Tag: Fed Govt

  • Stop funding BDCs, MAN urges Fed Govt

    Stop funding BDCs, MAN urges Fed Govt

    •Manufacturers seek guided deregulation

    The Manufacturers Association of Nigeria (MAN) has urg  ed the Central Bank of Nigeria (CBN) to stop funding Bureau de Change (BDC) operators.

    Its President, Dr. Frank Udemba Jacobs, wondered why BDCs should depend on official allocation of foreign exchange (forex) from the CBN, instead of exploring alternative funding windows.

    Jacobs also questioned the real functions of BDCs with the kind of arrangement the nation is running. “They act as mere distributive conduit pipes by simply getting forex allocation from the CBN and selling to every Nigerian out of the multitude that need forex thereby making their profits without making value addition,” he said.

    In a statement, the MAN chief said forex allocated to the BDCs should rather be channelled to the productive sectors of the economy, especially manufacturers for the importation of essential inputs and machinery that are not locally available, as well as to the social welfare segment of the society, such as hospitals and schools, among others.

    Dr. Jacobs, who commended the Federal Government for combating the challenges faced by the country as a result of falling oil prices, also advocated the use of guided deregulation of the economy such that the naira would be left to flow freely within a bracket determied by the CBN.

    He said the nation cannot afford to allow the naira to fall freely without any check. “MAN believes that this arrangement will allow the exchange rate to be determined by the market but with some moderation and also leave room for investors to be attracted to invest in the country.

    “This will also assist in checking the ugly situation that took place during the Structural Adjustment Programme (SAP) era where, as a result of devaluation, over 60 per cent of small and medium scale industries closed down because of inability to sustain their operations,” he said.

    He said restriction on dollar inflow should be lifted but this should not preclude CBN’s duty of investigating sources of such incomes.

    The MAN chief said to avoid perceived abuse of forex allocation and save the naira, the management of forex, which is vested on a Committee chaired by the Governor of the CBN should monitor the utilisation of forex by recipients by remitting funds directly to the beneficiary company overseas.

    On how to grow the economy, he said emphasis should be placed on the productive sector in order to raise and sustain the tempo of industrialisation. He said export of manufactured products and indeed, other finished products should be encouraged in order to make up for the deficit the nation is currently witnessing in the forex market, while exporters should be encouraged to repatriate accrued funds home.

    While urging government to explore other avenues of forex inflow other than oil revenue by giving incentives to exporters, Dr. Jacobs stresed the need to encourage the manufacturing sector to grow in view of the critical role it plays in job and wealth creation as well as technology for skill acquisition.

    He argued that except all these are adhered to, Nigeria’s quest to increase her forex reserve and strengthen the naira may remain a pipe dream.

    While speaking against the subsidy regime, Jacobs observed that a major source of forex wastage in Nigeria is through the on-going subsidy on importation of petroleum products.

    He said the country has no business relying on fuel importation to meet local needs, given the number of refineries in the country, which are currently lying idle.

  • Fed Govt plans to revive depots

    Fed Govt plans to revive depots

    Plans are underway to fix depots that are under the management of the Pipeline and Product Marketing Company (PPMC), The Nation has learnt.

    The depots are located in Ejigbo, Mosimi, Ilorin, Aba, Ore, Kaduna, Gombe, Yola, and Enugu.

    Others are  Atlas Cove in Lagos and  Makurdi.

    It was gathered that many of the depots are not active due to several years of neglect by successive administration, a development that   informed the decision  of the Federal Government to revive them.

    An official of one of the companies hired by the government to secure pipelines across the country, said the Federal Government has carried out an impact assesment programme on the depots with a view to determining their level of viability vis-a-vis putting in place measure to repair them.

    The official, who was part of the   team that followed  the Managing Director of PPMC, Mrs Esther Nmandi Ogbue to Mosimi depot  recenlty, said efforts are at advanced stage to bring the depots back on stream soon.

    The sources who  spoke on condition of anonymity, said many of the moribund depots are located in states in the North-Eastern, North-Western and other parts of the country.

    “ The strategic locations of the depots, and the huge volume of fuel the depots are pumping before they went bad, was the major reason why the government is planning to fix them.

