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Fuel Scarcity: Commuters Stranded, Fares Rise

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  • Fuel Scarcity: Commuters Stranded, Fares Rise

Commuters, motorists and other users of Premium Motor Spirit (petrol) faced tougher conditions on Tuesday as the latest round of fuel scarcity in the country got worse, with its attendant negative impacts on transportation and businesses.

Some frustrated Nigerians narrated to our correspondents their ordeals while trying to get petrol at the few filling stations that were selling the product in Lagos, Ogun, Abuja and Owerri.

Our correspondent who visited the Nigerian National Petroleum Corporation depot in Ejigbo, Lagos, learnt that only 28 tankers loaded PMS on Tuesday, down from between 40 and 50 tankers daily before the scarcity began, while many private depots in Apapa were still without the product.

Commuters were seen at many bus-stops struggling to get commercial vehicles to different destinations, even as transport operators increased the fares by as much as 100 per cent on most routes.

The long queues of desperate motorists at some filling stations in parts of Lagos spilled onto the roads and caused gridlock, making commuters to suffer more pain.

A commercial vehicle driver, Mr. Obinna Jonathan, said, “We don’t know where this country is heading to because we experience fuel scarcity every year, especially in December. Since morning, I have been looking for fuel. Even yesterday (Monday), I know how I struggled to get N3,000 worth of fuel, which I used to convey passengers.

“It is really affecting my work because as a commercial driver, if I don’t have fuel in my vehicle, I can’t work; I am not going to put water in the tank. The government should really look into this issue because we are suffering in this country. I am even tired of this country; if I see a way to get out of this country, my brother, I will just vanish from Nigeria. Believe me, we are suffering in this country.”

Another transporter, Mr. Muftau Badmus, who was seen pouring petrol from a jerry can into his tricycle at Cele Bus-Stop, along the Apapa-Oshodi Expressway, said he got to a filling station at around 5:30am and did not get fuel until around 2pm.

“I have told myself that after using up the fuel I bought today, I won’t come out tomorrow. The government should help us to solve this scarcity because the poor people are the ones suffering now. All the government people are not suffering but we that voted for them are the ones feeling the pain,” he lamented.

With sweat running down her face as she sat in her car waiting at a filling station along Okota Road to get petrol, Mrs. Kate Chukwu did not hide her frustration over the situation in the country.

She said, “I have been in the queue for over one and half hours just to get fuel. It is really outrageous and frustrating that we even have to pay an extra N200 to get the fuel. It is really bad because now I am supposed to be at home cooking, but I am here waiting to get fuel.

“Last Sunday, in my church, they said we should pray for our country. But I refused to pray because I know that my prayer cannot solve Nigeria’s problems; we have a lot of things that are not in order.”

A motorist, Mr. Sunday Isong, said the struggle to get petrol had disrupted his plan to travel to Cross River.

He stated, “Today, I am very confused and tired; I have been running up and down the whole day to get fuel. My car stopped at a particular point because of fuel. I started moving up and down with a jerry can, looking for fuel. I was eventually able to buy five litres of fuel for N1,200, which I put in the car to enable me to run around to see where I can get more fuel.

“I don’t know what is happening in this country. In some stations, they are not selling to vehicles but to those with jerry cans so that they can get extra money. The government should quickly do something about this. Our country has crude oil; so I don’t know what is causing fuel scarcity.”

Mr. Yemi Adewole, who runs a laundry business, alleged that many of the filling stations had the product but were reducing the rate at which they sold it so as to profiteer from the situation.

Meanwhile, the Department of Petroleum Resources said in a statement that it had come to its notice that some depot owners were selling PMS to unlicensed bulk buyers and some retailers at prices above the approved ex-depot prices, adding that some retail outlets were hoarding the product or selling at above the industry-set cap price.

The Zonal Operations Controller, Lagos, DPR, Mr. Wole Akinyosoye, said, “These actions are clear violations of the Petroleum Act, 1969 and extant regulations, and they exacerbate the current supply challenges by bringing unnecessary hardships on the consumers.”

He added that the agency had been punishing the errant operators and warned that penalties would be imposed on any operator engaging in illicit acts.

“We are also assuring the public that the government is doing everything to ensure the restoration of normalcy to the sector,” he added.

In Owerri, the Imo State capital, a litre of petrol sold for N200 on Tuesday instead of the approved price of N145.

This is even as the prices of goods and services, especially transportation fares, have increased by between 80 per cent and 100 per cent.

Most residents of the city called on the Federal Government, through the DPR and the state’s Ministry of Petroleum Resources, to caution the independent petroleum marketers in the state.

A commercial driver in Owerri, who gave his name as Johnson Emmason, flayed the owners of filling stations in the state for what he called arbitrary increase in the pump price.

Meanwhile, the NNPC said on Tuesday that it had started releasing 470 trucks of PMS to Abuja and Lagos despite the persistent queues for the product by motorists at the few filling stations that dispensed it.

In Abuja and neighbouring states of Kaduna and Nasarawa, the queues for petrol persisted on Tuesday, as hundreds of motorists struggled to get the product.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigeria’s N3.3tn Power Sector Rescue Package Unveiled

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President Bola Tinubu has given the green light for a comprehensive N3.3 trillion rescue package.

This ambitious initiative seeks to tackle the country’s mounting power sector debts, which have long hindered the efficiency and reliability of electricity supply across the nation.

The unveiling of this rescue package represents a pivotal moment in Nigeria’s quest for a sustainable energy future. With power outages being a recurring nightmare for both businesses and households, the need for decisive action has never been more urgent.

At the heart of the rescue package are measures aimed at settling the staggering debts accumulated within the power sector. President Tinubu has approved a phased approach to debt repayment, encompassing cash injections and promissory notes.

