Ali Bongo Ondimba, the president of Gabon, takes Lionel Messi for a drive |
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Monday, 20 July 2015
Lionel Messi Gets A Drive From President Of Gabon (Photos)
BREAKING: Fresh Bomb Explosion In Damaturu
BREAKING: Fresh Bomb Explosion In Damaturu
Report just reaching our news desk indicates that a fresh bomb attack has occurred in Damaturu, Yobe State.
This is coming barely three days after suicide bomber attacked a Muslim praying ground during the Eid-el-Fritri celebration last Friday.
APC Cannot Win Ekiti Even If Tinubu Becomes INEC Chairman - Fayose
Monday, 20 July 2015
APC cannot win Ekiti even if Tinubu becomes INEC Chairman - Fayose
Fayose
He also took a swipe at the party’s national leader, Bola Tinubu.
“Even if Tinubu becomes the INEC chairman, they will lose in Ekiti, because they are not on ground here”, Fayose said via his Twitter account @GovAyoFayose.
According to him, Ekiti was gone for good from the hands of APC.
In a series of tweet, he re-echoed his preference for former President Goodluck Jonathan to win a second term, saying the victory of President Muhammadu Buhari was “the will of God”.
Excerpts from his tweets: “Elections have come and gone and, as I always say, President Muhammadu Buhari is the president of Nigeria, not by his own grace.
“I wanted Jonathan but God has given it to Buhari and so, we all have to submit to the will of God.
“It is a free society; there is no almighty governor; there is no almighty president. We are all governed by civility and by the constitution”.
PHOTO: FUTO Head Of Department,Dr (Mrs) Felicia Eze Kidnapped
PHOTO: FUTO Head Of Department,Dr (Mrs) Felicia Eze Kidnapped
Nigerian Police In Abakiliki Kill Unarmed Nigerian Man -Viewers Discretion Advised
The mail came in two parts.
The first is an SOS alert that the victim was in Hospital unconscious.Chinedu Uzor lost the battle and died this Morning.
His head was blown open with his brain tissue spilling out..
Please read what happened but please brace yourself for the next pic...
''Hello Stella, something really terrible just happened to one of my tenants, He was driving back home and he saw some guys dressed in mufti flagging him to stop, for fear that might be robbers, he sped off hoping to get to a legal checking point for safety. Only to see a checking point ahead, on getting there, he put off his car engine, and surrendered himself whilst explaining himself, the other team of police came there, met him and shot him on his head and arm at close range, as I speak to you, he is unconscious and on oxygen at Specialist Hospital Abakaliki.
For Goodness sake, why should they shoot at someone who was unarmed and raised his hands. This same man had a similar experience last two December where some guys stopped him and he stopped and they shot at him, luckily for him he survived that by God's Grace and now this. I really won't want this case swept under the carpet, The Nigerian Police has done more harm than good to its Citizens.
THE SECOND MAIL WHICH JUST CAME IN READS...
Attached Here are pictures of the man, his name is Chinedu Uzor. He died early this morning and the policemen are desperately trying to cover up their tracks and even trying to track down the witness who has gone into hiding''.
First Bank Plc Faces Money Laundering Charge
A federal high court sitting in Lagos, Southwest Nigeria has adjourned till after vacation hearing in a three count criminal charge of money laundering filed against First Bank of Nigeria Plc by Peep ‘N’ Pick Bureau de Change Limited and seven other accused persons.
According to the said criminal charge filed before the court by Mr K.A. Salawu principal state counsel from the office of the Attorney General of the Federation, a manager of FirstBank, Juliana Ifeyinwa Ochuka, First Bank Plc, Jenifer Osaseri Anasodo, Titilope Nasir Balogun, Aderonke Adedayo, Joy Ngosi Nnoruka, Caleb Chukwuka Ezeh, Oluwabunmi Afolashade Olujobi, Peep ‘N’ Pick Bureau De Change Ltd and others at large on or about 22nd of May 2014 conspired together to launder the sum of 1.9 million dollars, the source of which was unlawful and thereby committed an offence contrary to and Punishable under sections 15 (3) and 18(a) of Money Laundering (prohibition) Act.