    Alluding to this,  was the Zonal Trustee of  Independent Marketers Branch(IMB) of National  Union of Petroluem and Natural Gas  Workers (NUPENG), Mr Kofo Oladehinde, who  said most of the depots are in dire strait.

    He said Ibadan, Ilorin and Ore depots have not been working for sometime, adding that the operations of the depots are strategic.

    He said failure of the depots to work well has affected fuel supply to some parts of the country.

    He said Mosimi depot is not operating optimally, adding that the government through the Pipeline and Product Marketing Company is putting in place measures to upgrade it.

    He said the upgrade would increase the capacity of the depot, as well as making it more useful.

    According to him, the upgrade was part of the restructuring programmes initiated by the government to return the depots to optimal level.

    ‘’Activities at Mosimi depot where I work have not been impressive due to operational hitches. We are hoping that the depot and others in the country are repaired to stimulate efficiency in the downstream segment of the oil and gas industry”, he said.

    The Managing Director of PPMC Ogbue, said efforts were being made to put the depots to optimal usage.

    She said the government was concerned with the state of the depots, hence the decision to repair them  to ensure uninterrupted supply of fuel to filling stations across the country.

    She said: “In places like Makurdi and Yola, petroleum products have not been pumped from depots in those areas in the last 10 years, and that means in that regioin, the government has to move trucks from Calabar to Enugu to Aba to Yola.

    It would be recalled that the Federal Government has put in place  measures to improve power supply. They include fixing of pipelines to improve fuel supply, rehabilitation of the refineries, direct importation of fuel by the Nigerian National Petroleum Corporation(NNPC) among others.

  • Fed Govt ‘ll not sell  National Theatre, says Mohammed

    Fed Govt ‘ll not sell National Theatre, says Mohammed

    The Federal Government on Monday assured that the National Theatre will always remain a national monument and will not be sold for whatever reason.

    ‘’But we are not averse to a Public-Private Partnership (PPP) arrangement that will add value to the iconic (National Theatre) complex,’’ the Minister of Information and Culture, Alhaji Lai Mohammed, said during a visit to the complex as part of the tour of the parastatals under his Ministry.

    He said the process of selecting a preferred bidder under the PPP arrangement is currently underway.

    ‘’The National Theatre is a national monument and a tourist attraction. We will not allow it to go derelict or become a magnet for hoodlums. This monument is the pride of the nation, and it has always served as the point of convergence for Nigerians seeking fun and relaxation, especially  during festive periods, and a centre for the promotion of arts and culture,’’ Alhaji Mohammed said.

    He said the security around the complex would be beefed up to prevent a recurrence of the molestation by hoodlums of fun seekers at the National Theatre on Christmas Day, and also ensure the safety of the priceless artifacts within the complex.

    ‘’It is totally unacceptable that fun-seeking individuals who throng the National Theatre for relaxation during festive periods or at any time will become the victims of attacks by hoodlums.

    ‘’We will work with the security agencies, especially the Police and the State Security Service, to upgrade security at the National Theatre. It is also important for the management of the complex to ensure that its perimeter is better secured to ward off hoodlums,’’ the Minister said, adding that a high-tech security surveillance system may even be introduced to better secure the complex

    Alhaji Mohammed said the on-the-spot assessment of the security and other situation at the National Theatre has revealed the challenges being faced by the management, and assured that there will be noticeable changes at the complex within the next few months.

    ‘’We will restore the National Theatre to its pride of place and make it more user friendly. We will also ensure that the management engages with stakeholders in order to increase the patronage of the various facilities at the complex,’’ he said.

    The General Manager of the National Theatre, Mallam Kabir Yusuf Yar’Adua, conducted the Minister around the facilities at the complex, including the banquet, cinema and exhibition halls, the sub-power station, the water works, the police post and the artiste village, among others.

     

  • Fed Govt to partner states on industrialisation for jobs

    Fed Govt to partner states on industrialisation for jobs

    THE Federal Government said yesterday  that it is ready to partner with state governments to end unemployment through creation of a solid economic base that will ensure availability of job opportunities for youths.

    Minister of Industry, Trade and Investment Dr. Okechukwu Enelama, who made this known in Umuahia when he visited Abia State Governor Okezie Ikpeazu, said it was only when jobs were created that the country’s economic base would be stable.

