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It makes no sense for Petrol to be cheaper in Nigeria than Saudi Arabia – President Buhari

Nigeria sells petrol at N161 per litre when the same is sold at higher in Saudi Arabia, Egypt, Ghana, Chad, and Republic of Benin.

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The Federal Government has said that it does not make sense for oil to be cheaper in Nigeria than Saudi Arabia, Egypt, Niger Republic and Republic of Benin, other oil-producing nations.

This was disclosed by President Muhammadu Buhari during his Diamond Jubilee Presidential Broadcast to mark the nation’s 60th independence anniversary on Thursday.

READ: Apple becomes world’s largest public listed company, valued at $1.82 trillion

He said, “We sell petrol at N161 per litre when same is sold at N168/litre in Saudi Arabia, N211/litre in Egypt, N362/litre in Ghana, N362 in Chad, and N346 in Niger Republic among others.

“It does not make sense for petrol to be cheaper in Nigeria than Saudi Arabia.

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READ: Presidency denies building rail line from Nigeria to Niger Republic

Fellow Nigerians, to achieve the great country we desire, we need to solidify our strength, increase our commitment and encourage ourselves to do that which is right and proper even when no one is watching.”

 

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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

11 Comments

11 Comments

  1. Oluolu

    October 1, 2020 at 8:28 am

    I will like to know from the president if the situation of citizens and oil production in the countries he mentioned are same with Nigeria. Very disappointing we have very insensitive leaders. Nigerians are terribly unfortunate to have elected those who hate them and regulates affairs of our nation in ways that life become so difficult here than countries that do not have one tenth of the resources God blessed us with.

  2. Sani s umar

    October 1, 2020 at 4:58 pm

    Pls dont ever compare Saudi Arabia with Nigeria,when saudia is doing anniversary,they spent how many years they are not taking light in single one hour.

  3. Anonymous

    October 1, 2020 at 5:07 pm

    Dear Mr President @MBuhari ,
    Please it does not make sense for Saudi Arabia to be paying ₦460,000 as minimum wage while you pay ₦30,000! Kindly pay Nigerians same minimum wage as Saudi Arabia and make fuel ₦500 they will pay

    • Abraham Obode

      October 1, 2020 at 7:05 pm

      I want to believe that statement credited to the President is false and a distortion of what he really said.
      But if it’s true he really said that in the face of his position to know and understand the standard of the economy in Saudi Arabia, minimum wage pay, their lights,roads and other basic infrastructure and amenities in that country and still made that statement, then it’s very unfortunate that I voted for him to be my president. It then means that this country is doomed and I sincerely regret that my vote.

  4. Anonymous

    October 1, 2020 at 5:51 pm

    Saudi Riyal is 1 to 100.50 naira. Hence, a litre of fuel in Saudi Arabia is not up to 100 naira

    • Ridwan Adeoye

      October 8, 2020 at 8:52 pm

      If true the president said so, it totally wrong…….

  5. NIB

    October 1, 2020 at 6:22 pm

    We sell petrol at N161 per litre when same is sold at N168/litre in Saudi Arabia, N211/litre in Egypt, N362/litre in Ghana, N362 in Chad, and N346 in Niger Republic among others. It does not make sense for petrol to be cheaper in Nigeria than Saudi Arabia.” – In as much as I see reason with the need for petroleum subsidy removal Megida Excellency Buhari, I ask with extreme humility and without prejudice Sir, does it make sense for our living standard and ruling elites accountability to be less than that of Saudi Arabia?

  6. Kenneth Okoji

    October 1, 2020 at 6:25 pm

    It very clear that our president is deficient in economic analysis and governance.
    So sad, it’s not a comparison of apples versus apples

  7. Shakour Ogunsanya

    October 2, 2020 at 5:57 pm

    It’s very unfortunate to hear such a statement from our well respected PMB comparing Saudi economy with our corrupt economy where nothing is working. Mr President should go and check the inflationary rate and cost of living in Saudi Arabia compare to Nigeria if he’s not going to bury his head in shame. Our deliberately turned everybody to a pauper with foolish policies.

