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Category: Energy

  • Suspend June Electricity Tariff Hike, National Assembly Tells NERC

    Suspend June Electricity Tariff Hike, National Assembly Tells NERC

     

    The House of Representatives has asked the Nigerian Electricity Regulatory Commission to suspend the plan to review electricity tariff in June.

     

    It also condemned electricity distribution companies for transferring debts incurred by former occupants of building to the new occupants or tenants.

     

    At the plenary on Thursday, the House adopted a motion moved by Aniekan Umanah titled: ‘Call on the Nigerian Electricity Regulatory Commission to Suspend the Proposed Increase in Electricity Tariff’.

     

    Following the adoption of the motion, the House urged the Federal Government to direct NERC to “rescind the decision to further increase electricity tariff proposed for June 2021 in view of the hard times Nigerian masses are currently going through.”

     

    The House further mandated its committees on Power, Poverty Alleviation, and Labour, Employment and Productivity to ensure compliance with the resolution.

     

    Umanah, while moving the motion, noted that the Electric Power Sector Act of 2005 established the NERC with a mandate to license Discos, determine the operating codes and standards, establish customer rights and obligations and set cost-reflective industry tariffs.

     

    The lawmaker also noted that the Act prescribed its funding from 15 per cent of electricity charges paid by customers to the Discos.

     

    He recalled that the NERC, working with the Discos, had increased electricity tariffs five times since 2015, the latest being on January 1, 2021.

     

    Umanah said, “The House is aware that despite those increases, Nigerians have not enjoyed significant improvement in power generation, instead they daily grapple with epileptic services from the Discos and unilateral exploitation in the name of estimated billing arising from non-metering of over 50 per cent of consumers.

     

     “The House observes that poor services by the Discos have impacted negatively on the socio-economic growth of the country as the International Monetary Fund Report of 2020 on Nigeria indicated that the manufacturing sector lost over $200bn to inadequate power supply, while $21bn was said to have been spent by Nigerians on generators within the period under review.

     

    “The House further observes that the Nigerian masses have gone through so much hardship in recent times arising from acts of terrorism, banditry, kidnappings, and farmers herdsmen’s crisis with its toll on agricultural activities, displacement from ancestral homes, loss of loved ones, starvation arising from inability to return to daily occupation and loss of personal properties running into several million of naira.”

     

    The lawmaker added, “The House is concerned that at a time governments all over the world are adopting measures to cushion the devastating effects of the dreaded COVID-19 pandemic on their citizens by providing a wide range of palliatives to losses of loved ones, jobs, businesses and general distortion in the social life, NERC is tinkering with the idea of a further increase in electricity tariff after that of 1 January, 2021, in a country where two-thirds of the 200 million population is grappling with the crippling effects of the pandemic.”

     

    The House also unanimously adopted a motion by Olatunji Shoyinka titled: ‘Need to Investigate Transferred Debts Incurred by Old Electricity Customers to New Users by Distribution Companies in Nigeria’.

     

    The lawmakers consequently resolved to mandate the House Committee on Power to “engage the distribution companies and other relevant regulatory agencies to find a lasting solution and report within four weeks.”

  • NLC To Take Decision On Govs’ N408/Litre Petrol Proposal Today As Experts Warn FG

    NLC To Take Decision On Govs’ N408/Litre Petrol Proposal Today As Experts Warn FG

     

    The Nigeria Labour Congress (NLC) will today (Friday) come up with its position on the recommendation by governors that the price of Premium Motor Spirit, popularly called petrol, be raised from N162/litre to N408.5/litre.

     

    A committee set up by the Nigeria Governor’s Forum had on Wednesday called for immediate removal of petrol subsidy. It recommended a petrol price of between and N380/litre and N408.5/litre.

     

    However, the Abuja Chamber of Commerce and Industry and the Lagos Chamber of Commerce and Industry on Thursday advised the Federal Government to be tactful when removing petrol subsidy. They recommended that it be done gradually.