    He added that he was in the state to know the governor’s economic road map and see areas of possible collaboration between the state and the Federal Government on Small and Medium Enterprises (SMEs) promotion.

    The minister explained that the President Muhammadu Buhari administration was committed to providing the enabling environment for SMEs to prosper, stressing that it was one of the ways to improve the country’s economy.

    He added that the Federal Government wants to lift the country out of its present economic situation by also encouraging Public Private Partnership (PPP) adopted by the Abia State government in its policy of encouraging local leather and garment production in Aba.

    Enelama said: “We clearly want to partner with states on industry. The Federal Government wants to diversify the economy and we encourage your initiative on made in Aba/Nigeria goods, especially the leather and garment clusters.”

    Ikpeazu appealed to him to facilitate the state’s policy on local production of boots for military, paramilitary and other security agencies.

    The governor said the challenge confronting the government was lack of capacity to meet large orders.

    He noted that if there was a pronouncement from the President to stop importation of such products, arrangement of bringing the manufacturers in a cluster would yield the desired result.

    The governor said his administration had dealt with the socio-cultural sentiment of the people in the area of trading as well as products’ quality control.

    “We require more in the area of private sector participation and funding,” he said.

    Ikpeazu said: “Six months down the line, we looked at areas we have comparative advantage over others, particularly the leather cluster in Aba. In spite of competition, we still have advantage.”

    He assured the minister of the state government’s capacity to navigate its economy out of the present challenges.

    The governor added that his administration was ready to partner with the Federal Government in that direction.

  • Fed Govt to decide on petrol price in Jan., says Kachikwu

    Fed Govt to decide on petrol price in Jan., says Kachikwu

    Minister of State for Petroleum Dr. Emmanuel Ibe-Kachukwu yesterday made some clarifications about the Petroleum Subsidy Fund (PSF), otherwise known as petrol subsidy.

    He said that there was no subsidy in the price  of the Premium Motor Spirit (PMS).

    Kachikwu, who is also the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), spoke  to reporters after inspecting the Kaduna Refining  and Petrochemical Company (KRPC) in Kaduna.

    His clarification on the subsidy regime became necessary following stakeholders’ request, such as the Nigeria Labour Congress (NLC) and the Conference of Nigerian Political Parties (CNPP) that he provides an explanation with regards to reports that the government has deregulated the downstream petroleum sector and removed petrol subsidy.

    Asked to say categorically whether subsidy has been removed or not since there is no provision for it in next year’s budget, the minister said: “Today, there is no subsidy; we are selling products at N87. In January, we will look at what the trend is, we will announce prices. If that is less than N87, we will announce it and if it is more than that, we will have to announce it. “

    According to him, what really matters is not availability of subsidy in the budget, but the consideration of the large amount of money the government spends on subsidy.

    Despite the huge fund, Kachikwu said no one had been able to account for it due to the corruption in the  management of the fund.

    He said : “I don’t want to get caught into this subsidy or no subsidy; money provided in the budget or not.

    “I think what is critical is two-fold: one is that the amount that we spent in the past on providing what you might call monetary subsidy is huge, we have never been able to account for it and the amount of corruption there nobody has been able to account.”

    The minister noted that Nigerians were expending too much energy discussing if the government should continue to fund the funding gap called subsidy, which runs into N1 trillion.

    He said he believed that Nigerians were of the same frame of mind with him that the country needs to exit the subsidy regime.

    His words: “First, let me say that we are expending too much energy on semantics. There are two critical issues here; one is, should the Federal Government continue to fund the gap that we see, this huge one trillion naira, and I think everybody is on the same page that as much as it is we need to get out of it.”

    “Where we have a disagreement is if we get out of it, should we sell products at certain price or should you let free markets to roll in so that you can skyrocket prices?”

    Kachikwu recalled that President Muhammadu Buhari had said that the price of petrol should remain N87 per litre for now, approved that the government should review the market and make the necessary adjustment in line with the dictates of the market.

    The minister said: “The President is very emphatic on this; he says, for now, he expects that products should be about N87. He has also given approval for us to be able to look at market trends and make adjustments as need be. So, when you keep asking me if subsidy has been removed, I ask what is subsidy?.

    “At today’s price, there is no subsidy and that is why I have gone away from the use of the word ‘subsidy’ and have continuously said that I am more on the page of price modulation. How do we look to fluctuate the market to reflect market dynamics.”

