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Tag: Scarcity

  • ‘How naira scarcity affected manufacturers’

    ‘How naira scarcity affected manufacturers’

    Manufacturers Association of Nigeria (MAN) yesterday said the cash withdrawal limits and the scarcity of old and new naira notes across banking halls and electronic payment channels, following the implementation of the Central Bank of Nigeria (CBN) currency redesign policy led to severe hardship on manufacturers.

    MAN said the prolonged crisis impacted negatively on manufacturers by limiting their working capital, thus halting their business operations. In addition, the naira scarcity, it said, crushed the consumer patronage of manufacturing firms and escalated their volume of inventories, especially for retail goods.

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    “By exposing the highly cash-based distributive trade sector to great risk, the economic crisis had severe consequences on the manufacturing value chain and cost of logistics,” MAN said, pointing out, for instance, that the prolonged crisis nearly crippled manufacturing companies with about 20 per cent and 30 per cent decrease in sales for consumer goods and cement respectively.

    Making these known in its Manufacturers CEO Confidence Index (MCCI) for Second Quarter (Q2 2023) Report released yesterday, MAN also lamented that the substantial reduction in money velocity left opportunity for speculation and ignited the creation of a naira black market that compounded the woes of manufacturers plagued by insufficient forex.

    The MCCI is an index created by MAN to measure changes in quarterly pulsation of manufacturing in relation to movement in the macro-economy and government policies.

    The Index is, therefore, a barometer used by MAN to aggregate the views of CEOs of manufacturing companies on changes in the economy.

    But, MAN, in a special focus in the MCCI Q2 2023 Report, titled ‘How Naira Scarcity Took Toll on Manufacturing Businesses,’ lamented that sequel to the naira redesign and the new cash withdrawal limits by the CBN, the scarcity of both old and new naira notes across all banking halls and electronic payment channels in the country took a heavy toll on manufacturing businesses.

    Recall that sometime in October last year, the CBN inadvertently threw Nigerians and businesses including manufacturers into a serious cash crisis following the implementation of the naira redesign policy.

    The policy under which CBN mopped up over 70 per cent of cash in the economy was said to have crippled economic activities in the country and left manufacturers, at the time, agonizing over a more than 25 per cent dip in sales of manufactured products, for instance.

    Now, MAN, in the Report, which was made available to The Nation, lamented that the naira scarcity clearly wiped out numerous small and medium manufacturing businesses whose transactions were cash-based, especially those within the agro-allied industries who regularly deal with local farmers in remote towns where no formal banking was in sight.

    “More unfortunately, the exorbitant Point of Sale (POS) charges on such cash constrained the operations of resilient manufacturing SMEs and worsened their cost of doing business,” it added.

    MAN, in the report signed by its Director General, Segun Ajayi-Kadir, argued that the country’s transition to a cashless economy requires no urgency or policy aggressiveness considering that a lot of progress has already been made.

    “A comparative analysis of the country’s cashless status has shown that while the ratio of cash to Gross Domestic Product (GDP) in Europe, U.S. and South Africa are respectively about 10 per cent, six per cent and 3.5 per cent, Nigeria’s ratio is impressively below 1.5 per cent,” Ajayi-Kadir stated.

    “Therefore, achieving a full cashless economy should not be the pressing issue when there are tougher challenges of insecurity, exchange rate volatility, skyrocketing inflation, energy disruption, over bloated fiscal debt, dwindling foreign reserves, business collapses and daily divestments,” he insisted.

  • Sokoto and monster of water scarcity

    SIR: Water is much more than just a basic human need. It is an essential, irreplaceable element to ensuring the continuance of life. It is intrinsically linked to fundamental human rights such as the right to life, to food and to health. Access to clean drinking water as described by the United Nations General Assembly is a necessity and a basic human right.

    Sokoto is richly blessed with abundant water resources but largely untapped. In spite of the abundant resources, both the state and local governments have failed to successfully harness these resources to ensure a sustainable and equitable access to safe, adequate, improved and affordable water supply to the common man. Many people living in the state particularly in the rural communities are currently facing enormous hardship because water supplies are neither sufficient nor safe. For several people living in state, water scarcity is rapidly becoming an issue crucial for life and, in the broad sense of the concept, a right to life issue.