  8. Oori

    October 2, 2020 at 6:03 pm

    Now we can all see why it is good to be patience with each other and think it black and white before shouting or taking any opposition action, all the things that A.P.C condemned during the GEJ administration is the practice of the day, it bites even harder than we can imagine, the cry of the people today is as good as “Bring Back Our Jonathan” things that all Nigerians use to benefits before is now available for the few. We need an enabling environment to enable us cope with such 200% sudden increase in price of everything

  9. Anonymous

    October 6, 2020 at 9:26 am

    You knw about this buh you don’t knw their payment to their citizens, Your shame is affecting vry serious here your party nd ur government is evil nd wicked

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Energy

Nigerian firm set to raise $1.2 billion to purchase electricity meters

MAPCo plans to raise N480 billion to purchase electricity meters and to help the DISCOs plug revenue gaps in their operations.

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The Nigerian Electricity Regulatory Commission (NERC), National electricity grid collapses again, as NUEE suspends strike action , FG to increase electricity tariffs in order to improve power supply, Power: Liquidity crisis-same old story in 2020?, GenCos urges NBET to pay up N1 trillion debt, Electricity Tariff: FG, electricity stakeholders to work on equitable rate , Power: NERC applies "brakes" on hike in tariffs, NERC to sanction 7 DisCos over uncapped estimated billing

A Nigerian firm, Meter Assets Finance and Management Company (MAPCo), has concluded plans to raise N480 billion ($1.2 billion) over the next 3 years, to purchase electricity meters and help the electricity distribution companies (DISCOs) plug revenue gaps in their operations.

This is also in line with the Federal Government’s initiative to ensure that all electricity consumers are metered, which will put an end to estimated billing by the DISCOs.

According to a report from PricewaterhouseCoopers, less than one-tenth of Nigeria’s 41 million households have their electricity consumption metered, and half of those are faulty. As a result, distribution companies have to estimate bills, resulting in constant conflict with the consumers that delay payments.

The Chief Executive Officer of New Hampshire Capital, Onion Omonforma, said the Meter Assets Finance and Management Co. hopes to end the practice of estimated billings by raising funds to purchase and supply meters to consumers.

New Hampshire Capital, FBNQuest and Kairos Investments Africa are helping to package and structure the venture, known as MAPCo, for investors to either buy equity or inject debt into the company.

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What they are saying

Omonformaa said, “The electricity distribution firms will then have the money to go back and buy more meters and the cycle continues, paving the way to close the metering gap. MAPCo will collect the cost of the meters from consumers at a premium over the next 10 years. The meters will be handed over to the power-distribution companies once paid off.’’

While disclosing that MAPCo plans to issue a N100 billion bond in the next year, Omonforma also pointed out that roadshows have been planned for the U.S. and Europe, and will include local institutional investors.

He said, “We envisage that a lot of people who are looking for a long-term instrument will key into it,”

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It can be recalled that apart from repealing the estimated billing methodology in determining tariffs for electricity consumers; the Federal Government had insisted that all consumers must be metered, as part of the condition for a tariff increase.

Also, as part of the agreement reached with the organized labor in respect of the tariff increase; the Federal Government disclosed that the National Mass Metering Programme will be accelerated, with the distribution of 6 million meters to Nigerians for free.

What this means

A huge number of electricity consumers across the 36 states and the FCT are still unmetered by their respective DISCOs. This initiative by MAPCo will help bridge the existing gap, with more electricity consumers acquiring a prepaid meter and doing away with the controversial estimated billing.

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Energy

N1.5trillion accumulated losses of NNPC, a serious going-concern risk – PWC, SIAO Partners

The auditors of NNPC have raised doubts over the inability of the Corporation to continue as a going concern following rising and humongous losses.

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NNPC

According to the recently published 2019 Audited Financial Statements, the Nigerian National Petroleum Corporation (NNPC) Group and Corporation had an accumulated loss of N1.9 trillion and N474 billion respectively. The Auditors of NNPC, made up of Pricewaterhouse Coopers, SIAO Partners, and Muhtari Dangana & Co. have raised serious doubts over the inability of NNPC to continue as a going concern following rising and humongous losses, resulting in the negative capital base.

