• There is no honour in your statement, Congress lambasts petroleum minister

• Increased revenue from crude oil should have multiplier effects, says MAN

• FG punishing Nigerians for its failure to make refineries work – Economist

The Trade Union Congress on Tuesday took a swipe at the Minister of State for Petroleum Resources, Chief Timipre Sylva, who told Nigerians to prepare for the pain associated with the increase in crude oil price.

Also, the Manufacturers’ Association of Nigeria, the Lagos Chamber of Commerce and Industry and other stakeholders on Tuesday advised the Federal Government to use rising revenue from crude oil to tackle poverty and drive an all-inclusive growth.

The groups stated this in separate interviews with The PUNCH while reacting to a statement by Sylva, who earlier on Tuesday warned Nigerians to expect benefits and pain from the rising price of crude oil in the world market.

For Nigeria, which relies on crude oil for about 50 per cent of government revenues and over 90 per cent of export earnings, rising oil price means increased revenue.

On the other hand, rising oil price also translates to increased cost of petroleum products as the country depends heavily on imports due to a lack of domestic refining.

Sylva, who spoke at the launch of the Nigerian Upstream Cost Optimisation Programme in Abuja, said, “Since we are optimising everything, NNPC (Nigerian National Petroleum Corporation) needs to also think about the optimisation of product cost because as we all know oil prices are where they are today: $60.

“As desirable as this is, this has serious consequences as well on product prices. So we want to take the pleasure and we should as a country be ready to take the pain.”

He added, “Today, the NNPC is taking a big hit from this. We all know that there is no provision in the budget for subsidy. So, somewhere down the line, I believe that the NNPC cannot continue to take this blow. There is no way because there is no provision for it.

“As a country, let us take the benefits of the higher crude oil prices and I hope we will also be ready to take a little pain on the side of higher product prices.”

The PUNCH had reported exclusively on Tuesday that the landing cost of Premium Motor Spirit (petrol) imported into the country had risen by 13.34 per cent in one month to about N180 per litre on the back of the increase in global oil prices.

The international oil benchmark, Brent crude, which rose to $59.34 per barrel on Friday from $53.70 per barrel on January 7, crossed the $60 per barrel mark on Tuesday for the first time in over 12 months.

Crude oil price accounts for a large chunk of the final cost of petrol, and the deregulation of petrol price by the Federal Government last year means that the pump price of the product will reflect changes in the international oil market.
Since November 13, 2020 when the pump prices of PMS were last increased in the country, the oil price has increased by over 45 per cent.

Going by the petrol pricing template of the Petroleum Products Pricing Regulatory Agency, the landing cost of petrol rose to N179.67 per litre last Friday from N158.53 per litre on January 7, with the expected open market price (pump price) of the product increasing to N202.67 per litre from N181.53 per litre.

The rising price of crude oil pushed the cost of petrol quoted on Platts to $543.25 per metric tonne (N157.99 per litre, using N390/$1) last Friday from $480.25 per MT (N139.67 per litre) on January 7.

The NNPC, which has been the sole importer of petrol into the country in recent years, is still being relied upon by marketers for the supply of the product despite the deregulation of the downstream petroleum sector.

The Federal Government removed petrol subsidy in March 2020 after reducing the pump price of the product to N125 per litre from N145 on the back of the sharp drop in crude oil prices. The price reduction lasted till June.

Nigerians saw increases in the pump prices of petrol in four months, rising from N121.50–N123.50 per litre in June to N140.80-N143.80 in July, N148-N150 in August, N158-N162 in September and N163-N170 in November.

There is no honour in your statement, Congress lambasts minister

Reacting to the minister’s statement, the TUC wondered why the government was always quick to announce increase in fuel pump prices but slow to implement agreements reached with the organized labour.

The TUC President, Quadri Olaleye, who stated this when asked by The PUNCH to react to the minister’s statement, noted that there was nothing honourable about what the minister said.

The union leader stated, “The question is why is government always quick to tell us about the rise in the price of crude oil in the international market and the need to increase the price of PMS (Premium Motor Spirit) here but it always takes them weeks, if not months to implement agreements reached with the organised labour? It all points to one thing: they have no mercy on the poor people of this country.”

Olaleye noted that the carefree attitude of the government to the plight of workers and other Nigerians showed that they do not care.

He further argued that they also seemed unconcerned about the poverty, insecurity, and other social plaques their policies had caused.

The TUC leader added, “ In every move and statement by government officials, you could see and feel their care-free attitude and indifference to our plight.

