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FG Plans 0.5% Levy on Imported Goods to Finance AU, ECOWAS Obligations

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The Federal Government has stated that it plans to impose an additional 0.5 percent levy on imported goods to meet the country’s obligation to the Africa Union (AU), Economic Community of West African States (ECOWAS), and African Development Bank (AfDb) among others. 

Like other member countries, Nigeria has financial obligations, and apart from those above, other international organisations that the country belong to include the World Bank, Bank for Investment and Development, Islamic Development Bank, United Nations and other multilateral institutions. 

The new levy of 0.5 percent on imported goods was captured in the 2022 finance bill and introduced under Sector 13 for Customs, Excise, Tariff, etc. (Consolidation) Act, Investors King learnt. 

The document partially read, “In addition to extant customs duties and other approved charges, a levy of 0.5 per cent is hereby imposed on all eligible goods imported into Nigeria from outside Africa to finance capital contributions, subscriptions and other financial obligations to the African Union, African Development Bank, African Export-Import Bank, ECOWAS Bank for Investment and Development, Islamic Development Bank, United Nations and other multilateral institutions as may be designated by regulation issued by the minister responsible for finance.”

The document further explained that the amendment was essential to ensure certainty and sustainability of funding of the African Union and other key multilateral development institutions. 

Meanwhile, the Federal Government has also proposed an amendment to the sharing formula for revenue from electronic money transfer (EMT) in the 2022 finance bill. 

Currently, the federal government keeps 15 percent of EMT revenue while 85 per cent goes to the state governments. 

In the proposed amendment which is now with the National Assembly, the federal government is asking to keep its 15 per cent but wants the legislators to split the balance between the state governments and local government councils in a 50 per cent: 35 percent ratio.

This the federal government claimed is in line with the autonomy granted to the local governments across the country. 

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Economy

Revoke Licences of Oil Marketers Involved in Petrol Hoarding, PENGASSAN Tells FG

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Petrol - Investors King

As prices of Premium Motor Spirit (PMS), otherwise known as petrol increase to N650 per litre in some major cities across the country, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has identified fuel hoarding by marketers as the cause of the price hike.

Another reason the petroleum union adduced for the increase in sales is the biting scarcity of petrol which it described as worsening in the nation’s capital city among others.

Proferring a way forward to the menace, the union asked the Federal Government to revoke the licenses of oil marketers involved in the hoarding of the commodity.

It noted that hoarding of petrol has been causing the crisis in the sector, explaining that the nationwide scarcity of the product has been partly responsible for hike in food prices, transportation fares among other items.

The association maintained that if drastic steps were not taken by the government at the centre, oll marketers would continue to hoard the commodity and sell at prices they seem okay.

While revealing that it monitored how the Nigerian National Petroleum Company Limited (NNPC) supplied the products to marketers and also following up with its members from the Nigerian Midstream and Downstream Petroleum Regulatory Authority in various depots and terminals, PENGASSAN promised to ensure that none of its members derails from their core ethical practices.

The union was of the opinion that there was no justification for petrol to sell for N650 per litre since the government has adjusted some parameters in the industry.

It lamented that the masses are being subjected to hardship with the inflated petrol and reiterated its call on the Federal Government to seize the operating licences of oil marketers who hoard fuel to frustrate the masses.

The submissions of PENGASSAN were contained in a statement co-signed by its President, Festus Osifo, and Secretary, Lumumba Okugbawa.

According to the association, some overbearing marketers have initiated some means of creating artificial scarcities in order to give way for inflation of the price of petrol uncontrollably.

Since data available to it from its members showed that there was over 30 days petrol sufficiency across the country, the association said there was no justification for the current scarcity and hardship that Nigerians were being subjected to.

The union called on the management of NMDPRA to compel all marketers and retailers to make the products available at approved prices and that they should monitor oil marketers for compliance.

If a retailer is found to have sold beyond the approved price or hoarded the commodity, PENGASSAN advocated for severe sanctions including revocation of licence to serve as a deterrent for others.

Recall that Investors King had reported that the Federal Government had recently announced that it was going to put up a 14-man steering committee on petroleum products to halt the prolonged scarcity of petrol.

It was gathered that the committee, chaired by President Muhammadu Buhari was yet to be functional as the government has not inaugurated it.

 

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Fuel Scarcity: Car Owners Abandon Vehicles as Nigerian Masses Stage Protest

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Petrol - Investors King

As the fuel scarcity bites harder across the country, vehicle owners have been abandoning their vehicles and opting for public transportation.

Investors King reports that some other Nigerians, especially civil servants have resigned to fate by trekking to work while others who could afford skyrocketing transport fares were moving around in public vehicles.