     

    Also, officials of the Nigerian National Petroleum Corporation told our correspondent that the oil firm was awaiting the Federal Government’s position on the recommendation of the governors before it would adjust petrol price.

     

    NNPC has been the sole importer of petrol into Nigeria for more than three years running.

     

     When contacted by our correspondent on Thursday for the position of the NLC on the latest recommendation of the governors as touching petrol price, the Deputy President, Joe Ajaero, replied, “Congress will come up with a position latest tomorrow (Friday).”

     

    Officials of both the NLC and the Nigeria Union of Petroleum and Natural Gas workers in separate exclusive interviews had last week argued that the continued imports of petrol by the NNPC was at the detriment of Nigeria’s refineries.

     

    They also insisted that the government should fix Nigeria’s refineries and stop importing petrol to help halt subsidy and save funds for the country, as they opposed subsidy removal now.

     

    Commenting on the matter, the President, ACCI, Dr Al-Mujtaba Abubakar, said in an interview that it would be painful to raise petrol price to N408/litre this time and called for gradual increment.

     

    He said, “The subsidy removal can be staggered. They (government) can stagger it by either removing about 25 per cent in the first three months, another 25 per cent next, and so on. They can stagger it.

     

    “But as they remove the subsidy people will also want to see the benefits coming.”

     

    Abubakar said the ACCI was in support of subsidy removal, but stressed that the amount saved must be properly channeled into infrastructure development.

     

    On his part, the Director-General, LCCI, Dr. Muda Yusuf, explained that the inevitability of the deregulation of the petroleum downstream sector had not been in doubt.

     

    He said given the huge financing gaps that existed at all levels of government, it was impossible to continue to sustain the subsidy regime, adding that the opportunity cost of petrol subsidy was huge.

     

    Yusuf said, “But the transitioning process from a subsidy regime to a deregulated policy space calls for a strategy that is inclusive and socially sensitive.

     

    “It is a tricky situation that demands tactful handling. It has profound social dimension. There is a strong economic argument, there is significant investment effect and there is a potential substantial political cost.”

     

    The LCCI DG, however, noted that the bigger conversation should be around what should be done to mitigate the short term adverse social effect on the vulnerable segments of the society.

     

    The Group General Manager, Group Public Affairs Division, NNPC, Kennie Obateru, told our correspondent that the oil firm would await the Federal Government’s position on the governors’ recommendation before changing petrol price.

     

    He said, “We really cannot take a position on that now because we don’t want to pre-empt whatever government is going to decide and it is whatever the Federal Government decides that will come to play.

     

    Obateru said the corporation was aware of the recommendation by the governors and admitted that petrol subsidy had truly been a burden on NNPC.

  • NUPENG Threatens Nationwide Strike over Kaduna, Labour Dispute

    NUPENG Threatens Nationwide Strike over Kaduna, Labour Dispute

     

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) said on Tuesday that it might declare a nationwide industrial action following the ongoing face-off between the Nigeria Labour Congress, NLC and the Kaduna State Government.

     

    NUPENG, in a statement jointly signed by its National President, Williams Akporeha, and General Secretary, Afolabi Olawale, told its members to be on red alert over the attack on NLC peaceful protest in Kaduna State.

     

    NUPENG warned that if any harm was inflicted on any of the members of the organised labour, the leadership of the union would not hesitate to call on all its members throughout the nation for a total shut down of all services in the upstream, mid-stream and downstream sectors of the oil and gas industry.

     

    It said, “In the light of the above, we are therefore putting all NUPENG members nationwide on red alert and may at very short notice of five hours call for a nationwide industrial action if situation arises.

     

    “Our solidarity remains constant for the union makes us strong.”

     

    The union said its national leadership was deeply saddened with the violent turn of NLC peaceful protests by the ‘dictatorial and despotic regime of Governor Nasir el-Rufai in Kaduna State’.

     

    It added, “The leadership of the union is therefore calling on the Federal Government to immediately call on Kaduna State Governor, Mallam Nasir el-Rufai, to order before his arrogance and power drunk ego further push the situation into horrendous calamity as he has been doing in all issues relating to human lives and wellbeing.