    In the absence of water from piped supplies and protected wells, millions of people living in the state are forced to consume what is available – unhygienic and contaminated waters largely from local vendors, wells, streams and ponds, thus directly endangering the social well-being of the people and giving life to several forms of waterborne diseases as well as adding another burden on the state public health service since water remains one of the major primary drivers of public health.

    While the state capital city is facing a decline in supply, the rural areas are even not in the picture. The state government is giving less or no priority to rural water supply; local government councils often do not have the funds to make necessary improvements and hence compelled to use short-term solutions which cannot be maintained by the communities who need them.

    The gospel truth is that the water infrastructure currently available in Sokoto State is suffering from severe neglect. Successive regimes did very little in this regard while the present administration has totally failed to maintain the existing infrastructure not to mention of establishing new ones. In essence, Sokoto state today neither has a standard water plan nor policy despite the huge resources allocated to the sector annually. Billions enough to provide adequate drinking water for the entire North-West region have been spent so far on the state water sector since the return of democracy in 1999, yet, the problem continue to escalate, forcing millions to live with the monster of water scarcity as their lifetime companion.

    What the foregoing denotes most eloquently is that the problem of water scarcity currently ravaging Sokoto state is a serious issue that must be tackled. Provision of standard water infrastructure, upgrading existing ones and proper water management is therefore perhaps the most important requirement for solving water scarcity in the state. More attention must be given to coordination and cooperation between all actors in the water industry at all levels.

    Public private partnership can also play an important role in providing access to clean drinking water, provided that the state government has the political will and stakeholders work together for a common goal: that of guaranteeing access to safe and clean drinking water for all. This does not undermine the role of the state in fostering the realization of the right to access to safe and clean drinking water.

     

    • Usama A. Dandare,

    Sokoto.

  • End this scarcity

    End this scarcity

    • It’s an embarrassment for a major oil producer

    Like a bolt from the blue, fuel scarcity resurfaced in Lagos and other parts of the country last weekend, at a time many Nigerians had thought they had seen the last of such an ugly spectre of motorists queuing for fuel at filling stations.

    The latest experience is evidently a manifestation of failure of planning on the part of the Nigerian National Petroleum Corporation (NNPC). Ndu Ughamadu, the corporation’s group general manager, group public affairs division attributed the scarcity in Lagos to “a slight change in the distribution network” in Lagos, which is currently being supplied by members of the Major Oil Marketers Association of Nigeria, MOMAN. “At the weekend there was a hitch in discharging of petrol by ships which has been rectified,” Ughamadu said adding that “today, 250 trucks have been discharged to Lagos compared to less than 200 trucks usually allocated to Lagos at the weekend.”

    Definitely, Nigerians cannot continue like this. By now, we expect NNPC to have a template of demand and supply to avoid the perennial embarrassment of people queuing for fuel in what obviously is perhaps the only crude oil producing nation that is importing petroleum products. The annoying part of it is that instead of coming clean when the scarcity occurs, NNPC would be shopping for excuses. We admit that there could be hiccups in any human arrangement but when that becomes the norm rather than the exception, it gives room for speculation and distrust.

    It would appear that Nigerians are yet to be told the real reason for the recurring scarcity this time around. We say this because fuel supply at filling stations in the country has become epileptic since the steady increase in crude prices, especially in the past few months. Crude price hovered around $39 per barrel when the present N145 per litre of fuel was fixed in 2016, up from N86.50. Today, it is about $65 per barrel. We do not need anyone to tell us that the N145 per litre template can no longer be realistic, especially since the bulk of the fuel consumed in the country is imported.

    The implication is that the major marketers that hitherto supplied about 65 per cent of the country’s fuel needs when the going was good could no longer continue to import and sell at the rate fixed by the government. This position was made known to the Federal Government (as if they needed to do that for the government to know). The lot then fell on the NNPC to be importing fuel consumed in the entire country, a task it is evidently not equipped for.

