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The Federal Government incurred
N3.16 per litre as fuel subsidy last week, showing 94 per cent drop from N50
per litre recorded in 2016, following the low oil price in the global oil
market. The National Bureau of Statistics (NBS) made the disclosure in its latest
report released yesterday. Using the major marketers’ data, the report which
put the landing cost of petrol at N128. 79 per litre put the actual price of
the product at N148.16. The report also put the pump price at N145 per litre,
meaning that the federal government currently subsidised the balance of N3.16
per litre. But based on the Nigerian National Petroleum Corporation (NNPC)
data, the report which put the landing cost of petrol at N126.20 per litre put
the actual price of the product at N145.57, meaning that the federal government
subsidised the balance of N0.57 per litre.
The report did not provide details,
including margins to stakeholders such as marketers and transporters. However,
investigations showed that the Petroleum Products Pricing Regulatory Agency
(PPPRA) has not published its template to guide local and foreign investors in
the sector since January, this year.
The Executive Secretary of PPPRA,
Abdulkadir Saidu Umar, could not be reached for comments. Assistant General
Manager, Corporate Affairs, PPPRA, Mr. Lanre Oladele, also declined to comment
on the inability of the agency to make its template public.
Meanwhile, the Nigerian National
Petroleum Corporation, NNPC, disclosed that it recorded ‘under recovery’ of
N49.86 billion between January and March 2017. Under-recovery in downstream
petroleum marketing parlance is when the expected open market price of PMS –
which includes the cost of importation and distribution of the commodity, such
as marketers’ margins, landing cost and freight cost — is below the approved
official retail price at the pump. Giving a breakdown of the figures, the NNPC
in its latest financials, the March 2017 Monthly Financial and Operations
Report, had stated that it recorded under-recoveries of N37.26 billion, N6.3
billion and N6.3 billion for January, February and March 2017 respectively.
Though the NNPC did not state the amount per litre, the total amount was
charged from proceeds of its domestic crude oil and gas sales.
The Minister of State for Petroleum
Resources, Dr. Emmanuel Ibe Kachickwu had stated that the novel price
modulation mechanism currently in place will ensure that the Federal Government
records zero expenses on fuel subsidy in 2016.
Delivering the 45th Convocation
Lecture of the University of Nigerian Nsukka under the theme: The Petroleum
Industry and the Future of the Nigerian National-Oil Resource Management and
the Implication for National Security & Economic Survival, Dr. Kachikwu had
noted that the zero fuel subsidy regime is already in place and would be
sustained based on the prevailing modified pricing template for petroleum
products which has eliminated extraneous cost elements.
“Without necessarily removing subsidy,
the government will spend zero amounts in subsidy in 2016. This may sound
unbelievable to some people but that is part of the change agenda of the
present administration of President Mohammadu Buhari”
But a few days ago, Dr. Kachikwu,
stated that the downstream and midstream sectors of the Nigerian petroleum
industry continue to remain challenged, disclosing that the price of Premium
Motor Spirit, PMS, was rising above the current pump price.
He said, “The environment has since changed
after the review in May 2016. When we did all these, pricing for crude oil was
more in the $25 to $30 per barrel; today, it is in excess of $54, which is
fantastic because it means that our revenue stream is improving.”
An alleged image of Jesus Christ on a church wall has caused
commotion in the Ikorodu area of Lagos state. Church members and residents have
been seen streaming in and out of the church. The alleged image was noticed
after an artisan raised alarm and called attention to the water stained wall No
less than 400 worshippers daily have been visiting an uncompleted church
building in Ikorodu, Lagos state, to see an alleged image of Jesus Christ.
NAIJ.com learnt that the image, believed by some people to be the face of
Jesus, reportedly appeared on a wall in a church called the Holy Ghost Fire
Apostolic Church, Ogunse Estate, Sagamu Road, Ikorodu, Lagos state. Residents
of the area as well as church members have been swarming the sight of the
alleged miracle since an artisan raised alarm and called the attention of
people to it.
