Category: Energy

  • Subsidy: Marketers rely on banks for growth

    Marketers are likely to record positive growth if the Central Bank of Nigeria’s (CBN) directive to commercial banks on freezing interests on loans taken by them (marketers) to import petroleum products into the country is implemented, the Depot and Petroleum Products Marketers Association of Nigeria(DAPPMAN),Executive Secretary, Mr Femi Adewole, has said.

    The marketers include members of the Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

    In an interview with The Nation on phone, he said banks have been mandated by CBN to freeze the interests on loans given to marketers to import fuel into the country, adding that marketers would have some money for operation should the banks comply with the directive of the apex bank.

    He said marketers are in limbo following their inability to raise funds for operation, adding that the stoppage of interests on their loans is bound to bring growth.

    Adewole said: “Banks are supposed to freeze the interests on facility used for fuel importation in line with the CBN’s directive. They are supposed to net-off interests on oil subsidy loans. Every interest on debt incurred by marketers, as a result of importation of Petrol Premium Spirit (PMS), as from July 4, 2018 till date, is expected to be net-off by banks.

    “If some of the debts owed by marketers in the course of bringing fuel into the country are written off by banks, the better for marketers and the industry. That is why the issue of writing off the debts of the marketers is vital to the operation of the marketers and the industry.

    Banks, Adewole said, are not helping matter on the issue of payment of the subsidy arrears N237billion owed marketers by the Federal Government. This, he said, was evident by the ways and manners in which banks are handling the issue of payment of the subsidy arrears.

    “While some banks have acted on the promissory notes submitted to them by marketers, others are not. Often times, some banks are saying that they have not gotten ‘Policy Document’, which would enable them to start processing the promissory notes. This implies that a longer period of time would be spent by banks on the issue of processing  the promissory notes. This means marketers would not get the subsidy arrears in time,” he said.

    The issue of payment of subsidy arrears has generated a lot of controversy between the Federal Government and the marketers as both parties were divided on the actual amount of money owed as subsidies.  While this lasted, the government in conjunction with the Ministry of Petroleum Resources, Ministry of Finance, Central Bank of Nigeria (CBN), the Nigerian National Petroleum Corporation (NNPC) and the Debt Management Office (DMO) conducted investigation into fuel imports over a period of time. Subsequently, the government resolved to pay the subsidy arrears in three tranches, with the first trance paid to the marketers in form of promissory notes in December 2018.

  • REA to support economic clusters, others

    The Rural Electrification Agency (REA) is supporting 80,000 shops across the country with off-grid electricity in 2019.

    This happens as the Power, Works and Housing Minister, Babatunde Raji Fashola, said the Federal Government is channeling its resources into building the economy through provision of energy sources, which include On- grid and Off-grid methods of electricity.

    The agency is achieving this goal through a scheme known as Energising Economies Initiative. Being an arm of the Ministry of Power, Works and Housing, REA has mapped out 16 economic clusters across the country, with a view to providing them  clean, safe, affordable and reliable power for growth.

    In a statement, REA’s Director of Promotions, Ayang Ogbe, said over 340,000 micro, small and medium sizes enterprises (MSME) would be provided with solar power for growth. Ogbe, also said that 2,500 jobs would be created for Nigerians across various sectors through the initiative, adding that the idea would help in encouraging socio-economic growth in Nigeria.

    According to him, more than 18,000 Nigerians, including the16 economic clusters would be provided with the Off-Grid method of electricity, preferably solar.

    The statement said: “Through the Initiative, more than the 300,000 economic clusters in the country would be supported with solar electricity, in order to improve economic activities. Aside this is the fact that rural electricity agency is providing green energy. Through this, the country would be saved from the harmful effects of greenhouse carbon emissions.’’

    Other achievements recorded by REA include the launch of three pilot projects that would help in electrifying 50,000 shops in Sabon Gari (Kano State), Ariaria market (Abia State) and Sura Shopping Complex in Lagos State.  Also, the initiative has helped in providing an Independent Power Project (IPP) in Sura Shopping Complex and lately Iponri market and 12 other markets in Lagos.”