The money whose source was unlawful was alleged to have been laundered through three different accounts open with the bank by one of the senior managers of the bank.
In an affidavit sworn to by Mrs Felicia Des-Dordes, chief Litigation Clerk in the office of the Attorney General of the federation, and filed before the court, the Deponent averred that all investigation into the case had been concluded and Mr K A Salawu in his position as prosecutor alleged that, prima facie case exists against the FirstBank Plc and all the accused persons.
According to the said criminal charge filed before the court by Mr K.A. Salawu principal state counsel from the office of the Attorney General of the Federation, a manager of FirstBank, Juliana Ifeyinwa Ochuka, First Bank Plc, Jenifer Osaseri Anasodo, Titilope Nasir Balogun, Aderonke Adedayo, Joy Ngosi Nnoruka, Caleb Chukwuka Ezeh, Oluwabunmi Afolashade Olujobi, Peep ‘N’ Pick Bureau De Change Ltd and others at large on or about 22nd of May 2014 conspired together to launder the sum of 1.9 million dollars, the source of which was unlawful and thereby committed an offence contrary to and Punishable under sections 15 (3) and 18(a) of Money Laundering (prohibition) Act.
The money whose source was unlawful was alleged to have been laundered through three different accounts open with the bank by one of the senior managers of the bank.
In an affidavit sworn to by Mrs Felicia Des-Dordes, chief Litigation Clerk in the office of the Attorney General of the federation, and filed before the court, the Deponent averred that all investigation into the case had been concluded and Mr K A Salawu in his position as prosecutor alleged that, prima facie case exists against the FirstBank Plc and all the accused persons.
Obasanjo Should Let Jonathan Be – Fayose
Ekiti State Governor, Mr Ayodele Fayose has urged former President, Chief Olusegun Obasanjo to stop attacking the immediate past President, Dr Goodluck Jonathan, saying; “Dr Goodluck Jonathan is no longer the president of Nigeria, he should be allowed to live a private life devoid of mudslinging from elder statesmen like Chief Obasanjo.”
Governor Fayose said he was miffed that former President Obasanjo could choose the 11th Convocation Lecture of Benson Idahosa University (BIU) Benin, Edo State to say that “performance of Jonathan while in office will hunt the people of the South-South region for a long time to come.”
In a statement issued in Ado-Ekiti on Monday by his Special Assistant on Public Communications and New Media, Lere Olayinka, the governor said the people of the South South had already demonstrated their approval of Jonathan’s performance while in office by voting overwhelmingly for him on March 28 despite the gang-up orchestrated by Chief Obasanjo and his allies.
“Most importantly, Jonathan’s performance as a democrat has been widely acknowledged locally and internationally, particularly by President Mohammadu Buhari, who on many occasions acknowledged the role he (Jonathan) played in midwifing a peaceful and successful transition programme, thereby averting the feared crisis in the country.
“This is in contrast to Baba Obasanjo, who tried third term when he was about concluding his constitutional two terms. And who knows whether he would have tried fourth term if he had succeeded with his third term agenda?
“The reality is, assuming but not conceding that Jonathan performed below expectation, democratic governance that he established in Nigeria is more important than any other performance that Obasanjo alluded to,” the governor said.
Speaking further, Governor Fayose urged Obasanjo to stop running other Nigerians down, saying; “We are all stakeholders in the country Nigeria. It is wrong for any Nigerian no matter how highly placed to go about carrying himself around as the only honest and lover of the country.”
The governor said; “since Baba Obasanjo has openly destroyed his Peoples Democratic Party (PDP) membership card, he is free to go about seeking relevance in the All Progressives Congress (APC) without running anyone down.”
He said people living in glass houses should avoid throwing stones, adding that Nigerians know those involved in the Halliburton scandal and people who are yet to be cleared of their alleged complicity in a scam like Halliburton lacked moral rights to brand other people as corrupt.
Governor Fayose said he was miffed that former President Obasanjo could choose the 11th Convocation Lecture of Benson Idahosa University (BIU) Benin, Edo State to say that “performance of Jonathan while in office will hunt the people of the South-South region for a long time to come.”
