/23 Spanish league title and was the Spanish club’s top-scorer with 27 goals in all competitions.
The 28-year-old was instrumental as Barcelona retained their domestic title and won the UEFA Women’s Champions League.
The two-time Champions league winner was also nominated for the award in 2022 as she became the first female African player to get the Ballon Dór nomination, finishing in the 16th position among the shortlisted 30 players.
At the 2023 FIFA Women’s World Cup in Australia and New Zealand, Oshoala made history as the first Nigerian and first female African player to score at three different editions of the FIFA World Cup.
The Super Falcons star scored in her debut World Cup in 2015 against Sweden; in 2019 against South Korea; and now in 2023 against Australia.
She scored the winning goal in the 3-2 win over co-hosts Australia in the group stage and led the Super Falcons of Nigeria to an impressive round of 16 finish.
Nigeria crashed out of the 2023 FIFA Women’s World Cup after losing 4-2 on penalties to eventual finalists—the Lionesses of England in the Round of 16.
The nine-time African champions were unbeaten in the group stage finishing second behind co-hosts Australia, and qualified ahead of Olympic champions, Canada and debutants Republic of Ireland.
Oshoala was a key part of the impressive Falcons side as they avoided defeat in all three group-stage matches for the first time in history, with a win and two draws.
The Ikorodu born superstar and former Arsenal striker has also won the African Player of the Year award for a record five times—2014, 2016, 2017, 2019, and in 2022.
With two-time defending champion Alexia Putellas out of the running after a season hampered by injuries, a new winner will be crowned on October 30th.
Barcelona and Spain superstar Bonmati, who was instrumental to the Spanish women’s national team glory at the FIFA Women’s World Cup is the favourite to win the prize her teammate, Alexia Putellas won last year.
With a stellar performance at the tournament, playing in every game and winning the best player award, Bonmati is a strong contender to succeed Putellas.
Chelsea’s Sam Kerr is yet another likely winner having racked up 29 goals for Chelsea last season as they won a domestic double before featuring for the Matildas of Australia at the World Cup.
Lyon’s Ada Hegerberg won the maiden women’s Ballon d’Or back in 2018 while United States Women’s national team star Megan Rapinoe won the honours in 2019. The COVID-19 pandemic caused the 2020 ceremony to be cancelled. Oshoala’s teammate, Alexia Putellas emerged as the winner following its resumption in 2021 and retained her title in 2022.
The Ballon d’Or ceremony will take place the Theatre du Chatelet in Paris on October 30.
The winners of the Ballon d’Or 2023 will be announced on this day.
The Ballon d’Or women’s award nominees are:
Khadija Shaw (Man City)
Mapi Leon (Barcelona)
Mary Earps (Man United)
Asisat Oshoala (Barcelona)
Wendie Renard (Lyon)
Katie Mccabe (Arsenal)
Jill Roord (Wolfsburg and Man City)
Yui Hasegawa (Man City)
Alexandra Popp (Wolfsburg)
Aitana Bonmati (Barcelona)
Debinha (Kansas City)
Sam Kerr (Chelsea)
Guro Reiten (Chelsea)
Ewa Pajor (Wolfsburg)
Patricia Guijarro (Barcelona)
Daphne Van Domselaar (Twente and Aston Villa)
Lena Oberdorf (Wolfsburg)
Hinata Miyazawa (MyNavi Sendai and Man United)
Millie Bright(Chelsea)
Salma Paralluelo (Barcelona)
Sophia Smith (Portland Thorns)
Hayley Raso (Man City and Real Madrid)
Amanda Ilestedt (PSG and Arsenal)
Georgia Stanway (Bayern Munich)
Olga Ramona (Real Madrid)
Fridolina Rolfo (Barcelona)
Rachel Daly (Aston Villa)
Alba Redondo (Levante)
Linda Caicedo (Real Madrid)
Kadidiatou Diani (Lyon)
Nigerian forward, Victor Osimhen has been nominated alongside Inter Miami forward, Lionel Messi and Man City forward Erling Haaland for the 2023 Ballon d’Or men’s award.
The Super Eagles hotshot becomes the first Nigerian to be nominated for the prestigious prize since Nwankwo Kanu in 1999.
The Napoli striker scored 26 Serie A goals last season to guide the Partenopei to the Scudetto for the first time in more than three decades.
