Oil & Gas

Open market price of PMS hits N163.68 – PPPRA

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The Petroleum Products Pricing Regulatory Agency (PPPRA) said that the current open price market of the Premium Motor Spirit (PMS) also known as Petrol as at Nov. 15 was N163.68.

The Agency disclosed this in its Petroleum Products Pricing Template released on its website, on Monday in Abuja.

According to the template, the amount is N18.68 higher than the N145 price fixed by the Federal Government for the product to be sold at the petrol stations.

The template put the landing cost of the commodity at N147.95 per litre, while total distribution margins of N19.37 per litre brings the total cost of the commodity to N163.68 per litre.

The PPPRA report noted that the cost of the commodity plus freight stood at 618.47 dollars per metric tonne, an equivalent of N141.54 per litre.

It added that the lightering expenses and Nigerian Port Authority (NPA), charges stood at N2.75 and N0.84 per litre respectively.

The Nigerian Maritime Administration and Safety Agency (NIMASA) charges, according the PPPR, stood at N0.22 per litre while the Jetty Throughput Charge N0.60 per litre and storage charge N2.00 per litre.

Edited by Felix Ajide

 

https://nnn.ng/open-market-price-of-pms-hits-n163-68-pppra/

Oil & Gas

Deregulation: PPPRA assures Nigerians of better days ahead

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The Petroleum Products Pricing Regulatory Agency (PPPRA) has assured Nigerians that the deregulation of the downstream oil sector is in the best interest of the country.


The Executive Secretary of the Agency, Saidu Abubakar, gave the assurance on Tuesday in Abuja, while briefing newsmen on the deregulation of the downstream oil and gas sector.

Abubakar said that the recent increase in the pump price of the Premium Motor Spirit, PMS, hinges on the global market and availability of forex to marketers.

Represented by Mr Victor Shidok, the General Manager, Administration and Human Relations, Abubakar said many marketers were yet to start importation of products due to non-availability of foreign exchange.

According to him, although the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (PPMC), remained the sole importer of the product, PPPRA will continue to monitor development to check profiteering by marketers.

“The PPPRA as a regulator will continue the role of a watchdog in this deregulation regime. We will continue to maintain our role as a regulator and ensure that Nigerians are not short changed in any way in this process.

“You know how things are globally with the impact of COVID-19 to the global oil market. Accessing forex remains a challenge for marketers.

“We are hopeful that in a few months to come, Nigerians will understand what government is doing to stabilise the downstream sector,’’ he said.

Abubakar said that the agency would continue to monitor the code of conduct that guides operation of marketers in the industry and ensure that it was not violated.

He reiterated that government was no longer in business of fixing the pump price of petrol but would monitor marketers to avoid profiteering.

He hinted that the agency may not be able to provide monthly price band for the product as it contradicts the deregulation policy.

“If we give you the price band for this month, it is like price fixing’’ he said, and assured Nigerians that better days were ahead as things would normalise with time.

Edited By: Johnson Eyiangho/Ismail Abdulaziz
Source: NAN

https://nnn.ng/deregulation-pppra-assures-nigerians-of-better-days-ahead/
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Economy

Fuel, electricity subsidies no longer feasible – FG

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The Federal Government says under the prevailing economic conditions it can no longer afford fuel subsidy and supplementing electricity tariff.The Minister of Information and Culture, Alhaji Lai Mohammed, who disclosed this at a media briefing in Abuja said the nation’s revenues and foreign exchange earnings have fallen by almost 60 per cent due to the downturn in the fortunes of the oil sector.


News Agency of Nigeria reports the media briefing, which was on the recent increases in petrol and electricity prices, was jointly addressed by the Minister of Power, Saleh Mamman and Minister of State Petroleum, Timipreye Sylvia.

Mohammed said that despite the economic situation, the government sustained expenditures, especially on salaries and capital projects and stopped unsustainable practices that were weighing the economy down.