     

     

  • Total names 15 finalists for Startupper challenge

    Oil giant, Total, has concluded the process of shortlisting the entries submitted for the 2018-2019 Startupper of the Year Challenge in Nigeria.

    The 15 shortlisted candidates include Amoo Rebecca, Eliminating Post-Harvest Waste;  Ayegba Victor, Unique Multiaxial Enterprise;  Ezenwere Emmanuel Arone, Aerial logistics; Hanson Anietie, Saint Hanson HealthCare; Ijir Aondosoo, My Waste, My Energy;  Izah Nelson, WorkLoad NG; Momoh AbdulJabbar, AMPZ; Nwakanma Obiageriaku Agatha, Tripp; Nwose Kingsley, Bewla; Obaoye Justus, Carido Automobile Service Tech; Ogunbanjo Olumide, AgroData Network; Okoroafor Chukwudifu, Drone/UAV Services;     Olatunde Victor, Fortified Foods Initiatives; Omotosho Oghenekevwe, I Sabi Work; and Orok David, Multi-Dro 311

    Their projects were selected out of more than 5,212 entries, through a questionnaire and a “Share for Likes” voting phase, before being reviewed by social business professionals.

    The 15 finalists will receive coaching over two days before pitching their projects to the local jury, made up of: Ayodeji Megbope, CEO, No Left overs; Bayo Rotimi, CEO Quest Advisory Services Limited;           Bosun Tijani, CEO of Co-creation Hub; Etop Ikpe, CEO Cars45; Funke Opeke, Founder/CEO MainOne Cable Company Limited; Iyinoluwa Aboyeji, Partner, Future Collectives; Mosunmola Abudu, CEO/Founder EbonyLife TV; Nasir Yammama, CEO/Founder Verdant AgriTech Limited; Obinna Ralph Ekezie, CEO/Founder Wakanow.com and Yewande Zaccheaus, CEO/Founder Eventful Limited.

    When the final selection process closes on February 12, 2019, the jury will announce the names of the three winners of the 2018-2019 Startupper of the Year by Total Challenge in Nigeria. These young entrepreneurs will receive financial support of up to N6miilion personalised support and coaching from Total Nigeria and a communications campaign to publicise their project. There will also be a Top Female Entrepreneur award for one of the finalists to support her project. The prizes will be awarded at an official ceremony on February 13.

    The 2018-2019 Startupper of the Year by Total Challenge, held simultaneously in 55 countries, 37 of which are in Africa, 11 in the Asia-Pacific and Middle East region, four in the Americas and three in Europe -reaffirms Total’s commitment to social and economic development in host countries worldwide. By helping innovative young entrepreneurs to realise their projects, the Challenge strengthens the local social fabric.

     

  • Sahara Group, Cherie Blair QC discuss SDGs in Africa

    Sahara Group  has said that  it is set to explore opportunities with Cherie Blair in a bid to enhance sustainable development in Africa through access to technology, education and food security.

    Group Managing Director, Sahara Power Group, Kola Adesina, Director, Governance and Sustainability, Pearl Uzokwe and Head, Corporate Communications, Bethel Obioma, met with Cherie Blair and her Omnia Strategy team in Davos at the recent 2019 World Economic Forum.  At the forum, both parties acknowledged the need for sustained collaboration and involvement of the private sector in the quest to leapfrog Africa into the Fourth Industrial Revolution.

    Speaking at the meeting, Adesina said Sahara Group, in line with its vision of bringing energy to life, was constantly seeking opportunities to partner reputable institutions in its quest to give wings to the aspirations of individuals and businesses in Africa.

    According to him, “Sahara has a remarkable precedent of being at the forefront of private sector participation in driving sustainable development.We are currently working with the United Nations on promoting food security in addition to our interventions through the Sahara Foundation. We are strongly focused on building an ecosystem that will make Africa competitive, improve the quality of life of our people, and create wealth through alignment with global partners who share our vision and passion. We look forward to exploring possible intervention projects with Cherie and Omnia Strategy.”