Osimhen will compete with favourite and seven-time Ballon d’Or winner Messi who was instrumental to Argentina’s World Cup glory in Qatar.
There is also Manchester City forward Erling Haaland who had a stellar debut seasons with City as they won the treble for the first time in the club’s history.
See full list for Ballon d’or 2023 men’s award
Josko Gvardiol
Jamal Musiala
Andre Onana
Karim Benzema
Mohamed Salah
Bukayo Saka
Kevin DeBruyne
Jude Bellingham
Randal Kolo Muani
Bernado Silva
Khvicha Kvaratskhelia
Nicolo Barella
Emiliano Martinez
Ruben Dias
Erling Haaland
Martin Odegaard
Ikay Guendogan
Yassine Bounou
Julian Alvarez
Vinicius Jr.
Lionel Messi
Rodri
Lautaro Martinez
Antoine Griezmann
Robert Lewandowski
Kylian Mbappe
Victor Osimhen
Kim Min-Jae
Luka Modric
Harry Kane
In the wake of the National Labour Congress (NLC) strike over increasing hardship and suffering caused by the removal of the subsidy, a growing number of Nigerians are advocating for the rich to pay more taxes to fund relief for the masses.
This crucial discussion came to the forefront during an engaging X Space event hosted by Nairametrics titled “NLC Strike: Demands, Dialogues, and Determination“ on Tuesday evening. One of the speakers, Bolarinwa Durojaiye, stated the need for the rich to pay more tax in order to fund a sustainable transport initiative for the masses.
- Durojaiye said, “There’s no public transportation system globally that doesn’t require subsidies. We need to identify who will pay for it and how. Advanced countries fund public transport by redistributing wealth – taking a bit from those with extra and reinvesting it into the ecosystem.“
- He pointed out that some individuals can contribute more, and buses transporting the masses should not bear toll charges. “The overarching objective is to relieve the hardships faced by millions impacted by challenging economic conditions.”
- Furthermore, he underscored the necessity of creating wealth to support such initiatives. He noted, “To achieve this, we need to create wealth because we cannot redistribute wealth that hasn’t been generated. The capital class is most proficient at wealth creation, but we must also implement regulations to prevent excessive accumulation of wealth.”
In contrast, Samuel (Eco Evangelist) emphasized the importance of government accountability and transparency in handling funds and revenue to make such taxation measures feasible.
- “The government needs to engage the grassroots in understanding the direction of these changes and involve the wealthy in supporting this system, Samuel remarked.
- “To ensure effective distribution of relief, working with NGOs and charities is crucial, as they provide valuable data for planning and goal setting. Transparency in the country’s financial management is essential to ensure that contributions are effectively used for the benefit of the people.”
Discussing the role of the NLC in these matters, Ewoma Vese, another speaker, raised concerns about a significant trust deficit within the union, particularly regarding the perceived ineffectiveness of the ongoing strike that commenced on Tuesday.
- Ewoma Vese stated, “There’s a considerable trust deficit, with many Nigerians perceiving that the union is negotiating primarily for its own interests. Building trust alignment requires substantial efforts.“
Samuel echoed these sentiments by highlighting the need for the labour union to focus on orientation about its values and mission in the broader context of Nigeria’s reality. He emphasized that the NLC should communicate its stance on various issues and how they benefit citizens.
- “Institutions must collaborate to educate the public about ongoing developments,” Samuel said. “The labour union should not only emerge when problems arise but should also address issues such as underemployment and provide clarity about its goals and benefits to the average Nigerian citizen.”
Backstory
Nairametrics previously reported that the Nigeria Labour Congress (NLC) started a two-day warning strike on Tuesday, September 5. This is in relation to the removal of fuel subsidy. NLC President, Joe Ajaero, announced this during a press conference at Labour House in Abuja last Friday.
In early August, the NLC organized a nationwide protest against what they saw as “anti-poor” policies of the Bola Tinubu administration that were affecting Nigerians.
On May 29th, President Bola Tinubu ended the controversial fuel subsidy, causing fuel prices to spike by over 200% nationwide. This also led to a 97.8% increase in local transportation costs, as reported by the National Bureau of Statistics.
Recently, the President formed committees to introduce relief measures, including buying CNG vehicles, providing N75 billion in low-interest loans to manufacturers and MSMEs, allocating N5 billion to states, and distributing grains across all 36 states.
