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Nigeria’s Electricity, Fuel Prices The Lowest In West Africa, Says Lai Mohammed

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Nigeria’s Electricity, Fuel Prices The Lowest In West Africa, Says Lai Mohammed Pointloaded

The federal ministry of information has justified the increased fuel and electricity tariff by pointing out that Nigeria still has the lowest rates in West Africa.

Minister of Information, Lai Mohammed, said this in a statement on Monday September 7.

The minister listed the comparative cost across West African countries, accused the opposition and their allies of playing dirty politics with the issue of petrol pricing and electricity tariff.

The Minister insisted that the angry reactions that have greeted the latest prices of Premium Motor Spirit (PMS) are unnecessary and totally mischievous.

The statement read; 

As you are aware, the long-drawn fuel subsidy regime ended in March 2020, when the Petroleum Products Pricing Regulatory Agency (PPPRA) announced that it had 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 145 to 125 Naira per litre, and then to between 121.50 and 123.50 Naira 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 162 Naira 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.

Gentlemen, the truth of the matter is that subsidizing fuel is no longer feasible, especially under the prevailing economic conditions in the country.

The government can no longer afford fuel subsidy, as revenues and foreign exchange earnings have fallen by almost 60%, due to the downturn in the fortunes of the oil sector.

Yet, the government has had to sustain expenditures, especially on salaries and capital projects. Even though we have acted to mitigate the effect of the economic slowdown by adopting an Economic Sustainability Plan,we have also had to take some difficult decisions to stop unsustainable practices that were weighing the economy down.

One of such difficult decisions, which we took at the beginning of the Covid-19 pandemic in March – when oil prices collapsed at the height of the global lockdown – was the deregulation of the prices of PMS.

As I said earlier, the benefit of lower prices at that time was passed to consumers. Everyone welcomed the lower fuel price then.

Again, the effect of deregulation is that PMS prices will change with changes in global oil prices. This means quite regrettably that as oil prices recover, there will be some increases in PMS prices. This is what has happened now.

Government can no longer afford to subsidize petrol prices, because of its many negative consequences. These include a return to the costly subsidy regime.

With 60% less revenues today, we 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.

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.

Gentlemen, the cost of fuel subsidy is too high and unsustainable. From 2006 to 2019, fuel subsidy gulped 10.413 Trillion Naira.

That is an average of 743.8 billion Naira per annum. According to figures provided by the NNPC, the breakdown of the 14-year subsidy is as follows: – In 2006 Subsidy was 257bn – In 2007 Subsidy was 272bn – In 2008 Subsidy was 631bn – In 2009 469bn

– In 2010 667bn – In 2011 2.105tn – In 2012 1.355tn – In 2013 1.316tn – In 2014 1.217tn – In 2015 654bn – In 2016 Figure Not Available – In 2017 Subsidy was 144.3bn – In 2018 730.86bn – And in 2019 Subsidy was 595bn

The Federal Government is not unmindful of the pains associated with higher fuel prices at this time. That is why we 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. And that is why the PPPRA announced the range of prices that must not be exceeded by marketers.

In spite of the recent increase in the price of fuel to 162 Naira per litre, petrol prices in Nigeria remain the lowest in the West/Central African sub-regions.

Below is a comparative analysis of petrol prices in the sub-regions (Naira equivalent per litre);

– Nigeria – 162 Naira per litre

– Ghana – 332 Naira per litre

– Benin – 359 Naira per litre

Togo – 300 Naira per litre

– Niger – 346 Naira per litre

– Chad – 366 Naira per litre

– Cameroon – 449 Naira per litre

– Burkina Faso – 433 Naira per Litre

– Mali – 476 Naira per litre

– Liberia – 257 Naira per litre

– Sierra Leone – 281 Naira per litre

– Guinea – 363 Naira per litre

– Senegal – 549 Naira per litre

Outside the sub-region, petrol sells for 211 Naira per litre in Egypt and 168 Naira per litre in Saudi Arabia. You can now see that even with the removal of subsidy, fuel price in Nigeria remains among the cheapest in Africa.