    Kachikwu, disclosing that the government will continue to modulate prices of domestic petrol supplies to avert unwholesome profiteering by marketers, said towards the end of January 2016, he expected that Nigeria would be able to locally source up to 10 million litres of her domestic petrol consumption from four of her refineries in Warri; Port Harcourt and Kaduna.

    He, however, said that through the price modulation mechanism, the government would continue to monitor price to keep it within a specified band.

    “Happy to have Kaduna back, looking forward to have Port Harcourt back. Warri is still a bit far gone but all in all, the more refineries we can bring on board, the better for the situation we have ourselves in.”

    Speaking on the volume of products he expects that the refineries would add to the country’s local consumption, Kachikwu said although the country would still import products next year, it would however get up to 10 million litres of petrol from the refineries, starting from the end of January when repairs would have been completed on them.

    “Kaduna is doing about 1.5 million litres; hopefully, it will be getting into 2 million very quickly, once the FCC is working. Port Harcourt, when it comes back with a combination of VDU and the FCC, we will probably be looking at about 5 million litres.

    “Ideally, we want to be able to get to about 10 million type capacity out of the about 40 that we say is the national consumption per day; that is the trend,” he said.

    He added: “If all things were equal, I think the max cap for Kaduna will be in the 2 to 3 million range, Port Harcourt will probably be 5 and 6 million and Warri, if it comes, will be another 3 or 4 million. So, Warri is projected to come back between early and mid-January and I will say that by the end of January if all things were working and we do not have any other complications arising from these aging plants, we will expect to see 10 million litres.”

  • Fed Govt declares victory in Boko Haram war

    Fed Govt declares victory in Boko Haram war

    Barely two months after he assumed office, President Muhammadu Buhari ordered his newly appointed military commanders to end the Boko Haram insurgency in the Northeast before or by December. The deadline seemed to many seasoned commentators a chimera; and though he will dispute it, the Information minister, Lai Mohammed, has just redefined the deadline and underscored its chimeric value. At the time the president gave the orders in July, December seemed far off. He appeared confident that the funds and logistics he was about to pour into the war would propel the rejuvenated military into great feats of valour. The military commanders themselves, perhaps buoyed by their elevation, eagerly embraced the deadline and suggested that the insurgents would be history by that date. Ex-president Goodluck Jonathan had also given his commanders deadlines to extinguish Boko Haram, but every time he spoke of victory or set a date, he failed spectacularly. His failure led commentators to wonder about the wisdom of setting deadlines for ending wars, regardless of whether the deadlines were working guides or immutable dates. If President Buhari and his commanders are troubled by their predecessor’s past failures, they have not shown it.

    It was therefore not quite baffling that shortly after he assumed office, President Buhari succumbed to the euphoria of his inauguration to reenact Dr Jonathan’s wild assumptions and love for miscalculation. Commentators were in fact chary of criticising President Buhari when he set the date, lest unhappily he should prove them wrong. He had carefully appointed the best commanders, he boasted, and he would undoubtedly empower them. Why would they not deliver on a deadline that seemed eons away? In July when he issued the deadline, December was a whopping five months away, a long time indeed. Every government official who spoke on the subject matter since then, including parliamentary leaders and party bosses exulting over their recent electoral victory, seemed confident the date was close to being sacrosanct. But December at last came like a space rocket hurtling towards earth, catching bemused presidential aides and ministers at their wit’s end. Rather than remain stupefied, however, the Information minister has preferred to waffle, more or less like a propagandist.

    “That brings me to the issue of the December 31, 2015 deadline issued by President Muhammadu Buhari to our military to defeat the terrorists,” began the Information minister almost offhandedly. “Based on what I saw during my trip to the liberated areas of Borno State (which by the way is the epicentre of the war) and the briefings I received from the Chief of Defence Staff and the Theatre Commander, I can confidently inform you that our gallant military has largely met that deadline.” In case the public failed to grasp the severity of his statement, he added that “The military has so degraded the capability of Boko Haram that the terrorists can no longer hold on to any territory, just as they can no longer carry out any spectacular attacks. Remember, gentlemen, that at the height of the war, Boko Haram controlled 20 of the 27 local governments in Borno. Today, they do not control any local government anywhere.”

