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Shedding light on the petrol subsidy imbroglio

Published

2 years ago

June 24, 2023

By Olukola Osunbunmi

Nigeria is a blessed country, no doubt. Almighty God in His infinite mercies has blessed Nigeria with everything that most developed countries in the world do not have. But there is a curse to our development or should one say there are clauses or impediments for the giant in Nigeria to be reawakened. In the 1960s, Nigeria was at par with the Asian Tigers namely Hong Kong, Taiwan, South Korea and Singapore. But unfortunately, we were left behind by the aforementioned countries between the early 1950s and 1990s as they underwent rapid industrialization while at the same time maintained exceptionally high growth rate of 7 percent a year. At a time in the history of this nation, our currency, the naira, was one of the strongest in the world. It had more value than the dollar and pound sterling.

In March 2009, the late President Umaru Musa Yar’Adua of blessed memory unveiled and launched the logo of the ‘Rebranding Nigeria’ campaign with the slogan: ‘Good People, Good Nation’. Truly Nigeria is a country of good people but we have been very unlucky with those at the helm of affairs, elected or appointed. The sleaze that characterized the administration of former President Muhammadu Buhari cannot be over emphasised. Those saddled with the responsibilities of putting smiles on the faces of fellow compatriots rather made them weep in agony and pain. The attendant consequences have been followed with the gale of suspensions of the leading figures of the last administration and more will still come.

On May 29, 2023 at the Eagle Square Abuja during a change of baton between former President Buhari and President Bola Ahmed Tinubu, the latter made a pronouncement that put paid to the ghost of subsidy in Nigeria once and for all. The pronouncement meant that the Government will no longer subsidise petrol for the citizens rather the subsidy will be pushed to other sectors like health, education, transport and others that will make life more meaningful for an average Nigerian. It was a tough decision to make but Nigerians are gradually embracing the reality and are expectantly looking forward to how the Tinubu’s government will cushion the effect of the subsidy removal for them.

It did not however come as a surprise that the shylock oil marketers increased the pump price of petrol from N195 to N547 per litre, an increment of more than 250 percent. The question to ask is: how did the NNPC arrive at the new price? Immediately after the speech made by the President on the Petrol subsidy removal, one observed that petrol marketers in Abuja started selling at N350 per litre and this continued until the NNPC made their pronouncements that the pump price would henceforth sell at N537 per litre in Abuja. It however mean a litre of fuel is being subsidised at N352 per litre. Where is the money, who is keeping it for Nigeria and Nigerians, who are the beneficiaries and who are their cronies? Could these fellows come out boldly and tell Nigerians where the humongous money generated from the subsidy debacle are stashed.

To start with, how much does it take Nigeria to transport and bring back its refined crude from abroad? The understanding is that the crude is transported abroad to be refined and after the process is completed, the refined product is brought to Nigeria. The Premium Motor Spirit (PMS) otherwise known as petrol is not the only refined product from crude oil, there are diesel, kerosene, asphalt, paraffin, consumer goods, cosmetics among others.

It is high time agencies that have things to do with our oil and as well as the security agencies come forth to give account of their stewardships to Nigerians. How many litres of petrol does Nigeria consume daily? As at last year and early this year before the subsidy pronouncement, the Nigerian National Petroleum Company Limited (NNPCL) said Nigeria consumes 68 million litres daily. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) within the same period contradicted NNPCL’s claim. The NMDPRA also contradicted itself. It first gave 62.9 litres and later 66.8 litres. The Comptroller General of Nigeria Customs Service, Retired Colonel Hameed Ali also disagreed with NNPCL on the daily consumption of fuel. Following the subsidy removal, it is however strange that Nigeria now consumes between 13 million and 16 million litres of petrol per day. Where is the payment for the non-existing 52 million litres or thereabout been bandied about in the last 18 months? Where is the excess going to? Who is deceiving who? The oil industry players and heads of security agencies must come out clean. He who comes into equity must come with clean hands!

As a chartered Accountant, one cannot explain and convince myself as to how the NNPCL arrived at the N547 per litre and this has to be itemized and explained to all Nigerians as transparently as possible so as to earn the respect of all. The decision affects the life of all Nigerians and to a large extent, the explanation will help the Tinubu administration gain the trust of the people.

That being asked, it is being suggested that the Federal Government should allow the modular refineries to operate as the Dangote Refinery so as to cut down on perceived monopoly of the Dangote brand. If there is no competition, Nigerians will be forced to buy at the price being forced in them by this monopoly. In addition, those in the area of oil and gas and who have the capacity should in the interim be encouraged to bring in the PMS for competitive pricing and competitive service to Nigerians.

Osunbunmi is a chartered accountant and forensic auditor

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Featured

Dikko And The New Vision Accountability and Development in Sports

Published

1 week ago

December 16, 2024

The Gleamer

Felly Mammah N.

Since the Chairman of the National Sports Commission (NSC), Alhaji Shehu Dikko assumed office on the 30th of October, 2024, he has systematically and deliberately been putting in place structures that would result to proper development of sports in Nigeria. Shortly after he was first appointed by President Bola Tinubu as a leading strength of sports, the Director General (DG), Hon. Bukola Olapade was appointed to compliment his efforts.

