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Tag: fuel subsidy

  • Fuel Subsidy: CSO tasks FG on CNG vehicles, Modular refineries

    Fuel Subsidy: CSO tasks FG on CNG vehicles, Modular refineries

    By Ogenyi Ogenyi,Uyo

    A Civil Rights group, Centre for Human Rights and Accountability Network (CHRAN) has called on the Federal Government to support Modular Refineries and the manufacturing of Compressed Natural Gas (CNG) vehicles to mitigate the hardship of fuel subsidy removal in Nigeria.

    Chairman of CHRAN in Akwa Ibom , Mr Franklyn Isong told a press conference in Uyo yesterday that if the FG would allow local refiners to purchase crude oil with Naira not Dollars and encourage them to refine locally, there would be abundance of petroleum products which would eventually crash the price.

    Isong regretted that despite the abundance of crude oil in Nigeria, price of petroleum products has gone astronomical with its effect on cost of commodities adding that President Bola Tinubu should as a matter of urgency, look into the plight of Nigerians.

    The chairman further regretted that much was being spent on Turn Around Maintenance(TAM) of moribund refineries and workers who are dormant being paid monthly even as he urged the Federal government to publish the list of those who received the subsidy from 1999 till the date it was removed.

    He, also urged the organized labour not to allow the implementation of the rumoured impending increase in fuel price saying they should lead a mass protest if the FG goes ahead to increase the price even as he promised that CHRAN would follow noting that ‘protest’ is the only language Nigerian government understands.

    According to him, “we have crude oil in this country, there is no basis for Nigerians to be experiencing petroleum price increase. We are experiencing this because we don’t refine our products we depend on foreign exchange rate, rise of dollar against Naira free fall.

    “CHRAN wants the President, Bola Tinubu to fix our refineries, support modular refineries to refine products locally. If they are able to buy the crude oil with Naira and not in dollar and refine, there will be availability of products and fall in price.

    “The President should also ensure activation of Compressed Natural Gas vehicles inorder to address the issue of incessant petroleum price increase. Having removed the subsidy you cannot continue to talk about market forces or allow the fate of Nigerians to be hanging on determination of market forces of what you don’t produce.”

    Isong also called on the President to constitute his cabinet wondering why a president after 60 days in office is yet to set up his cabinet even after them being cleared by the National Assembly.

    He attributed the problems facing Nigeria to lack of people to advise the president.

    “More than 60 days in office, the president has no cabinet in place? 45 of the nominees have been cleared so what is keeping them from being sworn in? As at now we dont know who is the Minister of petroleum resources, or Minister of labour.

    “Who will address the issue of fuel increase, insecurity? and so on. Let his cabinet advise him on the issue of economy, insecurity etc. Robbery is on the increase, poverty is high because of one harsh policy of federal government.” He said.

    On Niger coup, CHRAN boss urged ECOWAS leaders to use more of diplomacy, negotiation to resolve the issue even as he identified bad leadership in African countries as the cause of coup in the countries.

    “We want ECOWAS leaders to know that what is encouraging coup in African countries is bad leadership, the only way is for ECOWAS leaders to begin to promote good governance, rule of law, accountability, by so doing, they will discourage coup plotters.

    “While we condemn the coup in Niger, we are calling on ECOWAS leaders to look inwards and promote good governance in their localities.” Isong said.

  • The Safety of Converting Generators from Petrol to Gas in Nigeria

    The Safety of Converting Generators from Petrol to Gas in Nigeria

    By Daniel Edu

    As Nigeria faces challenges with fuel subsidy removal and rising petrol prices, many citizens are turning to alternative ways to power their generators. One popular choice is converting generators from petrol to Liquefied Petroleum Gas (LPG), commonly known as gas. However, concerns have been raised about the safety and efficiency of this practice.

    Mechanical Engineer Kolawole Ogunwemimo from Ogun State warns that converted petrol engines running on LPG may be prone to explosions if not properly maintained and monitored. He explains that LPG leakages are not easily noticeable, making it crucial for the government to educate the public on the potential risks associated with the conversion.

    The recent increase in fuel prices has caused significant hardships for citizens, pushing them to seek cost-effective alternatives like gas-powered generators. However, this shift to gas has also sparked debates on safety and efficiency. While using gas can be more economical and eco-friendly, some worry about the potential hazards and remain skeptical about the conversion.

    In addition to the fuel subsidy issues, Nigeria also faces significant power challenges. With millions of people lacking access to electricity, many rely on generators to meet their power needs. The regular collapse of the national power grid has pushed people to find alternatives, and converting generators to gas is becoming an increasingly popular choice due to its cost-effectiveness and potential environmental benefits.

