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Petrol price set to be increase to N180 per litre

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The Federal Government may increase the price of Premium Motor Spirit (PMS), popularly called petrol to a minimum price of N180 and above anytime soon.

Minister of State for Petroleum Resources, Dr. Ibe Kachikwu who dropped the hint in Abuja on Thursday, said the current price of N145 per litre can no longer be sustained.

In a presentation he made to a joint committee on Petroleum (Downstream) of the Senate and the House of Representatives, the Minister said the landing cost for petrol stood at N171 per litre.

According to him, the Federal Government, through the Nigerian National Petroleum Corporation (NNPC) has been bearing the cost of N26 per litre, representing the difference between N171 and the current official price of N145 per litre.

Insisting that independent marketers would not be able to import the product at the current foreign exchange rate, saying the marketers were able to sell for N145 per litre when the exchange rate was N285 per Dollar. The Naira presently exchanges for N365 per Dollar.

“We now have to go back and find the solution to this problem in order to ease supply gaps and ensure availability of the product at all times,” the Minister said.

Kachikwu, however, proffered three alternative solutions to pump price increase: getting the Central Bank of Nigeria (CBN) to introduce a modulated foreign exchange rate specifically for importers of the product; giving the marketers significant tax adjustments to enable them to absorb the high cost; and a plural pricing system whereby the NNPC would continue to sell at N145 through its numerous outlets while the marketers are allowed to fix their own price.

The Minister identified causes of the last fuel scarcity to include diversion of products, logistic constraints, bottleneck associated with clearance, bad road network, insufficient product reserves, smuggling through land borders, supply gaps and enforcement challenges.

He stated that the marketers stopped importing fuel since October 2017, as a result of their inability to access foreign exchange from the CBN, leaving only the NNPC to import the product, which has left a wide gap between demand and supply.

Dr. Kachikwu lamented that the price of petrol rises with the rise in the price of crude oil in the international, stressing that in such instances, Nigeria spends more to import refined products. In effect, any rise in crude oil price increases the amount the country spends on the importation of fuel.

To address the situation, the Minister canvassed the opening up of production lines, specifically the refineries, which he said, would address supply gaps that usually leads to incessant scarcity.

“Rising prices in international market affecting domestic prices. What the country needs is to have the refineries working. It’s a shame that after 40 years, Nigeria cannot produce its domestic consumption.

“It would take 18 months to address problems of scarcity, price stability and other issues relating to the supply of petroleum products. The pipelines should be concessioned to allow private participation.

“There is huge infrastructure deficit in the system because the NNPC ought to be distributing products through their pipes but most of the pipes are damaged. The has necessitated the use of trucks to distribute the product across the country.

“Most importantly, fixing the refineries should be the lasting solution. To discuss and address the issues, we have to seek approval from the President,” the Minister said.

In his own submission at the hearing, the Group Managing Director of the NNPC, Dr. Maikanti Baru said the last scarcity was caused by rumours of price increase in the media that led marketers into hoarding the product in anticipation of higher prices.

Said he: “So there was a frenzy in the movement of products to the hinterland and diversion of products going to the hinterland in anticipation of the increase in price.

“The NNPC, or the Petroleum Products Pricing and Regulatory Authority (PPPRA) had no mandate to increase pump price.”

The GMD said that the strike action embarked upon by PENGASAN in December was partly responsible for the scarcity, saying issues raised by the association for going on strike had nothing to do with the NNPC.

According to him, the strike triggered panic buying by members of the public leading to scarcity of the product. He added that although PENGASAN called off the strike on December 18, the damage had already been done.

Baru identified other factors responsible for the last scarcity to be the higher price at which petrol is sold in neighbouring African countries, citing Cameroun where he said petrol sells for N300-N400 per litre.

Stating that the NNPC has enough product to bridge supply gaps, Baru insisted the corporation has sufficient stock to go round even without importation.

The GMD alleged that about 4500 distribution trucks failed to return to depots to complete their distribution formalities during the scarcity period, meaning that the trucks were diverted.

“There was no supply gap because we have Direct Sale Direct Purchase (DSDP) agreement with 10 consortia involved. Three of them rejected their cargoes, which were reallocated to others.”

The GMD also hinted that the refineries in Kaduna and Port Harcourt were being reactivated and restreamed and that they have been producing three million litres daily.

Baru also cited disagreements among the various private operators in the sector as part of the problems that threw up the scarcity, adding that the marketers were busy trading allegations of sharp practices.

