₦airaland Forum

NNPC may spend N201bn to clean 170.25m litres of dirty fuel

emi Asu, Okechukwu Nnodim, Leke Baiyewu and Stephen Angbulu
11 February 2022

The Nigerian National Petroleum Company Ltd. may need an estimated N201 billion worth of clean Premium Motor Spirit (petrol), to bring 170.25 million litres of adulterated products imported into the country up to standard, an analysis of industry data has shown.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority had said on Tuesday that, for every 200 litres of the adulterated product, 800 litres of petrol with good quality would be required for the blending to be done.

“All the off-spec material (products) will be re-blended to very good quality, and it will be certified and recertified before it goes into the market. The component that was in excess was methanol; what we agreed was that for every 200 litres of the affected volume, we need about 800 litres to blend,” the Chief Executive Officer, NMDPRA, Mr. Farouk Ahmed, had said during a visit to some depots in Lagos, on Wednesday, after a meeting with industry stakeholders.

The regulator had on Tuesday, said a limited quantity of PMS with methanol quantities above Nigeria’s specification, was discovered in the supply chain.

On Wednesday, the NNPC Group Managing Director, Mele Kyari, said the national oil firm received on January 20, 2022, a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium.

He said the NNPC investigation revealed the presence of methanol in four PMS cargoes imported by its DSDP (Direct Sale Direct Purchase) suppliers namely: MRS; Emadeb/Hyde/AY Maikifi/Brittania-U Consortium; Oando, and Duke Oil.

Under the DSDP scheme, selected overseas refiners, trading companies, and indigenous companies are allocated crude supplies in exchange for the delivery of an equal value of petrol and other refined products to the NNPC.

https://punchng.com/nnpc-may-spend-n201bn-to-clean-170-25m-litres-of-dirty-fuel/

Dollyak:
What's the point of all these airport springing up all over the place in Nigeria?

budaatum:
This is not true! You will never pay what I want for my tomatoes with subsidy!

You will beg me saying its for the good of the people, I should please be sympathetic, and since I would not be able to sell at all if I do not agree to be paid subsidy, I would have to accept your subsidy or close down my business, then one incompetent individual will come to you and sell even below the subsidy price because they will flood the market with adulterated fake tomatoes and poison those you subsidize.

On the other hand, if I can take my tomatoes to the market and sell at the price my customers pay, I will make huge plenty profit and my greed to make even more plenty huge profit is what will make me "open opportunities for innovation, R & D, efficient management and investment".

However, the policies of President Park Chung Hee spurred rapid industrialisation by promoting large businesses, following his seizure of power in 1961. The First Five Year Economic Plan[3] by the government set industrial policy toward new investment, and chaebols were to be guaranteed loans from the banking sector. The chaebol played a key role in developing new industries, markets, and export production, helping make South Korea one of the Four Asian Tigers.

As Washington debates spending $52 billion to start regaining America's former role as a leading semiconductor manufacturer, experts say the public and private cost over the next two decades may exceed 10 times that much — and some worry such spending may still not achieve the goal.

On Friday, the House passed the measure to appropriate the $52 billion in subsidies over five years, largely for grants to catalyze private companies’ construction on U.S. soil of semiconductor fabrication factories, which are known as fabs. The Senate passed a similar bill last year. With President Joe Biden supporting the measure, some version of it may soon become law.
https://rollcall.com/2022/02/04/cost-to-rebuild-u-s-semiconductor-manufacturing-will-keep-growing/

TOKYO -- The Japanese government has seen an overwhelming surge of interest in subsidies to bring manufacturing back as the coronavirus pandemic highlights the risk of having supply chains concentrated in a single region, particularly China.

The program to promote domestic manufacturing had 220 billion yen ($2.07 billion) earmarked in the supplementary fiscal 2020 budget. In the first round, which ended in June, the government approved 57 projects totaling 57.4 billion yen, or over half the 90 applications.
https://asia.nikkei.com/Economy/Japan-companies-line-up-for-China-exit-subsidies-to-come-home

adamsmith914:
Timpre Sylvia?

Quite obvious that people like you wey no get car or generator will make the most noise as usual?

Realdeals:
Isn't NNPC the sole importer anymore?

backbencher:
Well duh, but at the end of the day it has to be done profitably

Not at half price and then paid subsidy that don't cover the resulting losses

backbencher:
The solution is to remove subsidy, allow marketers to control the price, then in return for 'high prices' we get regular supply of quality and clean petrol...and more refineries,more jobs, more investment.

