Petrol subsidy hits N2.43b daily

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The task of determining the daily consumption and subsidy on petroleum products has been taken over by the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).The development came as statistics show that the government currently pays N2.434billion daily to subsidise petrol.It was gathered that the Petroleum Products Pricing Regulatory Agency (PPPRA) saddled with the responsibility of determining the pricing template of petroleum products in the country had been unable to discharge the responsibility in the last two years.

Indeed, the PPPRA official website which displays the landing cost and other parameters for determining the price of petroleum products has been dormant in the past two years.
The Group General Manager, Group Public Affairs Division (GPAD) of the NNPC, Ndu Nghamadu, confirmed the new responsibility of the PPMC yesterday when The Guardian sought to know if the daily consumption of petrol was still 50million litres as claimed by the NNPC Group Managing Director, Dr. Maikanti Baru last year.

Nghamadu failed to call back to provide information on the current daily consumption. It is not known what parameters PPMC uses to make projections upon which NNPC base its importation regime.

Recall that only NNPC brings in products into the country and also single-handedly determines how the under-recovery is reimbursed. Before now, PPPA was saddled with the responsibility of verifying, while the Federal Ministry of Finance also verifies the veracity of the claims by marketers as well as authorise payment through the Central Bank of Nigeria (CBN)

The task of determining the daily consumption and subsidy on petroleum products has been taken over by the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).The development came as statistics show that the government currently pays N2.434billion daily to subsidise petrol.It was gathered that the Petroleum Products Pricing Regulatory Agency (PPPRA) saddled with the responsibility of determining the pricing template of petroleum products in the country had been unable to discharge the responsibility in the last two years.

Indeed, the PPPRA official website which displays the landing cost and other parameters for determining the price of petroleum products has been dormant in the past two years.
The Group General Manager, Group Public Affairs Division (GPAD) of the NNPC, Ndu Nghamadu, confirmed the new responsibility of the PPMC yesterday when The Guardian sought to know if the daily consumption of petrol was still 50million litres as claimed by the NNPC Group Managing Director, Dr. Maikanti Baru last year.

Nghamadu failed to call back to provide information on the current daily consumption. It is not known what parameters PPMC uses to make projections upon which NNPC base its importation regime.

Recall that only NNPC brings in products into the country and also single-handedly determines how the under-recovery is reimbursed. Before now, PPPA was saddled with the responsibility of verifying, while the Federal Ministry of Finance also verifies the veracity of the claims by marketers as well as authorise payment through the Central Bank of Nigeria (CBN).

Air of uncertainty currently envelops the PPPRA as the NNPC has silently taken over one of its crucial responsibilities and the Executive Secretary of the agency, Abdulkadir Umar Saidu, seems helpless.

As at yesterday, a gallon of petrol costs $2.54 Cent in the United States of America. The Naira equivalent of $2.54 Cent at official rate of N305 to the dollar is N774.7kobo. Therefore, the landing cost of a litre of petrol should be N193.68kobo (excluding freight and other port charges).

At 50million litres daily consumption, Nigeria currently pays N2.434billion per day subsidising petrol. An industry expert told The Guardian under condition of anonymity that it was time for Nigeria to do away with subsidy in order to free money for development purpose. The source said: “It is clear that if Nigeria does not do away with subsidy, the economy would crash in no distant time. How would government implement the new minimum wage?”.

How will government fund education as demanded by the unions in that sector? How would government fund health, which is in shamble? How will government tackle poverty, which is principally fuelled by absence of critical infrastructure that will unleash the innate capacity of the Nigerian people? Why would government not use deregulation as a precondition for the implementation of a living wage that is far beyond the N30, 000 being demanded?”

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PROFILE OF IKECHUKWU ANYANWU Ikechukwu Anyanwu is an Imo State born Nigerian. An Author, Public Speaker, Humanitarian, Blogger, Media Guru and Start-up Coach. He has inspired millions through Arise Africa Network Platform He Is Into Education, Media, Entertainment, Showbiz and Hospitality Industry. Having calved a nitche for himself as a leadership expert, human capital development and management consultant. He is currently the Chairman, Online Media practitioners Association of Nigeria, Imo State Chapter. Ceo Arise Africa Magazine, Founder Arise Africa Network – a non-profit organization. Face of Arise Africa, Managing Consultant GCFN Consult. Member, Imo State Bloggers Association. Ag National President, Association of Pageant CEO’s of Nigeria Human Resource Specialist and Leadership Coach with astute impact on many seeking to maximize their skills, intellectuals and innate potentials He has a track record of reproducing leaders and helping them to gain dominance within their nitch. Mr Anyanwu after a rich career that spanned for 18 years having worked as Human Resources Manger, Outlet Manager Rennys Foods Limited from 2004 – 2019, Management Consultant for various Quick Service Restaurants in Abuja, Enugu, Rivers State, Abia, Ebonyi, Kogi and Imo State is now focusing on helping young people to discover, develop their talents. He has built lots of platforms for young people of Africa to express their talents. He is passionate about writing, consulting, coaching and training. He blogs regularly via www.ariseafrika.com and has a thriving social media followership. He is a graduate of Sociology/Anthropology, Imo State University whose passion is to impart knowledge by educating, equipping and empowering young minds for the future. He is an alumni of Living Word Training Center He is also the West African Representative of All African Media Networks He is married to Mrs Carol Anyanwu and blessed with 3 sons.

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