“It appears they are not disturbed by the poverty -ridden plight of Nigerians and the unemployment/insecurity situation that their obnoxious policies have created in the country. There is nothing honourable about what the minister has said.”
Commenting on the minister’s statement, The Director-General of MAN, Mr Segun Ajayi-Kadir, said the expected increase in revenue should benefit all through an all-inclusive economic growth, which should include massive job creation.

He noted that the positive side of increased national revenue from the rising crude oil prices in the international market “is now threatening to bring forth the negative side for us.”

He said, “Even though the economics of it looks straightforward, any possible increase in fuel prices in Nigeria will have to be considered carefully. This is because of its potential negative impact on the fragile economic and security situation of the country at this time.

“Besides, we are just witnessing some measure of industrial stability and merely hanging on to an open economic and social life under the ravaging COVID-19 pandemic. I am not sure that we are ready for a fuel-induced inflation. This is quite apart from the heavy cost implication it portends for companies that are already forced to generate their own electricity for long hours due to poor supply inadequacy.

Increased revenue from crude oil should have multiplier effects, says MAN

“Also, for those who may want to rationalise the possible increase, the question to ask is what is government going to do with the corresponding increased revenue from crude oil sales in the international market? It should normally countermand the rise in pains arising from the rise in the price of fuel. Are we poised to translate this windfall, if I may use the word, to inclusive economic growth and harvest its inherent multiplier effect? Will it fund productivity, job creation and increased investments?”

Nigeria faces a dilemma, says LCCI

The Director-General of the LCCI, Dr Muda Yusuf, said the country must find a balance between balance between social considerations and the commercial and economic considerations

According to him, the deregulation policy of the downstream sector of the petroleum industry posed a dilemma at a time like this.

He stated, “From a purely economic and commercial point of view, it is a policy that we need to sustain irrespective of what the oil price is because the capacity to be able to continue with fuel subsidy and its problems is not there, and it is also not in the interest of the economy for us to continue along that route,” he said.

According to him, the subsidy regime comes with a lot of fiscal pressure on government finances, the problem of corruption, and the problem of diversion of petroleum products to neighbouring countries, among others.

Yusuf said, “But the dilemma is the implications for the welfare and social conditions of the people because we are dealing with a situation of a great deal of extreme poverty among the majority of Nigerians.

“We are dealing with an economic recession, cost of production and transportation that is already high, and a populace that is already on edge because of the challenges of the environment. We are dealing with a population that is characterised by high income inequality.

“So, it is important that we have a balance because not deregulating the sector is not really an option; so we have to find a model that will work – like a balance between the social considerations and the commercial and economic considerations.”

FG punishing Nigerians for its failure to make refineries work – Economist

A professor of Economics at the Olabisi Onabanjo University, Sherrifdeen Tella, said government should not punish citizens.

An economist and Senior Lecturer, Lagos Business School, Dr Bongo Adi, said it was a bad time for a fuel price hike.

According to Adi, Nigerians are facing social and economic challenges imposed on them by the government and an increase in the pump price of fuel will further drive more Nigerians into poverty and misery.

He said, “From all around, the Nigerian citizens are facing enormous risk to their livelihood, to their safety and of course to their health, owing to the coronavirus pandemic. The times have never been worse than it is right now in 2021.”

A former President, Association of National Accountants of Nigeria, Dr Sam Nzekwe, said the government should know the challenges facing Nigerians in the COVID-19 period as prices of goods and services had gone so high.

Source: https://m.punchng.com/Featured/TUC-tackles-Sylva-as-FG-says-fuel-price-pain-looms

Is it a crime to be A Nigerian?
Mineral wealth that ought to be a blessing is now suffering to the masses.
Government failed to make the refineries work, started taking crude out to refine.
People getting richer, and subsidy killing the economy.
O Lord, deliver us from this looming problem.

that's all

The result of not having functional refineries. I do not know what to say again, this is more than a curse for us. How can we be producing crude oil for this long without functional refineries? The refineries are just there incurring billions in losses every year. The country is becoming hopeless for the common man daily

Only God knows what GEJ sacrificed for Nigerians to be able to by fuel at N85 despite crude averaging over $100 while the exchange rate was just N120 - N1, despite that, still increased minimum wage by over 100% (7,500 - 18,000) while retaining us on single digit inflation.

Just small $60/barrel and APC is already telling Nigerians prepare for pains and suffering, anguish and strife, poverty and hunger despite a pandemic, despite a reccession, despite the rate of unemployment, despite double digit inflation.

You truly dont know what you have until you lose it... today i remember GEJ and smile asking, how did they make us get it wrong twice..

