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Senate sets up Ad-hoc C’ttee to investigate importation of adulterated diesel into Nigeria

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By George Mgbeleke (Abuja)

Senate has  set up an Ad-hoc committee to investigate importation of adulterated diesel and fuel into the country to undermine the economic prosperity of the country.

Senate President Godswill Akpabio who announced the 15-man committee appointed the Senate Leader, Opeyemi Bamidele (Ekiti Central) as the chairman.

Senate decision to set up the Ad-hoc committee was sequel to adoption of a motion on “Need to investigate the continued importation of Hazardous Petroleum Products and dumping of substandard Diesel into Nigeria” sponsored by Senator Asuquo Ekpeyong (Cross River South).

Senator Ekpeyong noted with deep concern the continued importation of hazardous petroleum product and dumping of substandard diesel into the Nigeria;

He observed that on 16th June, 2024, it was reported that 12 diesel cargoes, conveying a total of 660kt of diesel was exported by refineries to offshore Lome, Togo for further distribution to West African markets, mainly Nigeria;

“Also notes that the quality of the said diesel is below the Nigerian standard in terms of flash and Sulphur levels. However, in spite of the substandard nature of the diesel, it still finds its way into the Nigerian markets, as a track on Mt “Kallos” which arrived Lome on the 16th of June, which immediately did ship-to-ship (STS) transfer to DV MT (Matric Triumph” and then proceeded to discharge into Matric Jetty in Warri on 21st June, 2024. Thereafter, another STS was made to DV MT “Matric Pride”, which then proceeded to discharge into Obat Oil terminal on 22nd June, 2024;

He noted that the “diesel is priced below fair market value, which constitutes dumping on the World Trade Organisation (WTO) rules, which stipulates that countries are permitted to take measures to protect their local industries in the event of dumping. The WTO also recognises the impact of dumping on domestic industries, and therefore stipulates tariff regimes, such as anti-dumping duties and import restriction measures to ensure that domestic producers are not unfairly disadvantaged;

“Aware that even though the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has recently revised the standards of diesel importation into Nigeria in line with the Petroleum Industry Act, 2021, it is apparent that they are incapable of enforcing compliance with the standards;

“Also aware that NMDPRA has persistently continue to issue import licenses for diesel and jet, despite sufficient local production capacity. Therefore, the best also option for protecting Nigerians and our local refineries against dumping is to place a total ban on the importation of diesel in so far as our local refineries can meet the Nigerian demands;

“Further aware that the said ban on importation of diesel will be beneficial to the Nigerian petroleum Industry and indeed the entire nation, and as such, the NMDPRA should cease to issue import licenses in order to address all concerns. However, if the situation is allowed to continue, local production will have no option than to stop the commissioning of gasoline units and shutdown refineries until regulatory environment improves. This is against the backdrop that local production has been able to sell on 20kt of jet fuel in the last 3 months, relative to local demand of 180kt over the same period”.

Contributing to the motion, Senator Solomon Olamilekan (Ogun West), chairman Senate Committee on Appropriation expressed disappointment with the operation of if the Petroleum Industry Act (PIA) by some government officials in the petroleum and gas sector, adding that “heads must roll” as the upper chamber hopes to carry out a major reform.

According to the Ogun West senator, “there are some information we can’t share here”.

The Senate Chief Whip, Ali Ndume in his contribution, said Dangote has complained loudly that if he had known the problems that he was going to encounter, he wouldn’t have started the Dangote Refinery as he is being frustrated locally in addition to that of the international oil companies (OIC).

He said the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issues licences to import adulterated foreign diesel deliberately to put Dangote out of business, adding that the Ad-hoc committee should find out why Dangote Refinery is forced to sell its diesel outside the country while toxic diesel is imported into Nigeria at the same time.

The Senate after thorough debate on the motion on urgent national importance, accordingly resolves to set up an Ad-Hoc Committee to “Examine the pre-shipment and pre-discharge standard test parameters, adopted by the Nigerian Midstream and Downstream Regulatory Authority, with a view to uncovering loopholes, if any, exploited to get toxic cargoes into the country”.

Other prayers of the motion, which now forms the terms of reference for the Ad-hoc committee are as follow:

“Determine the level of compliance of the NNPCL’s Direct Sale and Direct Purchase (DSDP) arrangements in line with the provisions of the Petroleum Industry Act, including the extent of transparency and accountability in the scheme;

“Beam legislative searchlight on the activities of the Petroleum Equalisation Fund, including payments made to transporters in the last 10 years;

“Enquire from the NNPCL the state/status of the 22 Depots built by the NNPC to eliminate road distribution of petroleum products;

“Engage with stakeholders within the oil and gas industry with a view to identifying possible gaps in regulating and strengthening the surveillance and monitoring structures in place to enable Nigeria detect violations of best practice standards in the importation of products before they enter into domestic supply chains;

“Also engage with the NNPCL with a view to understanding the extent of its determination and timelines for the start-up of Government funded oil refineries; and

“Investigate how institutions across the importation and distribution chain failed to conduct quality sampling, shipped in products without auditing, port validations by the Nigerian Customs Service; Department of Petroleum Resources (DPR); National Maritime Authority (NMA); and Standard Organisation of Nigeria (SON)”.