In a statement issued in Ado-Ekiti on Monday by his Special Assistant on Public Communications and New Media, Lere Olayinka, the governor said the people of the South South had already demonstrated their approval of Jonathan’s performance while in office by voting overwhelmingly for him on March 28 despite the gang-up orchestrated by Chief Obasanjo and his allies.
“Most importantly, Jonathan’s performance as a democrat has been widely acknowledged locally and internationally, particularly by President Mohammadu Buhari, who on many occasions acknowledged the role he (Jonathan) played in midwifing a peaceful and successful transition programme, thereby averting the feared crisis in the country.
“This is in contrast to Baba Obasanjo, who tried third term when he was about concluding his constitutional two terms. And who knows whether he would have tried fourth term if he had succeeded with his third term agenda?
“The reality is, assuming but not conceding that Jonathan performed below expectation, democratic governance that he established in Nigeria is more important than any other performance that Obasanjo alluded to,” the governor said.
Speaking further, Governor Fayose urged Obasanjo to stop running other Nigerians down, saying; “We are all stakeholders in the country Nigeria. It is wrong for any Nigerian no matter how highly placed to go about carrying himself around as the only honest and lover of the country.”
The governor said; “since Baba Obasanjo has openly destroyed his Peoples Democratic Party (PDP) membership card, he is free to go about seeking relevance in the All Progressives Congress (APC) without running anyone down.”
He said people living in glass houses should avoid throwing stones, adding that Nigerians know those involved in the Halliburton scandal and people who are yet to be cleared of their alleged complicity in a scam like Halliburton lacked moral rights to brand other people as corrupt.
Wizkid’s All-white Yacht Party In Durban
Four days ago, Wizkid announced on his page that he would be celebrating his birthday with an all- white party on La Vue Luxury boat at the Wilson Wharf in Durban, South Africa and he would be popping 100 bottles of champagne.
The party took place yesterday, and we have collated some of the pictures from the star-studded event here:     |
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Insurgency: Army chief inaugurates Operation Lafiya Dole
Maj.-Gen. Tukur Buratai, the Acting Chief of Army Staff, on Sunday launched “Operation Lafiya Dole” as a new code name for a fresh impetus by the military to tackle the activities of Boko Haram.
This replaces the former “Operation Zaman Lafiya.”
The new code name was derived from Hausa language, which literally translates “Peace by All Means.”
Buratai announced this while addressing troops of the 103 Battalion in Konduga, headquarters of Konduga Local Government Area of Borno.
He said the objective was to transform the army professionally as well as fast track the war against the Boko Haram terrorists.
“It is the wish of the Federal Government to end this terrorism quickly in this part of the country and indeed some other challenges in the South South and other parts of the country.
“This will make us to have a very peacful country free from any insecurity,” Buratai said.
He lamented that the fight against terrorism had lasted for a very long time without much results.
Burutai said, “Consequently as from today July 19, we are here to bury the ‘Operation Zaman Lafiya’ and give birth to what we will henceforth call ‘Operation Lafiya Dole’.
“Operation Lafiya Dole is derived from the belief that we must end this insecurity. We must restore peace to all parts of the North East and other parts of the country that are affected by insurgency.
“We are going to carry this as a war and I appeal to all and sundry to give this operaton maximum cooperation.
“We will carry the civil population along, we wil also observe the principle of human rights and respect human dignity. We will not trample on anybody’s right.”
He expressed optimism that the operation will yield dividends in a very short time.
“As the insurgents have refused to understand and come to the right way we must force them to make sure that peace returns to all pa
This replaces the former “Operation Zaman Lafiya.”
The new code name was derived from Hausa language, which literally translates “Peace by All Means.”
Buratai announced this while addressing troops of the 103 Battalion in Konduga, headquarters of Konduga Local Government Area of Borno.
He said the objective was to transform the army professionally as well as fast track the war against the Boko Haram terrorists.
“It is the wish of the Federal Government to end this terrorism quickly in this part of the country and indeed some other challenges in the South South and other parts of the country.
“This will make us to have a very peacful country free from any insecurity,” Buratai said.
He lamented that the fight against terrorism had lasted for a very long time without much results.
Burutai said, “Consequently as from today July 19, we are here to bury the ‘Operation Zaman Lafiya’ and give birth to what we will henceforth call ‘Operation Lafiya Dole’.
