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Tag: Ibe Kachikwu

  • Osibanjo urges attraction of investments from non-OPEC

    …seeks planning for zero oil world

    …as Kachikwu emerges APPO president

     

     

    Vice President, Yemi Osibanjo on Monday called for a re-twinkling of the African Petroleum Producers’ Organization (APPO) Fund in the same manner of the Organization of Petroleum Exporting Countries (OPEC) fund in order to attract investments from non-member countries. 

    This was even as Nigeria’s Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, emerged the President of APPO.

    Speaking a the Extra-Ordinary session of the organization in Abuja, he noted that the APPO Fund is already undergoing recapitalization to fulfill its role. 

    He however advised that: “The financial model of the fund, for example, may need some re-tweaking. It could be remodeled after similar institutions that had succeeded, like the OPEC Fund, where of course as you knowm non-OPEC members can begin to invest.”

    Extra-ordinary session of the African Petroleum Producers’ Organizations (APPO)

    I would also want to talk about the APPO Fund For Technical Cooperation, which I am told is also undergoing recapitalization to enable it better fulfill the role for which it was established. The financial model of the fund, for example, may need some re-tweaking. It could be remodeled after similar institutions that had succeeded, like the OPEC Fund, where of course as you knowm non-OPEC members can begin to invest.

    According to him, it is now time to liberalize the APPO for non member countries and private institutions to be able to invest in Africa. 

    He insisted that the APPO fund ought to operate as an autonomous entity, independent perhaps, from the APPO secretariat, in the same way that the OPEC fund operates independently of OPEC itself. 

    The Vice President pointed out that “If institutions similar to APPO and the APPO Fund have succeeded and are continuing to succeed in other parts of the world, then we have no reason, no excuse to fail as a continent.”

    The reminded the organization that oil and gas that are the global economies driver of today might not sustain their relevance in future.

    Read Also: Osinbajo, Ajimobi in close door meeting in Ibadan

    He noted that consequent upon this realization, all serious economies all over the we have started planning for the world after oil.

    His words: “We must keep in mind that oil and gas are only guaranteed as only today’s resources and not necessarily tomorrow’s. We cannot bet on the fact that even a few decades ago from now, these natural resources would not be as central or as relevant to the global economy as they are today. 

    “All serious economies around the world has realized this and are making determined plans for a world beyond oil or as they say a zero oil world. As African countries, we cannot afford to act differently.”

    Osibanjo noted that that the oil and gas is capital intensive but as different countries they do not have the needed resources for investments in the industry.

    He added that  investments are competing with infrastructure and social services for the limited resources available to government. 

    He submitted that “By serving as a platform for increased collaboration and cooperation among member countries, APPO would go a long way towards helping overcome these financial challenges. 

    “Increased synergy would no doubt help mobilize the investment needed to facilitate and to deliver the major infrastructure required by the continent, such as trans-border gas and oil pipeline, joint refineries, gas plants and so on.”

    Meanwhile, the Minister of State for Petroleum Resource, Dr. Emmanuel Ibe Kachikwu noted that there are new oil discoveries in the continent while finding oil finance has become difficult owing to tumbling oil prices. 

    He said that most countries now find it difficult to invest in oil activities in Africa. 

    The second aspect of the deliberation, he said, is to also approve the 2018/2019 budget which would be presented before the Council of Ministers.

    Kachikwu said that “the realities that all over Africa, there are new finds of oil; massive exploration is going on. Everybody is enthused by the possibility of further harnessing new natural resources that we are going to use to develop the continent. “The reality also is that finding the necessary finance for this is very difficult. Increasingly, with what had happened, especially with the tumbling of oil prices, over the last few years, nice that is has begin to come up — a lot of investors found it difficult to invest, not just in oil exploration activities, but in fact, even worst still, oil exploration activities in Africa.”

