In a bid to eradicate queues at fuel stations across the country, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has ordered the deployment of personnel of the Nigerian National Petroleum Corporation (NNPC) in filling stations across the country for effective monitoring of the distribution system.
Speaking at an emergency meeting with the senior staff of the corporation at the NNPC headquarters in Abuja yesterday, Kachikwu said though there were a number of challenges in the supply and distribution system that hamper efficient distribution of products across the country, it was time for NNPC to rise above the challenges by ensuring that the special intervention supplies are not diverted or hoarded.
A statement issued by NNPC spokesman Ohi Alegbe quoted the minister as stating: “This calls for effective monitoring of the supply system, especially at the end points, to ascertain that what is trucked out from the depots is delivered at the designated fuel stations and dispensed to the public in the most efficient manner.
“We need you to be out there to help achieve this; we can’t be at ease while Nigerians are going through so much pain to get fuel.”
He called on NNPC staff to volunteer for the monitoring exercise, adding that standing up to provide creative solutions to challenges was what the new NNPC was all about.
The minister also urged the staff to work towards achieving zero-queues at their respective stations as soon as possible, adding that they should be ready to sacrifice their Christmas break if need be.
Also speaking at the emergency meeting, the Group Executive Director, Commercial and Investment, Dr. Victor Adeniran, advised staff on monitoring duties to work closely with the Rapid Response Team by reporting any situation that required urgent intervention such as low stock, delayed arrival of trucks or any underhand dealings.
Adeniran said the Rapid Response Team is made up of staff of the Pipelines and Product Marketing Company (PPMC) and representatives of law enforcement agencies who can adequately handle any challenge, adding that so far about 200 trucks of the special intervention stock had arrived Abuja.
He called on the staff deployed for monitoring to be vigilant and ensure that petrol designated for their respective stations is delivered and dispensed to members of the public in a most efficient manner.
In continuation of the special intervention fuel supply for the Yuletide season, another 567 trucks were dispatched nationwide yesterday, the corporation stated.
But as NNPC continued to grapple with measures to end the debilitating fuel queues nationwide, the Information Minister, Mr. Lai Mohammed, yesterday blamed the Goodluck Jonathan administration for the fuel shortage.
Addressing journalists at the conclusion of an emergency meeting of the Federal Executive Council (FEC) at which President Muhammadu Buhari presided, the minister said the inability of the past government to make provisions for the payment of subsidy for fuel was the cause of the queues at filling stations across the country.
When asked what he would tell Nigerians if they told him that this was not the “change” they voted for, he replied: “What I will be telling Nigerians is that what we met on the ground is such that we are paying for the sins of the last administration.
“I am being very serious. You remember that about two weeks ago, we had to go to the National Assembly for a supplementary budget of N674 billion. Of that figure, N522 billion was for the arrears of fuel subsidy which was incurred as far back as August last year.
“One of the reasons for the fuel scarcity was the inability of the last government to make adequate provisions for fuel subsidy.
“We do also face some other logistics problems but majorly we are paying for the sins of the last administration.”
He said, however, that the federal government was working on a solution to the supply gap.
“The first thing we have done now is to make sure that, unlike before when the marketers used to import the bulk of fuel, the Nigerian National Petroleum Corporation has been involved in importation because some of the marketers stopped importing for a couple of months. If you see any fuel anywhere today, it is imported by the NNPC.
“We also inherited the vandalism of the pipelines which made it impossible for us to even transport the fuel. At the depots today, we have 14 days of reserves and outside the depots, we have 10 days of reserves.
“So the issue is not non-availability of the product, it is the distribution because of the pipelines that have been vandalised and the gridlock in Lagos.
“It takes about five days for anybody to load fuel with a tanker in Lagos. As at two days ago, this matter had been resolved,” he added.
Mohammed said the Moisimi pipeline has been secured and was improving distribution.
He further revealed that FEC considered two major memos – one from the Attorney General of the Federation and Minister of Justice Abubakar Malami (SAN) – on the review of the extant taxation laws, in order to improve their legal framework and enhance compliance.
He said the memo was approved.
“We have noticed some inadequacies in the current tax regime and these inadequacies have been exploited by both individuals and corporate organisations to evade tax which has led to loss of revenue to the government. The review aims at plugging these loopholes,” he said.
The information minister said the second memo was presented by the Minister of Budget and National Planning, Senator Udoma Udo Udoma, seeking approval for the 2016 budget, which was also approved.
“As you know the president will be presenting the budget before the National Assembly tomorrow (today) morning,” Mohammed said.
Earlier, Udoma confirmed that the details of the budget would be made public after the president’s presentation today at 10 am.
He said: “Everything will be there in his budget address. The president will address a joint session of the National Assembly tomorrow.”
On the review of the tax laws, Udoma said the memo presented by the attorney general was basically looking at the policies behind taxation laws and to see where they could be strengthened.
When asked what the implication of a tax review would mean for the poor, he said: “It’s a little premature to talk about what exactly the review is all about. I’m sure they would be consulting very widely and definitely any review will not be aimed at those who can’t afford it. It would be aimed more at the affluent rather than the poor. It is a review to see whether there are any gaps.”
However, as FEC approved the 2016 budget yesterday, crude oil prices crashed yesterday to new lows, beating the 2008 global economic crisis prices and sank below an 11-year low after the US Congress voted to lift the ban on oil exports.
New data released yesterday revealed that the price of crude oil in the Organisation of Petroleum Exporting Countries (OPEC) basket of 12 crude stood at $31.63 – an 11-year-low. The last time the OPEC basket stood at less than $32 was in April 2004, when it traded at $31.32.
Brent crude oil prices also fell to levels last seen in 2004, falling to $36.17 per barrel around 0500 GMT, with production around the world remaining at near record highs.
The prices are the weakest since 2004 and below the $36.20 low reached on Christmas eve 2008.
US West Texas Intermediate (WTI) futures were down 33 cents at $34.40 per barrel and close to last Friday’s 2015 lows.
This comes only a few days after the US voted to lift a 40-year-old ban on crude exports, which could see some of its excess production sold on the global market.
Analysts say lifting of the ban would increase the already increasing oversupply of global crude and drive prices to new lows in 2016.
With oil prices plunging to below $36 a barrel, this poses a threat to Nigeria’s 2016 budget estimate of $38 a barrel.
Oil revenue accounts for 90 per cent of Nigeria’s export earnings and two-thirds of total revenue.
Meanwhile, ahead of today’s budget presentation by the president, the management of the National Assembly has shut down the entire complex.
Accordingly, it asked all of its non-essential personnel, banks, airline and telecoms organisations operating in the complex to stay away.
Giving the order through a circular from his office, the Clerk of the National Assembly, Alhaji Salisu Maikasuwa, said the directive was meant to avert a rowdy atmosphere during the presentation.
The circular, signed by the Director, Personnel Management, Mamud Abubakar, on behalf of the clerk, said staff of the National Assembly in both chambers who are on essential duties as well as security personnel are however not affected by the directive.
The circular warned against violation of the order, saying appropriate punishment would be meted to such persons.
Besides banks, telecoms firms and airlines, other organisations affected by the order are insurance companies, the National Open University Office (NOUN) and restaurants.
Security operatives took over the premises of the National Assembly yesterday evening, preparatory to the president’s presentation of the budget.
In addition, the red carpet from the main entrance into the White House where both the Senate and House of Representatives chambers are located was laid out.
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