ELECTRICITY TARIFF

Another issue we want to address here today is the recent service-based electricity tariff adjustment by the Distribution Companies, or DISCOS.

The truth of the matter is that due to the problems with the largely-privatized electricity industry, the government has been supporting the industry.

To keep the industry going, the government has so far spent almost 1.7 trillion Naira, especially 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.

But in order to protect the large majority of Nigerians who cannot afford to pay cost-reflective tariffs from increases, the industry regulator, NERC, has approved that tariff adjustments had to be made but 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.

Government has also noted 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, and creating thousands of jobs in the process.

NERC will also strictly enforce the capping regulation to ensure that unmetered customers are not charged beyond the metered customers in their neighbourhood. In other words, there will be no more estimated billings.

The government is also taking steps to connect those Nigerians who are not even connected to electricity at all.

As you are aware, under its Economic Sustainability Plan, the government is providing solar power to 5 million Nigerian households in the next 12 months.

This alone will produce 250,000 jobs and impact up to 25 million beneficiaries through the installation, thus ensuring that more Nigerians will have access to electricity via a reliable and sustainable solar system.

Gentlemen, please note 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.

COST IN NAIRA PER KWH IN SOME AFRICAN COUNTRIES.

– Nigeria 49.75

– Senegal 71.17

– Guinea 41.36

– Sierra Leone 106.02

– Liberia 206.01

– Niger 59.28

– Mali 88.23

– Burkina Faso 85.09

– Togo 79.88

CONCLUSION: Gentlemen, the timing of these two necessary adjustments, in the petroleum and power sectors, has raised some concerns among Nigerians. This is a mere coincidence.

First, the deregulation of PMS prices was announced on 18 March 2020, and the price modulation that took place at the beginning of this month was just part of the on-going monthly adjustments to global crude oil prices.

Also, the review of service-based electricity tariffs was scheduled to start at the beginning of July 2020 but was put on hold so that further studies and proper arrangements can be made.

Like Mr. President said today,at the opening of the Ministerial Retreat, this govt. is not insensitive to the current economic difficulties our people are going through and the very tough economic situation we face as a nation. We certainly will not inflict hardship on our people

But we are convinced that if we stay focused on our plans, brighter and more prosperous days will come soon.

The opportunistic opposition and their allies 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.

I thank you all for your kind attention

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Rakib Idris is a scientist, blogger, entrepreneur, web designer, socioeconomic and political commentator. He loves writing quality contents for readers and presenting to them happenings around the world promptly as they occur. Thank you for visiting pointloaded.com , •••• For Advert Placement Call/WhatsApp: 09054011337 or send an E-mail to info@pointloaded.com

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Ramadan 2021: Sultan Asks Nigerian Muslims To Commence Fasting

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Ramadan 2021: Sultan Asks Nigerian Muslims To Commence Fasting Pointloaded

Following the sighting of the moon, this year’s Ramadan starts Tuesday, April 13th 2021, the Sultan of Sokoto, Alhaji Sa’ad Abubakar, announced Monday.

Alhaji Abubakar, who is the president of the Nigerian Supreme Council for Islamic Affairs (NSCIA), said this in an announcement on NTA live broadcast.

He urged all Muslims to use the occasion of the holy month to pray fervently for the country and indulge in acts of charity so as to benefit maximally this month.

The NSCIA on Monday had issued a guideline enjoining the Ummah to practice social distancing during the 1442AH Ramadan.

“All COVID-19 protocols should be observed. I’tikaf should still be put on hold while strict observance of all COVID19 protocols including avoiding lengthy or crowded sessions should be observed,” it stated.

Ramadan is the ninth lunar month of the Islamic calendar seen as sacred by Muslims during which they refrain from eating, drinking and sexual activities from dawn to dusk for 29 or 30 days — depending on when a new crescent is slighted.

The sighting of this new moon marks the beginning of another month, Shawwal, and the celebration of Islamic festival, Eid-l-fitr.