This government is wicked, heartless and insensitive. The useless buhari promised to fix our refineries, yet after 6years,nothing is working. Prices of goods and services are at an all time high.. God punish Apc government and their useless, heartless supporters especially that girl rotten, vulture griller.

Nigerian youths if u have any chance to japa from this shit hole country...the time is now, do not wait that it will get better rather it's getting worst.


Failed country with fake people

Na today , after shouting they will still increase it and nothing will happen



Omo they way Buhari team they play us,e be like JUJU OOOO

TUC tackles Sylva
Lori iro.

Nigeria is a failed state. They keep deceiving the gullible ones with " E go better" when exactly will it be better? No date, no time........ Its a total scam.

Thank God,Elites are even opposing the increment,at least it will reduced their useless plan.

No light, petrol pump price is on steady increase. Prices of food stuffs keep rising. Everything is going up, herdsmen keep killing, bandit keep maiming, Boko Haram keep eliminating and the olodo of a president is doing nothing at all about all this.






Let them continue to suffer the masses, I sha know that revolution is near.

Make dem kuku start selling the air we breathe in now. For their mind, Nigerians are still rich and not wretched yet as we want. Let's increase their hardship more

Sai Babarism on the beat, We at vulturebbqrillz are in support of our darling daddy increasing the fuel price. I'm sure he means well for us.
4 + 4 + 4.

It baffles me how a country who produces Crude oil doesnt have a functional/working refineries for years yet we keep making budget year in year out..We solely depend on Crude and we keep shipping our crude to refined...Govt.keep failing us,No plans for citizens...The rich keep getting richer while the poor keep getting poorer..WHICH WAY NiGERIA

This government is wicked, heartless and insensitive. The useless buhari promised to fix our refineries, yet after 6years,nothing is working. Prices of goods and services are at an all time high.. God punish Apc government and their useless, heartless supporters especially that girl rotten, vulture griller.

Why not build new refinery instead of this Nigeria to Niger Train project that will cost almost 2 billion dollars? Nigeria always concentrating on misplaced priority

Federal government would have use the money they want to use for railway to Maradi and fix our refineries. Is like our government lack forsite.

Nigeria is too dysfunctional that's why a clueless buhari is the minister of petroleum and sylva who read English is the minor more minister. Their intent is just to swindle, pilfer and destroy

Well, Nigeria has no choice but to increase fuel prices.

In the begining, in the name of subsidy, we sold petrol at a price below the cost of producing it per liter...which led to there not being enough to pay for repairs and upgrades to our refineries.

Then when the refineries went down the drain, we began importing, and we sold the petrol at a price below the import price, which led to us running out of money and getting into debt.

At some point, we have to face reality. Do we want to continue subsidy and run out of money, and keep on getting into more debt, or do we want to remove it, yes, fuel will be expensive, but more investment and new refineries would come in...and eventually prices go down, plus we become a mass exporter?

Let's stop lying to ourselves. Oil subsidy must go. Yes, Buhari is bad,yes all the polticans are bad, but it is also bad business practice to sell a product below the price of its cost, and force NNPC to spend the cash it could have used to repair the refineries, and upgrade them, and even build new ones , on paying subsidy costs.

We are doing the same thing in the power sector. And we don't have light as a result.

Modified

[b]When “free” government money is up for grabs, interests that stand to benefit have a strong incentive to organize and lobby for a slice of the pie. Policymakers face little or no cost for conferring benefits on particular interests who return the favor by delivering votes and campaign funds. Adding in the lack of incentive for policymakers to be good stewards of taxpayers’ money results in government programs that exist to pick winners and losers in the marketplace—the “winner” being a politically predetermined outcome. Unfortunately, when the government tries to pick winners and losers, it often picks the wrong horse at the expense of taxpayers and the broader economy.

Government subsidies create an unhealthy—and sometimes corrupt—relationship between commercial interests and the government. The more the government has intervened in energy markets, the more lobbying activity has been generated. The more subsidies that it hands out to businesses, the more pressure policymakers face to keep the federal spigot flowing. As the number of lobbyists grow, more economic decisions are made on the basis of politics, and more resources are misallocated. And the door opens to cronyism and corruption.[/b]

Source:Subsidies Are the Problem, Not the Solution, for Innovation in Energy[/url]

Buhari want to construct a railway from Nigeria to Niger rep (maradi) just to access buhari's relatives that have refinery at the cost of $1.959 billion while that amount will erect several Modula refinery in Nigeria. Cluelessness

AiooAi:
Why not build new refinery instead of this Nigeria to Niger Train project that will cost almost 2 billion dollars? Nigeria always concentrating on misplaced priority

on point

AiooAi:
Why not build new refinery instead of this Nigeria to Niger Train project that will cost almost 2 billion dollars? Nigeria always concentrating on misplaced priority

Because the petrol from the new refienry would be sold at N160 after being produced at N200 and above from the same refinery, and the refinery as a result won't make the profit it needs to keep running, and upgrade.

