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12.5kg cooking gas may sell for N10,000 by Dec – Marketers

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COOKING GAS

 

Nigerians may be in for harder times, with marketers of Liquefied Petroleum Gas, well known as cooking gas, expressing worry over the supply shortage, leading to persistent increase in the price of the commodity.

They warned that 12.5kg of cooking gas currently selling between N7,500 and N8,000 could rise to N10,000 before December if nothing was done to address the crisis.

The marketers lamented that more Nigerians had resorted to using firewood, charcoal, sawdust, among other unrefined energy sources whose prices have also begun to rise.

The Executive Secretary of the National Association of LPG Marketers, Mr Bassey Essien, disclosed this during the weekly e-discourse organised by a leading Pan-African forum, Platforms Africa, a statement on Saturday by the organisation’s Team Lead, Adeola Yusuf, said.

Platforms Africa is the e-community of intellectuals, policy moulders and opinion leaders on the continent.

Essien maintained that government needed to review the recently introduced import charges and Value Added Tax, else “the price of cooking gas may as well reach N10,000 for a 12.5kg cylinder.”

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He said, “Today (Saturday), the price has risen to N7,500 and N8,000. The skyrocketing price of gas is our fear and what we are trying to avoid. Early in the year a 20-metric ton of gas was selling for below N5m but today, the same tonnage sells for N10.2m. As long as there is that supply shortage, the available quantity and the dynamics of supply-demand will keep pushing the price higher.”

Lamenting poor patronage of NALPGAM by customers due to the high price, Essien said the association was concerned that more Nigerians were being forced to return to coal, sawdust, kerosene, and other dirty fuel as “the price of the cooking gas has suddenly gone up.”

He, however, said the association was interfacing with the government, stakeholders, producers and importers to see how the situation could be addressed.

Essien added, “We are also meeting with the marketers vide moral suasion not to capitalise on the situation to inflict more pains on citizens by increasing the cost of gas in their locations though they are equally expending huge cost to have cooking gas at their locations.”

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NALPGAM secretary also decried the gradual rise in the cost of cylinders over the years, maintaining that all the raw materials used by the two cylinder manufacturing plants in the country were imported.

He said despite Nigeria’s over 180 million population, the country barely had up to 10 million cylinders in circulation amid substandard cylinders in circulation.

He said, “The cylinder ownership structure in the country ensures that owners are in charge of their cylinders. Cylinders expire on the 15th year of usage from the manufacturing date. Because of the high replacement cost, consumers buy what they can afford. This has equally encouraged the proliferation of substandard cylinders in circulation. The regulators are working hard to monitor the standard of cylinders coming into the country.

“The progress in cylinder acquisition still needs government input to ensure that the cost of materials for cylinder production get the necessary exemption from duties but however the state of our local currency still remains a major problem.”

READ  Price of 12.5kg cooking gas increased by 122% in one year - NBS

Team Lead, Platforms Africa, Yusuf, however, urged the Federal Government to wade in and relieve Nigerians the pains of paying higher for gas.

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Tinubu to depart Abuja for official visit to The Netherlands today

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President Bola Tinubu will depart Abuja, the nation’s capital, on Tuesday for the Kingdom of The Netherlands on an official visit.

Ajuri Ngelale, presidential spokesperson, said in a statement on Monday, that Tinubu is visiting The Netherlands at the invitation of Prime Minister Mark Rutte.

 

He added that the president will engage in “high-level discussions with the Prime Minister, as well as hold separate meetings with His Royal Majesty, King Willem-Alexander and Queen Maxima of the Kingdom”.

“The Queen is the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA),” the statement reads.

“While in the Netherlands, the President will participate in the Nigerian-Dutch Business and Investment Forum that will bring together heads of conglomerates and organizations in both countries to explore opportunities for collaboration and partnerships, especially in agriculture and water management towards innovative solutions for sustainable farming practices.

“There will also be extensive discussions with the Dutch officials on port management operations for which they have world-renowned expertise.

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“After his engagements in the Netherlands, the President will proceed to attend a special World Economic Forum (WEF) meeting scheduled for April 28-29 in Riyadh, Saudi Arabia.

 

“At the World Economic Forum meeting, which focuses on Global Collaboration, Growth and Energy for Development, President Tinubu and his entourage will use the opportunity of the gathering of over 1,000 leaders from business, government, and academia to engage in discussions in furtherance of his Renewed Hope Agenda for the country.”

 

Ngelale said Tinubu will be accompanied by some ministers and other senior government officials on the trip.

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State police will curb commercial kidnapping, it’s non-negotiable — Jonathan

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Former President Goodluck Jonathan says the state police is crucial to addressing the challenge of insecurity in the country.

Jonathan spoke in Abuja on Monday at a national security dialogue organised by the house of representatives.

 

The former president said the state police should be established on a framework that makes it difficult to be abused.

 

“The issue today is very critical. One thing is that we don’t need to debate whether we should have state police or not. I think that matter has been concluded. The issue is the operations of the police,” Jonathan said.

 

He said security in Bayelsa was epileptic in the late 90s, noting that it was a security architecture in the form of state police that salvaged the situation.

 

“So there is no way we can manage internal security if states would not have their police,” he added.

 

The former president said the concern is how state police would freely operate without the interference and control of governors and other actors.