The Ramadan ritual is observed to attain a spiritual bond with God, as contained in Qur’an 2:183: “Oh you who believe! Fasting is prescribed to you as it was prescribed to those before you, that you may learn piety and righteousness.”

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Benue Crisis: Expose Those Who Killed Soldiers, Return Army Weapons – Ortom Urges Communities

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Benue Crisis: Expose Those Who Killed Soldiers, Return Army Weapons – Ortom Urges Communities Pointloaded

The Benue State Government has urged community leaders to expose those who carried out an unprovoked attack on Nigerian Army troops, leading to the death of an officer and 10 other soldiers.

In a statement on Friday, Governor Ortom while addressing the recent crisis between communities in Konshisha and Oju Local Government Areas, called for restraint on all sides including the military.

Ortom noted in his communique that he has already directed leaders of the affected areas to ensure that the weapons the “bandits” took away from the military personnel deployed to bring peace between the warring communities are returned without delay.

Earlier on, the army had reported that its troops came under attack while on a routine operational task, it was not clear who the attackers were at the time.

The military however asserted that the troops comprising one officer and ten soldiers were initially declared missing which prompted the deployment of a joint search and rescue team comprising NA troops and personnel of Operation Whirl Stroke.

The search and rescue team, unfortunately, found all the missing troops dead in Konshisha LGA of Benue State. While the bodies of the slain troops were evacuated immediately.

According to the army, efforts were still ongoing to track down the perpetrators of the heinous crime with a view to bringing them to justice.

In his reaction, Governor Ortom urged members of the affected communities to expose perpetrators of the unprovoked attacks on the military, stating that such an act is condemnable and also capable of jeopardizing the efforts Government has made to guarantee the return of peace to the area.

The governor disclosed that in an effort to find a solution to the crisis, he set up a Boundary Committee headed by the Deputy Governor, Engineer Benson Abounu to resolve the land dispute in collaboration with the National Boundary Commission.

The Committee had fixed a date for the demarcation of the area in contention when renewed violence broke out between the Bonta Community of Konshisha Local Government Area and Okpute Community of Oju Local Government Area.

Ortom assured the people that his administration is determined to see the end of the crisis and will support security agencies to fish out those fomenting trouble.

He, however, urged the military to avoid civilian casualties and protect law abiding people while efforts are on to recover their missing weapons.

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Queen Elizabeth II’s Husband Prince Philip Dies At 99

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Queen Elizabeth II’s Husband Prince Philip Dies At 99 Pointloaded

Queen Elizabeth II’s husband Prince Philip has died at age 99, according to a statement by Buckingham Palace.

Prince Philip was the longest-serving royal consort in British history after getting married to Princess Elizabeth in 1947, five years before she became Queen.

The Palace announced the death of the late monarch via its official Twitter handle on Friday afternoon, April 9, 2021.

“It is with deep sorrow that Her Majesty The Queen announces the death of her beloved husband, His Royal Highness The Prince Philip, Duke of Edinburgh,” it said in a statement.

“His Royal Highness passed away peacefully this morning at Windsor Castle.

“The Royal Family join with people around the world in mourning his loss.”

The palace added that further announcements would be made “in due course”.

Fears over the health of the Duke of Edinburgh, as he was formally known, had been heightened after he recently spent a month in hospital for treatment.

He left the hospital on March 16 following what was described as a successful procedure for a pre-existing condition and treatment for an unspecified infection.

He was first admitted on February 16 on the advice of his doctor after he complained of feeling unwell.

Philip had returned to Windsor Castle, west of London, where he had been isolating with the queen — Britain’s longest-serving monarch — since the start of the coronavirus pandemic last year.

He was due to turn 100 in June.

The news of his death saw television channels interrupt regular programmes and start special coverage marking his life.

The BBC announced his death and played the national anthem, “God Save the Queen”.

Philip had increasingly struggled with his health in recent years and had retired from public life.

In the run-up to Christmas 2011, Philip was taken to hospital by helicopter after suffering chest pains.

The Greek-born former naval officer was then treated for a blocked coronary artery and had a stent fitted

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