“Government can no longer afford to subsidise petrol prices, because of its many negative consequences; these include a return to the costly subsidy regime.

“The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this Administration.

“The days in which Nigerians queue for hours and days just to buy petrol, often at very high prices, are gone for good.

“Of course, there is also no provision for fuel subsidy in the revised 2020 budget, because we just cannot afford it,” he said.

The Minister disclosed that from 2006 to 2019, fuel subsidy gulped N10.413 trillion, an average of N743.8 billion per annum.

He said from the figures provided by the NNPC, subsidy was N257 billion in 2006,  N272billion in 2007, N631 billion in 2008, N469 billion in 2009, N667billion in 2010, N2.105 trillion in 2011 and N1.355 trillion in 2012.

He added  that fuel subsidy gulped N1.316 trillion in 2013, N1.217 trillion 2014, N654 billion in 2015, N144.3 billion in 2017 N730.86 billion in 2018 N595 billion in 2019 while the figure was not available in 2016.

Mohammed said the long-drawn fuel subsidy regime ended in March 2020, with the Petroleum Products Pricing Regulatory Agency (PPPRA) announcement.

He recalled the PPPRA announced that it begun fuel price modulation, in accordance with prevailing market dynamics, and would respond appropriately to any

further oil market development.

“Recall that the price of fuel then dropped from N145 to N125 per litre, and then to between N121.50 and N123.50 per litre in May.

“With the low price of crude oil then, the cost of petrol, which is a derivative of crude oil, fell, and the lower pump price was passed on to the consumers to enjoy.

“With the price of crude inching up, the price of petrol locally is also bound to increase, hence the latest price of N162 per litre.

“If, perchance, the price of crude drops again, the price of petrol will also drop, and the benefits will also be passed on to the consumers.

“The angry reactions that have greeted the latest prices of Premium Motor Spirit (PMS) are therefore unnecessary and totally mischievous,” he said.

The minister said that the Government is not unmindful of the pains associated with higher fuel prices and it will continue to seek ways to cushion the pains, especially for the most vulnerable Nigerians.

“The government is providing cheaper and more efficient fuel in form of auto gas. Also, Government, through the PPPRA, will ensure that marketers do not exploit citizens through arbitrarily hike in pump prices,” he said.

Mohammed also noted that in spite of the recent increase in the price of fuel to N162 per litre, petrol prices in Nigeria remain the lowest in the West/Central African sub-regions.

In a comparative analysis, the minister said a litre of petrol is N332 in Ghana, N359 in Benin Republic, N300 in Togo, N346 in Niger Republic,  N366 in Chad. N449 in Cameroon.

He added that the price of petrol per litre is N433 in Burkina Faso, N476 in Mali, N257 in Liberia, N281 in Sierra Leone, N363 in Guinea and N549 in Senegal.

Outside the sub-region, the minister said petrol sells for  N211 per litre in Egypt and N168 per litre in Saudi,  stressing that with the removal of subsidy, fuel price in Nigeria remains among the cheapest in Africa.

On the service-based electricity tariff adjustment by the Distribution Companies (DISCOS), Mohammed said the government has been supporting the largely-privatized electricity industry.

“To keep the industry going, the government has so far spent almost N1.7 trillion specially by way of supplementing tariffs shortfalls.

“The government does not have the resources to continue along this path.

“To borrow just to subsidize generation and distribution, which are both privatized, will be grossly irresponsible,” he said

The minister noted that in order to protect the large majority of Nigerians, the industry regulator approved that tariff adjustments had to be made only on the basis of guaranteed improvement in service.

“Under this new arrangement, only customers with guaranteed minimum of 12 hours of electricity can have their tariffs adjusted.

“Those who get less than 12 hours supply will experience no increase; This is the largest group of customers.

To address the challenge of arbitrary estimated billing, he said a mass metering programme is being undertaken to provide meters for over 5 million Nigerians.

He said the Programme is largely driven by preferred procurement from local manufacturers to create jobs.