But no, we want cheap fuel.

Well, this is what we paid for....dirty and occasionally adulterated fuel...because we want it cheap. Not standard.

Khaleepha5681:
And Ironsi was right?

seunaj:
Last time I checked, Bubu is the Minister of petroleum. Consequently, NNPC is under him. Why is Bubu so incompetent in everything that he doea?

fredoooooo:
who stopped/Changed/abolished Regional Restructuring? That could be perfect for us

poweredcom:
He is mad

No be him first start to destroy naija in the 80s

He is d root cause of where Nigeria is today

GboyegaD:
Hopefully the universities will improve themselves and the government will fund them properly.

SmartPolician:
In a democracy that promotes fairness, justice and equity, where a president comes from should not be a problem. Unfortunately, Nigerian leaders are terrible people because they tend to favour their people in everything to the detriment of the country.

backbencher:
You cannot refurbish refineries and then sell fuel from these refineries at a loss in the name of subsidy

Also, paying for subsidies is difficult when the money comes from crude oil revenue, which is affected by price fluctuations

Black market fuel made from stolen oil in rudimentary “bush” refineries hidden deep in the creeks and swamps of the Niger delta is less polluting than the highly toxic diesel and petrol that Europe exports to Nigeria, new laboratory analysis has found.

Shell, Exxon, Chevron and other major oil companies extract and export up to 2m barrels a day of high quality, low sulphur “Bonny Light” crude from the Niger delta. But very little of this oil is refined in the country because its four state-owned refineries are dysfunctional or have closed.

https://www.theguardian.com/global-development/2020/jul/01/petrol-sold-to-nigeria-from-europe-dirtier-than-black-market-bush-fuel

Petrol sold to Nigeria from Europe 'dirtier' than black market 'bush' fuel

Samples from illegal refineries in the Niger delta were found to be of a higher quality than imported petrol in a new analysis




Black market fuel made from stolen oil in rudimentary “bush” refineries hidden deep in the creeks and swamps of the Niger delta is less polluting than the highly toxic diesel and petrol that Europe exports to Nigeria, new laboratory analysis has found.

Shell, Exxon, Chevron and other major oil companies extract and export up to 2m barrels a day of high quality, low sulphur “Bonny Light” crude from the Niger delta. But very little of this oil is refined in the country because its four state-owned refineries are dysfunctional or have closed.

Instead, international dealers export to Nigeria around 900,000 tonnes a year of low-grade, “dirty” fuel, made in Dutch, Belgian and other European refineries, and hundreds of small-scale artisanal refineries produce large quantities of illegal fuel from oil stolen from the network of oil pipelines that criss-cross the Niger delta.

The net result, says international resource watchdog group Stakeholder Democracy Network (SDN) in a new report, is that Nigeria has some of the worst air pollution in the world, with dense clouds of choking soot hanging over gridlocked cities leading to a rise in serious health conditions as well as damaged vehicles.

https://www.theguardian.com/global-development/2020/jul/01/petrol-sold-to-nigeria-from-europe-dirtier-than-black-market-bush-fuel

segebobo:
No power supply and still no fuel to power the generator.
This Govt is a huge disappointment

backbencher:
There is a fuel subsidy

Landing cost of fuel is 282 naira. The same fuel is sold at 163 naira

The difference between both prices is paid as subsidy . Part of the money goes to NNPC, some to transporters (which is why fuel costs the same everywhere) part to marketers

NNPC also keeps costs low by refining petrol in low standard refineries in Holland and Belgium. This helps keep subsidy costs low.

The times when government reduces the amount spent on subsidy which manifests as an increase in prices,is what the Buhari administration calls removing subsidy .It has been done several times by several administrators which is why fuel does not cost 45 kobo as it did 41 years ago

As for why subsidy costs rise, in June last year landing cost of fuel was 232 naira. It is now 282. Subsidy costs rose accordingly.

And yes, most people dont want to go into local refineries because subsidy means government would set the price of fuel they sell and not pay them enough to cover the difference between thw production price and the sale price that government would force on them to keep subsidy costs low. That is how we also lost our four refineries. Subsidy meant governent forced them to operate at a loss meaning they could not pay for their upkeep because goverment wanted low fuel prices and low subsidy costs

No subsidy means we would have been paying at least 300 naira per liter for fuel by now.