Members of the committee include Senators Asuquo Ekpeyong (Cross River South), Abdullahi Yahaya (Kebbi ), Tahir Monguno (Borno North), Solomon Olamilekan (Ogun West), Diket Plang (Plateau South), Ipalibo Banigo (Rivers West), Saliu Mustapha (Kwara Central), Adams Oshiomhole (Edo North), Adetekumbo Abiru (Lagos East), Osita Izunaso (Imo West), Sahabi Ya’u (Zamfara North), Abdul Ningi (Bauchi Central).

The committee has three weeks to submit its report before the Senate proceeds on its annual recess at the end of July, 2024.

Business & Economy

FG Secures Release of 98 Transmission Equipment Containers Stranded for Decades

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Minister of Power, Joseph Tegbe(right),Comptroller-General of Customs, Bashir Adeniyi,(2n right)

By Jacob Moses,Abuja

The federal government, through the Ministry of Power under the Minister Joseph Tegbe, has secured the release of transmission equipment that have been stranded at the nation’s ports fortwenty years.

Announcing the development at a media briefing in Lagos, Tegbe said the first 44 containers were released from the ENL Terminal and another 54 from the APMT and Sun & Moon Terminals, bringing the total to 98 of over 300 containers held.

The minister explained that the equipment, which includes high-capacity transformers, cables and switchgear, was procured to expand the transmission network and relieve overloaded substations.

Its detention stalled projects, kept existing substations under heavy strain, exposed valuable assets to deterioration and accumulated charges on the cargoes.

He noted that the cost is felt daily by businesses spending more on alternative power, families enduring interruptions and public institutions struggling to maintain essential services.

The release is in response to President Bola Ahmed Tinubu’s directive that the cargoes be cleared immediately, and the Minister and the Comptroller-General of Customs swung into action, working tirelessly to secure it.

Tegbe credited the president for the breakthrough and thanked the Ministers of Finance and of Marine and Blue Economy, the Comptroller-General of Customs, and officials of the Ministry of Power and its agencies.

Speaking at the event, the Comptroller-General of Customs, Bashir Adeniyi, said the release follows the president’s directive for immediate clearance and for agencies to resolve outstanding charges and administrative bottlenecks without delay.

Customs has begun steps to clear the containers, working with the Ministry of Power, the Nigerian Ports Authority and terminal operators.

He pledged to work hand in hand with the Minister until all the containers are cleared, and appealed to terminal operators to give Nigeria the support required for an important national quest.

Upon inspection, most of the equipment was found to be useful and viable. When evacuated, it will be verified, tested and refurbished where necessary, then deployed to project sites to complete stalled installations, relieve overloaded substations and strengthen constrained transmission corridors.

As these projects enter service, they are expected to deliver fewer interruptions from overloading, better voltage performance and a stronger network to carry electricity to homes, businesses and essential services.

Tegbe assured Nigerians that the Ministry would follow the recovery through to installation and commissioning and provide updates on the remaining containers, expressing confidence that they would be released without further delay.

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Business & Economy

Coastal Highway Will Unlock Blue Economy Corridor-Sen.Imasuen … As ABER Pushes for Nigeria Senate Blue Economy Caucus

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By David Owei

The Chairman, Senate Committee on Ethics, Privileges and Public Petitions, Senator Neda Imasuen (Edo South), has described the Lagos-Calabar Coastal Highway as a game-changer that will unlock Nigeria’s Blue Economy corridor and create new opportunities for littoral communities.

Senator Imasuen made the remark on Wednesday in Abuja when the Founder and Convener of the Africa Blue Economy Roundtable (ABER), Dr. Piriye Kiyaramo, led a delegation on a courtesy visit to his office at the National Assembly.

He commended ABER’s advocacy for a community-owned Blue Economy and pledged to study its proposal for the establishment of a Nigeria Senate Blue Economy Caucus (NSBEC).

Presenting the proposal, Dr. Kiyaramo said that despite Nigeria’s 853km coastline, over 3 million artisanal fisherfolk and an estimated $70 billion annual Blue Economy potential, the country still lacks a dedicated parliamentary mechanism to legislate, coordinate, budget and provide oversight for the sector.

“We lose $2.3 billion annually to illegal, unreported and unregulated (IUU) fishing. We lose mangroves and young lives at sea. Without law, there is no Blue Economy; there is only blue anarchy,” he said.

Dr. Kiyaramo noted that the proposed Caucus is modelled after the East African Legislative Assembly (EALA), which governs Lake Victoria for seven countries.

“If EALA can govern Lake Victoria, the Nigerian Senate can govern the Gulf of Guinea front,” he stated.

He said the NSBEC is anchored on ABER’s vision of a connected, competitive and community-owned Blue Economy where no fisherfolk is left behind.