Mohammed said the NERC will also strictly enforce stoppage of estimated billing to ensure that unmetered customers are not charged beyond the metered customers in their neighbourhood.

He disclosed that the government is providing solar power to five million Nigerian households in the next 12 months.

He said the Programme will  produce 250,000 jobs and impact up to 25 million beneficiaries through the installation.

The minister also noted that despite the recent service-based tariff review, the cost of electricity in Nigeria is still cheaper or compares favourably with that of many countries in Africa.

According to him, while Nigeria pays N49.75 per kilowatt, Senegal  pays N71.17, Guinea pays N41.36, Sierra Leone  pays N106.02 and Liberia N206.01

He added that Niger Republic pays N59.28, Mali pays N88.28, Burkina Faso pays N85.09, while Togo pays N79.88.

The minister noted that “the timing of the two necessary adjustments, in the petroleum and power sectors” was a coincidence and not a deliberate attempt to inflict pains on Nigerians.

He urged the people to ignore the “opportunistic opposition and their allies” who are playing dirty politics with the issue of petrol pricing and electricity tariff.

“Please note that these naysayers did not complain when the price adjustment led to lower petrol prices on at least two occasions since March.

“Nigerians must therefore renounce those who have latched onto the issue of petrol pricing and electricity tariff review to throw the country into chaos,” he said.

Speaking in the same vein, Sylva said with the loss of 60 per cent of the nation’s national income due to COVID-19, fuel and electricity subsidies were no longer feasible.

He said due to the pandemic, demand for crude oil, the mainstay of the nation”s economy dropped, affecting earnings.

OPEC said that the only way to increase crude oil prices is to reduce production and we shut down our production to 1.42 million barrel per day from 2 million barrel per day.

“Before COVID-19 crude oil prices was in the range of over 60 dollar per barrel, today, in spite of all the cut in production, we have not been able to achieve more than 45 dollar per barrel.

“You can see that there is a crisis at hand and the only way to adjust is to stop subsidy, which previous administrations have attempted to do.

“We have gotten to that point now,” he said.

The minister called for understanding and support of Nigerians, stressing that it is in the best interest of a sustainable national economy.

Edited By: Felix Ajide
Source: NAN

https://nnn.ng/fuel-electricity-subsidies-no-longer-feasible-fg/
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Features

Buhari’s address at Ministerial Performance Review Retreat

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ADDRESS BY HIS EXCELLENCY, MUHAMMADU BUHARI, PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA, AT THE FIRST YEAR MINISTERIAL PERFROMANCE REVIEW RETREAT

STATE HOUSE CONFERENCE CENTRE, ABUJA

7TH SEPTEMBER, 2020,

 

 

PROTOCOLS

It gives me great pleasure to welcome you all to the First Year Ministerial Performance Review Retreat. We are meeting a time that mankind is struggling to overcome the economic and social crisis caused by the COVID-19 pandemic, which has disrupted life as we knew it. The consequences of the pandemic will no doubt influence our deliberations at this gathering, especially as we will have to adjust our policy approaches and methods of working going forward.

2.      I stressed at last year’s Retreat that the Nigerian people expect dedication and commitment by all of us in implementing policies, programmes and projects to improve the quality of their lives and set Nigeria on the path of prosperity. I also reiterated the resolve of this Administration to set the stage for lifting 100 million Nigerians out of poverty in the next 10 years. Even today, these remain our overriding objectives.

 

3.    The priorities we set for ourselves were around nine inter-related and inter-connected areas, which are: stabilizing the economy; achieving agriculture and food security; attaining energy sufficiency in power and petroleum products; improving transportation and other infrastructure; driving industrialization with a special focus on SMEs; expanding access to quality education, affordable healthcare and productivity of Nigerians; enhancing social inclusion by scaling up social investments; as well as building a system to fight corruption, improve governance and strengthen national security.