    The truth of the matter is that today, fuel subsidy is back, but the Federal Government knows the possible backlash of asking Nigerians to pay more for fuel and is not willing to toe that path. This indeed would be a hard sell, especially for people who were only in May 2016 asked to bear the pains of the increase from N86.50 to N145 per litre. Moreover, they are not responsible for the refineries that are not working, necessitating importation of petroleum products.

    The NNPC has to get its act together. It is shameful enough that a major crude oil producing nation like ours is importing fuel for domestic consumption, when in actual fact we should be producing for export as well; that we cannot even do a simple thing as import and distribute to maintain a seamless flow of the products adds salt to the injury. Seeing Nigerians on fuel queues for hours is not only bad for the country’s image and economy, it is also a big minus for the Federal Government. It is neither a good way to end nor start a year as we have experienced with the current round of scarcity.

  • Government intensifies efforts to ease scarcity

    Government intensifies efforts to ease scarcity

    •DAPPMA chief gives recipe for sustenance

    After two days of severe fuel scarcity and chaotic queues at the filling stations in Lagos and other cities, respite is underway for consumers.

    The Nigerian National Petroleum Corporation (NNPC) has increased supply of premium motor spirit (PMS) commonly called petrol to the metropolis.

    The Nation’s survey yesterday showed there was impressive supply to depots in Lagos, making more filling stations to dispense product late yesterday. But the queues were still long and chaotic.

    Policemen were seen stationed at many filling stations to ensure order and contain any likely breach.

    Fuel hawkers took advantage of the scarcity to ply their trade on the ever-busy Ikorodu Road, selling a 10-litre container of fuel for as high as N2, 500 to N3, 500, depending on the buyers bargaining power.

    Some of the hawkers loitered around the filling stations for desperate motorists.

    A depot operator, who spoke to The Nation on the condition of anonymity, said: “Supply has improved considerably. I believe by Wednesday (tomorrow), the queues will fizzle out. As we speak, the depots are loading. Some of the depots will even load overnight. The depots that don’t have adequate safety gadgets may not risk loading at night. But I assure you there is fuel supply and normalcy will return on sustainable basis if only the Nigerian National Petroleum Corporation (NNPC) will sustain the supply.

    “Some ships are currently offloading. At the Bulk Oil Platform (BOP) jetty, about 25,000 metric tons of fuel is being offloaded while another one is also offloading at the Oando-SPM jetty.

    “The Oando-SPM jetty has deeper draft and accommodates bigger ships, so the one offloading there should be between 30,000 mteric tons and 35,000 metric tons.”

    The Chairman, Depot and Petroleum Products Marketers Association, Prince Dapo Abiodun, however, said the problem of fuel scarcity was beyond the supply by the NNPC.

    To him, to ensure sustainability of adequate fuel supply across the country, marketers should be made to resume importation immediately.

    He said that for as long as the NNPC remains the sole importer, there will continue to be scarcity intermittently because NNPC cannot effectively do the importation and distribution without hitches.

    “NNPC is already overwhelmed because the importation and distribution jobs the Corporation is doing alone now was previously done by 30 companies,” he said.

    According to him, the haphazard supply will linger as long as the NNPC remained the sole importer, noting that “the way out of the problem is for the government to take decision on ensuring sustainable and adequate supply. The decision should be choosing one of three options, import subsidy, foreign exchange subsidy and full deregulation.”

    He also noted that the outstanding huge debts owed the marketers constitutes huge obstacle to importation of fuel by the marketers.

    He said the Federal Government has been indebted to the marketers over N800 billion in unpaid fuel imports made by marketers since the past three years.

    Abiodun said: “Marketers must be put in the position to resume importation of PMS. What is happening confirms the inability of NNPC to cope with being the only supplier. They (NNPC) were supplying only 20 per cent of the market till October 2017, and now they are doing 100 per cent, which was done by about 30 companies the importation.

    “The importation logistics and distribution are understandably overwhelming for them (NNPC). One of three options are open for the Federal Government to choose if there should be sustainable adequate fuel supply across the nation.