“But how would the state police function vis-á-vis the national security architecture,” he asked.

 

“When I set up the 2014 national dialogue, during that period we had lots of challenges in the country.

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“People were agitating so many areas but one thing that the almost 500 (people) agreed without much ado was the issue of state police.”

 

Jonathan said state police is not new to the country as it was practised during the military regime.

 

“You know in this country, we operated it before. Why is it that the military scrapped it? It was because of the abuse and that is the area we should concentrate on,” he said.

 

“How do we manage the state police so it would not be abused by state political actors?

 

“If state political actors are abusing the state police and using the state police to harass and make life miserable for people who do not belong to their political parties, would the commander-in-chief sit down and watch or would he order the military to go and overrun the state police? Of course, that would bring crisis.”

 

Jonathan said the state police should be designed in a way that will not make it clash with the national security architecture of the country.

 

“These things need to be done carefully,” he said.

 

“So, if we are talking about state police, we must also rejig INEC and the police must not be used against or to the advantage of any political party.”

READ  Cooking Gas price drops as supply rises

 

He advocated that the conduct of elections should be improved to require minimal participation of the police.

 

“So, the national assembly needs to look into all these. These are the areas that we have to concentrate on,” he said.

“The issue of the need for states to have their own police is not negotiable. There is no way we can continue this kidnapping that is going on in this country.

 

“Commercial kidnapping started around 2006, I don’t want to go into that history. But it started in the Niger Delta. Now it is all over the country.

 

“The only thing that can help us if we cannot stop it completely at least we reduce it to the barest minimum is for states to have their police.”

Jonathan said the state police must be well equipped with sophisticated weapons to be able to combat aggression from criminals.

“Sometimes people say the state police should have limited weapons, that the calibre of weapons they should have should be limited. That is an area that must also be cleared, we must be careful with it,” he said.

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“I am not expecting states to have rockets and missiles, but the conventional weapons if you look at the calibre of weapons criminals use, the states must have superior weapons or at least equal.

 

“If you make the state (police) have weapons that are inferior to the ones that the criminals are using, then you are asking them to commit suicide in the field.

“So we must not even go there in terms of limiting the capacity of the state police. A state that has enough resources must equip the police very well and that state can also assist other states that have challenges.”

 

Also speaking, Vice-President Kashim Shettima said the federal government would support the consensus of the dialogue.

 

“The president is committed to listening to your recommendations and insights invariable to share in the policies that would lead us to a more secure and good society,” Shettima said.

 

On his part, Abdulsalami Abubakar, former head of state, harped on the need for the government to be transparent, honest, and accountable to citizens.

 

Abubakar said there should critical discussion on how the state police would operate.

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FG to sell DisCos managed by AMCON, banks in next three months

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The Federal Government says it would sell off five electricity distribution companies (DisCos) under the management of banks and Asset Management Corporation of Nigeria (AMCON) in the next three months to technical power operators.

 

Adebayo Adelabu, minister of power, spoke in Abuja on Monday when the members of the senate committee on power visited the ministry.

 

The five DisCos include Abuja Electricity Distribution Company (AEDC), currently under the management of the United Bank for Africa (UBA); Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company, managed by Fidelity Bank, while Ibadan Electricity Distribution Company is under AMCON management.

 

The DisCos are under the management of the banks and AMCON due to their debt burden.

Adelabu said the energy distribution assets are technical and as such, they should be under the management of technical experts.

 

He also said the tough decision on the DisCos has become necessary because the entire Nigerian Electricity Supply Industry (NESI) fails when they refuse to perform.

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According to Adebayo, the ministry will prevail on the Nigerian Electricity Regulatory Commission (NERC) to revoke underperforming licenses and also change the management board of the DisCos if it becomes the solution.

 

“On distribution, very soon you will see that tough decisions will be taken on the DisCos. They are the last lap of the sector. If they don’t perform, the entire sector is not performing,” Adebayo said.

 

”The entire ministry is not performing. We have put pressure on NERC, which is their regulator to make sure they raise the bar on regulation activities.

 

”If they have to withdraw licenses for non-performance, why not? If they have to change the board of management, why not?

 

“And all the DisCos that are still under AMCON and Banks, within the next three months, must be sold to technical power operators with good reputations in utility management.

“We can no longer afford AMCON to run our DisCos. We can no longer afford the banks to run our DisCos. This is a technical industry and it must be run by technical experts.”

READ  Cooking Gas price drops as supply rises

 

The minister further said it has become necessary to reorganise the DisCos for efficiency.

 

He stressed that Ibadan DisCo is too large for one company to manage.

 

FG TO REVOKE METRE CONTRACT FROM FIRM

Adelabu also dropped the hint that the federal government mobilised a company named Messr Zigglass with $200 million (N32 billion) to supply three million meters that were yet to be supplied to date.

 

“If you held N32 billion for these years, where is the interest,” he asked.

 

According to Adelabu, President Bola Tinubu directed that the contract be revoked.

 

He said the government will bridge the current eight million metering gap in the next four to five years.

 

The minister said the funding for the metre is coming from a seed capital of N100 billion and N75 billion.

 

He added that the Nigerian Sovereign Investment Authority (NISA) is coming to the aid of the ministry with the fund.

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