Many sports analysts believe that the duo of Dikko and Olapade who have been very visible in sports administration will be one of the best combination to take the sports sector to the next level. The DG no doubt, is the head of administration in the Commission, but it should be noted that the financial enablement to manage the affairs of staff and the political might that shops for the finance needed in the running of the sector rest on the Chairman who has the task of liaising with the President directly.

It is also, worthy to note that there is a huge difference between the administration of in the Civil Service as it is controlled by a Permanent Secretary and Directors while the administration of a Commission involves Board Members and experts whose voices and actions are also, game-changing; more so as Commissioners are likely going to take charge of the different zones to proffer solutions for a way forward. The defunct Ministry of Youths and Sports Development which later in 2023 metamorphosed into the Ministry of Sports Development on the assumption of President Bola Tinubu, produced a minister who was not versed in sports administration and as a result, faced mass criticism especially from men of the media.

These men of the pen profession are the torchlight of global sporting activity; they equally keep the history of both sports participation globally as well as the records of athletes’ performances. Their torchlight on past Minister’s and particularly the recent past, have revealed that most of the people who presided over sports administration do not really have any knowledge of the sector before their appointment.

The exit of the immediate past Minister, Sen. John Owan Enoh, refreshingly paved the way for change and this has brought in sports personnels that are expected to place sporting activities in the digital world. Suffice it to also, say that the new management of Sports Commission in parts of her changes is expected to sanitize athletes’ attitude and character for better reflection of children who have seen and communicated with their peers in the Western world.

However, the clarion call for President Tinubu to remove politics in sports may have changed the leadership of sports going by what many sports fans saw in the last outing of both Olympic and Paralympic Games in Paris 2024, where a country like Nigeria did not measure up to her potentials.

Despite the poor performance of atheletes during the World Olympics Games, the past immediate past Minister deserves to be commended that during his tenure, the African Cup of Nations (AFCON) Games was reawakened as the participation of our Super Eagles brought back hope and jubilation to sports fans including the President and higher authorities. Yes whopping sum of N12 Billion was released two weeks to the Olympics Games and at a time the country was not financially stable. Despite the presidential financial support, the medals presented to the country were crisis and ignorant of both the atheletes, Nigeria Olympic Committee and the Atheletic Federaton to do the needful.

Therefore, it is heart-warming that the President harkened to the appeal of his fellow sports lovers to handpick a known figure in the sports arena to share his wealth of experience that gave him both a name in Sports and positions as the former Chairman of the Nigeria Premier Football League (NPFL), Chairman League Management Company (LMC), FIFA match Commissioner of significance, 2nd Vice President of the Nigeria Football Federation (NFF) and presently, CAF Committee Member, in addition to his new portfolio as Chairman NSC.

My reference point here is that Alh. Dikko has been given the authority to effect positive change in sports sector, co-ordinate over 40 Sports Federations in the sector, welcome ideas of both sports stakeholders, individuals and veterans of sports that will enable him x-ray the reasons for poor performances in the sector and to chat a way forward for success story. There can never be a new testament without an old testament, thus the reason Alh. Dikko’s doors have remained opened to receive courtesy calls that included the visits by past administrators and foreigners who want to facilitate with whom the cap fits.

Still, in the mood of celebration to formally welcome Alh. Dikko to office was the peculiar power of sports which gathered momentum and the crowd for happy moments as seen in the recent novelty match organized by his friends, associates and sports veterans at the Moshood Abiola National Stadium, Abuja recently. That gathering clearly announced not just a man who has made a name for himself at a height in global political decision making in sports circle, but a man who has also, given voice to our country’s leagues and international activities.

Sports is a significant sector that comprises emotion, tension, happiness, sadness even death and hope irrespective of the fact that it has the potential to feed many mouths. The sector cannot be compared to other Ministries with delayed bureaucracies and frustration of abilities. While in the civil service the head will rather submerge a growing talent for fear of power thrown, a coach who discovers a talent takes the credit for showcasing a star athelete discovered. Sports has been proven to generate revenue as well as attract public partnership which are all aimed at enhancing podium performance by the athletes.

Shehu Dikko’s business vision and wide participation in football contributed in making him the right candidate to place the sector in its expected level, increase the GDP of the country’s economy and equally be accountable with administrative roadmap for success.

The novelty match organised for him by his sports fans and League managers had the likes of Samson Siasia, Victor Ikpeba, Mutiu Adepoju, Dominic Iorfa, Ahmed Musa in attendance to share their joy with him as they displayed their talent with their foot.
Others that graced the occasion were Super Sports General Manager, Felix Nwogu, former and present Chairmen of House Committee on Sports, NFF President, NOC members and persons from across the globe. That singular act indicated a clear fact that Dikko can actually gather momentum with persons that can support his ideology to deliver as charged by the presidency.

However, the Chairman’s meekness to open his doors to all does not mean weakness neither does it mean that he has not commenced work officially. His work is more of brain tasking because ideas actually rule the world. I will boldly say that he has resumed work with like minds that will not only be on the same page with him but will as well be on success Guinness Book with him.

Felly Mammah N.
Press Officer (NSC).

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