  • Private depots crash petrol price to N136.5 per litre

    …IPMAN praises government

    President Muhammadu Buhari, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu and the Nigerian National Petroleum Corporation (NNPC) on Thursday earned the accolade of the Independent Petroleum Marketers Association of Nigeria (IPMAN) that said that private depots which used to sell the Premium Motor Spirit (PMS) for sell at N170 per litre in December to February have now reduced it to N136.5 per liter.

    National Vice President of the association, Alhaji Abubakar Maigandi, broke the news to our Abuja correspondent in a telephone conversation.

    He had opposed to the cut throat rates and disparities in the sale of the product in private depots and the corporation’s, whom he accused of sharp practices.

    But he told The Nation that “There is improvement in fuel supply now. It is not only to accuse NNPC and the rest of them. Now we have to appreciate what they have been doing. Both the President of the country and the minister of State for Petroleum Resources have been doing well.”

    Asked whether there is still any sharp practice in the depots, he said that “there is but it is not much. But it has reduced seriously and now the marketers can get the product from the depots within a week.”

    According to him, the corporation supplies the independent marketers directly, although some of them still load petrol from private depots.

    His words: “To get fuel from the depot now is like one week. They have started supplying fuel to the independent marketers that is why we have seen the queues reducing day by day.

    “NNPC supplies the independent marketers directly and still they go to the private depots to load. But instead of hiking that rate too high, even the private depots now have reduced their rate. In a nutshell there is improvement in the distribution. That is why the complaint has seriously reduced.”

    Asked whether the Petroleum Equalization Fund was still owing the marketers for bridging of productS, he said “they are owing the marketers but it is not much.”

     

  • Kachikwu: Harmonized PIGB to be ready next month

    Kachikwu: Harmonized PIGB to be ready next month

    …Nigeria loses $275b to non passage of PIB – CSO

    The Minister of State for Petroleum Resources Dr. Ibe Kachikwu on Thursday said following the commitment and disposition of the National Assembly, it has become obvious that the harmonized Petroleum Industry Governance Bill will be ready by next month.

    The Consultant to the National Assembly Committee on Petroleum Resources Upstream, Dr. Francis Adigwe had revealed to the Roundtable on the Petroleum Industry Governance Bill organized by the Nigeria Natural Resource Charter (NNRC) and the Media Initiative for Transparency in Extractive Industries (MITEI) in Abuja that “there is little to harmonize. It is not going to be a complex job except that the budget is taking time now.”

    Responding, the representative of the minister, Mr. Adegbite Adeniji expressed hope that the bill would see the light of the day earlier than the August that the ministry had expected.

    His words: “At the point of harmonization, we have heard from him (Adigwe), a member of the committee that almost certainly by the end of this month that work will be completed. I even said June but from what I am hearing, which means the bill is done.

    “This means by next month perhaps the bill will be ready. The harmonized bill will be ready. I think we are getting to the dying minute of this whole process.”

    He had earlier noted that when in force, the law will insulate the regulator from interference, stressing that there is need for independence of the regulator.

    Meanwhile, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI) , Waziri Adio noted that the battle for the enactment of the PIGB has reached a stage that the stakeholders cannot afford to allow it elapse.

    The consultant to the organization, Dr. Garuba Dauda, who represented him pointed out that NEITI, is committed to making sure that “we are able to get a law before they pack up the 8th National Assembly.”

    Read Also: Kachikwu: Nigeria needs $100b oil investments

    The NNRC Program Coordinator, Tengi George-Ikoli disclosed that Nigeria has lost $275 billion as a result of the non-passage of the bill into law.

    “Let me just say that Nigeria has lost over $275billion to the inability to passage Petroleum Industry Bill into law since it was proposed 20 years ago,” she said.

    She urged President Muhammadu Buhari to assent the bill upon the passage of the harmonized version as it would aid the passage of the Oil Company part of Petroleum Industry Bill.

    On the essence of the Roundtable, the METEI National Coordinator, Comrade Collins Olayinka explained that “we thought that as journalists we cannot be passive reporters. We think that the PIGB will witness challenges that is why we put this forum together. Time to develop our capacity is now.”