    Mrs. Blair noted that Africa would need to embrace technology to accelerate development and create systems that will sustain transparency in business and empower the people, especially women. She added that a commitment to good corporate citizenship and focusing on the relationship between business and human rights is increasingly critical to not only companies but consumers and politicians.

    “I think technology plays a huge role in the development of Africa. We have witnessed a marked improvement in the ease of doing business since the inception of mobile money platforms in Africa. This has improved access to funds for small businesses and seamless payment for services without the intervention of middle men. Enhancing access to funds through technology is critical to achieving economic development and prosperity. I believe there are many interventions we can establish working with the Sahara Group,” Mrs. Blair said.

    She also said the fact that the development of mobile apps is becoming commonplace in everyday activities is indicative of the role technology can play in driving sustainable development in Africa. ‘’I have seen through my own foundation (Cherie Blair Foundation for Women) how mobile technology is helping farmers till the land better in Africa and find the best price for their produce using mobile apps. These apps are also being used to deliver primary health care options and information to mothers, making people healthier and more productive.”

    Blair said the three most pressing issues Africa needs to focus on include education, infrastructure development and food security

    Uzokwe said the above were issues that Sahara Group remained passionate about, adding, “we believe that more than ever before, cooperation is needed to transform Africa and Sahara Group is delighted to explore how we can deliver the SDGs in Africa, working with Cherie Blair and her Omnia Strategy team, as well as other stakeholders.”

    Both parties will have follow up meetings to determine the terms of reference for the partnership amongst other deliberations.

  • The problem with Ogoni clean-up, by ex-MD

    •Bid process competitive and transparent – HYPREP

    Former Managing Director, Treasure Energy Limited, Rivers State owned Oil and Gas Company, and former Manager in Shell, Eddie Wikina, has queried the Federal Government’s sincerity in implementing the clean-up in Ogoniland.

    Wikina observed the contracts awarded had less than one per cent Ogoni content, wondering how the exercise that involves the whole of Ogoniland would have little or no indigenous participation in its implementation.

    Speaking with The Nation on telephone, he noted that the Federal Government through its agency, the Hydrocarbon Pollution Remediation Project (HYPREP), had handed over about four of the polluted sites to the contractors that won them.

    “But to be honest, there’s a lot of suspicion by the Ogoni people about what the government is doing, but then when you talk to the people in the HYPREP, they will tell you that things are going according to plan,” he added.

    According to him, the contracts processes were hijacked by those in authority such that the owners of the land were denied the opportunity to be part of the contracts. Just a little less than one per cent of the contracts belong to Ogoni people, how do you intend to help the people to gain from the exercise, he asked, adding the idea of the whole exercise is to help the people deal with the issues of unemployment and militancy, how does the government want to achieve that, he asked.

    Wikina argued the government agency (HYPREP) even though they claimed they did a tendering exercise in choosing their contractors yet all the exercise was done by the Federal Ministry of Environment and they did not give the Ogoni people the opportunity to be part of the tendering exercise.

    Read also: NAF kills scores of bandits in Zamfara

    According to Wikina, the project office should have been located in Port Harcourt where decisions were taken, and not in the Federal Ministry of Environment in the Federal Capital Territory (FCT). Again, all the contracting processes should also have been located in Port Harcourt, and tenders open in the state so that if you have any question, you  can go to the Port Harcourt office, you don’t have to go to the federal capital.

    ‘’Also there should be a clause that would specify that a minimum number of contracts should go to the people. There should be specific aspects of the contracts that should be left completely to the Ogoni people, we did that in Shell and it succeeded, he added.

    ‘’If you give some of these contracts to the Ogoni people, you would have empowered them, and created direct jobs for them and by so doing, most of the boys on the streets would be absorbed directly and get them out of the streets and that would help to reduce militancy in the area, he added.

    When you give all the jobs to outsiders in the name of business, they will come with their own group of people because they want their own people, how does that help the owners of the land the exercise is meant for, he asked.