He said: “For instance, IPMAN said MOMAN and DAPPMA were charging over N133.28/litre but when we asked them to provide evidence of overcharging, they could not provide any. If proven, NNPC would have withdrawn the licenses of the errant bodies.”

The Executive Secretary of the Department of Petroleum Resources (DPR), Mordecai Baba Ladan told the committee that at the outset of scarcity, the DPR rolled out its machinery across the country, with the directive from the Minister that defaulters be dealt with.

“Almost every marketer/filling station across the country are defaulters. And if all defaulting filing stations were to be shut down, there may not be anyone left.

“They horde, sell above official price and also divert products. But we have stepped up our monitoring process now that the NNPC is the sole importer but the corporation cannot do it alone.

Virtually all the independent marketers that attended the hearing alleged multiple charges by the Nigerian Port Authority (NPA), NIMASA and some state governments charging 3 kobo per litre wharf landing fee.

The Executive Secretary of MOMAN, Mr. Obafemi Olawore said the N800 billion owed marketers by the Federal Government has made it difficult for them to obtain credit from the banks to import the product.

He appealed to the government to give key players major roles in the importation business, saying that shutting down errant filling stations won’t solve the scarcity problem but rather aggravate it.

Olawore called for total deregulation of the sector to allow more participants from the private sector.

Curiously, however, the chairman of the joint committee, Senator Kabiru Marafa who had vowed to grill the Minister and the GMD over secret subsidy payment by the government.

Briefing newsmen at the National Assembly on Friday, Marafa had raised questions on who pays the difference of the N26 in the landing cost of N171 against the pump price of N145.

The lawmaker said there were indications that a subsidy of N26 was being paid on every litre of petrol sold in the country and wondered who has been paying the subsidy.

Marafa had said, “If there is subsidy payment, then who approved it and how much has been paid out as the subsidy so far. If you want to provide the subsidy, it should come through the National Assembly but we have not received any request for subsidy payment from the Executive arm.”

Stating that about N10 trillion has been paid out as the subsidy, Marafa had lamented that stakeholders in the Petroleum industry, particularly the NNPC, have not been transparent in the running of the sector.

He said these were some of the issues the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, Baru and others would be made to explain to Nigerians at the January 4 hearing.

“We are going back to the same circle where only a few persons benefit from subsidy payment at the expense of the Nigerian people,” Senator Marafa had said.

Other members of the joint committee are Senators Tayo Alasoadura, Mao Ohuanbunwa, Sabi Abdullahi, Foster Ogola, Yahaya Abdullahi, Rose Oko, Philip Aduda among others.

Source:- The Nation

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Energy

DAPPMAN Urges Calm and Collaboration in Nigeria’s Oil & Gas Sector

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DAPPMAN | NNPC | Petrol | Tankers
NNPC fuel station

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) said it has observed with deep concern the rising tension within the downstream oil and gas industry and the possibility of an industrial action that could disrupt national petroleum supply and distribution.

As responsible stakeholders in this vital sector of the Nigerian economy, Olufemi Adewole, executive secretary, DAPPMAN, said they recognize the central importance of industrial harmony to the stability of the industry, the protection of jobs, and the sustenance of revenues accruable to the nation.

He said that the potential impact of any strike on ordinary Nigerians, businesses, and government finances cannot be overstated.

“DAPPMAN therefore appeals to all parties involved to exercise utmost restraint and embrace constructive dialogue as the most effective means of resolving disagreements.

“In particular, DAPPMAN calls for the urgent intervention of the Federal Government in addressing the concerns of all aggrieved persons.

“We firmly believe that engagement at the roundtable will yield lasting solutions and prevent avoidable disruptions in the sector.

“Our Association’s consistent position has always been to collaborate with government, labour unions, investors, and other critical stakeholders to create a win-win situation that sustains investment, protects workers’ rights, and guarantees an uninterrupted supply of petroleum products nationwide.

“We humbly urge all parties to sheath their swords, avoid actions that could escalate the situation, and allow room for negotiations that will address concerns in a fair, balanced, and sustainable manner. “The Depot and Petroleum Products Marketers Association of Nigeria remains committed to playing a constructive role in facilitating peace, cooperation, and progress in the oil and gas sector for the ultimate benefit of Nigeria and her citizens.’

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PTD Mocks NUPENG Over Empty Threats To Dangote, Tells Drivers To Ignore Nationwide Strike Notice On Monday

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NUPENG and Dangote
NUPENG and Dangote

The Petroleum Tanker Drivers (PTD) has ridiculed the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) over its escalating leadership crisis, and for its lack of coordination and wisdom to peacefully mitigate the cold war between the union and the management of Dangote refinery.