China has banned officials at central government agencies from using Apple’s iPhones and other foreign-branded devices while at work, the Wall Street Journal reported on Wednesday.
The report recalls that in recent weeks, staff were given the instructions by their superiors in workplace chat groups or meetings, but it wasn’t clear how widely the orders ranged.
The ban comes ahead of a new line of iPhones to be launched which reports say could trigger concerns among foreign companies operating in China as Sino-U.S. tensions escalate.
China, for over a decade, had been seeking to reduce reliance on foreign technologies, asking state-affiliated firms such as banks to switch to local software and promoting domestic semiconductor chip manufacturing.
Beijing ratcheted up this campaign in 2020, when its leaders proposed a so-called “dual circulation” growth model to reduce reliance on overseas markets and technology, as its concerns over data security grew.
In May, China urged big state-owned enterprises to play a key role in its drive to attain self-reliance in technology, raising the stakes in the race amid rifts with the United States.
The Presidential Election Petitions Tribunal (PEPT) led by Justice Haruna Tsammani has said that the Independent Nationa Electoral Commission (INEC) was not mandated to send election results electronically.
The five-man tribunal said this during the PEPT ruling in Abuja on Wednesday.
Tsammani said, “There is no provision for the electronic transmission of election results in the Electoral Act 2022.”
On the mode of transmission of election results, the tribunal said INEC is at liberty to define the mode it intends to use.
“By the provision of Section 52 and Section 65 of the Electoral Act, INEC is at liberty to prescribe the manner in which result can be transmitted. INEC cannot be compelled to electronically transmit result,” the court held.
[Vanguard]
Some members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have reportedly fallen sick over the news of the sales of Eni Nigeria and the Nigerian Agip Oil Company (NAOC) Limited to Oando Plc.
The senior oil and gas workers have expressed displeasure at Oando’s acquisition of 100 percent shares of the Nigerian Agip Oil Company Limited and Eni Nigeria’s outright sale of its 20 percent equity share in NAOC JV.
The Branch Chairman of Agip Group PENGASSAN in Port Harcourt, Rivers State capital, Eyong Survival, has revealed that ever since the news broke a few days ago, some staff of the association has been falling sick because about 3000 jobs are on the line because the details of the acquisition is not known to the union.
He said the acquisition was unfair, as the union was not informed or interfaced with.
Survival recounted that the union had met with the company’s management when the sale of NAOC JV assets to Oando filtered into the public domain, but the managing director allegedly denied the existence of such.
He, therefore, threatened a total shutdown and to withdraw all its members from offices and field locations over the issue while calling on the management of Eni to do the needful.
According to The Punch, Survival stated that “The Managing Director of Eni Nigeria, Mr. Fabrizio Bolondi, invited the workforce to a meeting on the 4th of September, 2023, and callously informed us that Eni has sold its 20 per cent equity share in NAOC JV, comprising OML 60, 61, 62 & 63, covering parts of Rivers, Delta, Bayelsa, and Imo States to Oando Nigeria Limited, transferring all her assets and liabilities to O and O, without recourse to outstanding financial obligations to the workers, vis-avis their employee savings plan, pension and gratuity.
“It is imperative to note that the Union, being the workers’ representative, was not pre-informed before the commencement of the sales agreement.
“Not long from date, the Union, on hearing rumours on sales of the assets, held a meeting with the Management on 12 July 2023, where the question was put forward to Eni Nigeria Management if they had any plan of selling the NAOC JV assets to O and O or any other Company, but the managing director vehemently denied any plan of selling the JV assets.
“Instead, the MD made presentations on planned injection of IPP phase 2 generated power to the national grid, as well as possible conversion of OPL 245 to OML by the Government.
“By the announcement of the sale of NAOC JV assets to OANDO, over 3000 indigenous workers may be thrown into the labour market as the details of their sales transaction were not made known.
“At the moment, a lot of NAOC workers have suddenly developed some health challenges as a result of that callous announcement made by the MD of Eni Nigeria.
“The union position is for due process to be followed by Eni Management. The Union has ordered a total withdrawal of her members from all offices and field locations of the company until a proper agreement is reached with Eni Nigeria and AGIP Group PENGASSAN.
“By that withdrawal action, gas supply to Indoranma has been affected, daily oil production on 30, 000nbbls of crude oil has been suspended, about 10mscf of LNG gas to NLNG has been cut off, and about 350MW of Okpai IPP power to the national grid has been shut down.”