4.      In the course of the past year, Ministers have rendered reports to the Federal Executive Council on their activities and outputs related to the achievement of these objectives. Some of the notable achievements include:

i.  Economic recovery prior to the outbreak of COVID-19. The economy recovered from a recession and we witnessed eleven quarters of consecutive GDP growth since exiting recession. The GDP grew from 0.8% in 2017 to 2.2% in 2019, but declined in the first quarter of 2020, as a result of the downward trend in global economic activities caused by the COVID-19 pandemic.

ii.   Implementation of a Willing Buyer, Willing Seller Policy for the power sector, has opened up opportunities for increased delivery of electricity to homes and industries. We are also executing some critical projects through the Transmission Rehabilitation and Expansion Programme, which will result in the transmission and distribution of a total of 11,000 Megawatts by 2023.

iii.  On transportation, we are growing the stock and quality of our road, rail, air and water transport infrastructure. The Presidential Infrastructure Development Fund projects are also progressing very well. These include the 11.9 km Second Niger Bridge, 120 km Lagos-Ibadan Expressway, and 375 km Abuja – Kaduna – Zaria – Kano Expressway. At the same time, we are actively extending and upgrading our railway networks, as well as our airports which are being raised to international standard with the provision of necessary equipment, to guarantee world class safety standard.

iv.                                         The Government has continued to support the Agricultural sector, the key to diversification of our economy, through schemes such as the CBN Anchor Borrowers Programme and the Presidential Fertilizer Initiative programme.

v. The work of the Presidential Enabling Business Environment Council (PEBEC) has resulted in Nigeria moving up 39 places on the World Bank’s ‘Ease of Doing Business’ ranking since 2015 and Nigeria is now rated as one of the top ten reforming countries. We are confident that the on-going ease of doing business reforms would result in further improvement of this rating.

vi.  Nigeria’s Law Enforcement Agencies have significantly scaled up their footprint across the country. As part of the efforts towards strengthening our internal security architecture, the Ministry of Police Affairs was created. Amongst others, we have increased investments in arms, weapons and other necessary equipment, expanded the National Command and Control Centre to nineteen States of the Federation, and established a Nigerian Police Trust Fund, which will significantly improve funding for the Nigeria Police Force. We have also approved the sum of N13.3 billion for the take-off of the Community Policing initiative across the country, as part of measures adopted to consolidate efforts aimed at boosting security nationwide[1] .

vii.  Efforts are also being made to empower the youth and provide for  poor and vulnerable groups by enhancing investments in our Social Investment Programmes.

5.      These accomplishments are a testament to the fact that all hands are on deck in establishing a solid foundation for even greater successes in future.

6.      Distinguished participants, when we met one year ago, little did we know that the world would be in a serious economic, social and health crisis that had left even the major economies in disarray, due to the COVID-19 pandemic.  Just as in other jurisdictions, the socio-economic landscape of Nigeria has experienced a severe shock.  Nearly 55,000 of our people have been infected with the virus while we have recorded 1,054 deaths by 4th September. The economy contracted by -6.1 per cent in the second quarter of this year; normal schooling has been disrupted; businesses are struggling and in certain instances completely closed; many people have lost their jobs and earning a living has been difficult. It has been a trying time for all of us and particularly for those in the informal sector who make their living from daily earnings.

 7.      It has not been any easier for Governments, Federal and State alike. As a result of the poor fortunes of the oil sector, our revenues and foreign exchange earnings have fallen drastically. Our revenues have fallen by almost 60%. Yet we have had to sustain expenditures, especially on salaries and capital projects. We acted to mitigate the effect of the economic slowdown by adopting an Economic Sustainability Plan but we have also had to take some difficult decisions to stop unsustainable practices that were weighing the economy down.

8.      The N2.3 Trillion Economic Sustainability Plan (ESP),  consists of fiscal, monetary and sectoral measures to enhance local production, support businesses, retain and create jobs and provide succour to Nigerians, especially the most vulnerable.  In addition to improving the health sector, the ESP lays emphasis on labour-intensive interventions in agriculture, light manufacturing, housing, and facilities management. It also complements on-going major infrastructural projects in power, road and rail by prioritising the building of rural roads, information and telecommunications technologies as well as providing solar power to homes which were not hitherto connected to the National Grid.