    “Option one is for the Federal Government to introduce subsidy amount of N600 billion per year with the approval of the National Assembly.

    “Option two is subsidizing of the rate of foreign exchange (forex) for the marketers by the government to enable the marketers import fuel and sell at regulated price of N145 per litre, while the third option is for the government to fully deregulate the downstream subsector.

    “Whichever way, marketers must resume importation to enable the country have an enduring solution to this epileptic supply situation.”

  • Labour to FG: prepare for mass action if scarcity persists

    Labour to FG: prepare for mass action if scarcity persists

    Organised labour yesterday threatened nationwide protests if the intervention of the National Assembly failed to arrest the fuel crisis that has bedeviled the country for two weeks.

    The Nigeria Labour Congress (NLC), in a statement issued in Kaduna and signed by a member of its National Executive Committee (NEC), Comrade Issa Aremu, said it might compel Nigerians to return to street protests as they had done in the past “to force the ruling elites to face up to the challenges of governance of the most populous, promising but badly governed country on the continent.”

    “The one month long fuel shortage has further worsened poverty (and) put productivity on hold. We dare not enter the new year with this recurring old mess,” the statement said.

    It, however, commended the Senate President, Dr. Abubakar Bukola Saraki, for directing the Senate Committee on Petroleum Resources (Downstream) to cut short its recess and immediately convene industry stakeholders meeting in a bid to end the crisis.

    Aremu observed that the protracted fuel crisis was a reflection of “crisis of corporate governance in the petroleum sector.”

    According to the labour leader, the bane of downstream sector was “abysmal absence of accountability, transparency and openness in the administration of the petroleum resources of Nigeria, adding that only the parliament can make a difference in exposing the rot in the sector.”

    Aremu said the Senate leadership, by urging relevant committee members to resume duty, has shown that the legislature is truly “a vent for public grievances, a “useful organ of public opinion” adding that legislators cannot be in recess when those who elected them are groaning in filling stations.

    The labour leader urged the legislators to demand for “consequences for the actions and inactions of petroleum sector operators in the product shortage scam”.

    He said: “There is a deep seated conflict of interest in the downstream sector; regulators are operators, regulators are importers, importers are products hoarders, regulators are also saboteurs. Definitely, we have a sector capture in our hands. Nigeria and Nigerians need liberation.”

    The Labour leader, who disclosed that the NNPC is the only public corporation that annually awards its directors long service incentives for no service done and for non-functioning refineries, called for a “total ban on importation to reinvent domestic refineries and beneficiation to crude oil.”

    The Chairman of the Senate Committee on Petroleum Resources (Downstream), Senator Kabiru Marafa, had disclosed that following the directive of the Senate President, the Committee had summoned the Minister of State for Petroleum, Dr. Ibe Kachikwu; Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru and other relevant stakeholders in the petroleum sector to a crucial meeting on January 4, 2018.

  • We will end fuel scarcity, says MD Azikel Petroleum

    We will end fuel scarcity, says MD Azikel Petroleum

    The incessant fuel scarcity plaquing the country will soon become a thing of the past, a Bayelsa based industrialist, Dr. Azibapu Eruani, has said.

    Eruani, an operator of a  privately owned refinery about to commence operation, told journalists that the yearly fuel scarcity debacle, particularly during festive periods in the country, is inexcusable, pointing out that this challenge has become embarrassing and biting, as it has virtually crippled economic activities in the country.

    Eruani said the challenge persists  because the efficiency level of existing refineries is too low to satisfy consumers demand; just as the nation depend solely on importation of fuel for local consumption.

    He said the present administration led by President Muhammadu Buhari took a pragmatic step to redress low supply, importation of fuel and price hike, by issuing licenses to private refineries to Nigerian businessmen, Azikel Group inclusive.

    He said Azikel Petroleum has achieved 65 per cent completion; and that it would soon begin operation, stating that when all licensed privately owned refineries begin to dispense fuel, it would shore up production capacity and fuel scarcity and insufficiency would be outlawed, and that Nigeria would be like other countries where availability of petroleum product would no longer be an issues.

