Showing posts with label Fuel Subsidy. Show all posts
Showing posts with label Fuel Subsidy. Show all posts

Monday, January 16, 2012

How NNPC Defrauds Nigerians on oil exports and subsidy

The KPMG, in a forensic analysis of the operations of the Nigeria National Petroleum Corporation in 2010, unveiled startling revelations about the company. The report showed that the NNPC is a rotten egg, from which a miasma of stench oozes, to the detriment of the Nigerian government and the Nigerian people.
In one of the findings, KPMG found that the NNPC does not even have the data of crude oil production in a centralized manner as it is stored in the computer of staff. NNPC approves oil lifting to companies not on the government approved list; there are delays in billing the oil lifters and variants between the invoice value and the LC value. In one such instance, invoice number COS/02?PPMC/026/08 has a cargo valuation of $95.4 million, but LC value of $85million. The four refineries in 2008 and 2009 recorded capacity utilization of 18 per cent; the process of importing fuel is murky, sometimes companies not approved in a quarter, suddenly re-appeared on the list. Others are that the NNPC incurs average demur rage of 31 days for oil cargoes, subsidy claims based on volume of products imported, not on what was actually lifted out of the depots for sale to Nigerians.

Some of the findings that will shock Nigerians and labour unions:

1. “No centralized location for storing electronic copies of historical production and allocation data. These information are stored on personnel (individual) workstations.

Implication: Potential loss of historical production information in event of staff turnover or system failure. Difficulty in retrieving prior documents/ reports.

2.NNPC is invoiced in US$ for domestic crude allocations but is expected to remit the equivalent Naira value to the Federation Account. However we observed that exchange rates used by NNPC were lower than the average exchange rates published by the CBN during the review period.
Exchange rate variances for 2007, 2008 and 2009 were estimated at N25.7 bn, N33.8 bn and N26.7 bn respectively. (using CBN rates for the month of transaction)
NNPC claimed they obtained the exchange rates from CBN via phone but there was no document to substantiate the claim.

Implication: Significant underpayment of domestic crude cost to the Federation Account.

3.We observed that NNPC‟s subsidy claims and PPPRA‟s verification are based on volume of petroleum products available for sale (volume of products imported and actual production from the refineries) as against duly verified volume of products lifted out of the depots (volume of petroleum products sold) as stipulated in the subsidy guidelines.

Implications:Potential risk of subsidy payment on products not consumed by end users due to losses from pipeline vandalism, theft e.t.c. A rough estimation of subsidy payment on product losses for the period under review (2007 – 2009) is estimated at N 11.8 billion.
Risk of payment of subsidy on locally refined products which is not the intent of subsidy may encourage inefficiencies in the refinery process.

We Must #OccupyNigeria
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NLC Call Off Strike, Civil Servants, Bankers and Bloggers to Resume Work

NLC Call Off Strike, Civil Servants, Bankers and Bloggers to Resume Work: THE NIGERIA LABOUR CONGRESS (NLC) formally suspends the strike action today after a long strike in regards to the removal of fuel subsidy.the new price is now N97 naira. #occupynigeria
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Saturday, January 14, 2012

Labour give FG two days to revert to N65 per litre

Labour give FG two days to revert to N65 per litre: Ahead of today’s meeting among the Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and the Federal Government, supporters of the ongoing strike and mass action have said that they would not back down unless the government reverts to N65 as price of a litre of petrol.

The anti-fuel subsidy removal protesters, including convener of Save Nigeria Group (SNG), Pastor Tunde Bakare, ex-minister of Petroleum, Prof Tam David-West and Yoruba Ronu Leadership Forum, a pan-Yoruba sociocultural organisation, are speaking at a time when feelers indicate that the government has made an offer to labour for a little downward review of the current fuel price (N141) instead of reversal to N65. The government and representatives of labour are meeting again today, in continuation of a truce meeting brokered by Senate President, David Mark, as part of effort to solve the subsidy crisis.

Speaking in Lagos yesterday, while addressing a mammoth crowd at the Gani Fawehinmi Park, Ojota, Bakare said the protest would continue until government reverts to N65.

“We will, by God’s grace, continue and sustain this protest until the government sees reason to revert to N65.00. No retreat, no re-think and no surrender. We are persuaded that we shall overcome because ‘the triumphing of the wicked is short and the joy of the hypocrite is but for a moment’ (job 20:5).”

Bakare accused the Federal Government of excessive wastage, insisting that this must be addressed before the people are asked to make sacrifices.