    In his presentation titled, “Critical Petroleum Sector Reforms Proposed by the PIGB Transition Process Process Post-PIGB” Prof. Wumi Iledare, said that the nation depends on oil and gas for 90% of its revenue yet it contributes less than 10% to the Gross Domestic Product (GDP) as a result of bad governance, lack of rule of law, transparency and participation.

    He said to change the situation, there is a need for policy but a policy is useless if there is no legislative backing.

    The summary of the key changes in the bill are roles, accountability, governance and transparency and meritocracy for appointment.

    He submitted that “there is going to be competition. Whether you are going to become the GMD, they will send names that are competed; they will send names that will be interviewed as to how you are going to meet these key challenges.”

    He submitted that the President may not have any excuse to withhold assent to the bill, which contents are in line with the document already ratified by the Federal Executive Council.

  • Petroleum Summit: NANS commends Kachikwu

    Petroleum Summit: NANS commends Kachikwu

    The National Association of Nigerian Students ( NANS ) has commended Dr Ibe Kachikwu, the Minister of State for Petroleum, over Nigeria’s hosting of the International Petroleum Summit ( NIPS ).

    NANS President Chinonso Obasi said in a statement issued in Abuja that the hosting a summit of such magnitude for the first time was a good omen for the Nigerian economy.

    The theme of the maiden summit is “Deepening collaboration in the African Oil and Gas Industry: Challenges and Opportunities for Investment”.

    Obasi said he considered it a unique opportunity to woo investors to Nigeria and Africa’s oil and gas sector.

    “In the past, most Nigerian energy and petroleum industry players spent huge foreign exchange to attend the popular Offshore Technology Conference (OTC) in Houston, U.S.

    “Today, Kachikwu has changed the narrative by conceptualising and hosting the new Nigeria OTC, that seeks to bring investors and players in the sector to Africa for the first time.

    “I will also like to acknowledge the Minister of State for the opportunity given to NANS to be part of the unique event.”

    He said he believed the opportunity provided by the summit would foster greatness for the Nigerian petroleum sector.

    Kachikwu, had earlier at a break-out session of the summit on Monday, said that multinational oil firms would soon stop shipping out the crude oil they produced in Nigeria.

    According to him, the government is planning to put in place frameworks for multinational oil and gas firms to build refineries in Nigeria, thereby processing a substantial amount of crude produced from its oil fields.

    “We will get to a point where Nigeria, definitely, would be a major supplier of refined petroleum products.

    “It just has to happen. Nothing else makes sense. We are also saying directly to oil companies that a time would also come when we would not be open to see them move around all the crude oil they produce in Nigeria.

    “We will like to see integrated refining and integrated processing here. It gives us more jobs and creates more investments,” Kachikwu said.

    NAN

  • Kachikwu directs NNPC to clear fuel queues in Abuja before Sunday

    Kachikwu directs NNPC to clear fuel queues in Abuja before Sunday

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, on Thursday directed the Nigerian National Petroleum Corporation (NNPC) to ensure that petrol queues were cleared in Abuja before Sunday.

    Kachikwu gave the directive at a world news conference to intimate journalists on the upcoming international oil and gas conference and exhibition tagged the Nigerian International Petroleum Summit (NIPS).

    According to Kachikwu, the queues have been persistent because logistics and policy issues that could end the scarcity are largely unaddressed.

    “I can tell you behind the scenes, a lot of meetings are taking place because the fuel queue issue is both logistics and policy issues.

    “We will need to address fundamental policy issues to enable it go away especially in the area where the pricing is showing differentials between the landing and sales price.

    “The president is obviously very committed to keeping the price of petrol at where it is because he realises and sympathises with the sufferings of Nigerians.

    “I will hate for my colleagues to come and see the fuel queues so my directive to NNPC would be to get these queues out of Abuja.

    “The NNPC is working round the clock on this;p if you remember when this first started in December, it was a lot more massive.