    “How do you tell a poor contractor in Ogoni who probably wants to supply sand to go to Abuja to send contract documents, you are not being fair to him, where will he get the money from, that’s why the people are suspicious of what the government is doing,” he said.

    ‘’When you look at the United Nations Environment Programme (UNEP) report, the key things that were recommended were neglected, for example, it was recommended that the government should provide good drinking water in all the areas, they haven’t done that. The government should build a centre of excellence in Ogoniland and they have not done that, and these are the things recommended clearly written in the UNEP report’’.

    UNEP, in its report, had recommended that a Centre of Excellence for Environmental Restoration should be established in Ogoniland to promote learning in other areas impacted by oil spills in the Niger Delta. Offering  a  range  of  activities  and  services,  the  Centre  could  run  training courses in environmental monitoring and  restoration  and  ultimately  become  a  model for environmental restoration, attracting international attention.

    However, the Coordinator, HYPREP, Dr. Marvin Dekil, on telephone with The Nation, said the agency was set up following the report of the United Nations Environment Programme. According to him, the reason the UNEP was chosen to do the assessment was because the best international capacity and competence was required to carry out the assessment,  adding  the recommendations for implementation was also intended to be done by the best international hands as well as the locals.

    Dekil said the option of the international competitive bidding was applied while advertising for companies for the clean-up, adding the international option was needed because the people wanted the best hands in the exercise.

    “Another key component of the clean-up, he said, was the development of local capacity of the indigenous companies. So what that means is that the local people as well as local companies are trained to prove the competence to carry out the remediation work.

    “It means that we have to think of the best strong hands and also train more of the local companies so that subsequent bidding of the project would include more of the indigenous contractors having been trained on the skills.

    “The process that brought about the companies we are using is an international competitive process which is also provided by the Nigerian procurement Act of 2007. So, we went through a very robust and transparent process in doing the work and in selecting those companies, again, there’s a provision for training for other local companies to participate in the project”, he explained.

    He stressed a proper understanding of the process was required for the people to know  that the project was actually intended to empower and train more of the local companies, and local people in the remediation and other deliverables of the project.

    Dekil disclosed  that HYPREP was also doing training for the youths. According to him, HYPREP had also engaged the youth at different levels with regards to how they could capture the business opportunities that the project provides through training.

    He added that the agency would still  do more of such training to enable the youth and the business communities in Ogoniland understand the procurement processes as regards their own national loss and the best way they can comply and be involved more in the process.

    Meanwhile, HYPREP is a government project and the provision of the procurement law also applies, he stated.

  • Monarch, residents praise BEDC for reconnection

    The Olu of Igbokoda, Oba Felix Balogun, and some residents have commended the management and staff of Benin Electricity Distribution Company Plc (BEDC) for getting the town reconnected to the national grid.

    Speaking during a Town Hall meeting organized by BEDC in Igbokoda, Oba Balogun, noted that the distribution company (DisCo) not only deserved praise for the reconnection, but also for being on ground with its technical staff to resolve likely teething problems that may arise due to the prolonged outage.

    He appealed to residents to be patient with BEDC in completing the power restoration to the 11 outstanding distribution transformers. It will be recalled that 10 substations that were energized as at Wednesday included; Larada, General Hospital Secretariat road substation, Ikuomola, Ilara, Orioketilu, Church substation, Okoga College road/Omotehin, GRA1, GRA4/NDDC and Broadstreet substation.

    Oba Balogun further urged residents to work hand in hand with BEDC staff in ensuring that electricity supply reached all parts of Igbokoda, adding that now that electricity was restored, they should ensure prompt payment of their bills to strengthen relationship with the power firm, assuring that he would personally lead the team collecting bills to facilitate payment “especially now that BEDC has come to our aid in ensuring that we have light.”

    Also, several indigenes of Igbokoda praised BEDC for facilitating the reconnection of Igbokoda in collaboration with the Niger Delta Power Holding Company (NDPHC) back to the grid.

    They urged the firm to complete the energisation of the remaining 11 distribution substations in the town, with a view to provide  regular supply to the people.