HELPLESS families of National Youth Service Corps, NYSC, members from Akwa Ibom State, abducted in Zamfara State by gunmen over two weeks ago on their way to Orientation Camp in Sokoto State are gripped in fear of bad news, as the ultimatum the abductors gave for ransom expires today.
Speaking to Vanguard, yesterday, in Uyo, some families of eight victims still in captivity disclosed receiving calls from the abductors to send a ransom balance of N8 million latest today or expect bad news having earlier paid N5 million.
The latest development comes even as the Akwa Ibom State Government remains mum on the pains faced by the victims and their families two weeks after.
A relative of one of the victims narrated to Vanguard in confidence: “The young man left Akwa Ibom on August 16, 2023, with other corps members, and on August 17 night, they kidnapped them on their way to Sokoto.
“On Friday, they contacted us. That first day, those people that kidnapped them demanded N4 million ransom from each of them (victims). They were eight NYSC members and the AKTC driver made them nine.
“The mother of the boy (name withheld) started crying because as a poor widow and petty trader, she could not afford such amount of money. The following day, Saturday, the abductors contacted us again and decided all parents of their victims meet to jointly raise N10 million.
“The families have been able to raise N5 million and sent to them. It would have remained N5 million, but they later requested money for three power bikes. And we have checked each powerbike cost N1 million plus.
“They spoke to us again Monday this week to give till Wednesday, September 6, as deadline for the remaining amount to be paid. So, we are looking at N8 million, including money for the powerbikes. And they warned that we should try and meet the deadline, if we don’t want to hear bad news.”
Our source noted that since all family members of the victims had protested to the state House of Assembly over their plight, government has not made any effort to assist in ensuring release of the victims.
Another relation of the kidnap victims, who simply identified himself as Mfon, lamented that since they were given today’s deadline by the abductors, they have been restless.
He said: “We have been moving around to see people who can assist us in anyway to raise this amount. Just this morning, village head and the wife gave us N300,000 to support us.
“We are still looking for N700,000 to make N1 million on our part because each of the families must contribute N1 million to complete the outstanding N8 million ransom.”
The Director of the Abuja School of Social and Political Thoughts, Sam Amadi, has said President Bola Tinubu believes he would emerge victorious at the Presidential Election Tribunal.
Amadi anchored his claim on the fact that Tinubu travelled to India a few days before the tribunal’s judgment.
Tinubu arrived in New Delhi, India, for a six-day official visit to attend the G20 Leaders’ Summit and other engagements.
He was accompanied on the trip by top government officials, including ministers and presidential aides.
The president is expected to participate in the G20 Summit, which is scheduled to be held between Sept. 9 and Sept. 10.
On the sidelines of the submit, Tinubu will have high-level meetings with other world leaders and business executives, as well as meet the Nigerian community in India.
Meanwhile, the tribunal is in session in preparation to deliver judgment on petitions by presidential candidates of the Peoples Democratic Party, Atiku Abubakar and Labour Party’s Peter Obi.
Atiku and Obi had urged the tribunal to upturn Tinubu’s victory because he did not win the last presidential election.
However, Amadi said Tinubu’s action shows that the outcome of the tribunal is predetermined.
Tweeting, Amadi wrote: “Tinubu leaving d country two days b4 an important court decision that could end his tenure & attending a summit he has no real stakes, arriving b4 those with stakes, is a JOKE.
“It suggests predetermination. He believes it’s in the bag. That cocksureness bruises judicial integrity.”
[DailyPost]
It’s been a month since military guards under the command of General Abdourahamane Tchiani ended 12 years of democratic governance in Niger. The situation seems to have reached a stalemate as the junta has refused to restore democracy immediately.
In a national broadcast on 19 August, Tchiani stated that the military regime would organise elections and hand power back to a democratic government after three years.
Ecowas rejected the proposal. Ecowas commissioner for peace and security Abdel-Fatau Musah said the regional bloc wanted an immediate restoration of constitutional order and the release of Niger’s President Mohamed Bazoum.
Beyond rejecting the proposal, Ecowas seems lost regarding what to do next.
The water has been further muddied by a 21 August statement from the African Union in which it “strongly opposed” any military intervention from countries outside the continent. Observers have noted that the statement is ambiguous and therefore unhelpful.