    “Lagos is fuel queue-free and a lot of the state capitals are. Abuja is still struggling because of the logistics issues.

    “I haven’t gone round today but when I went round yesterday there was a huge improvement and I will be instructing the NNPC to do whatever it takes to ensure there are no queues next week.

    “Quite frankly, they will have to do whatever it takes to get this eliminated in Abuja.

    Read Also: Kachikwu reitrates FG commitment to exploring energy sources in river basins

     

    “That is the directive I will be sending to the NNPC and let them work night and day to put a lot more efforts in trying to do this,’’ Kachikwu said.

    The minister urged Nigerians to be patient about the fuel situation as there was a lot of “efficiency re-engineering’’ going on.

    He said the maiden NIPS conference, which would begin on Feb. 18 and end on the feb. 23 will help Nigeria’s oil and gas industry to build its capacities and competitiveness.

    On the recent rebound of Shale oil, Kachikwu explained that the bullish price rise that the oil market witnessed on the back of production cuts agreements did not worry Organisation of Petroleum Exporting Countries (OPEC).

    He said the slight drop in crude oil prices was not enough for OPEC to become reactionary.

    “In terms of the price, I don’t think we need to be panicky about it; we hit an all-time 70 dollars per barrel in December which was a surprise to all of us.

    “We are not ruffled by it, I know it has come down to highest 60 dollars now.

    “Shale has got to be active and we know whenever we are in excess of 65 dollars, Shale gets very active because the fundamentals become much more supportive to Shale investments.

    “I’ve always said that OPEC needs to just focus on it and what it needs to do, and forget what is happening in Shale.

    “Every OPEC producer must work hard to be a least cost producer because the truth is that if Shale can produce at 65 dollars, there is absolutely no reason why we should be struggling.

    “So, upper 60 dollars is not too bad; we moved from 27 and 28 dollars; let’s not begin to complain, it is a bit too early. These things fluctuate,” Kachikwu explained.

    NAN

  • Petrol price remains N145 per litre – Kachikwu

    Petrol price remains N145 per litre – Kachikwu

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, on Friday in Abuja said petrol price remains N145 per litre, pleading that the issue should not be politicised.

    Kachikwu, who said this at a news conference, said President Muhammadu Buhari’s stand on the issue was clear, hence, the ministry was working hard to resolve future occurrence of fuel shortages.

    According to him, the essence of the ongoing meetings with stakeholders, which began few days ago, is to find mechanisms to ensure that fuel queues do not come back.

    “There are social media commentaries implying that when we met with the committee set up by the Senate President to review the causative factors of the fuel scarcity and find solutions, there was a statement credited to me that the price might be increased to N180.

    “No such statement was made; no such plan is intended. I needed to clarify this because sometimes some of these rumour mongering add to the difficulties NNPC had in terms of being able to control price speculation.

    “The president mandate on this issue is very specific: we are not increasing price from N145,’’ Kachikwu said.

    Read also: DPR seals 80 petrol stations in Delta

    He said issues being looked at include a “wetting’’ of all stations so that product is available at every time for Nigerians and how to deal with the problem of private marketers that pulled out from participation.

    “This is so that they can participate effectively in the supply of petroleum products in the country, all within the parameters of N145 per litre pump price.

    “I thought we should make this very clear. This is not a matter for speculation; anybody who does speculation on it is not being helpful to Nigerians.

    “They have already gone through a very difficult Christmas period. We are working night and day to try and find solutions. It is not a political issue; people should step out of that goal post.

    “We want to provide succour to Nigerians, we want to provide product at N145, that is the presidential mandate; that is the Federal Executive Council mandate; nobody is having a deliberation on that.

    “We are actually looking at steps for those who have breached these processes, what we can do to penalise them and also set very stiff penalties for those who go to sell above N145.

    “Going forward, after the recommendations, there will be very massive enforcement; very firm position on this issue; very firm tracking of product in this country.

