Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has reassured that the lingering fuel scarcity
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| Kachikwu |
The minister, who was speaking in
Abuja yesterday at a town hall meeting when he visited the Petroleum Products
Pricing Regulatory Agency (PPPRA), also stated that Kano, Katsina, Sokoto, Port
Harcourt and Warri would also experience relief from the crisis as the queues
would disappear at the weekend in those places.
While noting that strategic policies
need to be taken to avoid recurrence of the crisis, he said, “There isn’t
sufficient reason why Nigerians should suffer this much, we just need to take
the right policies as difficult as it comes. We need to take the right policies
to ensure that we do not have this recurrence of fuel scarcity. It’s been with
us historically, but I don’t want that to define my legacy in the petroleum
industry.
“Hopefully, by tomorrow (today)
through Thursday, the fuel queues in Abuja should be over. Hopefully the same
thing will happen to Lagos and thereafter, by the weekend, we should see Kano,
Katsina, Sokoto and Port Harcourt and Warri get off this state.”
He observed that fuel queues were
less in the states because people were paying more to get the product, saying
there was some statistical philosophy that ought to be looked at in terms of
whether the product was rightly priced. The minister, who hinted on a possible
privatisation of the sector as lasting solution to its funding crisis, also
explained that the country needed more robust strategic reserve for timely
response to fuel shortages.
He said: “What concerns me more is
not getting the present queues out; that will definitely wear out. What concerns
me more is how you avoid having fuel scarcity ever again in this country; and
to do that, there are certain things we need to do. First is that strategic
reserve has not been in this country for over 20 years. We need to bring back
strategic reserve that should serve 60 to 90 days type of product hold so that
we can respond within a matter of hours when there is shortage in any part of
the country.
“Second, we need to find how to
handle allocation of resources. For the first time, I have been able to convince
the major oil producers to allocate scarce foreign exchange to the downstream
players to enable them bring in product. But that’s not a futuristic long term
solution, so we need to find a way of being able to fund this sector to do its
work. And there is no better way than to steer it to that path of
privatisation; we are going to have to look at that.”
Kachikwu, however, maintained that
the possible privatisation of the sector would not necessary be synonymous with
an increase in price, adding that the price modulation mechanism in place,
would ensure appropriate pricing.
Debunking reports that government
had returned to subsidising fuel subsidy, Kachikwu explained that “the reality
is that the first two months of price modulation, our recovery enabled us to
save quite a lot of money and that is going to fund the gap that you see in
April. But from May, obviously, the price would be adjusted to match the
current trend.”
The minister, who pointed out that there
wasn’t any problem without a solution, noted that what needed to be done was to
research thoroughly, find solution and execute it.
He said that was what he had been
doing, “because the petroleum ministry is the last hope of Nigeria, we are the
90 per cent earner, we are the foreign exchange galvaniser, if we fail, this
country fails, like we almost did.”
He stressed the need to ensure
accountability and professionalism in the operations of the sector, adding,
“Everything we do is a mirror of what Nigeria needs to do to be successful as a
country. If there is no power, we complain, but if there is no fuel, we will
bring down this country. If there is fraud anywhere, we will say well, that is
OK, but if there is fraud in NNPC, we will bring down this country and what it
says to you is that so much is expected of this ministry and we must take
leadership.”
IPMAN denies responsibility for
fuel scarcity
The national operations controller
and the immediate past association national secretary of Independent Petroleum
Marketers Association of Nigeria (IPMAN), Mr Mike Osatuyi has debunked reports
that his IPMAN claimed responsibility on Monday for the lingering fuel scarcity
across the country.
A statement credited to Mr Lawson
Ngoa, who claimed to be the interim management secretary of IPMAN, had blamed
the fuel crisis on the association.
But Mr. Osatuyi, in a statement
yesterday, said Mr. Ngoa was a mere fifth columnist and was working for the
Petroleum Resources Ministry.
“Mr Lawson Ngoa is not a member of
IPMAN, but an agent of the Ministry of Petroleum Resources brought in to
mediate in the internal crisis of IPMAN”.
According to him, “While the
intervention of the minister of state for Petroleum Resources, Dr. Ibe Kachikwu
in resolving the internal crisis in IPMAN is appreciated and commendable, the
forefathers, past presidents, leaders of IPMAN and the general members of IPMAN
nationwide will not allow Mr Lawson Ngoa, who is not a marketer, less an IPMAN
member, to use IPMAN as a shield to defend or protect a system failure of NNPC.
He said “It is pure defamation of
IPMAN’s image to go on air that IPMAN had accepted the responsibility for the
scarcity of Petroleum Products and that Nigerians should hold IPMAN responsible
for the Scarcity.
“Crisis in IPMAN with government
intervention is not new today. Previous government agencies had intervened in
IPMAN crisis without blackmail from the agencies concerned, right from the time
of Alhaji Jarfau Paki, the then special assistant to former President Olusegun
Obasanjo on Petroleum Matters to Dr. Oluwole Oluleye, the former executive
secretary of Petroleum Product pricing Regulatory Agency (PPPRA). These people
intervened in IPMAN matter without blackmailing the association. Some former
managing directors of PPMC had also intervened in IPMAN matter without
destroying IPMAN’s name.”
According to him, “IPMAN controls
over 80% of the retail outlets in the country and IPMAN has partnered with
previous governments to solve previous fuel crisis without damaging the
association name.
“It is also on record that no member
of IPMAN has voiced out against peace since this government stepped in to
resolve IPMAN crisis few days ago. That is evidence that IPMAN and all IPMAN
members want peace and are ready to embrace peace for seamless operation of the
association administration and by extension the Nigeria oil sector.”
He charged “IPMAN doesn’t want any
government agents, representatives or coordinators that will add more wound to
the association’s injury or destroy the association’s name that was established
over 35 years ago. IPMAN members nationwide have invested trillion of naira in
the Nigerian downstream oil sector”.
“I am sure, Mr Lawson is not aware
or knowledgeable of the gravity of his statement credited to IPMAN and Nigerians
who have been suffering for weeks for somebody’s system and planning failure.
It was an unfair statement and he has to apologise to IPMAN and Nigerians for
deceiving the populace.
He went ahead to pose a number of
questions to Mr. Ngoa.
“Mr Lawson Ngoa should answer the
following questions to Nigerians: Does IPMAN issue import permit? Does IPMAN
allocate forex for import? Is IPMAN involved in import planning of NNPC? Was it
IPMAN that altered the 60 /40 import permit formula? Was it IPMAN that failed
to carry other stakeholders along? Is it IPMAN that is responsible for
Infrastructure decay of NNPC?”
Mr. Osatuyi concluded that “Mr
Lawson Ngoa has no authority or mandate to be using IPMAN’s name to shield any
of the government agencies in the Nigerian oil sector for any operational or
administrative mismanagement. Once again, IPMAN is ready to work with the
government in ensuring that products are available to Nigerians so as to
deliver the promises of the government to the masses.”
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