Listing what he considered as wastage, Bakare said that 2012 budget earmarked N13 billion for local and international  travels of ministers and others in government at the federal level, while stationery, magazines, newspapers, etc would gulp N4.5 billion.

He said that the government budgeted N17 billion for maintenance of vehicles, furniture, etc; N5 billion for training; N4 billion for fuel and lubricants for cars an generators; N9 billion for welfare packages, refreshments, meals, etc; N2.5 billion acquisition of computer software  and N27 billion for research and development.

The pastor said that the budgeted overhead for President Goodluck Jonathan and Vice President Namadi Sambo is about N7.2 billion or about N20 million per day. He said that Jonathan and Sambo would spend N724 million or N2 million per day, on local travel, while their international travel budget is N951 million or nearly N3 million per day.

Bakare revealed: “The president’s office has N285 million to hand out as ‘welfare package,’ N265 million to buy computers, N150 million to buy scanners, N161 million for buses, N295 million for new furniture, and N1.8 billion to ‘maintain existing furniture, office and residential quarters.’”
He said that the government wants to spend N300, 000 each to buy desktops, while laptops would cost N314,000 each. According to him, scanners is budget to cost N190, 000, while the public address system in the President, VP’s office and Banquet Hall N150 million.

“There is a lot of waste, and misplaced spending priorities in the budget, which can be reviewed to free more funds to finance subsidies, capital investment and improved governance,” he said.

On his part, Prof David-West, while praising the fighting spirits of Nigerians in sustaining the strike, said there was no going back until government reverts to N65. He asked President Jonathan to resign since, according to him, the problems of Nigeria are beyond him.

David-West noted, in a telephone chat with Saturday Sun, that the government had taken Nigerians for granted believing that after two days they would abandon the strike and continued with their normal duties.

According to him, the issue has gone beyond fuel price. “We are talking about incompetence in government. There is no going back until petrol price goes back to N65. The N65 is even too much. The price should be reduced. Labour should not go back. Nigeria is protesting against bad government. Labour must not change ground or position,” he said.

Against the meeting between the labour union and the Federal Government that was deadlocked on Thursday and postponed today, David-West said the negotiation was not necessary, as more than 15 persons had died as a result of the protests. He asked

The professor advised the labour union leaders no to negotiate or shift ground. “Labour should go there but not for negotiation to shift ground. About 15 Nigerians have died during the protest. Are they going there to negotiate their blood?”

On the president’s insistence that the Federal Government was not going to yield any ground, David-West said that Jonathan is known to be stubborn but is being pushed about by some people.

He said: “Jonathan is not stubborn but some people around him are making him to be stubborn. He should resign since the ship of the state is beyond him to steer. If the government says there is no going back, then Jonathan should resign. It is not Jonathan taking the position; it is the people behind him. Jonathan is acting on the people that are behind him.

“My advice to Jonathan is that he should resign since he can’t handle the issue, likewise the finance minister, Ngozi Oknojo-Iweala too. If we have a president that is very stubborn. We should give him stubbornness.”
Yoruba Ronu Leadership Forum, while speaking on the strike, asked labour not to disappoint the people, insisting that it must remain “resolute in its refusal to accept any increase on the price of petrol at 65 naira per litre.”

The group said that if labour chooses what it called “the devil’s alternative,” there would be consequences.
In a statement by Akin Malaolu, secretary general, the group said that if labour backs down Nigerians, “having seen that they have gained strength in unity, most especially against blackmail and dirty tricks by the governors and President Jonathan, would march on to achieve their resolve through continuous struggle across the nation and we shall support them all the way.”

It expressed fear that this could result into a “bloody revolt never anticipated and (may) snowball into open conflagration against political leaders, as witnessed by the four ACN senators along the Lagos/Ibadan expressway recently.”

Yoruba Ronu appealed to labour leaders and civil society groups to ensure that they carry the people along, in their course of meetings with a government, adding: “Nevertheless, setting aside the N65 per litre is not likely to douse the present tension in the country, due to extreme poverty and miseries in the land.”

Source: Sunnewsonline.com
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Fuel Subsidy: Fashola-Government will alleviate polight of Nigerians

Fuel Subsidy: Fashola-Government will alleviate polight of Nigerians: Lagos State Governor Babatunde Fashola on Friday said the government was duty bound to ensure that the sufferings of Nigerians ended “as quickly as possible.”

Fashola spoke at the Presidential Wing of the Murtala Muhammed International Airport, Ikeja, on his arrival from Abuja after a meeting with President Goodluck Jonathan on the state of the nation, the News Agency of Nigeria reports.