According to him, the Caucus, when established, could canvass for the Domestication of the AU Blue Economy Strategy, the Lomé Charter, ILO Convention C188 and the FAO Port State Measures Agreement; Legislation and enforcement of the 5-nautical-mile Artisanal Exclusive Zone;
Allocation of at least 10% of marine revenue to artisanal infrastructure; and Rallying South-South States to establish Ministries of Marine and Blue Economy, emulating the Bayelsa model.

Proposed Structure

Kiyaramo recommended a 23-member Caucus comprising two Senators each from Akwa Ibom, Bayelsa, Cross River, Delta, Edo and Rivers (12), plus Lagos, Ondo and Ogun (6), three non-littoral experts, and two ex-officio members from the Federal Ministry of Marine and Blue Economy and ABER as Technical Secretariat. Senator Imasuen is proposed as Chairman and Patron, with a minimum 35% women representation.

Four Standing Sub-Committees are proposed: Fisheries, Aquaculture and Blue Food Security; Blue Tourism, Marine Transport and Coastal Infrastructure; Blue Justice, Human Rights and Gender – to work with the International Human Rights Protection Service (IHRPS Forum) West Africa Envoy to track violations, provide legal aid, ensure women’s cold-chain ownership and enforce Free, Prior and Informed Consent (FPIC); and Blue Carbon, Mangroves and Climate Resilience – with 70% of benefits accruing to coastal communities.

The Caucus is also expected to initiate three landmark Bills: the National Blue Economy Act, the Artisanal Fisheries Protection and 5nm Enforcement Act, and the Blue Carbon and Mangrove Protection Act, while partnering with EALA, the ECOWAS Parliament and the Directorate of Technical Cooperation in Africa (DTCA).

90-Day Action Plan

Dr. Kiyaramo further proposed a 90-day take-off plan including inauguration by the Senate President, engagement with the South-South Governors Forum, a Public Hearing on the Blue Justice Gap and unveiling of 100 Bankable Blue Deals, and a Senate Motion on ILO C188 ratification and 5nm enforcement.

“The Caucus will harmonize blue laws, redirect IUU losses to community jobs and position Nigeria to lead the ECOWAS Blue Parliamentary Network,” he said.

“Like EALA governs Lake Victoria for seven countries, NSBEC can govern the Gulf of Guinea for Nigeria. History will not remember us for the oil we extracted, but for the ocean we preserved.”

The high point of the visit was the decoration of Senator Neda Imasuen as Patron of the Africa Blue Economy Roundtable by H.E. Dr. Mrs. Ezeadili Appolonia Obiageri. Hajiya Medina Dauda Nadabo, Director of Communication and Public Affairs of ABER, was part of the Convener’s entourage.

Signed:
Medina Dauda Nadabo Director Communications Public Affairs.

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Business & Economy

570% Fuel Price Increase: Take Cue From Us -ADC Tells Voters — Says Cost of Living Remains Central in January Elections

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By George Mgbeleke

The African Democratic Congress (ADC) has said that the outcome of the recent United States midterm elections, in which Americans voted to replace the ruling Republican Party in Congress amidst a nearly 37 per cent increase in fuel prices in several states, points the way for Nigerian voters grappling with a 570 per cent increase in petrol prices since President Bola Tinubu removed fuel subsidies in May 2023.

Earlier, the opposition party had urged Nigerians to emulate the Americans in the immediate aftermath of the US midterm elections, in which the ruling Republican Party suffered a crushing defeat. But as the shockwaves of the election continue to reverberate across the world, the party has now claimed that the outcome of the US election confirms its own position that the cost of living and affordability have become major issues in determining electoral outcomes, urging Nigerians to take a cue from this as the country heads to the polls in January.

“The lesson from America is simple: governments must answer to the people for their economic decisions. In January, the cost of living must be at the centre of Nigeria’s democratic choice,” the party said in a statement issued by its National Publicity Secretary, Mallam Bolaji Abdullahi, on Saturday.

“On Tuesday, American voters were responding to fuel-price increases of about 37 per cent. Nigerians have experienced a far steeper increase, with average petrol prices rising from N238.11 per litre in May 2023 to N1,596.25 by May 2026, translating to about a 570 per cent increase.”

The party explained that an increase of 570 per cent in petrol prices is not just an economic statistic, but the reason transportation has become unaffordable, food prices have risen and small businesses are struggling to survive.

“Every Nigerian household is paying the price for the APC and Tinubu’s failed policies,” the statement said, adding that while the government has continued to ask Nigerians to make sacrifices for a better future, more than three years later, the government has failed to show how the removal of subsidies could possibly benefit ordinary citizens.

“As January 16 approaches, Nigerians deserve clear answers about how fuel, electricity, food and transportation would be made affordable. The APC and President Tinubu clearly do not have answers. It is for the same reason that Americans voted against the ruling Republican Party, and it is for the same reason that Nigerians should reject the ruling APC in January,” the party said.

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