    “Nobody deserves this sort of up and down in terms of product supply in this country.

    “I want to make that very clear, there is no discussed intended price increase issue; price is N145 per litre at the pump price; it remains that; nothing has changed; there is no mandate to increase that,’’ he stressed.

    Responding to another insinuation that marketers were free to fix petrol prices, he said there was no authorisation to modulate outside the N135 – N145 bracket.

    `This is not a multiple price-fixing environment where people can work outside the umbrella of what has been fixed. What we have approved was a modulation between N135 and N145 per litre.

    “I am aware that some stations, even as of this morning, sold at N143. The majority sold at N145. Some recalcitrant individuals sold above that and that is why the law needs to go after them.

    “Nobody is free to set price above that,’’ he said.

    On the Petroleum Products Pricing Regulatory Agency ( PPPRA ) template that helps monitor importation into the country, Kachikwu said “the template has always been an issue.

    “This is because as prices change in the international market, some of this template become questionable.

    “As part of this committee’s work, we are also reviewing that template to see whether there are things we need to do to help us ensure that we can accommodate sales at the N145 per litre window.

    “That is also going to be looked at. PPPRA is working on that and it is heading a special committee on it’’.

    NAN

  • ICYMI: FG may increase petrol price to N180 per litre

    ICYMI: FG may increase petrol price to N180 per litre

     The Federal Government may increase the price of Premium Motor Spirit (PMS), popularly called petrol to a minimum price of N180 and above anytime soon.
    Minister of State for Petroleum Resources, Dr. Ibe Kachikwu who dropped the hint in Abuja on Thursday, said the current price of N145 per litre can no longer be sustained.
    In a presentation he made to a joint committee on Petroleum (Downstream) of the Senate and the House of Representatives, the Minister said the landing cost for petrol stood at N171 per litre.
    According to him, the Federal Government, through the Nigerian National Petroleum Corporation (NNPC) has been bearing the cost of N26 per litre, representing the difference between N171 and the current official price of N145 per litre.
    Insisting that independent marketers would not be able to import the product at the current foreign exchange rate, saying the marketers were able to sell for N145 per litre when the exchange rate was N285 per Dollar. The Naira presently exchanges for N365 per Dollar.
    “We now have to go back and find the solution to this problem in order to ease supply gaps and ensure availability of the product at all times,” the Minister said.
    Kachikwu, however, proffered three alternative solutions to pump price increase: getting the Central Bank of Nigeria (CBN) to introduce a modulated foreign exchange rate specifically for importers of the product; giving the marketers significant tax adjustments to enable them to absorb the high cost; and a plural pricing system whereby the NNPC would continue to sell at N145 through its numerous outlets while the marketers are allowed to fix their own price.
    The Minister identified causes of the last fuel scarcity to include diversion of products, logistic constraints, bottleneck associated with clearance, bad road network, insufficient product reserves, smuggling through land borders, supply gaps and enforcement challenges.
    He stated that the marketers stopped importing fuel since October 2017, as a result of their inability to access foreign exchange from the CBN, leaving only the NNPC to import the product, which has left a wide gap between demand and supply.
    Dr. Kachikwu lamented that the price of petrol rises with the rise in the price of crude oil in the international, stressing that in such instances, Nigeria spends more to import refined products. In effect, any rise in crude oil price increases the amount the country spends on the importation of fuel.
    To address the situation, the Minister canvassed the opening up of production lines, specifically the refineries, which he said, would address supply gaps that usually leads to incessant scarcity.
    “Rising prices in international market affecting domestic prices. What the country needs is to have the refineries working. It’s a shame that after 40 years, Nigeria cannot produce its domestic consumption.
    “It would take 18 months to address problems of scarcity, price stability and other issues relating to the supply of petroleum products. The pipelines should be concessioned to allow private participation.
    “There is huge infrastructure deficit in the system because the NNPC ought to be distributing products through their pipes but most of the pipes are damaged. The has necessitated the use of trucks to distribute the product across the country.
    “Most importantly, fixing the refineries should be the lasting solution. To discuss and address the issues, we have to seek approval from the President,” the Minister said.