     

     “Consequently, the union reiterates that no labour leader or worker as the case may be, be harmed, harassed, maimed, humiliated or victimised during this five-day peaceful protests in the state.”

     

    The union said it was raising the alarm following the very reliable report of the clandestine move of el-Rufai to hurt and put the lives of NLC President, Ayuba Wabba, and other labour leaders in danger “in his usual blind egotistical style of running government in the state.”

     

    The NLC is currently protesting against the mass sacking of workers by the Kaduna State Government, a move that was vehemently opposed by the state governor.

  • No Increase In Price Of Petrol Until Talks With Labour Concluded –NNPC

    No Increase In Price Of Petrol Until Talks With Labour Concluded –NNPC

     

    The Nigerian National Petroleum Corporation (NNPC) says it will maintain the current ex-depot price of premium motor spirit (PMS), better known as petrol, until the end of negotiations with organised labour.

     

    Kennie Obateru, Group General Manager, group public affairs division of NNPC, disclosed this in a statement on Friday.

     

    This development comes after Mele Kyari, NNPC General Managing Director (GMD), said the NNPC can no longer bear the cost of subsidy on its books.

     

    Kyari had said the NNPC can no longer bear the burden of underpriced sales of petrol, adding that the market price needs to be implemented.

     

    He said NNPC pays between N100-120 billion a month to keep the pump price at the current levels.

     

    In the statement, Obateru said although the NNPC currently bears the burden of petrol subsidy, current price will be maintained at N162 until ongoing engagement with the organized labour and other stakeholders are concluded.

     

    He said the NNPC has no intention to preempt ongoing engagement with labour by unilaterally increasing the ex-depot price of petrol.

     

    Obateru said the NNPC has made arrangements for robust stock of petroleum products in all its strategic depots across the country to keep the nation well supplied at all times.

     

    He urged petroleum products marketers to desist from arbitrary price increase or hoarding of petrol.

     

    The spokesman also warned against panic buying, stressing that NNPC was committed to ensuring energy security.

     

    In February, Timipre Sylva, minister of state for petroleum resources, had warned Nigerians to get ready to bear the pains of increased petrol pump price as crude oil prices climbs above $60 per barrel.

     

    The increase in the price of crude oil bodes well for the Nigerian economy as this will boost the county’s revenue needed for the implementation of the 2021 budget, improve crude oil receipts and consequently bolster foreign exchange inflows.

     

    However, the prolonged high crude prices would ultimately feed into a climb in petrol’s landing cost — meaning an increase in fuel price. This would further weaken the purchasing power of Nigerians who are already battling with high inflation, unemployment and stuttering economic growth.

  • Petrol May Sell For N234 Per Litre as NNPC Can’t Sustain Subsidy, says Kyari

    Petrol May Sell For N234 Per Litre as NNPC Can’t Sustain Subsidy, says Kyari

     

    The General Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, says the company cannot continue to bear the subsidy burden.

     

    The Petroleum Products Pricing Regulatory Agency (PPPRA) had released a template increasing petrol price to N212 per litre — but the template was later deleted.

     

    Speaking during a ministerial briefing on Thursday at the Presidential Villa, Abuja, Kyari said NNPC can no longer bear the burden of underpriced sales of premium motor spirit (PMS), better known as petrol, adding that the market price need to be implemented.

     

    He said NNPC pays between N100-120 billion a month to keep the pump price at the current levels.

     

    “The price could have been anywhere between N211 and N234 to the litre. The meaning of this is that consumers are not paying for the full value of the PMS that we are consuming and therefore someone is paying that cost,” he said.

     

    “As we speak today, the difference is being carried in the books of NNPC and I can confirm to you that NNPC may no longer be in a position to carry that burden.”

     

    The NNPC GMD said the federal government is working to deepen the auto-gas programme which will serve as alternative to petrol.