    The conversion process involves replacing the petrol carburettor with one designed for gas, connecting a gas cylinder with a long hose to supply the new fuel. While some users have reported positive experiences with gas-powered generators, there is still public skepticism about safety, particularly regarding potential explosions.

    Despite the positive feedback from some users who have embraced gas-powered generators, others call for more information and assurance from the government about the safety of this innovation. Some individuals prefer to stick with petrol or explore solar energy as an alternative to mitigate risks associated with gas usage.

    In conclusion, the conversion of generators from petrol to gas in Nigeria has become a prevalent trend due to the rising cost of petrol and the appeal of a more economical and eco-friendly option. However, concerns about safety, efficiency, and government guidance persist, leaving citizens to decide on the best course of action for their energy needs.

  • Fuel Subsidy: NLC Dismiss Plans To Embark On Strike

    Fuel Subsidy: NLC Dismiss Plans To Embark On Strike

    The Nigeria Labour Congress (NLC) has dismissed rumors that it is planning to embark on a strike today June 2, over the removal of petrol subsidy.

    There have been rumors that the NLC had fixed Friday to commence a strike in protest against the subsidy removal.

    Reacting, the head of information and public affairs of NLC, Benson Upah, asked Nigerians to disregard the rumor.

    “Our attention has been drawn to stories circulating in the social media claiming that the NLC would begin protest action on June 2 against the increase in the pump price of petrol. In as much as we are outraged by this mindless price increase which is intended to bring untold hardship to Nigerians, we have no plan to start any action on June 2. What we do have for now are organ meetings slated for June 2 to deliberate on the price issue.”he said

    Upah said the NLC would keep Nigerians informed on its next line of action after meetings.

  • Subsidy: FG, NLC Meeting Ended With No Agreement

    Subsidy: FG, NLC Meeting Ended With No Agreement

    The meeting between the Federal Government and the Nigerian Labour Congress (NLC) over fuel subsidy removal has ended without a consensus.

    The meeting at the Conference Hall of the Chief of Staff to the President came after the announcement by President Bola Ahmed Tinubu that subsidy on fuel had gone and new prices of the Premium Motor Spirit (PMS) introduced by NNPCL.

    The organised labour was led by the President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero and his counterpart for the Trade Union Congress (TUC), Comrade Festus Osifo.

    The former President of NLC and immediate past governor of Edo State, Comrade Adams Oshiomhole, the Permanent Secretary, State House, Tijjani Umar, the Head of Service of the Federation, Dr. Folashade Yemi-Esan, the Group Chief Executive Officer, of the NNPCL, Mele Kyari, and a Director in the defunct Tinubu/Shettima Campaign Organization, Dele Alake, among others attended the meeting.

    Speaking after the stalemated meeting, Ajaero and Osifo stressed that status quo be maintained on the prices of PMS while negotiations continued.

    Both labour leaders said another meeting would hold after discussions with members of their executives on the outcomes of Wednesday’s interaction with federal government team.

    Ajaero said there was no consensus after the meeting, adding that “As far as labour is concerned, we didn’t have a consensus in this meeting.”

    He picked holes in the decision of the Nigerian National Petroleum Corporation Limited to review the petrol pump price in its filling stations nationwide before the meeting, stating that the price increase put the labour unions in a difficult position during negotiations.

    “That’s the principle of negotiation. You don’t put the partner, ask them to negotiate under gunpoint.

    “The prayers of the NLC is that we go back to statusquo, negotiate, think of alternatives and all the effects and how to manage the effects this action is going to have on the people. If it is an action that must take off.

    “The subsidy provision has been made up to the end of June. And before then, conscious people, labour management, government should be able to think of what will happen at the end of June. You don’t start it before the time,” Ajaero said.

    Speaking on the outcome of the meeting from the side of government, Alake said talks on solutions to all issues at hand would continue.

    He said: “We have been deliberating on finding very amicable solutions to the issue at hand, to the queue and all of that and the increase in pump price.

    “We had a very robust engagement. We cross-fertilized ideas, ideas flew from all sides and there is one thing that is remarkable even from the Labour side, and that is Nigeria. We are all looking at the peace, progress and stability of Nigeria. That is what is paramount.

    “Of course, the NNPCL CEO is here, Mr Kyari, we cannot go into details now because the talks are still ongoing. We cannot finish everything at one setting, so, we have adjourned now, we are continuing the talks at a later date very shortly.

    “But the point is that the talks are ongoing and it always better for all sides to keep talking with a view to arriving at a very amicable resolution that will be in the longer term interest for all Nigerians. That is as much as we can say now.”

  • Fuel Subsidy: NLC Frowns At NNPC Latest Pump Price

    Fuel Subsidy: NLC Frowns At NNPC Latest Pump Price

    The Nigerian Labour Congress (NLC) on Wednesday frowned at the adjustment of pump prices by the Nigerian National Petrol Company Limited.