READ: U.S. budget suffers a deficit of $3.1 trillion in 2020, as pandemic slams the economy

In their report, the auditors disclosed that there is an existing material uncertainty that casts significant doubts on the ability of the NNPC to escape bankruptcy – as there are serious impairments on the company’s ability to generating sufficient revenues to meet its immediate obligations as at when due.

READ: NNPC reveals survival strategies to cope with oil sector downturn and new normal

What you should know

  • In its joint report to the stakeholders, the auditors gave an unmodified opinion and drew attention to the fact that the NNPC Group and Corporation recorded net losses of N1.8 billion and N107.8 billion respectively in 2019, compared to N803.1 billion and N254 billion in 2018 respectively. While its current liabilities exceed its current assets by N4.4 trillion and N1.1 trillion for the Group and Corporation respectively, compared to N3.3 trillion and N968.7 billion in 2018 respectively.
  • NNPC Group and Corporation’s current assets, according to the financial statements, stood at N5.3 trillion and N4.5 trillion in 2019, while total current liabilities stood at N9.7 trillion and N5.6 trillion respectively.
  • In 2018, NNPC Group and Corporation’s total current assets stood at N5.4 trillion and N4.8 trillion respectively, while total current liabilities stood at N8.7 trillion and N5.7 trillion respectively.
  • The accumulated losses according to the financial statement are approximately N1.5 trillion and N474 billion, compared to N1.6 trillion and N490.7 billion for the Group and Corporation in 2018 respectively.

READ: NNPC explodes, denies custody of $3.5 billion subsidy fund

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What to expect

  • The Management of the corporation is currently executing robust mitigation procedures, as it is receiving the requisite support from the Federal Government to ensure that the Group and Corporation have adequate resources to continue in operational existence for the foreseeable future.
  • To make the Group and Corporation commercially viable, the Federal Government had commenced the elimination of cost drivers responsible for the accumulation of the shortfalls in settling Domestic Crude Obligation; and the introduction of the Price Modulator mechanism in the Petroleum Products Pricing Regulatory Agency (PPPRA) template, designed to eliminate the major cause of the losses.
  • The Federal Government is also minimizing breaches to the country’s pipeline networks; pursuing the passage of the Petroleum Industry Bill, PIB, and its implementation, which would restructure the petroleum industry, improve transparency and governance, and also give the NNPC the autonomy to operate profitably.
  • The NNPC Management further revealed the plans to recapitalize the NNPC with steps to resolving all the outstanding related party payables and receivables and enable a clean slate start prior to recapitalization.

READ: Nigerian Stock market records sixth consecutive losses, investors lose N15.55 billion

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READ: NNPC to end oil-for-fuel swap system

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Energy

FG to inject over N198 billion on capital projects in power sector in 2021

The Federal Government plans to inject N198.27 billion on various capital projects in the power sector across Nigeria in 2021.

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FG Power storage and distribution

The Federal Government plans to inject N198.27billion on various capital projects in the power sector across Nigeria in 2021.

This was disclosed in the 2021 Appropriation Bill, which President Muhammadu Buhari presented to the National Assembly recently.

READ: Buhari presents N13 trillion 2021 Budget to National Assembly

Breakdown:

* National rural electrification, managed by the Rural Electrification Agency, will invest a total of N17.86billion on power infrastructure development in rural communities.

READ: CBN to sanction exporters who default on export proceed number

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* The Nigerian Electricity Regulatory Commission plans to invest N294.1million on capital projects, while capital projects to be handled by the Nigerian Electricity Management Services Agency will gulp N441.1million.

* The allocation for capital projects to be handled by the Transmission Company of Nigeria, as contained in the proposed budget, is N4.69billion.

READ: Buhari earmarks N420 billion for N-Power, GEEP and others under NSIP in 2021 budget

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* The capital outlay projected for 2021 by the Nigeria Electricity Liability Management Limited is N914.87million, while the National Power Training Institute targets to invest N294.1million.

* The total overhead for the entire ministry and its agencies was N1.16billion.

* The amount budgeted for personnel in the power ministry and its agencies is N4.9billion.

READ: Update: Buhari seeks power to freeze accounts, clamp down on money launderers

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