     

    “That is why early last year if you recall, the full deregulation of the PMS market was announced and we have followed this through until we got to September when prices shifted to N145,” he said.

     

    “As we speak today, I will not say we are in a subsidy regime but we are in a situation where we are trying to exit this subsidy or underpriced sale of PMS until we get in terms with the full value of the product in the market.

     

    “Today, PMS sells across our borders anywhere above N300 at any of our neighbours. And in some places, it is up to N500 and N550 to the litre.

     

    “In some countries, the Nigerian fuel is their primary fuel. We are supplying almost everybody in the West African region, so it is very difficult to continue this because we have our own issues and that is why the eventual exit from this is completely inevitable.

     

    “When that will happen, I do not know. But I know that engagements are going on. The government is very concerned about the natural impact of price increases on transportation and other consumer segments of our society and as soon as those engagements are taken to logical conclusion, I am sure that the market price of PMS will be allowed to play at the right time.”

     

    The resurgence in the price of crude oil bodes well for the Nigerian economy as this will boost the county’s revenue needed for the implementation of the 2021 budget, improve crude oil receipts and consequently bolster foreign exchange inflows.

     

    However, the prolonged high crude prices would ultimately feed into a climb in petrol’s landing cost — meaning an increase in fuel price. This would further weaken the purchasing power of Nigerians who are already battling with high inflation, unemployment and stuttering economic growth.

  • $1.5bn Port Harcourt Refinery Repair: Nigerians Should Hold Me Accountable For Every Dollar Spent –Sylva

    $1.5bn Port Harcourt Refinery Repair: Nigerians Should Hold Me Accountable For Every Dollar Spent –Sylva

     

    The minister of state for petroleum resources, Timipre Sylva, says Nigerians should hold him accountable “for every dollar, every cent” spent on the rehabilitation of the Port Harcourt refinery.

     

    He said President Muhammadu Buhari wants to leave behind a legacy of functional refineries for Nigerians.

     

    Nigeria has four refineries — two in Port Harcourt and one each in Kaduna and Warri — with a combined capacity of 445,000 barrels per day. All four refineries are non-functional, after being shut down in 2020.

     

    On Wednesday, the federal executive council (FEC) meeting approved $1.5 billion for the rehabilitation of the Port Harcourt refinery.

     

    The approval has since elicited critical reactions from various quarters, particularly from notable Nigerians like Atedo Peterside, Peter Obi, and Atiku Abubakar.

     

    Speaking on Sunday during a Channels Television programme, Sylva said the Buhari administration means well.

     

    “They (Nigerians) can hold me accountable and hold this government accountable for every dollar, every cent on this refinery and ensure that we deliver a refinery that works,” he said.

     

    “What President Muhammadu Buhari wants to leave as a legacy are refineries that are functional.

     

    “That is really where we are looking at because what is going to happen to those refineries will be decided by Nigerians and future administration.”

     

    ’18 MONTHS TO COMPLETE REHABILITATION’

     

    The minister noted that the rehabilitation will take 18 months and the first phase will get the refinery to 90 percent operational capacity.

     

    “We’re not lying to Nigerians. We’ve told you that this is going to be in three phases and the first phase is definitely going to be within the tenure of this administration,” he said.

     

    “You should hold us. It is 18 months and we are going to take the refinery to 90 percent of its main capacity and that is what you should hold us to.”

     

    THREE SOURCES TO FUND REHABILITATION

     

    Sylva gave a breakdown of how the government intends to source the $1.5 billion required to repair the refinery.

     

    “Let me tell you how this rehabilitation is going to be funded; it is not going to be all debts, we are not going to borrow all the monies that are going into the rehabilitation,” he said.

     

    “NNPC is going to spend about $200 million from its internally generated revenue sources, while the federal appropriation will put in about $800 million and it is already broken down into three parts.

     

    “The 2020 appropriation will give $350 million, 2021 appropriation will give another $350 million, and 2022 appropriation will give another $100 million, making it all $800 million from appropriation, and then the rest of it will now come from Afrexim Bank.”