“Operation Lafiya Dole is derived from the belief that we must end this insecurity. We must restore peace to all parts of the North East and other parts of the country that are affected by insurgency.
“We are going to carry this as a war and I appeal to all and sundry to give this operaton maximum cooperation.
“We will carry the civil population along, we wil also observe the principle of human rights and respect human dignity. We will not trample on anybody’s right.”
He expressed optimism that the operation will yield dividends in a very short time.
“As the insurgents have refused to understand and come to the right way we must force them to make sure that peace returns to all pa
US to trace Nigeria’s stolen funds
The United States will offer to help Nigeria’s new leader track down billions of dollars in stolen assets and increase US military assistance to fight Islamic militants, US officials said, as Washington seeks to “reset” ties with Africa’s biggest economy.
The visit to Washington by President Muhammadu Buhari is viewed by the US administration as a chance to set the seal on improving ties since he won a March election, hailed as Nigeria’s first democratic power transition in decades.
US cooperation with Buhari’s predecessor, Goodluck Jonathan, had virtually ground to a halt over issues, including his refusal to investigate corruption and human rights abuses by the Nigerian military.
“President (Barack Obama) has long seen Nigeria as arguably the most important strategic country in sub-Saharan Africa.
“The question is: would there be an opportunity to deepen our engagement? That opportunity is now,” US Deputy Secretary of State, Tony Blinken, told Reuters.
The improving ties with Nigeria, Africa’s biggest oil producer, came as US relations have cooled with two other traditional African powers – Egypt and South Africa.
US officials have said they were willing to send military trainers to help Nigeria counter a six-year-old northern insurgency by the Boko Haram Islamist movement.
Since Buhari’s election, Washington has committed $5m in new support to a multi-national task force set up to fight the group. This is in addition to at least $34m it is providing for Nigeria, Chad, Cameroon and Niger for equipment and logistics.
Buhari’s move on July 13 to fire military chiefs appointed by Jonathan cleared the way for more military cooperation, US officials said.
“We’ve made it clear. There are additional things that can be done, especially now that there is a new military leadership in place,” a senior US official said.
Another senior US official said Washington was urging Buhari, a Muslim from the country’s North, to step up regional cooperation against the militants and to provide more aid to afflicted communities to reduce the group’s recruiting power.
Buhari has said his priorities were strengthening Nigeria’s economy, which has been hard-hit by the fall in oil prices, boosting investment and tackling ‘the biggest monster of all’ – corruption.
“Here too, he is looking to deepen collaboration and one of the things he is focused on is asset recovery. He is hopeful we can help them recover some of that,” the official said. “
In 2014, the US took control of more than $480m siphoned away by former Nigerian dictator, Sani Abacha, and his associates into banks around the world.
Washington has broad powers to track suspicious funds and enforce sanctions against individuals.
The visit to Washington by President Muhammadu Buhari is viewed by the US administration as a chance to set the seal on improving ties since he won a March election, hailed as Nigeria’s first democratic power transition in decades.
US cooperation with Buhari’s predecessor, Goodluck Jonathan, had virtually ground to a halt over issues, including his refusal to investigate corruption and human rights abuses by the Nigerian military.
“President (Barack Obama) has long seen Nigeria as arguably the most important strategic country in sub-Saharan Africa.
“The question is: would there be an opportunity to deepen our engagement? That opportunity is now,” US Deputy Secretary of State, Tony Blinken, told Reuters.
The improving ties with Nigeria, Africa’s biggest oil producer, came as US relations have cooled with two other traditional African powers – Egypt and South Africa.
US officials have said they were willing to send military trainers to help Nigeria counter a six-year-old northern insurgency by the Boko Haram Islamist movement.
Since Buhari’s election, Washington has committed $5m in new support to a multi-national task force set up to fight the group. This is in addition to at least $34m it is providing for Nigeria, Chad, Cameroon and Niger for equipment and logistics.
Buhari’s move on July 13 to fire military chiefs appointed by Jonathan cleared the way for more military cooperation, US officials said.
“We’ve made it clear. There are additional things that can be done, especially now that there is a new military leadership in place,” a senior US official said.