    He said: ‘’Azikel Petroleum refinery, phase 1, 12, 000 bpsd hydro-skimming refinery, would produce, premium motor spirit, liquefied Petroleum gas, heavy fuel oil, Kerosene and diesel, which is scalable as it will increase geometrically in the phase 2 level of production with over 50,000 bpsd.”

    He said Azikel Group is irrevocably committed to bridging the industrial deficit in Bayelsa, saying; “we are on a fast lane of making history, building the first hydro-skimming privately owned refinery in the state and the Niger Delta, and as we pioneer this course others would follow’’ Eruani submitted.

    ‘’It might be difficult yesterday, but we have moved beyond the point of difficulty to success, and we believe that fuel scarcity in Nigeria would be a thing of the past soon.

    He dismissed the erroneous impression that Bayelsa is a militant state, stressing that the people are enterprising and a whole lots of small and medium business is also thriving in the state.

    Eruani alluded that the multiplier effect of adequate supply of petroleum product in the country would drastically reduce the problem of unemployment, which is responsible for brain drain, illegal means to greener pasture, particularly the Libya returnees, as well as other in pathetic conditions faced by young Nigerians in other countries.

    He shared the optimism that synergy between the private sector and government at all levels is needed to advance technology driven industrialization to absorb graduates from our universities, as a well as create room for middle and low class manpower.

    The Azikel Group President noted that subsidiaries under the group have created industrialization in Bayelsa and the Niger Delta, stressing that with over 1000 employees from the six geo-political zones and still counting, we have reduced unemployment challenge in the state, Niger Delta and in the country.

  • Govt making efforts to end petrol scarcity, says APC

    Govt making efforts to end petrol scarcity, says APC

    The ruling All Progressives Congress (APC) has appealed to Nigerians to be patient while the problem of petrol scarcity is being addressed.

    In a statement by National Publicity Secretary Bolaji Abdullahi, the APC “acknowledge the difficulties Nigerians are currently experiencing as a result of the unfortunate fuel scarcity across the country; especially at this Yuletide period.”

    It added: “We understand the unhappiness of Nigerians at this situation, which is happening for the first time in the Christmas period since the APC administration came to power.

    “We also wish to note that while we accept the choice of the opposition PDP to make political gains out of the difficulties that Nigerians are experiencing as a result of this fuel scarcity, we however condemn their desperation to make the government and our party look bad by maliciously fabricating and circulating fictitious statements in the names of our government and party officials and then attack us on the basis of those same statements that they fabricated in the first place. This is bad politics.

    “We appeal for patience with the Federal Government as they make efforts to improve the situation and find lasting solution to this problem that has bedevilled every administration in our country, including the PDP administration under whose government, Nigerians would recall, the oil cabal enjoyed unprecedented prosperity.”

  • Fuel scarcity bites harder in Lagos, Ibadan, Ondo, Abuja

    Fuel scarcity bites harder in Lagos, Ibadan, Ondo, Abuja

    The long queues at petrol filling stations in Ibadan, Lagos, Abuja and Ondo continued yesterday with a litre of fuel selling at between N210 and N250  in some filling stations .

    In some locations in Ibadan where black market thrives, a litre of petrol sells as much as N400 per litre. These filling stations selling the product, operate only in the night , with vehicles queueing throughout the day.

    The scarcity, which has continued unabated in the city,  has caused a lot of hardship on the residents who were preparing for the Xmas and New Year celebration.

    Many residents, who could not afford the high cost of transport fares, were seen trekking long distance due to exorbitant fares charged by commercial transport operators.

    Due to the scarcity of petrol , commercial transport operators have jacked up fares by over 100 per cent.

    Our correspondent, who went round the city yesterday, observed hundred of commuters trekking long distance due to scarcity of vehicles and commercial motorcycles in many parts of the ancient city.

    Many bus stops within the city were flooded with scores of commuters who were stranded as they waited endlessly to no avail.