And the subsidy payment for the refienry won't cover the losses made adequately.

Within a few years, the refienry would either close down, or would export all its fuel abroad.

That's why all of NNPC's refienries are shuttered...because NNPC was selling subsidsised fuel, and running at a loss as a result. Any money NNPC makes now goes largely to paying subsidy costs, and also imprting fuel. NNPC cannot profitably refine fuel in Nigeria because Nigerians prefer to buy cheap fuel.

This union that became spinless since 2015.

Esseite:
Only God knows what GEJ sacrificed for Nigerians to be able to by fuel at N85 despite crude averaging over $100 while the exchange rate was just N120 - N, despite that still increased minimum wage by over 100% (7,500 - 18,000)

Just $60/barrel and APC is already telling Nigerians prepare for pains and suffering, anguish and strife, poverty and hunger despite a pandemic, despite a reccession, despite the rate of unemployment, despite double digits inflation.

You truly dont know what you have... today i remember GEJ and smile asking, how did they make us get it wrong twice..

1.GEJ wanted to raise fuel from N65 to N140 so as to allow for increased investment in the oil sector due to reduced subsidy costs. You Nigerians protested and as a result, he knocked down prices to N97 and then to N87.

Here is why it wasn't a good idea. In 2012, it cost N99 to import one liter of fuel. Actual cost was N65. gej raised the actual cost to N140, but protests forced a reduction to N97
By 2015, the same fuel cost N87 AT THE pump, while it cost N132 to import. Government subsidy payments had gone up from N2 per liter in 2012 to N130 IN 2015.

2.As a result, our foreign exchange reserves went down from 60 billion in 2010 to 32 billion in 2015...partly because we had to spend more cash subsidising fuel

3.The GEJ era was also the era of fake subsidy claims, made by bsuinessmen because they were being forced to sell fuel at a loss, and as a result, they had to make fake claims to keep their businesses from collapsing.

Also, it became profitable to smuggle fuel outside the country...as fuel was sold for higher in Niger, and elsewhere.

4.Buhari came in, and in essence made NNPC the sole importer and subsidiser of fuel. Which ended issues with fuel scarcity, but makes it even more difficult for NNPC to refine fuel at home, as much of its money now goes to imports and subsidies.

Karlovic:
Sai Babarism on the beat, We at vulturebbqrillz are in support of our darling daddy increasing the fuel price. I'm sure he means well for us.
4 + 4 + 4.

Valulturebbq will say, blame "16 years of PDP"!
Meanwhile for 16 years usd and pounds was stable at ₦140, ₦250. Fuel price did not rise above ₦85. These locust came in and usd and pounds is now ₦475 and ₦640 fuel is ₦168 and rising!
Ok he will claim there was high oil price of up to $120 per barrel during pdp rule, but he will skip the part that it was only during the later part of Jonathan's tenure.
Ok price of crude is increasing, shouldn't that be a blessing? So are they saying that if God bless us and crude oil goes up to $120, it will rather increase our suffering as fuel might be ₦400 per liter?

Okay

Vardanes2:


1.GEJ wanted to raise fuel from N65 to N140 so as to allow for increased investment in the oil sector due to reduced subsidy costs. You Nigerians protested and as a result, he knocked down prices to N97 and then to N87.

Here is why it wasn't a good idea. In 2012, it cost N99 to import one liter of fuel. Actual cost was N65. gej raised the actual cost to N140, but protests forced a reduction to N97
By 2015, the same fuel cost N87 AT THE pump, while it cost N132 to import. Government subsidy payments had gone up from N2 per liter in 2012 to N130 IN 2015.

2.As a result, our foreign exchange reserves went down from 60 billion in 2010 to 32 billion in 2015...partly because we had to spend more cash subsidising fuel

3.The GEJ era was also the era of fake subsidy claims, made by bsuinessmen because they were being forced to sell fuel at a loss, and as a result, they had to make fake claims to keep their businesses from collapsing.

Also, it became profitable to smuggle fuel outside the country...as fuel was sold for higher in Niger, and elsewhere.

4.Buhari came in, and in essence made NNPC the sole importer and subsidiser of fuel. Which ended issues with fuel scarcity, but makes it even more difficult for NNPC to refine fuel at home, as much of its money now goes to imports and subsidies.

In all, the well being of the populace was his most proprity..