     

    ‘LOT OF GAINS FOR NIGERIANS’

     

    Sylva said the rehabilitation of the refinery is “one way the government can generate revenue to invest in other sectors of the economy”.

     

    He said the refinery will benefit Nigerians and be commercially-viable “to produce profits for the government”.

     

    The minister added: “This rehabilitation will bring a lot of gains for Nigerians. First, we are gaining from savings in the foreign exchange end, savings from importation of premium motor spirit (PMS); and we will gain from the operations of the refineries itself.”

     

    Sylva noted that the Port Harcourt refinery, which has the capacity to produce 210,000 barrels per day, cannot satisfy Nigeria’s needs alone.

     

    “This refinery plus Dangote’s refinery, Kaduna refinery and Warri refinery will more than satisfy Nigeria’s requirements,” he added.

     

    “We are headed to a point where Nigeria will become a net exporter of refined petroleum products. So we will be able to satisfy Nigerians and also have excess in exporting these products.”

  • Electricity: Buhari Orders Installation of 6m Prepaid Meters By June

    Electricity: Buhari Orders Installation of 6m Prepaid Meters By June

    The minister of state for power, Goddy Jedy-Agba, says President Muhammadu Buhari has ordered that six million prepaid meters be installed across the country by June.

     

    Speaking on Friday after inspecting the meter testing facility of the Nigeria Electricity Management Services Agency (NEMSA) in Enugu, the minister stated that the agency is mandated to ensure that meters imported into the country meet the expected standard.

     

    Recent data released, in February, by the Nigerian Electricity Regulatory Commission (NERC) indicates that only 4,425,628 out of 11.8 million registered customers had been metered as of September 2020.

     

    ”I came to inspect what is going on and to know the position regarding the meter testing facilities we are going to have here in Enugu,” NAN quoted the minister to have said.

     

    ”I came also to see what has been done and the preparation toward commissioning of the office and I am satisfied with the plans so far.

     

    ”We import meters and our facilities here will be used to test the meters to ensure that they meet what Nigerians require. It is after the testing and satisfying our standards that the meter will be installed.

     

    ”This is an agency that is responsible for installation and the president has given them the mandate that 6,000,000 meters must be installed by the end of June.”

     

    The NERC had stated its plans to review the Meter Asset Provider (MAP) scheme as the deployment of prepaid meters to Nigerian homes suffers a setback.

     

    Despite the myriad of regulations put in place by different administrations over the years, most Nigerians have been on estimated billing, which is believed to be a means by the electricity distribution companies (DisCos) to allegedly rip off customers.

     

    Editor’s note: This story has been updated in view of new information that the president directed the installation of six million prepaid meters by June — not 36 million.

  • Gas Distribution: Zakhem Commends NNPC on Completion and Looping Of Escravos–Lagos Pipeline

    Gas Distribution: Zakhem Commends NNPC on Completion and Looping Of Escravos–Lagos Pipeline

     

    • Says …“Zakhem will strengthen R&D, professional development needed for sustained top-notch project delivery”

     

    The Board and Management of a leading International Engineering, Procurement and Construction, Investment Group, Zakhem, have commended the Nigeria National Petroleum Corporation (NNPC) on the completion of the Escarvos – Lagos gas pipeline project of three hundred and forty two kilometers, adding that the continuous engagement of indigenous companies will afford them the opportunity to showcase their technical competence while also giving rise to national economic development. 

     

    Zakhem, which won much acclaim for successfully executing the mechanical completion and commissioning of the 36’’ x 342Km Escravos – Lagos Gas Pipeline Project, through its Managing Director, Mr Uba Saidu Malami said the project, which has capacity to add 2.2 standard cubic feet of gas to the market was executed under Zakhem’s corporate policy of Professionalism, Safety and Quality delivery.

     

    He further assured that the company will continue to strengthen its technical capacity through experience, Research and Development (R&D), while also building the capacity of staff and create opportunities for indigenous host communities’ participation.