Another senior US official said Washington was urging Buhari, a Muslim from the country’s North, to step up regional cooperation against the militants and to provide more aid to afflicted communities to reduce the group’s recruiting power.
Buhari has said his priorities were strengthening Nigeria’s economy, which has been hard-hit by the fall in oil prices, boosting investment and tackling ‘the biggest monster of all’ – corruption.
“Here too, he is looking to deepen collaboration and one of the things he is focused on is asset recovery. He is hopeful we can help them recover some of that,” the official said. “
In 2014, the US took control of more than $480m siphoned away by former Nigerian dictator, Sani Abacha, and his associates into banks around the world.
Washington has broad powers to track suspicious funds and enforce sanctions against individuals.
Petrol subsidy hits N1.69bn daily
Cars and people queing for petrol, at Oando Filling Station, Berger-Oke, on Lagos Ibadan Expressway.
The Federal Government now incurs about N1.69bn daily to subsidise petrol consumption, OKECHUKWU NNODIM writes
Nigeria currently spends N1.69bn daily as subsidy on petrol despite the decline in the country’s oil exports and the resultant squeeze on the nation’s revenues.
While industry experts and highly placed politicians canvass the stoppage of the subsidy regime, President Muhammadu Buhari has yet to take a stand on the issue.
Buhari had last Monday explained that he had yet to take a decision on the removal of subsidies on refined petroleum products.
The President, in a statement by his Senior Special Assistant on Media and Publicity, Mallam Garba Shehu, was quoted as saying, “I have received many literature on the need to remove subsidies, but much of it has no depth. When you touch the price of petroleum products, that has the effect of triggering price rise on transportation, food and rents.
“That is for those who earn salaries; but there are many who are jobless and will be affected by it.”
Subsidy is a form of financial aid or support extended to an institution, business, or individual generally with the aim of promoting economic and social policy.
But experts told our correspondent that the President was considering the political gains of subsidy, and stressed that this was detrimental to Nigeria’s economy, considering the whopping sum being spent daily subsidising petrol consumption.
Latest figures from the Petroleum Products Pricing Regulatory Agency show that the government is paying N42.35 as subsidy on every litre of petrol consumed in the country.
Specifically, the agency, in its pricing template released on Thursday July 16, 2015, which was based on average Platts prices for a day before, stated that the Expected Open Market Price or total cost of petrol was N129.35 per litre.
This is against a regulated retail price of N87 per litre. The difference between the EOMP and the retail price is, therefore, N42.35.
According to the Nigerian National Petroleum Corporation, the country consumes about 40 million litres of Petrol daily.
By multiplying the volume of petrol consumed across the country on a daily basis with the current amount spent on subsidising the product, it means that the government spends about N1.69bn on subsidy daily at N42.35 per litre.
The PPPRA stated that the effective date of the approved pricing template was January 19, 2015, noting that the actual landing cost of the product was N113.86 per litre.
The cost elements that make up the landing cost include the product’s offshore cost of N102.6 per litre; trade margin, N1.47; lightering expenses, N4.18; NPA fee, N0.77; financing, N1.59; jetty depot throughput charge, N0.8; and storage charge, N3.
On the product’s distribution margin, retailers get N4.6; transporters, N2.99; dealers, N1.75; bridging fund, N5.85; marine transport average, N0.15; and admin charge, N0.15; making a subtotal margin of N15.49.
When added to the landing cost of N113.86, the EOMP of N129.35 per litre is arrived at, but the product is sold at filling stations at N87 per litre.
The Director, Emerald Energy Institute, University of Port Harcourt, Prof. Wumi Iledare, explained that the plunge in crude oil prices and the drop in Nigeria’s oil exports had led to a stiff revenue squeeze and wondered if the Federal Government would be able to sustain the billions of naira being incurred daily as subsidy.
Iledare, who is a former President, International Association for Energy Economics, said, “We cannot continue to subsidise petrol without having functional refineries. Other countries that subsidise petrol like Saudi Arabia and Venezuela have refining capacities beyond what they consume. If we refine all we consume and sell excess, nobody will call for subsidy removal. But we don’t.
“It may make political sense and the only thing they are worried about is the political implication. But this is where they have to educate the society that what they are losing as a result of fuel subsidy is enormous. These are monies that can be used to increase Nigeria’s education standard.”