    Tanimowo Igbokoyi and Prince Folorunso Oyeyemi both indigenes of Igbokoda equally lauded BEDC for the restoration of electricity supply to the town saying “we thank you for making Ilaje happy. There is light now in Igbokoda. We are grateful to BEDC for giving us light after 10years. May God help them”.

    Also, the Chief State Head, Ondo/Ekiti State, Mrs. Kunbi Labiyi remarked that the restoration was made possible through the collaboration between Federal Government through the Niger Delta Power Holding Company and BEDC and that the supply was from Ondo Transmission Substation.

    Labiyi said the Igbokoda reconnection was the Phase 1, while Phase 2 she said will entail the energisation of the outstanding 11 transformers, adding that the Phase 3 will connect new communities yet to be on the national grid.

    She, however, said that the present Ondo Transmission Station feeder which supplies electricity to Igbokoda town was lengthy and thus prone to fault, adding that the 132kva Erinje substation if worked upon by federal government, would serve the whole of Ondo South including Igbokoda more.

     

     

  • ‘Egbin to deliver full capacity of 1320Mw by month end’

    •Recruits 39 young engineers for training at NAPTIN

    Sahara Power Group, owners of Egbin power plant and First Independent Power Limited, has said the generation company will operate at full capacity of 1320 megawatts (Mw) by end of this month, which will be delivered to the national grid.

    The Group Managing Director of Sahara Power Group, Mr. Kola Adesina, stated this on the sideline of the induction of 39 young engineers, the company recruited that will undergo a 26-week intensive training across the power industry value chain at the National Power Training Institute of Nigeria (NAPTIN) in Lagos.

    “We are working hard to ensure that we get the 1320 Megawatts (MW) in place this February. By the end of this month, Egbin will be able to deploy to Nigerians the 1320Mw.

    Currently we can do 880Mw but the limitation evacuation is what is limiting it to 543Mw but as a company, I assure you the availability from Egbin will be 1320Mw by the end of February.

    However, we have two constraints to delivering the 1320Mw to customers. The constraints are gas supply and evacuation and transmission of the power. If the two constraints are there, it may be difficult to deliver the 1320Mw.

    The young engineers will undergo the Graduate Engineering Programme (GEP) at the NAPTIN.

    The Director of Training, NAPTIN, Francis Elughi, said: “The training has four modules. The field work or hands-on-training, will take 16 weeks while classroom work will start with refresher training. The refresher training, which will last for two weeks, is to enable the inductees have basic knowledge of the power sector as they graduated from different engineering backgrounds including electrical, mechanical and chemical engineering, among others. This will focus on overview of power system, after which the training will move to knowing the various components of steel and gas turbines. The second module will focus on overview of power system network to basic rotation and metering.”

    On the training, Adesina said: “The training is essentially to reskill, up-skill, recruit. It is a process to ensure and guarantee regular supply of electricity. The human capital is the most important to us as an organisation in order to offer highest customer satisfaction.

    “The inductees would have the opportunity of learning from some of the continent’s best engineering professionals at Egbin Power and First Independent Power Limited. “We are setting the tone for a future where our people will become power experts with global influence, providing smart solutions to the power needs in Africa and beyond. We are delighted to have this batch of engineers on board. Sahara Power’s vision of lighting up Africa will be driven by the best possible human capital. Most of the technical training sessions will be held at Egbin Power Plc and First Independent Power Limited.

    “Sahara Power Group had since 2014 recruited over 130 graduate engineers in line with its commitment to youth empowerment and local capacity development in the power sector,” Adesina added.

    The NAPTIN’s acting Director-General, Mr. Ahmed Bolaji Nagode, said the power sector needed consistent training activities to address the dearth of human capital in the sector. Nagode said it was imperative for the sector to bridge the knowledge gap by investing in its people through sustained collaboration between the public and private sector.

    “A robust human capital is required to transform the power sector to achieve higher efficiency, reliability and productivity. As always, NAPTIN is delighted to continue its collaboration with Sahara Power Group on this project.