     

    While agreeing with the NNPC Management that the recent completion of Escravos – Lagos Gas Pipeline will sustainably address challenges associated with supply of natural gas to various power plants in the country, Zakhem opined that the pipeline infrastructure it constructed will stand the test of time, adding that “Zakhem has successfully constructed a number of major oil and gas pipelines around the world, totalling in excess of five billion US dollars.”

     

    “Zakhem Construction Nigeria Limited stands out as an indigenous Nigerian company with Africa as its scope, and has demonstrated outstanding technical expertise in its areas of specialisation,” he said, adding that “for over forty-six years, the Zakhem Group has served the Oil and Gas industry, and through its world-wide branches has established an international reputation in the fields of engineering, procurement and construction of onshore gas pipelines, storage tank farms, gathering and pumping stations, refineries and industrial plants.”

    The Managing Director said Zakhem’s cross-country pipeline activities include proven experience in major Road and Swamp Crossings, the installation of pipelines across major river crossings by the horizontal directional drilling technique among other methods, and laying of pipelines across extensive rocky terrains through controlled precision blasting, adding that “the skills, experience and resources gained over the period, combined with a remarkable track record of completed high quality work, are the reliance of Zakhem Group in undertaking and successfully accomplishing the delivery of major projects around the world.”

     

    The Managing Director commended the foresight of the NNPC for identifying the various assets that will be instrumental in delivering 4.5 billion scf of gas.

     

    He said: “It is commendable that the NNPC has announced a policy decision to invest $3.5 billion in a petrochemical and fertilizer project that will give rise to a capacity to process 300 million scf of gas,” adding that the Zakhem aims add value to the effort by deploying its technical expertise and its long-standing reputation of research and development in the gas pipeline industry.

     

    Evaluating the initiative of the NNPC to establish brass gas hubs in the country, the Managing Director said the plan, which aims to ensure unmitigated availability of gas in the country, will maximize the potential of the country for economic development and wealth creation through its abundant gas resources.

     

    Discussing how the proposed gas hubs will address Nigeria’s power sector challenges, he noted that “the Nigerian power sector consumes the highest volume of gas in line with what is obtainable in continental Europe, America and Japan,” stating that gas infrastructural facilities in Nigeria are owned by government.’’

     

    “So there is no doubt that the gas hubs will address the inadequacy associated with development and management of the energy sector, a problem that has been responsible for supply-demand gap in spite of abundance of energy resources in Nigeria.”

     

    “The gas industry in Nigeria is still developing, and we foresee the importance of the role that government is playing in trying to develop it through its various interventionist policies and projects such as the recently proposed gas hubs and the Escarvos-Lagos pipeline.”

     

    Further discussing how the proposed gas hubs will invigorate the economy, he said: “Generally, the gas sector contributes to economic growth in two ways, namely, being a strategic part of the energy sector, it creates jobs and value by attracting, transforming and distributing energy goods throughout the economy.”

     

    “Also, the availability of gas impacts the entire national economy by providing direct and indirect jobs,” adding that the gas sector has deep supply chains and high pay, indirect and induced jobs represent an imported part of its overall economics contribution.

     

    These impacts are in the area of employment opportunities, industrialization, contributions to government revenues, Gross Domestic Product, foreign exchange reserves, supply of energy to industry, agriculture and social welfare in terms of home use.

     

    He said it is in view of these viable opportunities that Zakhem is poised to enforce its resolve to further engage in R&D, improve its capacity and capability to collaborate with relevant authorities in the realization of Federal Government Policies for sustainable growth in the Oil and Gas industry.

     

    “Zakhem participation in NNPC successful completion and looping of Escravos-Lagos Pipeline Project is one of such collaborative efforts that we are pleased to be involved,” he added.

  • Fuel Queues Return Over Looming Price Hike

    Fuel Queues Return Over Looming Price Hike

    The queues for petrol grew worse in some parts of the country on Sunday following the shutdown of many filling stations amid heightened expectations of an increase in the pump price of the product.