Also speaking on the issue, the Managing Director, Frontier Oil Limited, an oil and gas field development firm, Mr. Thomas Dada, told our correspondent that the price of crude oil would fall further in the near future, judging by the recent historic deal between Iran and the United States.
Dada said, “I hope the President will be able to assess the issue in detail maybe when he has formed his cabinet. But I think sooner or later, we have to remove subsidy because it has never benefitted this nation but only a few people.
“Let me ask you a question, how many people are buying fuel at N87 per litre right now in this country? If you go to Abia, Niger or Adamawa states, they pay much more than N87 per litre and these are Nigerians paying this much because they need the product. So, who is actually benefitting from subsidy? He (Buhari) may have his reasons but we need to look at the bigger picture.
“Is the telecoms sector being subsidised? No. Is it not functioning? It is functioning! The coffers of the government are empty; so, I don’t know how you are going to sustain subsidy. Oil price is going to drop with Iran and the USA coming to a nuclear agreement. That means if we don’t see a $40 per barrel oil price by next year or two, then we are lucky.
“So, how will Nigeria continue to afford subsidy? We should be encouraging private sector refineries, which will be able to meet our petroleum product needs.”
The Governor of Kaduna State, Mallam Nasir El-Rufai, at a function in Abuja last week, urged Nigerians to unite against the continued payment of subsidy, stressing that it was only making a few persons wealthy at the expense of the masses.
He had said, “In 2014, Nigeria was producing on the average about 2.2 million barrels of crude oil per day, while importing most of its daily consumption of 43.5 million litres of refined petroleum products. That reliance on imports of refined products has seen unsustainable expenses on questionable subsidy payments exemplified by $8.99bn in the 18 months between January 2012 and June 2013.
“About N971bn was budgeted for subsidy payments in 2014 alone (more than twice that was eventually paid). You all recall how trillions of naira were paid out as oil subsidy in 2011, when only N254bn was appropriated. No one has been successfully prosecuted for this scam.
“I daresay that the oil subsidy regime has neither grown our people nor guaranteed stability of refined product supplies. What subsidy has achieved is create a huge hole in the budget and a new array of overnight billionaires… “It is time to tackle the corruption in the subsidy regime. We can discuss how the resulting subsidy savings will be spent to improve lives, while guaranteeing stability of supply to the domestic market. We have a President with both the integrity to responsibly manage the savings and the experience of managing special interventions based on subsidy savings.”
The Federal Government now incurs about N1.69bn daily to subsidise petrol consumption, OKECHUKWU NNODIM writes
Nigeria currently spends N1.69bn daily as subsidy on petrol despite the decline in the country’s oil exports and the resultant squeeze on the nation’s revenues.
While industry experts and highly placed politicians canvass the stoppage of the subsidy regime, President Muhammadu Buhari has yet to take a stand on the issue.
Buhari had last Monday explained that he had yet to take a decision on the removal of subsidies on refined petroleum products.
The President, in a statement by his Senior Special Assistant on Media and Publicity, Mallam Garba Shehu, was quoted as saying, “I have received many literature on the need to remove subsidies, but much of it has no depth. When you touch the price of petroleum products, that has the effect of triggering price rise on transportation, food and rents.
“That is for those who earn salaries; but there are many who are jobless and will be affected by it.”
Subsidy is a form of financial aid or support extended to an institution, business, or individual generally with the aim of promoting economic and social policy.
But experts told our correspondent that the President was considering the political gains of subsidy, and stressed that this was detrimental to Nigeria’s economy, considering the whopping sum being spent daily subsidising petrol consumption.
Latest figures from the Petroleum Products Pricing Regulatory Agency show that the government is paying N42.35 as subsidy on every litre of petrol consumed in the country.
Specifically, the agency, in its pricing template released on Thursday July 16, 2015, which was based on average Platts prices for a day before, stated that the Expected Open Market Price or total cost of petrol was N129.35 per litre.
This is against a regulated retail price of N87 per litre. The difference between the EOMP and the retail price is, therefore, N42.35.
According to the Nigerian National Petroleum Corporation, the country consumes about 40 million litres of Petrol daily.