    Barely 48 hours after President Bola Tinubu announced an end to the subsidy era during his inaugural speech at Eagle Square, Abuja on Monday, the NNPCL confirmed the hike in the pump price of Premium Motor Spirit also known as petrol.

    Since the presidential pronouncement, fuel queues have resurfaced across the country as Nigerians forage for the premium product which was rose from around N185 per litre to between N400 and N600 per litre.

    Worried by the situation, the NLC President, Joe Ajaero, issued a statement expressing worry that the national oil company would announce an increment.

    Describing the development as unfortunate, Ajaero said the NNPCL’s action was coming on the heels of an ongoing meeting with stakeholders in the oil and gas sector to manage the unilateral but unfortunate announcement by the President.

    “It is therefore unacceptable and we seriously condemn it. Good faith negotiation is key to reaching agreement. What the government has done is like holding a gun to the head of Nigerian people and bringing undue pressure on the leaders thus undermine the dialogue,” the NLC President said.

    “We call on the federal government to immediately instruct the NNPC to withdraw this vexatious Pricing template to allow free flow of discussions by the parties. Nigerians would not accept any manipulations of any kind from any of the parties especially from the representatives of the Government.

    “Our commitment to this process is buoyed on the fact that all the parties would be committed to ensuring that it is carried out within the ambits of liberty without undue pressure. The release of that Template may not allow us to continue if nothing is done to withdraw it so that the dialogue can continue unhindered. It is clear that Government is actually trying to scuttle the process.”

  • FG, NLC To Meet Over Fuel Subsidy

    FG, NLC To Meet Over Fuel Subsidy

    Federal Government representatives are expected to meet with the leadership of the Nigeria Labour Congress (NLC) today by 2pm over the planned removal of fuel subsidy.

    Joe Ajaero, NLC National President, disclosed this during an interview Wednesday morning on Channels TV’s Sunrise Daily programme.

    In his inaugural speech on Monday, Tinubu had said “petrol subsidy is gone.” The statement immediately sparked panic buying and fuel queues across the nation.

    Weighing in, Ajaero said the President should have asked questions and found out the implications of fuel subsidy removal on Nigerians on the streets.

    He listed the alternatives to include the repair of the nation’s four refineries, provision of transportation of alternatives for the Nigerian workers, amongst others.

    The NLC boss said: “Government seems to have shown interest in discussion. As at last night, they reached out and we have fixed 2pm today (Wednesday) to commence discussion.

    “There, all other issues will be discussed because you can’t just say there is no subsidy and then you are not producing and leave us to the vagaries of the market, to people who want to sell the product they bought for N10 for N100 to maximize profit. If there is no more garri, we must find out what to eat.

    “The pronouncement by Mr President is as good as law and if in the process we make a law that is not practicable, the same people that made the law can look at it,” Ajaero said while calling for a review of the President’s pronouncement.

    “Does it bring pleasure to us to say subsidy is gone and people start suffering? Is it not part of leadership for us to look at how the suffering of the people can be reduced?”

  • NEC Suspends Removal Of Fuel Subsidy

    NEC Suspends Removal Of Fuel Subsidy

    The National Economic Council (NEC) on Thursday suspended the planned removal of subsidy on petroleum products by the end of President Muhammadu Buhari’s administration.

    The Minister of Finance, Budget, and National Planning, Zainab Ahmed disclosed, this while briefing State House correspondents at the end of the NEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

    According to the minister, the NEC concluded in its meeting that it is not a favourable time for the action.

    She stated that the Council deliberated on the matter and resolved that it cannot be removed for now, but it equally agreed on the need to continue the discussion on the matter and the necessary preparatory work in conjunction with states and representatives of the incoming administration.

    Ahmed said, “What I said is that it is not going to be removed now; which means it is not going to be removed before the transition is completed. But then we two laws that have inadvertently made the provision that we should exit (subsidy) by June.

    “So, if the committee’s work, which will include the representatives of the incoming administration determine that the removal can be done by June, then the work plan would be designed to exit as at June.

    “But if the determination is that the period needs to be extended, it will mean that, as a country, we will have to revisit the Appropriation Act because the 2023 Budget only made provision up to June.

    “So, if we are extending beyond June, it means we have to revisit the Appropriation Act and do a Supplementary or amend the bill and also the PIA.”

    The issue of subsidy has been a controversial topic in Nigeria.

    Under the Petroleum Industry bill signed by President Muhammadu Buhari in August 2021, part of the Act does not create room for subsidy.

    In January 2022, the Federal Government proposed 18 months extension to the National Assembly for the implementation of the Petroleum Industry Act (PIA).