This strategic allocation of funds aims to provide immediate relief to power-generating companies (Gencos) and gas suppliers, while also ensuring long-term financial stability within the sector.

Chief Adebayo Adelabu, the Minister of Power, revealed details of the rescue package at the 8th Africa Energy Marketplace held in Abuja.

Speaking at the event themed, “Towards Nigeria’s Sustainable Energy Future,” Adelabu emphasized the government’s commitment to eliminating bottlenecks and fostering policy coherence within the power sector.

One of the key highlights of the rescue package is the allocation of funds from the Gas Stabilisation Fund to settle outstanding debts owed to gas suppliers.

This critical step not only addresses the immediate liquidity concerns of gas companies but also paves the way for enhanced cooperation between gas suppliers and power generators.

Furthermore, the rescue package includes provisions for addressing the legacy debts owed to power-generating companies.

By utilizing future royalties and income streams from the gas sub-sector, the government aims to provide a sustainable solution that incentivizes investment in power generation capacity.

The announcement of the N3.3 trillion rescue package comes amidst ongoing efforts to revitalize Nigeria’s power sector.

Recent initiatives, including tariff adjustments and regulatory reforms, underscore the government’s determination to overcome longstanding challenges and enhance the sector’s effectiveness.

However, challenges persist, as highlighted by Barth Nnaji, a former Minister of Power, who emphasized the need for a robust transmission network to support increased power generation.

Nnaji’s advocacy for a super grid underscores the importance of infrastructure development in ensuring the reliability and stability of Nigeria’s power supply.

In light of these developments, stakeholders have welcomed the unveiling of the N3.3 trillion rescue package as a decisive step towards transforming Nigeria’s power sector.

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Nigeria’s Inflation Climbs to 28-Year High at 33.69% in April

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Nigeria's Inflation Rate - Investors King

Nigeria is grappling with soaring inflation as data from the statistics agency revealed that the country’s headline inflation surged to a new 28-year high in April.

The consumer price index, which measures the inflation rate, rose to 33.69% year-on-year, up from 33.20% in March.

This surge in inflation comes amid a series of economic challenges, including subsidy cuts on petrol and electricity and twice devaluing the local naira currency by the administration of President Bola Tinubu.

The sharp rise in inflation has been a pressing concern for policymakers, leading the central bank to take measures to address the growing price pressures.

The central bank has raised interest rates twice this year, including its largest hike in around 17 years, in an attempt to contain inflationary pressures.

Governor of the Central Bank of Nigeria has indicated that interest rates will remain high for as long as necessary to bring down inflation.

The bank is set to hold another rate-setting meeting next week to review its policy stance.

A report by the National Bureau of Statistics highlighted that the food and non-alcoholic beverages category continued to be the biggest contributor to inflation in April.

Food inflation, which accounts for the bulk of the inflation basket, rose to 40.53% in annual terms, up from 40.01% in March.

In response to the economic challenges posed by soaring inflation, President Tinubu’s administration has announced a salary hike of up to 35% for civil servants to ease the pressure on government workers.

Also, to support vulnerable households, the government has restarted a direct cash transfer program and distributed at least 42,000 tons of grains such as corn and millet.

The rising inflation rate presents significant challenges for Nigeria’s economy, impacting the purchasing power of consumers and adding strains to household budgets.

As the government continues to grapple with inflationary pressures, policymakers are faced with the task of implementing measures to stabilize prices and mitigate the adverse effects on the economy and livelihoods of citizens.

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FG Acknowledges Labour’s Protest, Assures Continued Dialogue

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Power - Investors King

The Federal Government through the Ministry of Power has acknowledged the organised Labour request for a reduction in electric tariff.

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) had picketed offices of the National Electricity Regulatory Commission (NERC) and Distribution Companies nationwide over the hike in electricity tariff.

The unions had described the upward review, demanding outright cancellation.

Addressing State House correspondents after the Federal Executive Council (FEC) meeting on Tuesday, Minister of Power, Adebayo Adelabu, said labour had the right to protest.

“We cannot stop them from organizing peaceful protest or laying down their demands. Let me make that clear. President Bola Tinubu’s administration is also a listening government.”

“We have heard their demands, we’re going to look at it, we’ll make further engagements and I believe we’re going to reach a peaceful resolution with the labor because no government can succeed without the cooperation, collaboration and partnership with the Labour unions. So we welcome the peaceful protest and I’m happy that it was not a violent protest. They’ve made their positions known and government has taken in their demands and we’re looking at it.

“But one thing that I want to state here is from the statistics of those affected by the hike in tariff, the people on the road yesterday, who embarked on the peaceful protests, more than 95% of them are not affected by the increase in the tariff of electricity. They still enjoy almost 70% government subsidy in the tariff they pay because the average costs of generating, transmitting and distributing electricity is not less than N180 today.

“A lot of them are paying below N60 so they still enjoy government’s subsidy. So when they say we should reverse the recently increased tariff, sincerely it’s not affecting them. That’s one position.

“My appeal again is that they should please not derail or distract our transformation plan for the industry. We have a clearly documented reform roadmap to take us to our desired destination, where we’re going to have reliable, functional, cost-effective and affordable electricity in Nigeria. It cannot be achieved overnight because this is a decay of almost 60 years, which we are trying to correct.”

He said there was the need for sacrifice from everybody, “from the government’s side, from the people’s side, from the private sector side. So we must bear this sacrifice for us to have a permanent gain”.

“I don’t want us to go back to the situation we were in February and March, where we had very low generation. We all felt the impact of this whereby electricity supply was very low and every household, every company, every institution, felt it. From the little reform that we’ve embarked upon since the beginning of April, we have seen the impact that electricity has improved and it can only get better.”

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