The AU didn’t make its position clear on an intervention by Ecowas to restore democracy.
These developments confirm my previously stated view that military intervention is unlikely because of the many complications it would invite.
Now that the junta has stated its position, and Ecowas has rejected it, what next?
As a scholar of politics and international relations I have analysed the implications of foreign military bases in Niger. I have also previously highlighted the role Nigeria plays in regional organisations such as Ecowas and the Multinational Joint Taskforce in the region.
I believe there are three things Nigeria-led Ecowas can do to resolve the situation without using force or losing its credibility as an organisation. The regional bloc made a mistake when it simultaneously imposed sanctions, threatened the use of force and gave a short ultimatum for the regime to hand over power.
Ecowas now needs to re-strategise by re-evaluating and properly targeting its sanctions; negotiating a short transition period; and negotiating foreign interests in Niger.
Ecowas needs to make sure its sanctions target only leaders of the military junta and their allies. It also needs to agree that Bazoum is unlikely to be reinstated, so there should be a short transition period.
In addition, the organisation must be pro-active in helping the United States protect its security interests and France its economic interests on terms favourable to Niger. The US has invested heavily in security infrastructure in the Sahel (mainly in Niger), while France has investments in the mining sector.
Re-evaluating the use of sanctions
The sanctions issued by Ecowas are biting hard. Prices of staple foods have risen because Niger is a landlocked country and depends on its neighbours for most imports. Some of the countries have closed their borders to Niger, thereby disrupting the economy of the country. While the sanctions seem to be effective, they are affecting ordinary Nigeriens more than the junta.
In addition, Nigeria has cut off the supply of electricity. This is having an impact on small businesses and average Nigeriens.
The impact of the sanctions is fuelling resentment towards Ecowas and the organisation is accused of acting on behalf of France.
The sanctions have had the effect of forcing the junta to negotiate and reopen the possibility for dialogue. This, I believe, resulted in the announcement of the three-year transition period. It is therefore essential for Ecowas to keep some of the sanctions. But they should target members of the ruling junta and their allies.
The junta also understands that public perceptions could change quickly if the hardship continues, so Ecowas needs to use this as leverage in negotiations.
Negotiate a short transition period
It is very unlikely that Bazoum will be reinstated because of how far the junta has already gone in entrenching itself.
Ecowas should push for a short transition period. Algeria has already suggested a six month transition. This transition period must be consistent across all the four countries that have had coups: Guinea, Burkina Faso, Mali and Niger.
The perceived inaction by Ecowas when military juntas took over in the other three countries emboldened the junta in Niger. This has been corrected with strong words and action by Ecowas after the Niger coup and must be sustained to deter other countries in the region.
A short transition period will restore stability to the country and help western partners to protect their assets and continue to support the fight against insurgency.
Negotiating foreign interests
One key issue which has been observed since the military takeover is anger and resentment towards France and perceived “foreign occupation”.
France has significant economic interests, which the people argue have not benefited them. For instance, Areva – the biggest uranium mining company in Niger – has previously been accused of not paying Niger a fair rate of tax. Bazoum was accused of being a puppet of France.
The US has security interests in the country, including one of its largest drone bases in Africa.
Any attempts to have these countries relinquish their interests will be met with stiff opposition but will also have a negative impact on the economy and security of Niger.
Ecowas will have to do two things to placate Nigeriens and stabilise the region.
First, it must ensure Niger gets a fair share of its resources from mining companies operating in the country.
Second, Ecowas needs to be more involved in working with the US and its allies in fighting terrorism in the region. Terrorism is a regional problem and Ecowas must be more proactive in helping its members.
Currently, Ecowas is seen as an enemy of Niger and the organisation needs to change this perception. It’s time for Ecowas to stop the threat of military intervention in Niger and engage in diplomacy so as not to escalate the already precarious situation of the region.
More...
The Labour Party (LP) was not excluded as party chieftains of various political parties stormed the Appeal Court venue in Abuja for Wednesday’s tribunal ruling on the outcome of the 2023 presidential election in Nigeria.
Naija News reports several political heavyweights in Nigeria, and a host of other stakeholders stormed the Appeal Court to witness the delivery of the tribunal’s judgment.
The Labour Party Chairman, Julius Abure, Senator Ireti Kingibe, Valentine Ozigbo, and Aisha Yesufu were among the prominent LP chieftains who were also present in court.