For example, Matrix Energy, a company with less than 60 filling stations, lifted as high as 123.6 million litres of petrol in June 2021, while Total Nigeria plc, the only international oil company in Nigeria’s downstream sector with an extensive distribution network of over 570 service stations nationwide, lifted 24.3 million litres of petrol same period.

Also, A.A RANO Nigeria Limited with less than 100 filling stations lifted 115.4 million litres of petrol in June, while A.Y.M Shafa Limited, a company with less than 100 filling stations lifted as high as 89.2 million litres of petrol in the same period.
https://businessday.ng/energy/oilandgas/article/nigerias-crazy-petrol-consumption-in-five-charts/

Basicend:
Bro,

I am sorry to say that you are shallow really.

I can't pick or grip your points. Where are you driving at. .

If you are saying there are no subsidies, then what are they removing? . . That means they are planning to multiply by times 3 present suffering of the masses by placing an artificial yoke of inflation on them. .

These guys are almost dead presently. . They should fix the leakages in the system. .

If Nigerians cannot even feed anymore. . A revolution will break out and the govt will be gone. . Or Nigeria may even be gone . That is the reality.

The data seen by BusinessDay expose why Nigeria’s daily consumption of Premium Motor Spirit (PMS) – petrol – is currently at an unsustainable level, at 103 million litres per day.
https://businessday.ng/energy/oilandgas/article/nigerias-crazy-petrol-consumption-in-five-charts/

The era of fuel subsidy is gone forever in Nigeria, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has said.

Speaking on an Africa Independent Television (AIT) programme on Monday, Mr Kyari said, “There is no fuel subsidy anymore in Nigeria. It is zero subsidy forever.”

https://www.premiumtimesng.com/news/headlines/386370-fuel-subsidy-gone-forever-in-nigeria-nnpc-gmd.html

He said that he left his former party, the Peoples Democratic Party in 2015 when he was the Speaker of the House of Representatives and joined the All Progressives Congress due to the security challenges during the Goodluck Jonathan administration.

According to him, he returned to the PDP in 2018 when he realised that the APC government was worse than the Jonathan administration.

proprince:
This is what GEJ wanted to do 2012 before the enemy of Nigeria, TINUBU, BUHARI, BAKARE, WOLE SOYINKA, and a whole lot of them politicised it then. Buhari even said then that fuel subsidy is a scam. Look at where we are now with same fuel subsidy issue. God will punish Tinubu and bihari

What is a simple definition of politics?
Politics (from Greek: Πολιτικά, politiká, 'affairs of the cities') is the set of activities that are associated with making decisions in groups, or other forms of power relations among individuals, such as the distribution of resources or status.

obynzo:
No i beg to disagree. GEJ wanted to remove subsidy the issue was that they had already instigated a breakdown of law and order with the occupy ojota. if he had used force it would have left his administration in a precarious position. We are in agreement on the selfishness of Tinubu and co. For Buhari he had boxed himself in with the previous statements in the past about subsidy especially in 2012 so going back to his vomit was an admission of failure, but instead of him to swallow his pride and do the right thing he didn't do it.

Oil prices rose to more than $100 a barrel in 2014 before a sharp drop that triggered a 2016 recession in Nigeria, leaving the government struggling to fund its budgets.
https://www.reuters.com/article/us-nigeria-oil-majors-idUSKBN1WP21H

ogododo:
Official�
Emmanuel Amunike joins the @NGSuperEagles coaching crew as Chief Coach. Austin Eguavoen continues as TA, while Salisu Yusuf is second assistant/CHAN TA.
Joe Yobo is third assistant while Aloy Agu continues as GK trainer

https://twitter.com/RandaAndrew/status/1490754136245157888

gaby:
You'll hopefully grow into using your head someday. Only then will you begin to understand.