    In his own submission at the hearing, the Group Managing Director of the NNPC, Dr. Maikanti Baru said the last scarcity was caused by rumours of price increase in the media that led marketers into hoarding the product in anticipation of higher prices.
    Said he: “So there was a frenzy in the movement of products to the hinterland and diversion of products going to the hinterland in anticipation of the increase in price.
    “The NNPC, or the Petroleum Products Pricing and Regulatory Authority (PPPRA) had no mandate to increase pump price.”
    The GMD said that the strike action embarked upon by PENGASAN in December was partly responsible for the scarcity, saying issues raised by the association for going on strike had nothing to do with the NNPC.
    According to him, the strike triggered panic buying by members of the public leading to scarcity of the product. He added that although PENGASAN called off the strike on December 18, the damage had already been done.
    Baru identified other factors responsible for the last scarcity to be the higher price at which petrol is sold in neighbouring African countries, citing Cameroun where he said petrol sells for N300-N400 per litre.
    Stating that the NNPC has enough product to bridge supply gaps, Baru insisted the corporation has sufficient stock to go round even without importation.
    The GMD alleged that about 4500 distribution trucks failed to return to depots to complete their distribution formalities during the scarcity period, meaning that the trucks were diverted.
    “There was no supply gap because we have Direct Sale Direct Purchase (DSDP) agreement with 10 consortia involved. Three of them rejected their cargoes, which were reallocated to others.”
    The GMD also hinted that the refineries in Kaduna and Port Harcourt were being reactivated and restreamed and that they have been producing three million litres daily.
    Baru also cited disagreements among the various private operators in the sector as part of the problems that threw up the scarcity, adding that the marketers were busy trading allegations of sharp practices.
    He said: “For instance, IPMAN said MOMAN and DAPPMA were charging over N133.28/litre but when we asked them to provide evidence of overcharging, they could not provide any. If proven, NNPC would have withdrawn the licenses of the errant bodies.”
    The Executive Secretary of the Department of Petroleum Resources (DPR), Mordecai Baba Ladan told the committee that at the outset of scarcity, the DPR rolled out its machinery across the country, with the directive from the Minister that defaulters be dealt with.
    “Almost every marketer/filling station across the country are defaulters. And if all defaulting filing stations were to be shut down, there may not be anyone left.
    “They horde, sell above official price and also divert products. But we have stepped up our monitoring process now that the NNPC is the sole importer but the corporation cannot do it alone.
    Virtually all the independent marketers that attended the hearing alleged multiple charges by the Nigerian Port Authority (NPA), NIMASA and some state governments charging 3 kobo per litre wharf landing fee.
    The Executive Secretary of MOMAN, Mr. Obafemi Olawore said the N800 billion owed marketers by the Federal Government has made it difficult for them to obtain credit from the banks to import the product.
    He appealed to the government to give key players major roles in the importation business, saying that shutting down errant filling stations won’t solve the scarcity problem but rather aggravate it.
    Olawore called for total deregulation of the sector to allow more participants from the private sector.
    Curiously, however, the chairman of the joint committee, Senator Kabiru Marafa who had vowed to grill the Minister and the GMD over secret subsidy payment by the government.
    Briefing newsmen at the National Assembly on Friday, Marafa had raised questions on who pays the difference of the N26 in the landing cost of N171 against the pump price of N145.
    The lawmaker said there were indications that a subsidy of N26 was being paid on every litre of petrol sold in the country and wondered who has been paying the subsidy.
    Marafa had said, “If there is subsidy payment, then who approved it and how much has been paid out as the subsidy so far. If you want to provide the subsidy, it should come through the National Assembly but we have not received any request for subsidy payment from the Executive arm.”
    Stating that about N10 trillion has been paid out as the subsidy, Marafa had lamented that stakeholders in the Petroleum industry, particularly the NNPC, have not been transparent in the running of the sector.
    He said these were some of the issues the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, Baru and others would be made to explain to Nigerians at the January 4 hearing.
    “We are going back to the same circle where only a few persons benefit from subsidy payment at the expense of the Nigerian people,” Senator Marafa had said.
    Other members of the joint committee are Senators Tayo Alasoadura, Mao Ohuanbunwa, Sabi Abdullahi, Foster Ogola, Yahaya Abdullahi, Rose Oko, Philip Aduda among others.
  • Kachikwu rues Nigeria’s inability to refine oil