The tanker drivers also called for the immediate arrest of the leaders of NUPENG by law enforcement agents especially the Inspector General of Police and the Director-General of DSS so as to allow peace in the country and make Nigerians embark on their daily and legitimate businesses without any fear or molestation.

They also urged petroleum tanker drivers across the four zones of the country to ignore the nationwide strike notice issued by NUPENG which was scheduled to take effect on Monday, September 8, 2025. The PTD leaders stressed that such insensitive move by NUPENG will cripple the economic activities in the country, impoverish the masses and further cause them more pain, contrary to the sentiments whipped up by the union.

PTD also chided the parent body of unduly meddling in the progress and success of the country’s economic powerhouse, just as it described the leaders as economic saboteurs who have no interest of the country at heart but to continue in the old order of manipulating the system through illegal levies at depots, tank farms, and refineries that are never accounted for under the current leadership.

The tanker drivers also expressed worry over NUPENG’s inability to maintain a cohesive leadership structure, emphasizing that while the Union struggles with factional disputes, Alhaji Aliko Dangote and his business partner, Alhaji Sayyu Idris Dantata of MRS remained focused on revitalising the country’s petroleum industry downstream sector and delivering on President Bola Tinubu’s Renewed Hope Agenda.

In their well detailed observations, PTD also mocked the double standards posture of NUPENG leaders, claiming that the Union was known for waging a vicious war against the Association of Distributors and Transporters of Petroleum Products (ADITOP) and preventing them to run side by side with them (NUPENG) in the petroleum industry ecosystem, saying the union lacks the moral rectitude to accuse Dangote and Dantata of championing monopoly in the petroleum industry.

PTD equally maintained that union membership anywhere in the world is voluntary and that the crisis arising from the plan by the Dangote refinery to import 4,000 compressed natural gas-powered trucks for the direct distribution of fuel to retailers is in good shape and in best interest of the masses.

The tanker drivers however advised the Federal government, the NSA, National Assembly, DSS, Inspector General of Police, NSCDC, and other industry stakeholders not to treat the matter with kid gloves so that NUPENG will not undermine the relative peace and progress  the Oil and Gas sector is currently enjoying.

A statement by PTD stakeholders jointly signed by comrades (Alhaji) Tajudeen Abubakar (Kaduna Zone), Chief (Mrs.) Blessing Dafinone (Warri Zone), Comrade Joseph Dagogo-Jack (JP) (Port Harcourt Zone) and Comrade Kolade Fadahunsi-Ojelabi (Lagos Zone), reads in parts:

“This is a clarion call to all Petroleum Tanker Drivers across Nigeria to please ignore the strike notice issued by NUPENG leadership. The purported notice suggested that the industrial action will take effect on Monday, September 8, 2025, this is obviously insensitive, callous, and unacceptable. How  could NUPENG condescend so low like this that they didn’t even dim it necessary to explore any option of negotiation or stakeholders dialogue before arriving at this? This is not only laughable but wicked. A Union is expected to be socially responsible and not pursue selfish gains capable of ruining the socio-economic accomplishments of the country.

“It is no news that the leadership of NUPENG lacks operational and administrative understanding of how the industry works, but we would be glad to educate them that union membership anywhere in the world is voluntary and that the crisis arising from the plan by the Dangote refinery to import 4,000 compressed natural gas-powered trucks for the direct distribution of fuel to retailers is in good shape and in best interest of the masses. Negotiations and symbiotic relationship cannot be reached through violence, threats or arrogance, Nigeria is governed under constitutional democracy, these union leaders should note that very carefully.

“This is the same NUPENG that has created protracted internal crisis within its rank that is calling Alhaji Aliko Dangote and Alhaji Sayyu Idris Dantata names, infact these businessmen should sue them for libel and defamation. This also show lack of decorum, and rascally behaviour of today’s leaders in NUPENG, they don’t think or make legal consultations before acting on highlighted highly sensitive matters and situations.

“It is also illogical and unreasonable for NUPENG to accuse Dangote and Dantata of promoting monopoly in the industry while they, in their double standards have been at loggerheads with the Association of Distributors and Transporters of Petroleum Products (ADITOP) and preventing them from running their affairs side by side with them in the petroleum industry ecosystem. This is crass irresponsibility from a union that lacks integrity.