    “We have through the Sahara Power group graduates engineering programme, produced excellent engineers that are already bringing innovative solutions to processes in the sector. I congratulate the successful inductees, and I am confident that the future is bright for all of you and for the entire power sector,” he said.

     

  • ‘Egbin to deliver full capacity of 1320Mw by month end’

    Sahara Power Group, owners of Egbin power plant and First Independent Power Limited, has said the generation company will operate at full capacity of 1320 megawatts (Mw) by end of this month, which will be delivered to the national grid.

    The Group Managing Director of Sahara Power Group, Mr. Kola Adesina, stated this on the sideline of the induction of 39 young engineers, the company recruited that will undergo a 26-week intensive training across the power industry value chain at the National Power Training Institute of Nigeria (NAPTIN) in Lagos.

    “We are working hard to ensure that we get the 1320 Megawatts (MW) in place this February. By the end of this month, Egbin will be able to deploy to Nigerians the 1320Mw.

    Currently we can do 880Mw but the limitation evacuation is what is limiting it to 543Mw but as a company, I assure you the availability from Egbin will be 1320Mw by the end of February.

    However, we have two constraints to delivering the 1320Mw to customers. The constraints are gas supply and evacuation and transmission of the power. If the two constraints are there, it may be difficult to deliver the 1320Mw.

    The young engineers will undergo the Graduate Engineering Programme (GEP) at the NAPTIN.

    The Director of Training, NAPTIN, Francis Elughi, said: “The training has four modules. The field work or hands-on-training, will take 16 weeks while classroom work will start with refresher training. The refresher training, which will last for two weeks, is to enable the inductees have basic knowledge of the power sector as they graduated from different engineering backgrounds including electrical, mechanical and chemical engineering, among others. This will focus on overview of power system, after which the training will move to knowing the various components of steel and gas turbines. The second module will focus on overview of power system network to basic rotation and metering.”

    On the training, Adesina said: “The training is essentially to reskill, up-skill, recruit. It is a process to ensure and guarantee regular supply of electricity. The human capital is the most important to us as an organisation in order to offer highest customer satisfaction.

    “The inductees would have the opportunity of learning from some of the continent’s best engineering professionals at Egbin Power and First Independent Power Limited. “We are setting the tone for a future where our people will become power experts with global influence, providing smart solutions to the power needs in Africa and beyond. We are delighted to have this batch of engineers on board. Sahara Power’s vision of lighting up Africa will be driven by the best possible human capital. Most of the technical training sessions will be held at Egbin Power Plc and First Independent Power Limited.

    “Sahara Power Group had since 2014 recruited over 130 graduate engineers in line with its commitment to youth empowerment and local capacity development in the power sector,” Adesina added.

    The NAPTIN’s acting Director-General, Mr. Ahmed Bolaji Nagode, said the power sector needed consistent training activities to address the dearth of human capital in the sector. Nagode said it was imperative for the sector to bridge the knowledge gap by investing in its people through sustained collaboration between the public and private sector.

    “A robust human capital is required to transform the power sector to achieve higher efficiency, reliability and productivity. As always, NAPTIN is delighted to continue its collaboration with Sahara Power Group on this project.

    “We have through the Sahara Power group graduates engineering programme, produced excellent engineers that are already bringing innovative solutions to processes in the sector. I congratulate the successful inductees, and I am confident that the future is bright for all of you and for the entire power sector,” he said.

  • USADF, All On open 2019 off-grid challenge

    The U.S. African Development Foundation (USADF) and All On have opened the application window for the 2019 Nigeria off-grid energy challenge, which will provide up to $100,000 in blended finance per enterprise for the successful applicants. The 2019 application window opened on February 1 and closes on March 15.

    USADF, a founding member of Power Africa and an independent U.S. Government agency established by Congress to support and invest in African owned and led enterprises and All On, an impact investing company backed by Shell investing in off-grid energy solution providers in Nigeria, established the challenge as a multi-year partnership to identify and help scale innovative off-grid solutions to “power up” underserved areas in Nigeria.