    Transport fare that goes for N100 from Mokola to Ojoo is now between N200 and N250. The one from Gate to UI is now between N150 and N200 instead of N100.

    From Ajibode Junction to Ojoo is now N50 instead of N20. This applied to other areas .

    Many filling stations that were partially selling the product on Tuesday and Wednesday were under lock and key when our correspondent visited yesterday.

    A resident of Ologun-Eru told this reporter yesterday that some of the petrol station selling the product in his area are selling between N210 and N250 per litre.

    The scarcity has also afforded some youths in areas such as Mokola, Sabo and Ajibode to turn the situation in making brisk business by selling 4-5 litres of Petrol at the rate of N2000- N3000 depending on the bargaining power of the prospective buyer.

    A resident of Ajibode ,who begged not to be named, said he spent many hours at a petrol station to no avail.

    Another resident of Ibadan, who spoke with The Nation, noted that though the petrol still sold at the normal price in his area, but it would take one about five hours to get the product.

     

    He said: “They are still selling at the normal price of N140. But it is a very long queue, you will spend up to five hours before you get it. But those selling black market, they sell four litres for N2000.”

    A cross section of those who also spoke with our correspondent appealed to the government to find lasting solution to the persistent problem.

    In Lagos, the prices have skyrocketed as petrol is selling at N200 per litre in Lagos, the News Agency of Nigeria (NAN).

    NAN checks revealed that more filing stations have joined the growing numbers of stations without the product while few who had product sell between N 170 to N200 per litre with long queues.

    A NAN correspondent, who monitored fuel situation within Lagos metropolis around 7 a.m. yesterday, reports that most stations at Ikorodu, Epe, Imota, Ibeju-Lekki and Ajah were seen selling petrol at N200 per litre.

    At Be Happy, Mallo, Bravo, Domino, and Dhikram filling stations situated at Ikorodu was selling at N200 per litre while motorists were mandated to pay N50 as ‘commission’ to the attendants, before they sell to them.

    Mobil, Oando and Total filling stations along Lekki-Epe Expressway was dispensing at N145 per litre but there were long queues while motorists were cited buying fuel from ‘black market’ along the road.

    NAN also observed that some independent marketers filling stations branded with NNPC colour were also selling at N170 per litre with their dispensing meter showing N143 per litre.

    Black market operators at Monsinmi depot were selling a 30-litre gallon at N6, 000 with inter-state commercial and private motorists packed along the road to fill their tanks.

    Mr Ndu Ughamadu, spokesman of the NNPC has said the corporation has intensified efforts to flood the market with petrol.

    Ughamadu said six major marketers: Total, Forte Oil, Oando Plc, MRS, 11 Plc and Nipco Plc, are now loading products round the clock from their various depots in Lagos for onward trucking to all parts of the country.

    According to him, the supplies are mostly from cargoes of petrol imported to by NNPC which are daily berthing and immediately being made to discharge their products to stem the supply hiccups.

    “ The imported products are also being supplemented by supplies from the local refineries.

    “ NNPC assures Nigerians to remain calm and not to engage in panic buying as the end of the challenge is nigh.

    “Marketers are strongly advised against hoarding as security agencies, working with industry regulators, would mete out appropriate sanctions to defaulters. NAN reports that the scarcity of petrol had brought hardship on many Nigerians as many cannot travel to celebrate the yuletide with their family in different villages.

    NAN also reports that many filling station have increased the pump price of petrol to N250 per litre while the black market are selling five litres of petrol between N2,500 and N3,000.

    Transport fare in Lagos metropolis has also increased by 300 per cent. Travelers stranded at Mararaba motor park as fuel scarcity persists

    As the ongoing scarcity of petrol continues to bite harder, passengers travelling for Christmas were stranded at Mararaba motor park in Nasarawa State on Sunday.

    NAN reports that as a result of the scarcity of petroleum products, transporters seem to be cashing in on the development, with fares increased arbitrarily.

    In Akure, Owo,Ondo Akokoland and other parts of Ondo State, the scarcity remains bad.