9.      Alongside interventions in these critical areas, including agriculture and food security, affordable housing, technology, health, and providing jobs for youths and women post-COVID; the ESP will also provide different avenues whereby Government will support micro, small and medium enterprises (MSMEs) to enable them respond to the economic challenges of COVID-19.

This includes safeguarding about 300,000 jobs in 100,000 MSMEs by guaranteeing off-take of priority products; and Survival Fund to support vulnerable SMEs in designated vulnerable sectors in meeting their payroll obligations and safeguarding jobs from the shock of COVID-19.

10.    Under the ESP MSMEs component, both the Survival Fund (Payroll support), and the Guaranteed Off-take Scheme, GoS, are to impact about 1.7 million individuals within a three to five months timeline. Also, 45 per cent of total business beneficiaries will be female owned; and 5 per cent of total business beneficiaries will be dedicated to special needs business owners.[2] 

 11.     In addition, under the Survival Fund (payroll support) scheme; 250,000 new business names are to be registered at a discounted rate of N6,000 by the CAC, but this will be free for the MSMEs; while 330,000 transport workers and artisans will get one-time grants of N30,000 each.

 12.    Following an MOU to be signed by BOI and the FG, the total beneficiaries for Survival Fund Scheme tracks are about 33,000 beneficiaries per State; with a minimum payroll support at N30,000 and maximum support is N50,000.

 13.   The COVID-19 pandemic, has led to a severe downturn in the funds available to finance our budget and has severely hampered our capacity to ..one of the steps we took at the beginning of the crisis in March when oil prices collapsed at the height of the global lockdown, was the deregulation of  the price of premium motor spirit (PMS) such that the benefit of lower prices at that time  was passed to consumers.

This was welcome by all and sundry. The effect of deregulation though is that PMS prices will change with changes in global oil prices. This means quite regrettably that as oil prices recover we would see some increases in PMS prices.  This is what has happened now. When global prices rose, it meant that the price of petrol locally will go up.

 14.    There are several negative consequences if Government should even attaempt to go back to the   business of fixing or subsidizing PMS prices.  First of all, it would mean a return to the costly subsidy regime . Today we have  60% less revenues, we just  cannot afford the cost.

The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this administration. Nigerians no longer have to endure long queues just to buy petrol, often at highly inflated prices. Also, as I hinted earlier, there is no provision for fuel subsidy in the revised 2020 budget, simply because we are not able to afford it, if reasonable provisions must be made for health, education and other social services.[3]   We now simply have no choice.

Nevertheless, I want to assure our compatriots that Government is extremely mindful of the pains that higher prices mean at this time, and we do not take the sacrifices that all Nigerians have to make for granted.

We will continue to seek ways and means of cushioning pains especially for the most vulnerable in our midst. We will also remain alert to our responsibilities to ensure that marketers do not exploit citizens by   raising pump price arbitrarily .

This is the role that government must now play through the PPPRA. This explains why the PPPRA made the announcement a few days ago setting the range of price that must not be exceeded by marketers. The advantage we now have is that anyone can bring in petroleum products and compete with marketers, that way the price of petrol will be keep coming down.

 15.    The recent service based  tariff adjustment by the Discos  has also been a source of concern for many of us. Let me say frankly that like many Nigerians I have been very unhappy about the quality of service given by the Discos, but there are many constraints including poor transmission capacity and distribution capacity.

I have already signed off on the first phase of the Siemens project to address many of these issues. Because of the problems with the privatization exercise government has had to keep supporting the largely privatized electricity industry .

So far to keep the industry going we have spent almost 1.7 trillion, especially by way of supplementing tariffs shortfalls. We do not have the resources at this point to continue in this way and it will be grossly irresponsible to borrow to subsidize a generation and distribution which are both privatized.