    Kachikwu rues Nigeria’s inability to refine oil

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, on Thursday described as shameful Nigeria’s inability to refine its crude oil.

    He stated this during the investigative public hearing on the current scarcity of petrol in different parts of the country.

    The minister vowed that the Federal Government would ultimately address the problem.

    Meanwhile, there was a mild drama at the Thursday hearing as three persons claimed during the introductory session they were the National president of the Independent Marketers Petroleum Association of Nigeria (IPMAN).

    The trio were – Sanusi Fari, Chinedu Okorokwo and Obasi Lawson.

    However, the Senate Committee on Petroleum Resources (Downstream) resolved that only the Executive Secretary of IPMAN, Aminu Abdulkadir‎, should speak for the association.

  • Senate panel to grill Kachikwu, Baru over illegal subsidy payments

    Senate panel to grill Kachikwu, Baru over illegal subsidy payments

    The Senate Committee on Petroleum Resources (Downstream) will on Thursday grill stakeholders in the Petroleum sector on subsidy payment allegedly being paid to some individuals and corporate bodies through the back door.

    Specifically, the Senate panel has picked holes in claims by Petroleum marketers and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, that the landing cost for Premium Motor Spirit (PMS) is N171 while domestic pump price for the product is N145.

    Briefing journalists at the National Assembly on Friday, the Chairman of the Senate Committee on Petroleum (Downstream), Senator Kabiru Marafa, raised questions on who pays the difference of N26 if the landing cost of PMS is N171 and the pump price is N145.

    Marafa said there are indications that a subsidy of N26 is being paid on every litre of petrol sold in the country and wondered who has been paying the subsidy.

    He said: “If there is subsidy payment, then who approved it and how much has been paid out as subsidy so far. If you want to provide subsidy, it should come through the National Assembly but we have not receive any request for subsidy payment from the Executive arm.

    Stating that about N10 trillion has been paid out as subsidy, Marafa lamented that stakeholders in the Petroleum industry, particularly the NNPC, have not been transparent in the running of the sector.

    He said these are some of the issues the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, Baru and others would be made to explain to Nigerians at the January 4 hearing.

    “We are going back to the same circle where only a few persons benefit from subsidy payment at the expense of the Nigerian people,” the senator said.

     

     

  • Senate summons Kachikwu, Baru, others over fuel scarcity

    Senate summons Kachikwu, Baru, others over fuel scarcity

    The Senate on Thursday summoned the Minister of State for Petroleum, Dr. Ibe Kachikwu, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru and other relevant stakeholders in oil and gas industry over the persistent fuel scarcity in the country.

    They are expected to appear before the Senate committee on Petroleum Resources (Downstream) on January 4, 2018 for a “crucial meeting” with the committee to discuss the way forward on the matter.

    A statement issued on Thursday by the office of the Senate President, Dr. Bukola Saraki, directed the committee On Petroleum Resources (Downstream) to cut short its recess and immediately convene a meeting with industry stakeholders.

    The statement quoted the chairman of the Senate Committee on Petroleum Resources (Downstream), Senator Kabiru Marafa, as saying that proceedings at the meeting would be transmitted live by the Nigerian Television Authority (NTA).

    The Senate, which is presently on Christmas and New Year break is billed to resume committee work for budget defence on January 9, and commence plenary on January 16.