Wednesday brief: Hypocrisy is why Nigeria can't fix fuel scarcity
+ Buhari says Nigeria will end petrol, diesel generators by 2060
Good morning.
Today we are focused on Nigeria’s fuel scarcity problems, the local government autonomy bill and Buhari’s promise to end petrol and diesel generators by 2060.
Hypocrisy won't let Nigeria fix its fuel scarcity problem
Last week Thursday, the Department of State Services (DSS) issued a 48-hour ultimatum to stakeholders in the oil and gas sector, asking them to end fuel shortages nationwide. The deadline has since passed and, while some have argued that the ultimatum prevented a worse crisis, it remains difficult to buy petrol in parts of Lagos.
On Tuesday, the House of Representatives also directed the Nigerian National Petroleum Company Limited (NNPCL) to fix the problem within seven days.
The NNPCL doesn’t have a magic wand but it has now decided to supply fuel to independent oil marketers at N148 per litre.
If you’ve been reading this newsletter, you might have already spotted the problem.
Oil marketers had been lifting the product from private depots at about N200 per litre, making it almost impossible to sell at the government mandated price of ~N169. That meant some marketers were unable to lift products at all, leading to a shortfall in distribution.
There are a number of reasons why private depots raise prices but all points to a rising cost of doing business.
To be clear, the NNPCL, which is the sole importer of petrol into Nigeria, doesn’t have the infrastructure to distribute fuel to all independent oil marketers, which is why it needs the private depots. So, its assurance of a N148 per litre price can only mean one thing - subsidy. Someone has to pay the cost of distribution.
Now, if you’ve been following the conversation about subsidy in Nigeria, you should know Nigeria cannot afford it. In fact, NNPCL, for months, has not remitted a dime to the federation account. In August, the company said it deducted N525.71 billion as a shortfall for the importation of petrol - in other words, subsidy.
Of course, any reasonable person may suggest that petrol prices should be allowed to rise, but elections are just a few weeks away. And no one wants another #OccupyNigeria.
So, let’s keep playing the hypocrisy game, pretending, like the DSS, that some supernatural elements are holding back Nigeria’s destiny and conjuring fuel queues. And then we issue ultimatums, like a prayer arrow sent to pierce through the enemy’s camp. As my people say, everybody go dey alright last last.
Rallies set to hold for local government autonomy
The Nigerian Union of Local Government Employees said it plans to meet with President Muhammadu Buhari and hold rallies nationwide over the delayed passage of the local government autonomy bill next week.
I believe this is the most consequential bill in the history of democracy in Nigeria, as it gives local governments financial independence which can help spur real grassroots development.
The bill has been passed by the National Assembly, but two-thirds of the State Houses of Assembly also have to approve it. Some states are yet to consider it, nine months after it was transmitted to them from the National Assembly.
According to Punch Newspaper, Lagos, Ekiti and Benue Houses of Assembly opposed the bill, while Adamawa State abstained.
Meanwhile, Abia, Kogi, Edo, Ogun, Katsina, Delta, Akwa Ibom, Anambra, Nasarawa, Niger, Kaduna, Cross- River, Osun, Enugu, Kano and Bauchi states have voted for LG autonomy, according to the paper.
Quote: “What I know is that a sizable number of governors that I’ve engaged all want local government autonomy,” Kolade Alabi, a local government union executive said. “And any governor that wants a prosperous Nigeria must embrace LG autonomy. It’ll definitely come to fruition, as that is the only way we can improve the lives of Nigerians.”
US, UK react to report of child killings by Nigerian army
Reactions have been trailing Reuter’s recent report on the killing of children by the Nigerian army.
The report said the Nigerian army had murdered an estimated thousands of children as part of its war against Islamic insurgents in the North-East.
The U.S. military asked Nigeria to conduct an independent investigation into the allegations.
"The Department of Defense is concerned by the allegations reported in the Reuters article, and we join our colleagues from the State Department in urging the Government of Nigeria to conduct an independent investigation," a Pentagon spokesperson said in a statement.
Speaking in parliament, Britain’s minister of state for development and Africa, Andrew Mitchell, said the report was of “immense concern.”
He added that the UK would raise the issue via its high commissioner in Abuja.
The Nigerian military has already described the report as untrue, accusing Reuters of disrespecting the nation.
What else is happening?
2023 campaigns continue: Peter Obi promised to raise the minimum wage in Lokoja. Bola Ahmed Tinubu, in Kaduna, said he will eliminate kidnappers and other troublemakers. In Jos, Atiku Abubakar vowed the restoration of peace.
Senate matters: Lawmakers in the red chamber postponed a debate on the Central Bank of Nigeria’s withdrawal limits. They also allowed, to pass the second reading stage, a bill that seeks to limit the president’s powers to remove the chairperson of the anti-graft agency, EFCC.
Net zero: In New York, President Muhammadu Buhari said Nigeria will completely eliminate the use of petrol, diesel generators by 2060.
Tems season: The pop star has been nominated for a Golden Globe award for her role in creating Rihanna’s ‘Lift Me Up’, the Wakanda Forever soundtrack. “My God! This one is too much,” she tweeted.
Digital tax: Nigeria’s advertising regulator, ARCON, said skitmakers, social media influencers and bloggers must seek its approval before advertising any product or service online.
Odd world: Norwegian officials had to remind Twitter on Tuesday that Norway != Nigeria after the platform mistakenly labelled them for several hours.
Cyril Ramaphosa: The South African President survived a vote that could have led to his impeachment.
And that’s it for today. See you tomorrow.