But we also have a duty to ensure that the large majority of those who cannot afford to pay cost reflective tariffs are protected from increases. NERC the industry regulator therefore approved that tariff adjustments had to be made but only on the basis of guaranteed improvement in service.

Under this new arrangement only customers who are guaranteed a minimum of 12 hours of power and above can have their tariffs adjusted. Those who get less than 12 hours supply, or the Band D and E Customers MUST be maintained on lifeline tariffs, meaning that they will experience no increase.

Government has also taken notice of the complaints about arbitrary estimated billing.  Accordingly, a mass metering program is being undertaken to provide meters for over 5 million Nigerians, largely driven by preferred procurement from local manufacturers – creating thousands of jobs in the process.

NERC has also committed  to strictly enforcing  the capping regulation which will ensure that unmetered customers are not charged beyond the metered customers in their neighbourhood.

 17.    In addressing the power problems we must not forget that most Nigerians are not even connected to electricity at all. So as part of the Economic Sustainability Plan, we are providing Solar home systems to  5 million Nigerian households in the next 12 months.

We have already begun the process of providing financing support through the CBN for manufacturers and retailers of Off Grid Solar Home Systems and Mini-Grids who are to provide the systems . The Five million systems under the ESP’s Solar Power Strategy will produce 250,000  jobs and impact up to 25 million beneficiaries through the installation [4] This means that more Nigerians will have access to electricity via a reliable and sustainable solar system.

 18.    The support to Solar Home System manufacturers and the bulk procurement of local meters will create over 300,000 local jobs while ensuring that we set Nigeria on a path to full electrification. The tariff review is not about the increase, which will only affect the top electricity consumers, but establishing a system which will definitely lead to improved service for all at a fair and reasonable price. [5]

 19.    There has been some concern expressed about the timing of these two necessary adjustments.  It is important to stress that it is a mere coincidence in the sense that the deregulation of PMS prices happened quite some time ago, it was announced on 18 March 2020 and the price moderation that took place at the beginning of this month was just part of the on-going monthly adjustments to global crude oil prices.

Similarly, the review of service-based electricity tariffs was scheduled to start at the beginning of July but was put on hold to enable further studies and proper arrangements to be made.  This government is not insensitive to the current economic difficulties our people  are going through and the very tough economic situation we face as a nation, and we certainly will not inflict hardship on our people.

But we are convinced that if we stay focused on our plans brighter more prosperous days will come soon.  Ministers and senior officials must accordingly ensure the vigorous and prompt implementation of the ESP programmes, which will give succour to Nigerians.

 20.   In this regard, the Central Bank of Nigeria (CBN) has created credit facilities (of up to N100B) for the Healthcare (N100 Billion) and Manufacturing (N1 Trillion) sectors. From January, 2020 to date, over N191.87B has already been disbursed for 76 real sectors projects under the N1TRN Real Sector Scheme; while 34 Healthcare projects have been funded to a tune of N37.159B under the Healthcare Sector Intervention Facility.

The facilities are meant to address some of the infrastructural gap in the healthcare and manufacturing sector as a fall out to the COVID-19 pandemic and to facilitate the attainment of the Governors 5-year strategic plan.[6]

21.    Distinguished participants, to address our current economic challenges, and consolidate on our achievements over the past year, this retreat has been designed to:

                    Review the performance of each Minister in delivering the priority mandates, including programmes and projects assigned to them upon their appointment in 2019;

                    Identify key impediments to implementation; and

                    Re-strategize on how to accelerate delivery of results, given the current economic situation.

22.    The retreat would also provide the opportunity to effectively evaluate the activities of the Ministries over the last twelve months with regard to the delivery of our agenda and promise to Nigerians.

23.    The Ministers are urged to work closely with the Permanent Secretaries to ensure accelerated and effective delivery of the policies, programmes and projects in the priority areas. I have also directed the Secretary to the Government of the Federation to intensify efforts at deepening the work of the Delivery Unit under his coordination towards ensuring effective delivery of Government Policies, Programmes and Projects in the coming years. It is also my expectation that progress on performance of the implementation of the 9 priority areas will be reported on a regular basis.

