Nigeria Times

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has raised concerns over the recent surge in petrol prices in Lagos and Abuja, where prices have reached ₦998 and ₦1,030 per litre, respectively. The association’s National President, Dele Oye, issued a statement on Wednesday, highlighting the strain these increases are placing on businesses and households across the nation.

Oye warned that the price hike could lead to higher transportation costs, increased inflation, and severe consequences for small and medium-sized enterprises (SMEs), many of which rely on petrol for operations. He stressed that the rising fuel costs would affect not only businesses but also households, causing a ripple effect on the cost of goods and services.

He called on the Nigerian National Petroleum Corporation Ltd. to support the Dangote refinery in stabilizing local petrol prices and reducing the country’s reliance on imported fuel. Additionally, Oye urged the Central Bank of Nigeria to implement stronger monetary policies to stabilize the naira, which has been under pressure due to currency depreciation and rising importation costs.

NACCIMA continues to advocate for strategies that will not only stabilize fuel prices but also enhance domestic production capabilities, ensuring the Nigerian economy can navigate these challenging times.

Ondo State Governor, Lucky Aiyedatiwa, has dismissed his Special Assistant on Forestry (Central Senatorial District), Adeboye Ewenla, following allegations of bribery. The accusations were made by timber traders, who claimed Ewenla was involved in corrupt practices within the state’s forestry sector.

The governor’s Chief Press Secretary, Ebenezer Adeniyan, announced Ewenla’s immediate dismissal on Wednesday. Aiyedatiwa has also called for an investigation into the management of forest reserves in the state, emphasizing that a replacement for Ewenla will be announced soon.

In response to his dismissal, Ewenla denied the allegations, calling them a deliberate attempt to tarnish his reputation. He argued that he was targeted because of his role in preventing illegal activities in the government’s forest reserves. According to Ewenla, the money in question was meant for government revenues, not personal gain.

The governor urged all political appointees to adhere to the law and maintain ethical conduct in their official duties.

The Nigerian Army has initiated an investigation into Brigadier General M.A. Sadiq, former Commander of the 3 Brigade in Kano, following accusations of misconduct. General Sadiq is alleged to have withheld entitlements meant for his subordinates and engaged in misappropriation during his command. He has been relieved of his post and is currently in custody. Army spokesperson, Major General Onyema Nwachukwu, confirmed the investigation and assured the public of a fair and thorough process, emphasizing the military’s commitment to accountability and integrity.

The Nigerian Senate plunged into confusion during an emergency closed-door session, sparked by a debate on the financial autonomy of the nation’s 774 Local Government Councils. Senator Tony Nwoye raised concerns about state governments allegedly bypassing a Supreme Court ruling that granted the councils autonomy, accusing governors of diverting local funds into joint accounts. Heated exchanges followed, with opposing views on the constitutional implications, leading to a temporary suspension of proceedings. The issue has reignited discussions on local governance and constitutional amendments necessary to enforce the court’s decision.

The Nigerian National Petroleum Corporation Limited (NNPCL) has raised the pump price of fuel significantly, with the new prices set at N1,030 per litre in Abuja and N998 per litre in Lagos. This marks an increase from the previous prices of N897 and N885, respectively.

Details of the Price Hike

• Observations in Abuja: At an NNPC outlet in Maitama, motorists were seen queuing up amid complaints about the price increase. Another station in Gudu had fuel available, but sales were paused pending adjustments to the pricing meters. An attendant confirmed the new price of N1,030 per litre.
• Lagos Update: In Lagos, motorists faced long queues as the price increased to N998 per litre.

Context of the Increase

This fuel price adjustment comes just a day after reports suggested a potential hike due to the NNPCL’s exit as a middleman in the fuel purchase agreement with the Dangote Refinery. Previously, the NNPCL absorbed a subsidy of N133 per litre to cover the price gap between the refinery’s price and the retail price.

• Deregulation Shift: The NNPCL’s decision reflects a significant shift toward a fully deregulated oil market, where fuel marketers will now negotiate prices directly with the Dangote Refinery under a “willing buyer, willing seller” arrangement. This model is already in place for other deregulated products like diesel and kerosene.
• Impacts on Subsidy System: An official from the NNPCL noted the unsustainable financial burden of the subsidy system, emphasizing that continuing to absorb the cost was not feasible.

This change in pricing and structure is expected to have a considerable impact on fuel access and the overall economy in Nigeria.

Yunus Akintunde, the senator representing Oyo Central, has highlighted the need for a more equitable distribution of energy resources in Nigeria, particularly focusing on the significant energy poverty faced by rural communities. Speaking at the Prof Nyaudoh U. Ndaeyo Public Lecture at the University of Uyo, Akwa Ibom State, he noted that the prioritization of urban areas over rural ones has stifled development in Nigeria.

Akintunde, who chairs the Senate Committee on Environment, emphasized the importance of policies that encourage the clustering of agribusinesses in rural areas. He believes such initiatives could motivate electricity companies to expand their operations into these underserved regions.

During his address, he discussed several challenges contributing to energy poverty, including:

• Political interference in the planning and execution of rural electrification programs.
• The prevalence of sub-standard off-grid technologies.
• Economic barriers, including the high costs associated with infrastructure development.
• Corruption within the energy sector.

He pointed out that over 81 million Nigerians, out of a total population exceeding 206 million, lack adequate access to electricity, with rural areas being the most affected. Akintunde noted, “Politicians interfere with the orderly planning and running of rural electrification programmes,” which hampers progress.

Despite Nigeria’s vast potential for renewable energy—estimated at 207,000 GWh for solar and 50,800 GWh for hydro—he highlighted ongoing issues such as:

• Inadequate electricity generation (with only 4,000 MW generated against an installed capacity of 12,522 MW).
• Poor transmission infrastructure.
• Frequent blackouts and insufficient investment in the sector.

Akintunde also stressed the unique impacts of energy poverty on women, who often spend 4-6 hours daily collecting firewood and are exposed to harmful fumes from inefficient cooking methods.

Proposed Solutions

To address these challenges, Akintunde recommended several reforms:

1. Institutional reforms to localize the Rural Electrification Agency (REA) and improve energy consumption.
2. Public policies that enhance both the quantity and quality of electricity services, supported by macroeconomic strategies.
3. Incentivizing private sector involvement in electricity access for rural areas.
4. Promotion of renewable energy technologies to diversify energy sources.
5. Increased investment in education to raise awareness about clean and efficient energy use.
6. Development of mobile infrastructure, microloans, and payment solutions for low-income individuals.

He concluded by advocating for a collaborative approach between the government and multilateral institutions to establish funds for innovators in off-grid power generation, further emphasizing the need for targeted policies to uplift rural communities and reduce energy poverty.

Akintunde, who received a warm welcome from the Yoruba community and university management during his visit, was later invested as the grand patron of the Yoruba community in Akwa Ibom State.