    Now in the second year of an initial three-year partnership, the parties will jointly provide funding to 100 per cent African owned and operated small and medium enterprises that improve energy access through off-grid energy solutions spanning solar, wind, hydro, biomass and gas technologies.  The enterprises may be developers of their own technology and/or acquiring and implementing technologies developed elsewhere. To benefit, applicants need to be legally registered in Nigeria, demonstrate the capacity to track and manage project resources and operate in good standing with the local governments in their areas of operation. Up to $50,000 per selected company will be provided in the form of convertible debt from All On, while up to $50,000 in the form of a grant will be provided by USADF.

    The recipients of the 2018 Off-Grid Energy Challenge were Prado Power Limited, Darway Coast, Auxano, Eastwind, Alyx, Creeds Energy and IKabin.

    “The Impact of the All-On/USADF grant has been tremendous. It has given us leverage and impetus to really drive our vision and do much more. The rigorous process involved in getting the fund has opened our eyes to other untapped opportunities and expanded our scope as a company. It has also given us an opening to network with like-minded entrepreneurs and partners to progress the impact of renewable energy in Nigeria. We would like to express our deepest gratitude and appreciation to USADF and All On,” said Augustine Ureh, C.O.O of Darway Coast.

    According to Washima Mede, CEO of Prado Power Limited, “It has not been easy bootstrapping and trying to gain traction as a new business. Thankfully, there are organisations like USADF and All On who have the development of this sector at heart. The USADF/All-On grant-loan has given us the chance to amplify our work, and we see ourselves on the path to making reasonable impact on the quality of life for the people in terms of the energy situation.” Many thanks to USADF and All On that are working very transparently and assiduously to help bring a solution to the energy debacle in Nigeria. We are beneficiaries, amongst many others, and the whole nation will benefit as result.”

  • Subsidy: Marketers rely on banks for growth

    Marketers are likely to record positive growth if the Central Bank of Nigeria’s (CBN) directive to commercial banks on freezing interests on loans taken by them (marketers) to import petroleum products into the country is implemented, the Depot and Petroleum Products Marketers Association of Nigeria(DAPPMAN),Executive Secretary, Mr Femi Adewole, has said.

    The marketers include members of the Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).

    In an interview with The Nation on phone, he said banks have been mandated by CBN to freeze the interests on loans given to marketers to import fuel into the country, adding that marketers would have some money for operation should the banks comply with the directive of the apex bank.

    He said marketers are in limbo following their inability to raise funds for operation, adding that the stoppage of interests on their loans is bound to bring growth.

    Adewole said: “Banks are supposed to freeze the interests on facility used for fuel importation in line with the CBN’s directive. They are supposed to net-off interests on oil subsidy loans. Every interest on debt incurred by marketers, as a result of importation of Petrol Premium Spirit (PMS), as from July 4, 2018 till date, is expected to be net-off by banks.

    “If some of the debts owed by marketers in the course of bringing fuel into the country are written off by banks, the better for marketers and the industry. That is why the issue of writing off the debts of the marketers is vital to the operation of the marketers and the industry.

    Banks, Adewole said, are not helping matter on the issue of payment of the subsidy arrears N237billion owed marketers by the Federal Government. This, he said, was evident by the ways and manners in which banks are handling the issue of payment of the subsidy arrears.

    “While some banks have acted on the promissory notes submitted to them by marketers, others are not. Often times, some banks are saying that they have not gotten ‘Policy Document’, which would enable them to start processing the promissory notes. This implies that a longer period of time would be spent by banks on the issue of processing  the promissory notes. This means marketers would not get the subsidy arrears in time,” he said.

    The issue of payment of subsidy arrears has generated a lot of controversy between the Federal Government and the marketers as both parties were divided on the actual amount of money owed as subsidies.  While this lasted, the government in conjunction with the Ministry of Petroleum Resources, Ministry of Finance, Central Bank of Nigeria (CBN), the Nigerian National Petroleum Corporation (NNPC) and the Debt Management Office (DMO) conducted investigation into fuel imports over a period of time. Subsequently, the government resolved to pay the subsidy arrears in three tranches, with the first trance paid to the marketers in form of promissory notes in December 2018.