    The current administration agreed to an extension of the statutory period for the implementation of the removal of subsidy on Premium Motor Spirit (PMS), in line with existing laws.

    However, the fuel subsidy should have been fully removed by June, but the current administration said it is not yet time to implement the full removal.

    It is however left to the incoming administration to take a decision on the fuel subsidy removal.

  • NUT kicks against removal of Fuel Subsidy

    NUT kicks against removal of Fuel Subsidy

    The Nigerian Union of Teachers (NUT) says it opposes the planned removal of petroleum subsidy.

    NUP President Titus Amba, stated this in Abuja yesterday at the union’s 2023 Solemn Assembly.

    He called for scrutiny of the implementation of the subsidy regime “with the aim of ridding the system of corruption.”

    The Federal Government had said it would stop the payment of petrol subsidy by the end of June having made provisions of N3.36trn for it to cover the first six months of this year.

    But the NUT’s president yesterday said the consequences of high price of petroleum products had triggered inflation to the disadvantage of all wage earners in the country.

    Amba also said the union would take on states that had refused to implement the N30, 000 minimum wage for teachers.

    He said: “We’ve increasingly engaged our state government on the issues of N30,000 minimum wage and the consequential adjustments, and have filed trade disputes with the registrar of trade unions against some non-cooperative states governments.”

    He said Kaduna State only implemented the N30,000 minimum wage for secondary school teachers leaving out while the primary school teachers.

    He said the numerous security challenges, with different attacks on schools and communities, had led to the death of teachers and students as well as the destruction of schools.

    He urged the governments at all levels and other stakeholders to protect schools and the education workers.

  • My plans for fuel subsidy, by Peter Obi

    My plans for fuel subsidy, by Peter Obi

    The Labour Party presidential candidate, Peter Obi, has reiterated his commitment to phasing out fuel subsidy completely if elected during next month’s election.

    He said removing fuel subsidy had been on his priority list, and he would end the menace, which he described as “organised crime”, immediately after he assumes office.

    Obi, who gave the assurance on Sunday at the People’s Town Hall 2023 organised by Channels Television, said he would cut off fuel subsidy beneficiaries and put to rest the issue permanently.

    “I can assure you, it (subsidy) will go immediately. Subsidy, I’ve said it before, is an organised crime and I will not allow it to stay a day longer.

    “What they’re telling you is not what it is. Half of what is being mentioned is not subsidy. First is that we consume the quantity that is not supposed to be consumed here. We are the same population with Pakistan. They consume below 50 per cent of what we consume.

    “So, the first half, I will remove it and give those people who are drinking it water, because that’s what they’re supposed to drink, so we can save the money.”

  • Why Buhari made u-turn on fuel subsidy removal – Adesina

    Why Buhari made u-turn on fuel subsidy removal – Adesina

    Despite describing it as a fraud, President Muhammadu Buhari has failed to remove fuel subsidy payments as he promised prior to the 2015 general election.

    About eight years down Buhari’s tenure, which will end in May, the fuel subsidy payments persist and the Minister of Finance, Zainab Ahmed has said the payments will gulp N3.36 trillion in the first six months of this year.

    However, Mr Femi Adesina, Special Adviser to President Buhari on Media and Publicity explained that the President failed to remove fuel subsidy payments due to economic and social factors.

    “Each time there is an effort to fight the fraud in the subsidy regime, you have to contend with labour, you have to contend with the people. The government needed to weigh its options because of the social consequences,” Adesina said on Channels TV’s Politics Today on Wednesday.

    Recall that during his campaign ahead of the 2015 presidential election, Buhari had questioned the justification behind retaining fuel subsidy and described it as a fraud.

    However, about eight years after, the Buhari administration announced recently that subsidy removal will come into effect in June 2023 after he must have completed his two terms in office.

    Adesina blamed his principal’s inability to remove subsidy on Premium Motor Spirit (PMS), also known as petrol, on economic and social factors.

    “In the beginning, his (Buhari’s) position was: what was subsidy really? But over the years it became evident that the country was bleeding, the economy was bleeding, there was a lot of haemorrhage which needed to be stopped and the time came and that time is now,” Adesina said.

    The presidential aide also said that petrol subsidy had stayed longer than required. He added that almost every Nigerian has now come to the realisation that it must come to a stop.

    Meanwhile, speaking during a public presentation and breakdown of the 2023 Appropriation Act in Abuja, the Minister of Finance confirmed that payment of fuel subsidy will stop by the end of June 2023.

    She noted that in the 2023 fiscal period, the government made provisions of N3.36 trillion naira for fuel subsidy payment to cover the first six months of 2023.

    This, according to her, is in line with the 18-month extension announced early 2022.