    At Ikare,Oke-Agbe,Akungba,Arigidi and other communities, people were trekking long distances due to scarcity and hike in fuel which had been affecting the area in the past three weeks.

    The situation in Ikare was so pathetic as a drop for taxi attracted between N150 and N200 depending on distance.

    The Nation observed that many people trekked from Ikare-Okeagbe- Erusu down to Oke-Agbe and Ogbagi.

    Transport fare from Lagos to Ikare-Akoko was N4,000 as against the usual N2,300.

    The black marketers selling in jerry can along Ikare Road were selling a litre for N600, while such petrol had been reportedly mixed with kerosine.

    As at the press time, only one filling station was selling at N300 per litre in Akokoland with similar situation in Akure and other major towns in the state.

  • Govt advised on how to end fuel scarcity

    Govt advised on how to end fuel scarcity

    The Chairman, Integrated Oil and Gas Limited, Capt Emmanuel Iheanacho, has advised the Federal Government to allow more modular refineries to operate, alongside the existing ones  to finally end real and imaginary fuel scarcity.

    Speaking against the backdrop of fuel scarcity in some parts of the country, Iheanacho said hitches over fuel supply between Independent Petroleum Marketers Association of Nigeria (IPMAN) and Depot and Petroleum Marketers Association of Nigeria (DAPMAN) would not have arisen were there many indigenous refiners and distributors of fuel.

    In an interview with The Nation, Iheanacho said the nameplate of modular refineries could be expanded to accommodate between 50,000 and 100,000 barrels of oil per day (bpd) depending on their configurations, stressing that 100,000 bpd will produce millions of litres of fuel in the country.

    According to him, this can only be achieved through government’s financial assistance to modular refineries’ operators.

    He urged the government to assist Integrated Oil and Gas with over $100million, in order to meet its target of producing 20,000bpd, through its modular refinery.

    The assistance, Iheanacho said, should be in form of helping the firm and other operators to access facility from banks.

    He urged the government to provide a policy framework that would compel financial institutions to provide funds to investors that intend to build modular refineries.

    Iheanacho said: “Financial support is one major area we need government’s help;  if government realises that there is need to have a lot of the small scale refineries to turn around the economy.

    “We can now start exporting refined products than we are currently importing. Government should make provision for financing because it is key requirement to do 20,000 bpd.”

    He said the decision by the Nigerian National Petroleum Corporation (NNPC) to continue to import fuel, is eating deep into the government’s money, stressing that modular and other refineries will fill that gap, when they operate optimally.

  • Group blames youth unrest on food scarcity

    Suliman Arigbaba, Executive Secretary, Human and Environmental Development Agenda (HEDA) Resource Centre, a non-governmental organisation, has blamed youth agitations partly on food scarcity in the country.

    Arigbaba who spoke with The Nation in Lagos also observed that a greater number of the youths in the African sub-region were involved in crimes ranging from kidnapping, armed robbery and other vicious crimes chiefly due to insufficient food in the land.

    He spoke on the sideline of the just concluded 2017 World Food day rally organised by the agency on the theme ‘Change the Future of Migration, Invest in Food Security and Rural Development.”

    He said: “The youths are hungry, no hope for tomorrow and when hungry they are hungry life becomes meaningless to them, and malnutrition becomes the order of the day.”

    According to him, the whole idea of this year 2017 commemoration is to take stock about the situation of food in the globe.

    “Our young able bodied men and women; people who should stay here and develop Africa are dying in the Sahara desert because they want to cross over to Europe to get what to eat. The youths are migrating in droves because they have seen that our government at all levels are not genuinely committed to agricultural development” adding the old people who constitute over 70 per cent of the producers of our food needs today are not being taken care of.

    Arigbaba who expressed dissatisfaction at the low rate of budgetary allocation to agriculture in Nigeria, said contrary to the Maputo declaration of 2003 which according to him stated that Nigeria as a signatory to the declaration ought to allocate at least 10 per cent of her yearly budget to agriculture.

    He however, commended the federal government’s ongoing free food for school children, adding when there is good food for everybody there is the tendency they will be healthier.