I'm not exonerating our dumb leaders of any culpability, for the records.

obynzo:
Bro the best window to remove subsidy was in 2012, when the exchange rate was so favourable for the country. But these same people in power and Tinubu urchins played politics with it. Look more than 40% of our FX earnings go into petroleum importation and subsidies and at a time when we are not selling our crude like before despite the high prices is making this an unsustainable business and again the insincerity of this government has made our situation more precarious. In GEJ regime it was corrupt as a 2012 they pushed the subsidy from 11 to 23 million litres which was why they wanted to remove subsidy, but in this so called righteous government of APC the demand was jacked from 23 to 90 million litres on what basis was this figure arrived at? you can see the fraud in the system. IMF is actually advocating the right thing because this fuel subsidy is encouraging corruption and smuggling rather the subsidy should be channelled to other welfare policies to cushion the impact on the citizens. Subsidizing for consumption doesn't stimulate the economy but rather subsidizing for growth does.

gaby:
You'd think your post made a single sense until you give yourself a concentrated knock on the head to enable you to start daring to think outside the box and ask yourself what has been the lot of leaders/countries who have ever dared to challenge these evil IMF/WorldBank and their selfish policies and why they had to be taken out or their countries made ungovernable with demonic sanctions and avoidable wars.

You won't understand because you have allowed yourself to be raised by their standards after all, the school you'd claim to have gone was their set up including the books you had to read and curriculum.

The major problem of Africa/Africans is that, 99% of the population have been successfully manipulated with this same thinking of yours.

Basicend:
You are a clown. .

I know probably u are either one of the people close to politicians having access to free Commonwealth funds. That is why u are dating they should remove subsidy.

Or either u are a successful and corrupt business man that is thriving due to the rot of the system.

Can you remind me how many times they have removed the subsidy before?

If they remove it again now, prices will fly times 3. . A lot can't even afford 1 square meal now. . In some few months time, they will claim that they have infused subsidy again into their expenses.

Let the prioritize the welfare of the masses above all. . Let them remove the leakages in their system and excessive perquisites and allowances and budgetory allocations for executives and legislators. The executive airplane fleet and maintainance . . Etc.

96 percent of Nigerians are heavily suffering . . Stop being selfish as your leaders.

gaby:
Last night I was just discussing with a friend and we both concluded that Africa is being set up and at best will become a museum for the world or a huge farmland for the whites and Asians to have a fields day on.

It is already happening though.

Most of these policies as geared towards suffocating, inatalmentally reducing the aboriginal population, and for the most part, forcing them into emigrating from their blessed land in droves to grant them easy access to take over without much of a fight.

We Africans, we be the original mugus of all the entire races.

Choi

jaxxy:
This would have made perfect sense if we were a country with accountability and transparency bt we are not.

This would have also made sense if we are or have prudent, non corrupt and well and over average performing government with sound knowledge of the economy bt we are not.


We were fantastically corrupt and still fantastically corrupt. Removal of subsidy will aid more corrupt, mismanagement and incompetence which will lead to more suffering.

Billions they claim have been used to remove people from poverty bt it’s ineffective cos the economy is terrible. Inflation is highest and will only go for worst if subsidy is dare removed.


If the government had done their work and fixed the economy then it would have been easy or explainable to remove subsidy not with what we have now.

Subsidy removal will destroy lives of many Nigerians because the suffering will be like that of former Somalia.

Fuel subsidy gone forever in Nigeria – NNPC GMD
ByBassey Udo April 7, 2020 3 min read

The era of fuel subsidy is gone forever in Nigeria, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has said.

Speaking on an Africa Independent Television (AIT) programme on Monday, Mr Kyari said, “There is no fuel subsidy anymore in Nigeria. It is zero subsidy forever.
https://www.premiumtimesng.com/news/headlines/386370-fuel-subsidy-gone-forever-in-nigeria-nnpc-gmd.html
”

Racoon:
This fuel subsidy or fraudulent subsidy under-recovery the sanctimonious Buhari government called it ought to have been removed since 2012 but they politicised the issue. Now it must go but they are in a dilemma to do so after removing fuel subsidy multiple times. Awon werey gbogbo.

Fuel subsidy gone forever in Nigeria – NNPC GMD
ByBassey Udo April 7, 2020 3 min read

The era of fuel subsidy is gone forever in Nigeria, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, has said.

Speaking on an Africa Independent Television (AIT) programme on Monday, Mr Kyari said, “There is no fuel subsidy anymore in Nigeria. It is zero subsidy forever.”

https://www.premiumtimesng.com/news/headlines/386370-fuel-subsidy-gone-forever-in-nigeria-nnpc-gmd.html

Truthisunique2:
Amaechi dey gidigba

We in South west now have trains we never imagined because of his visionary leadership in the transport ministry

Rossikk:
Bank manager in Nigeria is a far more sensible option than working as a gateman in the US.

In 5 years' time where will you be by working as a gateman in America, versus if you were a bank manager in Nigeria?