At the time of filing this report, Tribunal judges had arrived and the court had already started sitting ahead of the verdict.
APC Governor Shuns Abure In Court
Meanwhile, a mild drama played out in court on Wednesday as Bauchi State governor, Bala Mohammed, ignored Labour Party (LP) National Chairman, Julius Abure.
A video online shows that the All Progressives Congress (APC) National Chairman, Abdullahi Ganduje, has arrived in court ahead of the Presidential Election Petitions Tribunal (PEPT) verdict in Abuja.
Bala Mohammed, and Nasarawa State Governor, Abdullahi Sule, were also seen in court as they exchanged pleasantries with other APC chieftains.
However, while Bala was greeting other APC chieftains, Abure waved at him but was ignored.
[NaijaNews]
The family of Ololade Adesina, the gifted Kwara State boy who scored nine distinctions in the 2023 West African Secondary School Certificate Examination, has appealed for a scholarship for their son from the state government or individuals.
Ezekiel Adesina, Ololade’s father, made the call in an interview with the News Agency of Nigeria in Ilorin on Tuesday.
He said the plea became necessary because the family had serious financial challenges and could not support Ololade to further his studies.
Adesina said: “I am making an earnest plea to the public for support in securing Ololade’s educational future.
“We are at a critical juncture in Ololade’s educational journey.
“With the support of our community and their belief in his abilities, we can provide him with the stepping stones he needs to forge ahead and achieve his dreams.”
The father, who lost his job, said life became difficult for the family to the extent that he had concluded arrangements to withdraw Ololade from school because he could not afford payment for his son’s Junior Secondary School examination.
He said: “It was the parents of his friend that paid for us when he wanted to write his Junior WAEC.
“His friend told his parents that they were about to withdraw Ololade for lack of financial will.”
Adesina commended Ololade’s school management for waiving 50 percent of his son’s WASSCE registration fees.
He added: “Despite Rehoboth College, Ilorin giving us a 50 percent slash in fees because Ololade was gifted, the family could not still afford to pay for his WASSCE.
“After sitting for his exams as allowed by Rehoboth College, I could not afford to pay to check his result.
“I had to go for a N5,000 loan to ensure we check his results.
“To the glory of God, he cleared all with distinction.
“To our greatest surprise, Rehoboth College wrote to us informing us that they have written off over N300,000 debt for us as a form of gift in appreciation to the sterling performance of Ololade at the 2023 WASSCE.”
The father said he always reminded Ololade the need to fully focus on his education even as he claimed he constantly advised him to make distinction in all the subjects.
[EagleOnline]
• N318 billion subsidy now paid monthly
• Marketers lament inability to import as NNPC maintains monopoly with FX access
There are indications that the Federal Government may have returned subsidy payment on Premium Motor Spirit (PMS), using the supposed commercialised Nigerian National Petroleum Company Limited to manage the market shocks and maintain monopoly of the downstream segment of the nation’s oil and gas industry.
According to The Guardian analysis, about N318 billion (N10.6 billion) monthly losses are now recorded on petrol and may be calculated as under-recovery by the supposed NNPC Limited. Similar development had played out under the former administration of Muhammadu Buhari, where the government secretly returned subsidy and called it under-recovery in NNPC’s books.
Usually, the federation account suffers it. The fund is usually deducted before NNPC makes any remittance into the account meant for the three tiers of government.
Coming weeks after President Bola Tinubu said there would no longer be increase in pump price of PMS and days after NNPC’s Huub Stokman took over as Chairman of the Major Oil Marketers Association of Nigeria (MOMAN), some marketers told The Guardian yesterday that the state oil firm is now subsidising through its access to foreign exchange.
In mid-August, Tinubu stated that despite the deregulation of the downstream market, the current petrol price would remain unchanged, as there are no immediate plans to raise fuel prices.
As at the last week of August, PMS was trading for $1,030.11 per metric tonne at the international market compared with the $859.25 it traded around July when NNPC increased pump price to an average of N617 per litre. This shows an increase of 19.88 per cent. The exchange rate in July was N820/$ but now N920/$, indicating a 12.19 per cent increase. The crude oil price in July was $78.50 per barrel, it traded for $88.50 per barrel in the last week of August. Yesterday, it hit the $90 mark.