     

    The Minister of State for Petroleum Resources, Chief Timipre Sylva, had on February 9 said Nigerians should prepare for the pain associated with the increase in crude oil price.

     

    The international oil price, Brent crude, rose by more than 14 per cent in February as it closed at $64.42 per barrel, up from $56.42 per barrel at the start of the month.

     

    Motorists besieged the few outlets that were open for business in Abuja, Nasarawa, Niger and Borno states, while some others that had dispensed petrol the previous day were locked on Sunday.

     

    Two weeks ago, queues of motorists were seen in many locations after oil marketers raised concerns about petrol pricing by depot owners and how this affected petroleum products supply.

     

    The queues resurfaced on Saturday and Sunday, as only few filling stations were dispensing petrol while others were shut.

     

    Some attendants at some of the shut outlets told one of our correspondents that they were not selling petrol because the cost of the product would be increased from March.

     

    Nipco and Gegu filling stations, along the Kubwa-Zuba Expressway, Abuja, had long queues of motorists on Sunday, while IBWAS filling station on the same road that had earlier dispensed products was shut.

     

    Similarly, Major Oil filling station, along Airport Road, Abuja, which had steadily dispensed products up till Saturday, did not sell petrol on Sunday.

     

    Shema Oil, close to Next Cash ‘N’ Carry in Abuja; NNPC outlet in Zuba, Niger State, and few other filling stations in Nyanya/Mararaba in Nasarawa State had queues.

     

    “We have not been advised of any increase in petrol price. Many filling stations are not selling petrol perhaps because they have run out of stock or they are hoarding the product in anticipation of price increase,” the National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, said.

     

    Osatuyi, who spoke with one of our correspondents, said he observed queues in some stations in Lagos on Sunday.

     

    “The outcome of the meeting between the President and the governors is not yet known. There will certainly be an increase in petrol price but we don’t know when this will happen,” he added.

     

    In Maiduguri, the capital of Borno State, motorists and other users of petrol were hit by scarcity of petrol on Sunday as fuel stations were shut down.

     

    Fuel stations located along major highways, including Kano Jos road, Shehu Laminu way and Baga road, were not dispensing petrol, while motorists queued for hours at the filling stations that were selling the product.

     

    Many commuters were stranded at bus stops in Maiduguri as motorists struggled at filling stations to get petrol.

     

    “They said there is no fuel but they sell to black marketers; they have refused to sell to us. I have been here since 6:45am because my experience yesterday (Saturday) was horrible as I couldn’t get fuel. I’ve been here for over four hours and I have not got the product,” a tricycle operator, Abubakar Shettima, told one of our correspondents.

     

    When contacted, the Chairman, IPMAN, Borno, Mohammed Ngala, denied that independent marketers were hoarding petrol, adding that Borno had been experiencing a shortage in recent days.

     

    “Right now, we sell petrol at N165-N170 per litre. But the product is not enough to serve the populace. We don’t hoard fuel,” he said.

     

    The Coalition of Nigerian Civil Society Organisations for Petroleum and Energy Security called on the Federal Government to fully deregulate the downstream oil sector to address the concerns about petroleum products’ pricing.

     

    The Convener of the CSOs coalition, Timothy Ademola, said they had decided to interface with the Federal Government and agencies in the oil sector on the need for deregulation.

     

    He said, “Let the forces of demand and supply be allowed to play out in the pricing of petroleum products. This is when we can say we have full deregulation.

     

    “We are ready to partner government, the Nigerian National Petroleum Corporation, the Department of Petroleum Resources and other agencies to make this work.”

     

    The Managing Director, Realink Oil Nigeria Limited/National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, had said in an interview with one of our correspondents last week that depot owners were hoarding products due to the concern of a possible hike in petrol price.

     

    He said petrol price would definitely rise, going by the increase in global crude oil prices.

     

    But the Petroleum Products Pricing Regulatory Agency was silent on whether there would be an increase in petrol price in March as expected by marketers.