By multiplying the volume of petrol consumed across the country on a daily basis with the current amount spent on subsidising the product, it means that the government spends about N1.69bn on subsidy daily at N42.35 per litre.
The PPPRA stated that the effective date of the approved pricing template was January 19, 2015, noting that the actual landing cost of the product was N113.86 per litre.
The cost elements that make up the landing cost include the product’s offshore cost of N102.6 per litre; trade margin, N1.47; lightering expenses, N4.18; NPA fee, N0.77; financing, N1.59; jetty depot throughput charge, N0.8; and storage charge, N3.
On the product’s distribution margin, retailers get N4.6; transporters, N2.99; dealers, N1.75; bridging fund, N5.85; marine transport average, N0.15; and admin charge, N0.15; making a subtotal margin of N15.49.
When added to the landing cost of N113.86, the EOMP of N129.35 per litre is arrived at, but the product is sold at filling stations at N87 per litre.
The Director, Emerald Energy Institute, University of Port Harcourt, Prof. Wumi Iledare, explained that the plunge in crude oil prices and the drop in Nigeria’s oil exports had led to a stiff revenue squeeze and wondered if the Federal Government would be able to sustain the billions of naira being incurred daily as subsidy.
Iledare, who is a former President, International Association for Energy Economics, said, “We cannot continue to subsidise petrol without having functional refineries. Other countries that subsidise petrol like Saudi Arabia and Venezuela have refining capacities beyond what they consume. If we refine all we consume and sell excess, nobody will call for subsidy removal. But we don’t.
“It may make political sense and the only thing they are worried about is the political implication. But this is where they have to educate the society that what they are losing as a result of fuel subsidy is enormous. These are monies that can be used to increase Nigeria’s education standard.”
Also speaking on the issue, the Managing Director, Frontier Oil Limited, an oil and gas field development firm, Mr. Thomas Dada, told our correspondent that the price of crude oil would fall further in the near future, judging by the recent historic deal between Iran and the United States.
Dada said, “I hope the President will be able to assess the issue in detail maybe when he has formed his cabinet. But I think sooner or later, we have to remove subsidy because it has never benefitted this nation but only a few people.
“Let me ask you a question, how many people are buying fuel at N87 per litre right now in this country? If you go to Abia, Niger or Adamawa states, they pay much more than N87 per litre and these are Nigerians paying this much because they need the product. So, who is actually benefitting from subsidy? He (Buhari) may have his reasons but we need to look at the bigger picture.
“Is the telecoms sector being subsidised? No. Is it not functioning? It is functioning! The coffers of the government are empty; so, I don’t know how you are going to sustain subsidy. Oil price is going to drop with Iran and the USA coming to a nuclear agreement. That means if we don’t see a $40 per barrel oil price by next year or two, then we are lucky.
“So, how will Nigeria continue to afford subsidy? We should be encouraging private sector refineries, which will be able to meet our petroleum product needs.”
The Governor of Kaduna State, Mallam Nasir El-Rufai, at a function in Abuja last week, urged Nigerians to unite against the continued payment of subsidy, stressing that it was only making a few persons wealthy at the expense of the masses.
He had said, “In 2014, Nigeria was producing on the average about 2.2 million barrels of crude oil per day, while importing most of its daily consumption of 43.5 million litres of refined petroleum products. That reliance on imports of refined products has seen unsustainable expenses on questionable subsidy payments exemplified by $8.99bn in the 18 months between January 2012 and June 2013.
“About N971bn was budgeted for subsidy payments in 2014 alone (more than twice that was eventually paid). You all recall how trillions of naira were paid out as oil subsidy in 2011, when only N254bn was appropriated. No one has been successfully prosecuted for this scam.
“I daresay that the oil subsidy regime has neither grown our people nor guaranteed stability of refined product supplies. What subsidy has achieved is create a huge hole in the budget and a new array of overnight billionaires… “It is time to tackle the corruption in the subsidy regime. We can discuss how the resulting subsidy savings will be spent to improve lives, while guaranteeing stability of supply to the domestic market. We have a President with both the integrity to responsibly manage the savings and the experience of managing special interventions based on subsidy savings.”
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