24.    In closing, I encourage optimal participation and contribution by all participants, while observing all the necessary safety protocols and compliance with COVID-19 guidelines.

25.    On this note, it is my pleasure to formally declare this Retreat open. I look forward to a very fruitful session and stimulating exchange of views.

26.    Thank you.

27.    God bless the Federal Republic of Nigeria.

https://nnn.ng/buharis-address-at-ministerial-performance-review-retreat/

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Economy

Deregulation of PMS prices will help avert negative consequences—Buhari

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President Muhammadu Buhari says there will be negative consequences if the government continued with the business of fixing or subsidising the prices of Premium Motor Spirit (PMS) known as petrol.


Buhari, represented by Vice President Yemi Osinbajo, gave this explanation on Monday while declaring open a 2-day First Year Ministerial Performance Review Retreat at the State House Conference Centre, Abuja.

The president said that the COVID-19 pandemic had led to a severe downturn in the funds available to finance the nations’ budget and also severely hampered government’s capacity.

He said that one of the steps government taken at the beginning of the crisis in March when oil prices collapsed at the height of the global lockdown was the deregulation of PMS.

Buhari, assured, however, that government was working towards mitigating the impact of the deregulation on the citizens.

“There are several negative consequences if government should even attempt to go back to the   business of fixing or subsidising PMS prices.

“First of all, it would mean a return to the costly subsidy regime; today we have 60 per cent less revenues; we just cannot afford the cost.

“The second danger is the potential return of fuel queues – which has, thankfully, become a thing of the past under this administration.

“Nigerians no longer have to endure long queues just to buy petrol, often at highly inflated prices; also, as I hinted earlier, there is no provision for fuel subsidy in the revised 2020 budget.

“Simply because we are not able to afford it, if reasonable provisions must be made for health, education and other social services,’’ he said.

The president said that government was extremely mindful of the pains that higher prices meant at this time.

He said that the government did not take the sacrifices that all Nigerians had to make for granted.

“We will continue to seek ways and means of cushioning pains especially for the most vulnerable in our midst.

“We will also remain alert to our responsibilities to ensure that marketers do not exploit citizens by   raising pump price arbitrarily.

“This is the role that government must now play through the Petroleum Products Pricing Regulatory Agency (PPPRA).

“This explains why the PPPRA made the announcement a few days ago setting the range of price that must not be exceeded by marketers.

“The advantage we now have is that anyone can bring in petroleum products and compete with marketers, that way the price of petrol will be keep coming down.’’

Buhari said the recent service-based tariff adjustment by the Electricity Distribution Companies (Discos) had also been a source of concern for his government.

The president said that like many Nigerians, he had been unhappy with the quality of service given by the Discos, but there were many constraints including poor transmission capacity and distribution capacity.

Buhari said he already signed off on the first phase of the Siemens project to address many of these issues.

“Because of the problems with the privatisation exercise, government has had to keep supporting the largely privatised electricity industry.

“ So far to keep the industry going we have spent almost N1.7 trillion, especially by way of supplementing tariffs shortfalls.

“ We do not have the resources at this point to continue in this way and it will be grossly irresponsible to borrow to subsidise a generation and distribution which are both privatized.

“But we also have a duty to ensure that the large majority of those who cannot afford to pay cost reflective tariffs are protected from increases.’’

According to the president, the Nigerian Electricity Regulatory Commission (NERC), the industry regulator, had approved that tariff adjustments had to be made but only on the basis of guaranteed improvement in service.

He said that under the new arrangement, only customers who were guaranteed a minimum of 12 hours of power and above could have their tariffs adjusted.

Buhari said that those who got less than 12 hours supply, or the Band D and E Customer must be maintained on lifeline tariffs, meaning that they would experience no increase.