    Conscious that the public would sneer at his confident assertions, the minister added preemptively: “I can hear you saying to yourself, ‘but the terrorists are still carrying out suicide bombings and killing people’. My response to that is that such is the nature of insurgency anywhere. Unlike a war between two armies, an insurgency never ends with an armistice. Even in countries like Colombia, where insurgency was supposed to have ended decades ago, attacks still happen.” For emphasis, the minister then concluded his redefinition of the December deadline by explaining that what was left of the insurgency was inconsequential. Said he: “The largely defeated Boko Haram has now adopted a new style: attacking soft targets like motor parks, schools, entertainment centres, religious centres, etc, killing innocent people, mostly women and children.”

    The Information minister is in effect saying that insurgency can be defined in many ways, but chiefly as one in which rebels hold territories. Bombings and suicide attacks are to him mere desperate gasps of drowning Boko Haram fighters. According to him, regardless of their sporadic bombing escapades, Boko Haram has already been defeated, not even if they defiantly and symbolically raided settlements near the Chief of Army Staff’s hometown. But instinctively aware that the press would pour scorn on his declaration of victory when the war was yet to end, the Information minister addressed the press and attempted to shift and modify their reportorial perspectives. “Gentlemen, in this time of war, you cannot afford to be neutral,” he admonished. “Yes, you must remain professional at all times, and we are not ask­ing you to do anything less, but you must also act in the national interest, al­ways.’’ It is not clear what he expects of the press, considering his own legal and journalistic background. But he seems at once determined to foist the government’s worldview on the press and also disallow them from nurturing their professional reportage and interpretation of news.

    Even then, the minister was not done. Determined to force everyone to live in denial, just as the government is already apparently doing, he conflated the government’s interest with national interest. “Acting in the national interest means not play­ing up reports of cowardly Boko Haram attacks on soft targets,” he said improbably. Then he began waxing lyrical: “Acting in the nation­al interest means not regur­gitating the propaganda of Boko Haram and its fellow terrorist group, ISIS. Acting in the national interest means extolling the bravery and sacrifice of our gallant troops. Acting in the national interest means not viewing the war from a par­tisan prism. Acting in the national in­terest means rallying all Ni­gerians, irrespective of their political, religious or ethnic background, to support the war.” It is curious that Alhaji Mohammed is not struck by the similarity of his views and arguments with those of the immediate past administration, nor yet the similarity with past military regimes whose relentless conflation of private and national interests did incalculable damage to the credibility of Nigerian leaders and the stability of the country.

    For the avoidance of doubt, the Boko Haram war has neither ended nor faded from public consciousness, even though it is no longer as fierce as it used to be. In addition, contrary to the minister’s statement, the December deadline has not yet been met, and the Sambisa forest has not been cleared of terrorist activities. Substantial progress has undoubtedly been made, but the end is not yet. And as the Information minister would know, no amount of distorted reporting or national interest inspiration can create a new reality other than the existing reality. If that existing reality is not captured by the local media, because the federal government has unilaterally declared victory and moved on, the international media will capture it with a comprehensiveness and contemptuousness that would shame the locals.

  • $3.4b MTN fine: Fed Govt to await court pronouncement

    $3.4b MTN fine: Fed Govt to await court pronouncement

    The Minister of Communications Technology, Mr. Adebayo Shittu, yesterday said the Federal Government will await court pronouncement over the fine imposed by the Nigeria Communications Commission (NCC) on MTN for subscriber identity module (SIM) card fraud.

    NCC had originally imposed N1.4trillion ($5.2billion) fine on the telco for keeping some 5.2million pre-registered SIMs on its network and refusing to deactivate them when it was directed to do so by the regulator. After a lot of appeal by the telco to the Federal Government, President Muhammadu Buhari reduced the fine to N780billion ($3.4billion) only for MTN to turn round and served the regulator court papers challenging its powers to impose the fine.

    Shittu who spoke with reporters during his visit to Omatek Ventures Plc along Kudirat Abiola Way, as part of his official visit to stakeholders in the information communications technology (ICT) sector, said President Buhari places high premium on the rule of law, adding that since all parties have subjected themselves to the supremacy of the constitution, the Federal Government will wait patiently for the court’s ruling.