“Can any sane human being call NUPENG President Williams Akporeha, General Secretary Afolabi Olawale, and the National Trustee Otunba Salimon Akanni Oladiti Saints? Under their watch the once respected union is now a shadow of its former self. These individuals further put themselves into an imperceptible ridicule and shame by saying Dangote is involved in anti-union activities. They should have gone ahead to issue suspensions to Dangote Refinery and MRS as they did to Comrade Lucky Osesua and his supporters, and most recently to Comrade Alex Agwanwor and others too.

“These set of NUPENG leaders have used the instruments of their offices to unlawfully bully, intimidate, victimize and harass both members and staff of the union in all the four zones in Nigeria to an extremely high and embarrassing level, to the extent that in the eyes of the public, NUPENG is now being subjected to shame, total disgrace, and has become a laughing stock to the rest of the world especially the Ministry of Labour and Employment, Industrial Courts, ILO, IndustriALL and so on.

“Afolabi and Akporeha’s consistent mistreatment of staff and members across the zones have regrettably led to significant psychological distress for the targeted individuals. It’s a heartbreaking reality, but many people feel conquered, helpless, and powerless when confronted with these abnormalities in the union. What a shame! while NUPENG struggles with factional disputes at different branches and at the centre, Alhaji Aliko Dangote and his business partner, Alhaji Sayyu Idris Dantata of MRS are firmly focused and revitalising the country’s petroleum industry downstream sector and delivering on President Bola Tinubu’s Renewed Hope Agenda.

“We understand that NUPENG unionised petrol station workers known with the acronym, PSW, meanwhile the tank farm owners pay them heavily at the point of ship discharging products; what is the value added to members from these monies collected especially from the PTD Branch? None! They sit in offices, collect dues and levies in billions, without looking after drivers on wheels. Many of the tanker drivers receive less than 50k in a month as salaries, and in some worse situations, they are still being owed their monthly salaries. When it is time to go for local and international training and seminars, it is the National executives who are in the comfort of their air-conditioned offices that will attend, they consistently deny the main drivers the opportunity to gain knowledge and skills necessary to safely operate the tankers within the framework of minimum safety standards.

“PTD under the current leadership of NUPENG, has failed serially to support the clamping down on criminal elements who had developed a penchant for illegal oil bunkering and other unlawful activities that promote economic sabotage in the country. Similarly, they lack the capacity and wisdom to put necessary measures in place to curb products shortage and stealing, which have ruined businesses of many Petroleum marketers. Tanker drivers have suffered incessant harassment and bullying of its members from several state and non-state actors, NUPENG cannot find any solution to these and many other burning issues. They have also failed to foster industrial peace and harmony. All these make us laugh when we now see Afolabi and Williams calling hard working and law-abiding Nigerians like Dangote and Dantata unprintable names. We sincerely advice Dangote and Dantata to sue NUPENG for libel or defamation.

“It is really heartbreaking to see that NUPENG has recorded the highest number of lawsuits, with an average of 50 cases, many of which were filed by former staff, expelled, or suspended members of the union. Infact the judiciary is even tired of their approach to many of the cases and worst still the union has been reprimanded several times and slammed with contempt charges, fines and retribution.

“NUPENG in their statement claimed they will mobilize forces, which forces are they going to mobilize? Their stooges and surrogates? The forces they could have mobilized are the ones they unlawfully pushed aside and thought they could do without. In reality the likes of Comrades Lucky Etuokwu, Lucky Osesua, Dayyabu Garga; Peter Muodobelu, Humble Obinna Power; Akinolu Olabisi; Godwin Nwaka; Tiamiu Sikiru Ojo; Abdulmumuni Shaibu, Sylvanus Idanwekhai, Sunday Ezeocha, Osamuyi Osahon, and others remain the best hands that can shape the future of PTD & NUPENG and sustain industrial harmony amongst industry stakeholders for the greater good of Nigeria, socio-economically.

“Honestly Dangote and Sayyu should be commended by Nigerians for providing jobs and breaking the long existing monopoly in the Nigeria’s petroleum industry value chain and for the courage of giving drivers on wheels their place of pride and bringing dignity to the industry.

“We therefore use this rare opportunity to humbly advise the Federal government, NSA, National Assembly, DSS, Inspector General of Police, NSCDC, and other industry stakeholders to call for the immediate arrest of leaders of NUPENG especially the President and the General in order to prevent them from setting the country on fire at a time Nigeria is experiencing relative peace in the oil and gas sector. Enough of NUPENG highhandedness, no union is bigger than the extant laws and constitution of the Federal Republic of Nigeria. NUPENG has failed its members and should never be allowed to destroy Nigeria and its economic activities”, the statement concluded.