Findings across some states revealed that a litre of Premium Motor Spirit, popularly known as petrol, was being sold between N280 and N350.

This came as downstream petrol marketers have blamed the Nigerian National Petroleum Commission (NNPC) for only selling the petroleum products for private depots owners and ignoring retailers whose numerical strength outweighs that of the major marketers.

The scarcity is worsened because most filling stations were not operating while the few that are selling the product are struck with long queues, fighting and bribery.

At various Government Secretariats and other offices checked by Investors King, it was observed that the parking spaces were not filled with vehicles as it was usually done.

A civil servant who did not want his name mentioned lamented the fuel scarcity and hike in fuel price saying, “I have no choice than to keep my vehicle at home. My office doesn’t want to listen to excuse of wasting time at filing stations in search of fuel. So, I have to opt for public vehicle so that I won’t be sacked.”

Meanwhile, some aggrieved Nigerians have staged protests over fuel scarcity and the expensive prices of fuel and called on the Federal Government of Nigeria to find a lasting solution to the challenge.

The protesters blocked the Lagos Benin Expressway at Oluku Junction in expression of their displeasure, saying that hike in fuel is contributing negatively to skyrocketing prices of food items.

Many commuters and other road users were stranded during the demonstration as the busy road was totally blocked for hours.

“We can’t continue to experience this pain. We are tired. Government should find lasting solution to this issue. We are here just to let the world know that we are not happy and this fuel scarcity is really affecting us negatively. Enough is enough,” one of the protesters said.

There was no vehicular movement when the protesters, mostly youths, stormed the road.

Meanwhile, commercial motorists have been warned against steps they take in a bid to minimize the fuel consumption of their vehicles which could lead to loss of lives and property.

Speaking, the Executive Secretary, Office Of Transportation, Engr. Bilal Adiat said because petrol is scarce and expensive, hence commercial motorists are now improvising ways of reducing the fuel consumption of their vehicles so as to maximize profit.

Bilal said most of the steps taken by the commercial drivers are against the mechanical set-up of the vehicles which could lead to fire disaster and loss of lives and properties, urging for both motorists and Nigerians at large to be wary of the dangers inherent in keep fuel in gallons.

 

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Despite Nationwide Blackout, FG Reveals Discos Failed to Utilise 1,070.36MW

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As major parts of Nigeria continue to complain of blackout, the Federal Government has revealed that Electricity utility firms otherwise known as the DisCos had a total of 1,070.36 megawatts unused between December 24 and December 30, 2022.

For most Nigerians, prolonged power outage they experience could be attributed to lack of sufficient megawatts within the reach of the power utility companies.

Discos had lamented low power supply from generating companies (GenCos), which they attributed the blackout to.

While blaming GenCos for the incessant drop in electricity supply, DisCos through a statement from Ikeja Electric said it has been shedding load owing to low power allocation.

The General Manager of the Corporate Communication Department, EKEDC, Godwin Idemudia, while apologising to customers, especially those affected by the power outage, lamented a sharp decrease from the electricity it gets from the grid, saying it was not enough to meet the demand of its customers.

Hence, the continued lamentation of electricity consumers who are at the receiving end of the excuses proffered.

But, contrary to the argument and excuse adduced by EKEDC, latest power utilisation data obtained from the Transmission Company of Nigeria, an agency of the Federal Government, revealed that the Discos did not utilise the over 1,070MW of electricity between December 24 and December 30, 2022.

Nigeria has 11 Discos including Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt and Yola.

Figures from TCN showed that there are electricity that utility firms were not releasing to electricity consumers.

On December 24, 2022, the figures showed that a total of 118.04MW of electricity was unused by Enugu, Ibadan and Port Harcourt Discos, while the eight other power distributors took and distributed excess load on that day.

Also, on December 25, nine power distributors obtained excess load allocation, but two others including Enugu and Ibadan, could not distribute a total of 93.73MW of electricity.

However, the next day, being December 26, the quantum of unutilised energy increased, as seven Discos, including Abuja, Benin, Enugu, Ibadan, Jos, Kano and Port Harcourt, failed to distribute a total of 198.82MW of electricity.

While four companies took excess load allocation, according to TCN’s data, six of the power firms were said to be unable to distribute 180.99MW of electricity on December 27, as the remaining five took excess load allocation.

The data further revealed that the six Discos that could not distribute the 180.99MW of electricity include Abuja, Enugu, Ibadan, Jos, Kano and Port Harcourt.

The transmission company further stated that five distribution companies comprising of Benin, Enugu, Ibadan, Jos and Port Harcourt, could not distribute 89.09MW of power on December 28.

TCN stated that five Discos accepted excess load allocation that was more than their maximum load nomination for that particular day.

 

 

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