Also, while the price per litre at the international market in July was $0.641, it stood at $0.792 in the last week of August. This means that the landing cost of PMS stands at about N728.64 per litre compared to the N529 it was in July.
The addition of freight costs, lightering costs (STS), distribution margin, ancillary costs by Nigerian Midstream Downstream Regulatory Authority (NMDPRA), Nigerian Port Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA) as well as marketers’ margin stands at about N90 to N105.
By implication, the pump price of PMS should hover between N818 and N833 per litre depending on one’s city of residence. With these developments, the average subsidy on every litre is about N200 per litre. This is about N10.6 billion daily and N318 billion monthly.
As of yesterday, the pump price of PMS in Cameroon is N1,082.70 per litre, in Benin, it was N1,008.90, in Sierra Leone, it stood at N1,143, N1,037 in Togo, N1,047 in Ghana and N1,258.20 in Guinea.
When the current pump price is compared with other deregulated products in the country, diesel and kerosene are selling between N800 and N900 per litre. The price of kerosene/jet fuel at the international market as of last month of August is $1,036.60 per metric tonne, which was almost the same as PMS. Diesel at the international level traded lower during the period at $952.85 per metric tonne.
MOMAN, which had regularly provided a pricing update, had suspended it. A source at the organisation said there is an instruction not to share the update because the government has said there would be no price increase.
Although the exchange rate at the NAFEX window traded for N769.93 on Monday, many marketers said they are unable to source foreign exchange from the window and as such cannot import despite obtaining licenses from the Nigerian Midstream Downstream Regulatory Authority (NMDPRA).
“NNPC unofficially has been told to subsidise PMS through exchange rates. They are getting dollars from crude oil sales. It is their money they can decide to do with the exchange rate at N1 to $1 or N915 to $1, whatever they do, it is in their books, they aren’t looking for forex anywhere. But we marketers have to go out and look for forex, and it is this forex that is impacting on what we sell,” a top marketer, who pleaded not be mentioned, said.
He disclosed that if the situation persists, most marketers would be out of business in no time.
National President, Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), Benneth Korie, who had decried the prevailing development in the sector said: “We are suffering too much. We are losing money on a daily basis. That is what we do. We borrowed money from the banks and some of us cannot pay again.
“We are in trouble. There is a need for the government to come into this matter urgently, otherwise we will have a problem. Definitely the price of PMS will go up as much as the dollar price goes up. If you are exchanging $1 for N950, it will go up.”
Against the provisions of the Petroleum Industry Act (PIA), Nigeria needs an estimated $15 billion to import almost 100 per cent of its PMS demand in a year as the local refineries are dormant.
While marketers had raised concerns that there was no transition plan in place before subsidy was removed, some of them predicted the current situation where foreign exchange crisis would humble the much-trumpeted deregulation of the downstream sector.
Former chairman of the Oil Marketers Association of Nigeria (MOMAN), Tunji Oyebanji had earlier warned proper approach to the subsidy removal was sacrosanct.
“We are saying that there has to be a very clear roadmap so that all stakeholders can be carried along. For me, this is very critical.
“For example, at the point we will remove subsidies, will other products be imported? We can’t wait until the day subsidy will be removed before we know. If they are importing, we need to have placed an order. If NNPC will be importing, we need to know. Everyone needs to be on the same page,” Oyebanji said.
At about 3:39pm on Monday, 4th September, The Guardian requested clarification from the Group Corporate Communications Manager of the NNPC, Garba Deen Muhammed on the management of the pricing template but did not receive a reply until this report was filed.
The Justice Haruna Tsammani-led five-member panel of the Presidential Petition Election Tribunal on Wednesday said the Allied Peoples Movement’s petition challenging the qualification of Vice President, Kashim Shettima, was a pre-election matter.
Reading his verdict, Tsammani said the matter ought to have been challenged before the conduct of the presidential election.
He said, “The issue of qualification or disqualification is a constitutional one.
The issue of disqualification or qualification is a pre-election matter.
“It must be determined before the conduct of the election. This court has no jurisdiction to hear the matter and even if it does it is status-barred because it is a pre-election matter.”
Earlier, Tsammani said the tribunal would deliver judgment on the APM’s petition first.
Justice Tsammani said judgements would be delivered separately on the petitions.
He said, “We will deliver judgements on the petitions separately. The petition, number four will be treated first.”
The APM was challenging the qualification of the Vice president, Kashim Shettima among others.
[Punch]