“This is the largest group of customers; government has also taken notice of the complaints about arbitrary estimated billing.

“Accordingly, a mass metering programme is being undertaken to provide meters for over 5 million Nigerians, largely driven by preferred procurement from local manufacturers – creating thousands of jobs in the process,’’ he said.

He said that the N2.3 trillion Economic Sustainability Plan (ESP), consists of fiscal, monetary and sectoral measures to enhance local production, support businesses, retain and create jobs and provide succour to Nigerians, especially the most vulnerable.

Earlier in his opening address, Mr Boss Mustapha, Secretary to the Government of the Federation, said the retreat was expected to provide an opportunity for the government to review the First-Year report of the Ministerial Mandates.

Edited By: Ali Baba-Inuwa
Source: NAN

 

 

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Spanish triathlete grateful for praise after incredible act of selflessness Nasarawa state to host teqball championship in November, official says Djokovic battles past Ruud to reach Italian Open final Rainstorm: Kwara Deputy Governor commiserates with victims BB Naija Evicts Tricky Tee, Ozo Ebonyi bus accident: FRSC, Police confirm 3 more bodies retrieved from river Gov. Matawalle eulogises late Emirs of Biu, Zazzau Atiku Support Groups congratulate Obaseki Edo 2020: Gov. Wike lauds INEC, Police Gov. Bello mourns Emir of Zazzau Health workers suspend 7-day nationwide warning strike Uni-Abuja mourns its chancellor, Emir of Zazzau Edo election: INEC’s result consistent with our PVT outcome, says Yiaga Africa Oghiadomhe describes Edo governorship poll as most credible Kiriji War: Leaders to celebrate 134 years of Yoruba unity INEC commends stakeholders on successful Edo election, focuses on Ondo Survival Fund: FG releases registration schedule as portal opens Monday Osimhen, young lad with head of 40-year-old — Gattuso Edo 2020: NCFront commends security on neutrality, wants more from INEC on logistics Sexual Abuse: Cleric advises parents to pay attention to male children Baby survives, mother dies in Anambra building collapse — Police Edo Poll: APC supporters commend Buhari for providing level playing field 22 parties allege exclusion in Bauchi polls, commission denies Iru land is committed to environmental, national development- Oba Lawal Youths should be drivers of innovation, creativity for a better Nigeria- Ex-VC Bell University  CSR: Dangote Cement commits N4bn to projects in Ogun host communities  Dep. speaker House of Reps mourns Zazzau Monarch Dabiri-Erewa hails Nigerian Ezeajughi’s re-election as UK Mayor, Ajagba’s United States boxing victory Edo 2020: Gov. Emmanuel congratulates Obaseki, urges him to deliver more Renown Ibadan-born businessman, Adegoke joins APC officially in Oyo Schools resumption: Lalong urges parents to teach children COVID-19 safety protocols Obaseki’s reelection is triumph of democracy – Gov. Diri Edo Guber: IPAC commends Buhari, INEC, security agencies over peaceful poll Mane double eases Liverpool to 2-0 win over 10-man Chelsea Buhari sends FG’s delegation for Emir of Zazzau’s burial in Zaria APC rejects result of Edo governorship election Edo poll: Secondus, Peter Obi congratulate Obaseki Petition: Unions pass vote of confidence on VC Senate President mourns Emir of Zazzau Cleric urges Govt. to prosecute fake, fraudulent pastors PDP Govs. congratulate Obaseki, commends Buhari Election: PDP commends INEC, Buhari, Edo people Gov. Masari mourns Emir of Zazzau PDP attributes Obaseki’s reelection to steadfastness, dedication of Edo people Passing of Emir of Zazzau, end of an era, says Tinubu Edo election calls for celebration, says Tony Momoh Northern Governors mourn Emir of Zazzau Sanwo-Olu celebrates Sen. Tinubu at 60 Late Emir of Zazzau laid to rest in his palace Gov. Ayade congratulates Obaseki on re-election