    He said MTN, which has December 31 to pay the fine,  is the largest operator in the country, adding that nobody wants the downfall of the telco or any other company whether local or international in the country.

    Because the case is already in court, “it is difficult to comment on such matter. However, the ministry will await the determination of the court before any further action will be taken on the matter,” he said, adding that

    The minister said in as much as no particular telco or business organiation is being targeted by the government, he urged all business owners in the country to be mindful of the need for them to obey the laws of their host country.

    According to Shittu, a new blueprint for the industry will be unveiled in the third week of January next year, adding that the Communications Technology Ministry is not in any way trying to re-invent the wheel but will build on what is on ground and improve where necessary.

    “By January, the blueprint for ICT development in Nigeria will be unveiled. Whatever is on ground would form part of it. The change mantra is to improve on regulations in the industry”, he stressed.

    He commended Omatek CEO, Mrs Florence Seriki for her pioneering efforts in the ICT industry pledging to ensure that indigenous players are given the requisite encouragement and support.

  • Fed Govt to roll out growth plans for power, says BPE

    Fed Govt to roll out growth plans for power, says BPE

    The Federal Government has put in place modalities to drive the power sector for growth, just as it has driven the telecommunication industry for better performance, the Director- General, Bureau of Public Enterprises (BPE),Benjamin Dikki has said.

    The modalities, according to him, include making the bodies such as the Ministry of Power and the Nigerian Electricity Regulatory Commission (NERC) to provide stronger regulatory frameworks that would help in developing the sector and the introduction of a competitive environment for operators, among other initiatives.

    Speaking in Lagos at a stakeholders’ meeting, Dikki said the need to make the power sector more competitive and vibrant is imperative for the growth of the economy.

    The meeting, which has the Minister of Power, works and housing, Mr Babatunde Fashola, the Chief Executive Officers of Eko ElectricityDistribution Company(EKEDC),Oladele Amoda, Ikeja Electric, Mr Abiodun Ajifowobaje, and other stakeholders, was at the instance of the management of Egbin Power Company Plc.

    He said once the regulators nurture power sector for growth, there would be stability in the electricity supply and the economy will get better.

    He said: ‘’ Power sector will work because the telecom industry works.  The telecom sector works because the regulators were allowed to nurture investments in that area.  I believe the regulators would nurture investments in the electricity industry for growth, given a conducive environment.  Investments would not only engender competition, but would make the operators fare better. Once there is competition in the energy sector, prices of products and services would come down and the better for consumers.’’

    Dikki said problems such as revenue shortfalls, inability of power firms to garner enough capital for operation and others,  are hindering the growth of the sector, urging operators to drive investments to generate revenue for growth.

    According to him, privatisation has opened a new phase in the nation’s power sector, because private operators are now saddled with the responsibility of running the industry.

    On industry’s performance, Dikki said some of the new investors in the sector have tried to improve electricity generation and distribution.

    Citing Egbin Power Plant, the BPE’s DG said the plant, which was owned by the Sahara Energy Group, has relatively improved power generation.

    ‘’Egbin Power Company should be commended for being a flagship of what privatisation is.  The reason is because its management has been able to increase electricity megawatts (Mw) 400 to over 1,000 megawatts of electricity.  This growth needs to be sustained for the benefits of consumers,’’ he added.

    Also, the Chief Executive officer, Egbin Power Company, Mr Dallas Peavey, said the firm has overhauled its operation to ensure growth, adding that the turbines are nearing full capacity.

    He said the firm has six turbines, adding that the turbines are returning to their installed capacity of 1,320 megawatts of electricity soon.

    Peavey said efforts are on-going to make the six turbines produce optimally, stressing that the development would help in improving power supply in the country.

  • Fed Govt ‘ll not remove fuel subsidy, says Kachikwu

    Fed Govt ‘ll not remove fuel subsidy, says Kachikwu

    NEITI supports subsidy removal

    The Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu yesterday said  the Federal Government will not scrap the Petroleum Support Fund (also known as subsidy) but will, instead, embark on price modulation.

    He denied saying  the price of petrol will go up in January.

    Addressing a press conference in Abuja, he said the Nigerian National Petroleum Corporation (NNPC) will alongside the Petroleum Product Pricing Regulatory Agency (PPPRA) sit to determine the new template to arrive at a new price which will be subject to quarterly review in line with the price of crude oil.