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Nigeria Loses Billions to Gas Flaring: Expert Urges Adoption of Global Best Practices

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Nigeria loses billions to Gas Flaring

Nigeria continues to grapple with the economic, environmental, and social costs of gas flaring despite its status as one of Africa’s top producers of natural gas.

Recent data reveals that in 2024 alone, the country flared natural gas valued at $1.05 billion, equivalent to electricity generation potential of 30.1 thousand GigaWatt hours, enough to drastically reduce the nation’s chronic power shortages.

The penalties associated with gas flaring, estimated at $602 million, remain largely unenforced, raising concerns about regulatory weakness and ineffective oversight.

The Nigerian government has introduced several policies, including the Petroleum Industry Act (PIA) and the Gas Flaring, Venting & Methane Emissions (Prevention of Waste and Pollution) Regulations, 2023, aimed at tackling this menace. Additionally, the Nigerian Gas Flare Commercialization Project (NGFCP) was launched as a market-based solution to allocate flared gas to third-party investors for industrial and power sector use. Yet, implementation challenges have stifled progress.

In an exclusive commentary on the issue, Dr. Saheed Abudu, a researcher and lawyer specializing in Energy and Natural Resources Law and International Investment Law, and former researcher at the Tulane Center for Energy Law, described gas flaring as a symptom of Nigeria’s regulatory inertia. “If Nigeria is to truly end this wasteful practice, it must look beyond its borders and learn from the successful blueprints of other oil and gas powerhouses. The framework of the NGFCP is theoretically sound, but without strong enforcement and political determination, it risks becoming another unfulfilled policy,” Dr. Abudu said.

He noted that the persistent lack of political will, overreliance on International Oil Companies (IOCs), and repeated shifting of flare-out deadlines undermine Nigeria’s credibility. “The continuous revisions of flare-out deadlines—from 2025 now extended to 2030—together with the reluctance of producers to pay fines, underscore a regulatory environment that has failed to hold operators accountable. These delays communicate that compliance is optional,” he emphasized.

Dr. Abudu further highlighted deep-rooted institutional problems. “Significant bottlenecks persist, including administrative delays, overlapping regulatory mandates, and above all, resistance from producers who see flare gas utilization as disruptive to their core oil operations. Inadequate infrastructure for gas gathering and distribution compounds the problem, making many flare sites commercially unviable without massive upfront investments,” he explained.

Drawing comparisons with other resource-rich nations, Dr. Abudu argued that Nigeria must adopt proven strategies. He explained that Norway adopted a top-down approach where no gas utilization plan meant no project approval, and combined this with a stringent carbon tax that forced companies to innovate and invest in capture technologies. Saudi Arabia, through its state-owned oil giant Saudi Aramco, pursued a national strategy that treated gas as a resource, not waste. With a master gas gathering plan and billions invested in infrastructure, flaring was phased out, reflecting the level of corporate-level commitment Nigeria has lacked. Angola, he added, offers the most relevant case for Nigeria. After decades of flaring, Angola rolled out its National Gas Master Plan, partnered with international investors, and, with World Bank support, built the infrastructure needed to monetize gas. Their progress, he said, proves that resource stewardship is possible with political will and foreign partnerships.

Dr. Abudu outlined a roadmap Nigeria could adopt to reverse its losses and position itself as a competitive gas economy. “Nigeria must transition to stricter enforcement of regulations, making flare penalties genuinely punitive rather than symbolic. No new oil project should proceed without a credible gas utilization plan. The government must also act as a catalyst, as Angola did, by incentivizing investment in gas infrastructure and ensuring that producers cannot simply evade their obligations,” he stressed.

He added that empowering third-party investors to participate in gas commercialization is key, but this requires deliberate policies to strengthen the domestic gas market. “The government must make the Nigerian gas market more competitive and attractive for investors. Incentives, security of investments, and legal certainty are crucial. Without these, potential investors will continue to shy away, leaving the problem unresolved,” he said.

Experts agree that ending gas flaring is not just about environmental sustainability but also about unlocking economic potential. If properly harnessed, flared gas could power industries, create jobs, and generate billions in revenue. Dr. Abudu concluded with a stark warning: “The flames burning across the Niger Delta are not merely an environmental hazard; they represent wasted economic opportunities and human development potential. Nigeria cannot afford to treat gas flaring as business as usual. It must move from rhetoric to decisive action.”

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