The governor arrived on an Air Force Presidential jet with registration no. 5N-FGW at about 12.40pm.

“One way or the other, people are suffering and we remain responsible and duty bound to ensure that the sufferings and inconveniences end as quickly as possible.

“On my own interest, and I believe that the interest of those of us who are involved here today and all Nigerians, the ordinary people are bearing the brunt of this crisis,” he said.

Fashola, who described the governors’ meeting with the president as progressive, said, “It was a useful meeting, coming from where we were before.

“The meeting is progressive and parties are ready to engage in dialogue. So, for us, it is a step forward.”

On threats by the Petroleum and Natural Gas Senior Staff Association of Nigeria to down tools to protest petrol subsidy removal, the governor said he had not obtained any concrete fact on the matter.

“Well, I do not have those facts now, but I think in a situation where we are trying to make progress, it does not help the negotiations to issue more threats,” Fashola said.

Source: Punchng.com and trends.com.ng
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Monday, January 9, 2012

Bayelsa residents shun anti fuel subsidy removal protest

Residents of Yenagoa, Bayelsa State capital Monday shunned civil society groups protest against the removal of fuel subsidy by the federal government.

The civil society groups under the aegis of Civil Liberties Organisation (CLO) Bayelsa chapter had weekend called for public protest against the subsidy removal and had even gone ahead to sensitize the public not to sit on the fence but to come out en mass to protest against the Federal Government policy which they considered as “anti Nigerian people.”

While the leaders of the civil society groups in the state blamed the failure of the street protest to hold on the refusal of the police to grant them permit for the rally, a senior police source dismissed the claim as untrue saying the command even deployed policemen to provide the civil society groups protection which informed presence of security operatives at take off point of the rally and other strategic locations in the state capital so as to prevent miscreants from hijacking the process.

According to the police source, the refusal of residents to heed the call of the civil society groups stage a street protest may have cause their leaders to turn around to say they were denied permit for the rally.

Informed sources told Vanguard that contrary to claims that the protesters were stopped from holding their rally, some pro subsidy lobbyists Sunday night succeeded in infiltrating the rank of the anti subsidy removal camp and the result was the failure of residents to turn out for the rally.

Aside the pro subsidy removal loyalists dividing the rank of the civil society groups’ members to scuttle the street protest, most residents of the capital city were not prepared to be seen as kicking against the policy of Mr. President whom they considered as one of their own by protesting on the streets.

Though all government offices, commercial banks and schools which were billed to resume yesterday were under lock and keys in deference to the organized labour stay at home directive, market women, retail outlet owners and transporters defied the directive.

It was business as usual in the few markets in the capital city as the traders were going about their normal in spite of poor turn out of customers most of whom stayed in the comfort of their homes to monitor the national strike on television.

Also some of the filling stations defied the stay at home directive of the NLC and TUC by selling to members of the public.

As at press time some of the supermarkets that close shop in the early hours of the day had opened to customers while security patrol of the streets was intensified by the state police command.
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Nigerians in U.S. to meet FG on fuel subsidy removal

New York – Nigerians in the U.S. have scheduled a meeting with the Federal Government in Chicago on Jan. 14 to discuss the removal of fuel subsidy.

The meeting was organised by Nigerians in Diaspora Organisation in the Americas (NIDOA), in conjunction with the Nigerian Embassy in Washington.

NIDOA is the umbrella organisation of all Nigerians living in the Americas and the Caribbeans.

NAN also learnt that a high-powered Federal Government delegation would attend the meeting, which would also enable the government to make lucid clarifications on issues relating to the removal of fuel subsidy.

In an interview in New York on Sunday, Dr Ezekiel Macham, the President-General of the U.S. chapter of Zumunta Association, confirmed the proposed meeting.

He, however, stressed that the decision of the NLC and the Trade Union Congress (TUC) to embark on a nationwide strike on Monday, Jan. 9, would not help the situation.

Macham said that even though the removal of fuel subsidy could be beneficial in the long run, there was a need to initiate discussions on the policy before its implementation.

“They should have spent more time to prepare people for the removal of the fuel subsidy; it may be something good,’’ he said.

Besides Macham, a senior official of the Nigerian Embassy in Washington, who preferred anonymity, confirmed the proposed meeting. (NAN)

Source: Vanguard Nigeria
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Uniben gate set ablaze

The anti fuel subsidy removal protesters today set ablaze, the school gate of University of Benin, Uniben

Source: Vanguard Nigeria
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