    He explained that government is planning to use N87 and N97 as a ceiling for the price modulation at every given time instead of fixing the fuel price without basis.

    Kachikwu said: “ I did not say that refine product will sell N97 next year. That is not what I said. I said between a bound of N87 and N97. We are going to look at the prices.

    “Today the price is close to N87 so there might be no need to change prices. By January, it may well go up slightly. By February it may well go up slightly. But March it may well go up slightly; by April, it may come down.

    “So it is all a dynamic of what the price of crude is. So I have not put a static figure; myself and PPPRA will sit down to do the calculation to be able to announce what the PMS will sell for in January.  We do not anticipate any major shift in the cost of crude today.”

    The minister who lamented that the Federal Government spent  an unbearable over N1 trillion on fuel subsidy this year said NNPC has to take measures to whittle some of the cost elements of the subsidy template.

    He said government will now look at how to reduce its allocation to the Petroleum Equalisation Fund (PEF) and foreign exchange.

    He said: “Now what we are doing is review the PPPRA template – how we can whittle down some of the cost elements – the cost for clearing, allocation for PEF? We will reduce – foreign exchange provision (what do we do with the foreign exchange so that some stability in the exchange rate (is acheived?)

    “ It is a key component that when you deregulate, you are back to square one or so. So we are looking at how do we provide allocation in the oil industry so that there is certainty in terms in the regime for FS and that saves you the exchange component in the whole analysis.”

    He said President Muhammadu Buhari has resolved that government will get a technical partner to repair and run the refineries and bring out its investment.

    However, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said removal of the subsidy will free over N700 billion  annually which can be channeled to provision of infrastructure like roads, education, health service, power, security, creation of jobs and basic benefits for the poor in the society.

    The statement said that while addressing  a Policy Roundtable on Subsidy Removal Debate organized by the Shehu Musa Yar’Adua Centre in Abuja,  the Acting Executive Secretary, Dr Orji argued; “From NEITI’s independent audit report, over N4 trillion has been paid as subsidy to marketers from 2006-2012. The breakdown of the subsidy shows that N2.197Billion was paid as subsidy in 2006. This rose to N236.64Billion in 2007 and N360.1Billion in 2008. In 2009 the country paid N198.1Billion as subsidy for petroleum products and in 2010 the subsidy payment rose to N416.45Billion. The payments skyrocketed to N1.9 trillion in 2011. Payments of oil subsidy declined to N690Billion in 2012 following the subsidy protests across the country in January of that year”.

  • Fed Govt urged to support indigenous sickle cell research

    A natural medicine practitioner, Dr. Solomon Abutoh, has urged the Federal Government to fund indigenous research to address sickle cell disorder (SCD) and leukaemia.

    He said natural medicine practitioners had been conducting researches to ensure that sickle cell, which is predominantly a black man’s condition, is curtailed.

    According to him, bone marrow transplant, which is a medical surgical procedure used in the treatment of many malignant blood diseases, such as sickle cell anaemia and leukemia, involves the use of high doses of chemotheraphy.

    This, he said, may pre-dispose people serious irreversible side effects.

    He continued: “Chemotherapy drugs can completely suppress marrow hematopoiesis (blood forming process) destroying pathological cancerous lesions of healthy areas including, donor material obtained directly from the bone marrow.”

    Other problems associated with bone marrow transplant are rejection of donor cells, arising from genetic incompatibility and lack of donor cells, and need for repeated transplantation.

    Also, there are infectious complications as a result of the complete suppression of blood production process, which reduces the protective abilities of the organism.

    Abutoh described bone marrow transplant procedure as expensive. It ranges from $360,000 (approximate N7,500,000) to $880,000 (approximately N16m) excluding flight tickets of patients and those to accompany them.

    He said not many Nigerians can afford the cost, adding: “medical procedure that has no guarantee against post-surgical relapse or even death”.

    The natural medicine practitioner urged health experts to expedite action on finding the cure. They should, in fact act on a viable, natural solution to the sickle cell and indeed leukemia, he added.

    He said in spite of the World Health Organisation (WHO) Alma Ata declaration of 1978 on primary health care, natural medicine is still relegated.

    He said there were locally made highly effective herbal drugs for the management of sickle cell disease and leukemia. It is also affordable.