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FG To Save Up To N1 Trillion On Subsidy Removal

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The Minister of State, Petroleum, Chief Timipre Sylva on Thursday said the Federal Government will make over N1 trillion annually from fuel subsidy removal.

The Federal Government has been under fire ever since the pump price of petroleum got increased due to subsidy removal.

With the subsidy removal the Government would safe up to N1 trillion yearly and channel the money to fund other critical components of the economy.

He said: “I believe that this discussion around subsidy has been a vexed issue that has captured the imagination of this country for a long time now. Successive administrations have attempted to deregulate.

But sometimes, some administrations lacked the political will and at other times, the time was not good for it. And why did I say the time was not good for it? Does that imply the time is good for it now?

The problem around deregulation is that people must understand first, that the product we are talking about is a derivative of crude oil. It is refined from crude oil.

Therefore, it has a direct relationship with the price of crude oil. If the price of crude oil goes up, then you expect that it would reflect in the price of the derivative.

“So, the best time to achieve this we looked at was the time when crude oil prices are low so that Nigerians will get the benefit of those low prices. In March, when we announced the deregulation, the prices were low and that advantage was transferred to the consumer. So, we brought down the price of petrol.

The unfortunate thing is that when we brought down the price of petrol, nobody reacted in the market place. The prices were the same. Nobody reduced their prices because price of petrol had reduced. Even bus fares, taxi fares were the same. It did not go down when we reduced the pump price of petrol.

We thought that those people in the market; the transport drivers and transport owners would reduce their price. But nobody reduced their prices. But anytime there is even a kobo increase in the pump price of product, you see that people will increase their prices triple fold and four fold.

“At this moment, let Nigerians not be fooled; there are people who are ready to take advantage of every situation to create anarchy and chaos. And it is this people that are at work now.

Is anybody saying that this policy direction is a wrong policy direction? That is the discussion we should be having. If it is a wrong policy direction, why has every successive government attempted to do the sane thing?

“Because it is something that is unsustainable. Subsidy is unsustainable. Let us look at it: Subsidy means that you buy the product at a certain price and then you reduce the price and sell it at a loss to the people.

It is something that is good to do. It is something that our president would like to do so much because of his love for the common man. But is it something that can be sustained in perpetuity? You get the product and sell it less at the pump. And that is not the only subsidy.

You also subsidise the effects that is used to import the product. So at the end, the subsidy is going on two ways. It is like burning your candle from both ends.

How long can that candle last? So in the wisdom of the President and all of us, we felt that it was time because this subsidy is something that cannot be sustained in perpetuity. It is time for Nigerians to face reality and do the right thing.

“What is deregulation going to do? It is going to free up a lot more money. At least from the very beginning it will save us up to a trillion and more every year.

Already, we have taken up the budgetary provision for subsidy which is about N500 billion in the budget. Also, we have taken off the excess forex price, that special rate, that was given to NNPC which also came at a cost. So, all the money that we used to defend the Naira at that time to subsidise the dollar will now be freed up for development.

And, I believe that going forward, we will begin to see a lot more developments, a lot more money available to the government that will be put into critical infrastructure instead of being burnt in our cars”.

Sylva added that the subsidy regime was very fraudulent as only a few benefited from it at the expense of the public.

“Let us look at subsidy critically. Who are the beneficiaries of subsidy? When a few years ago you had this subsidy scam all over the place, all the monies that were taken by all  the subsidy thieves and so on, how many poor people were among those people?

Subsidy only provides opportunity for rich and unscrupulous Nigerians to steal and enrich themselves at our expense, at your expense. So, ladies and gentlemen, deregulation is actually a policy direction that is good for the common Nigerian.”

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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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