     

    PPPRA’s spokesperson, Kimchi Apollo, told one of our correspondents that he had not received any directive in that regard.

     

    The PUNCH had reported last Tuesday that going by the petrol pricing template of the PPPRA, the landing cost of petrol rose to N186.33 per litre on February 16, with the pump price of the product expected to be N209.33 per litre.

     

    Reacting to complaints by marketers that some private depots had hiked the ex-depot price of petrol and that this would definitely warrant an increase in pump price, the Nigerian National Petroleum Corporation said it had not raised its ex-depot price yet.

     

    Group General Manager, Group Public Affairs Division, NNPC, Kennie Obateru, said the NNPC had made it clear that it was awaiting the outcome of the proposed meeting between the Federal Government and labour unions as touching the price of petrol.

     

    “We have not increased ex-depot price. It is now left for the regulatory agencies to ensure that the approved ex-depot price is what the various depots stick to,” Obateru told one of our correspondents.

     

    On how the meeting between the Federal Government and labour would affect petrol price, the NNPC spokesperson said, “We are also watching to see the outcome of that meeting before taking the next step.”

     

    Efforts to the get the Department of Petroleum Resources to speak on what it was doing to address the complaints against depot owners was not successful.

     

    The spokesperson for the agency, Paul Osu, did not answer calls to his phone and also did not reply a detailed text sent to him on the matter.

  • Discos Receive 407,622 Complaints From Customers In Six Months

    Discos Receive 407,622 Complaints From Customers In Six Months

    Electricity distribution companies in the country received a total of 407,622 complaints from their customers in the first half of 2020, the latest data from the Nigerian Electricity Regulatory Commission have shown.

     

    Customers of the 11 Discos lodged 204,506 complaints in the first quarter of 2020 and 203,116 complaints in Q2, indicating an average of more than 2,200 complaints per day, according to NERC.

     

    “In total, the Discos attended to 189,684 complaints, representing an increase of 1.09 percentage points from the preceding quarter,” it said in its latest quarterly report, adding that Ibadan and Benin Discos had the lowest customers’ complaints resolution rates in the period.

     

    Enugu Disco received the highest number of customer complaints during Q2, while Yola Disco got the lowest.

     

    “It is noteworthy that both Enugu and Yola have consistently recorded the highest and the least customer complaints respectively since the second quarter of 2019,” the regulator said.

     

    It said the Discos’ customer complaints centred on service interruption, poor voltage, load shedding, metering, estimated billing, disconnection, delayed connection, among others.

     

    “The number of complaints on metering and billing increased and still dominates the customer complaints during the quarter under review,” NERC added.

     

    According to the commission, metering and billing accounted for 44.51 per cent (i.e., 90,408) of the total complaints received during Q2 2020 as against 42.96 per cent (i.e., 87,854) recorded in the preceding quarter.

     

    It said, “Another issue of serious concern to customers is service interruption and disconnection which respectively account for 20.37 per cent (41,381) and 10.55 per cent (21,427) of the total customer complaints during the quarter.

     

    “To address customers’ complaints, the commission, on a continuous basis, monitors the complaint handling and resolution process adopted by Discos.”

     

    NERC said it had been implementing some of the recommendations from the review of the Discos’ compliance with service standards conducted in 2018.

     

    According to the report, the commission is strictly monitoring the Discos’ compliance to its directive on monthly submission of their customers’ complaints reports to ensure timely regulatory interventions when necessary.

     

    The commission said it had also commenced the review of its strategy of monitoring Discos’ customers’ complaint handling and resolution process with a view to further improve its regulatory oversights on Discos’ handling of customer complaints.

     

    It said, “This includes, but not limited to, the review of the operation of the commission’s Forum Offices, which are set up to redress the customers’ complaints that are not adequately resolved by the Discos.

     

    “Similar to the category of complaints received by the Discos, billing issue topped the complaints received by the Forum Offices, accounting for 41.95 per cent of the total.”

     

    NERC said this implied that billing issue was mostly the complaint not satisfactorily resolved by Discos’ customer care units.