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September 3, 2024

September 3, 2024September 3, 2024 IFMNEWS

Concerns Mount as Petrol Pump Price Approaches N1,405 per Litre

Nigeria’s downstream petroleum industry is in turmoil as signs emerge that the Federal Government may no longer be able to sustain the cost of under-recovery, commonly known as subsidy, due to the rising costs of petrol imports.

Industry insiders revealed that an official increase in pump prices is likely imminent, as the government, through the Nigerian National Petroleum Company Limited (NNPCL), needs to raise enough revenue to pay off its outstanding debts to international suppliers who have been providing fuel on credit. There is speculation that the pump price could soon reach N1,000 per litre or more, although some sources estimate the landing cost of petrol at approximately N1,200 per litre, excluding delivery costs to fuel stations.

Currently, NNPCL is struggling to secure adequate supplies to meet the country’s fuel demands, leading to severe shortages over the past week. This scarcity has significantly impacted the transportation sector and the general public. The supply shortfall is attributed to some suppliers' reluctance to continue providing fuel on credit and the increased smuggling of products out of the country.

Recent transactional analysis shows that the landing cost of petrol, including the product cost, financing, freight, port charges, insurance, storage, and fees from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), stands at N1,205.52 per litre. When transportation costs, marketers’ margins, and other dues are factored in, the estimated official pump price rises to N1,405 per litre.

This suggests that even at a proposed price of N1,000 per litre, the government would still be covering a substantial portion of the costs, placing it in a difficult position. The government now faces the challenge of deciding whether to fully eliminate the subsidy, achieving complete cost recovery, or opt for a compromise by splitting the cost between the government and consumers, resulting in a pump price of N1,000 per litre.

September 3, 2024

September 3, 2024 IFMNEWS

Food Crisis May Worsen As Floods Devastate Over 115,000 Hectares Of Farmland In Nigeria

Nigeria is still grappling with a worsening food crisis, as newly released data from the National Emergency Operations Center (NEOC) reveals that rising floodwaters have affected at least 115,265 hectares of farmland across the country. A detailed breakdown shows that Bauchi is the most affected, with 50,343 hectares of farmland submerged, followed by Taraba with 22,182 hectares, Jigawa with 9,919 hectares, Niger with 9,488 hectares, and Sokoto with 8,676 hectares.

Other states hit by the floods include Adamawa (3,392 hectares), Bayelsa (170 hectares), Borno (313 hectares), Ebonyi (100 hectares), Enugu (953 hectares), Gombe (1,311 hectares), Kaduna (120 hectares), Kano (3,072 hectares), Katsina (37 hectares), Kebbi (3,382 hectares), Yobe (223 hectares), and Zamfara (1,584 hectares).

The NEOC's 2024 flood report also highlights that 29 states, 154 local government areas, and 611,201 individuals have been affected by this year's flooding. So far, 225,169 people have been displaced, 83,457 households impacted, 201 lives lost, and 2,119 injuries recorded.

This alarming flood data comes amid ongoing food shortages and a food inflation rate exceeding 40%, according to the National Bureau of Statistics (NBS). Compounding the situation, a recent Central Bank of Nigeria (CBN) survey released on Monday indicates that rising inflation will force Nigerian households to allocate most of their earnings to food over the next six months.

The CBN’s Household Expectation Survey, conducted from July 22 to 26, 2024, with a 99.7% response rate from a sample of 1,665 households across all 36 states and the Federal Capital Territory, reveals that many Nigerians plan to cut back on non-essential items in the coming months. The survey indicates that households intend to spend 54.9% of their income on food during the next six months.

The survey also shows that in the next six months, consumers expect to allocate a significant portion of their income to food and other household items (54.9%), education (35.4%), transportation (30.2%), electricity (20.0%), and medical expenses (12.2%). Conversely, they do not plan to spend much on big-ticket items like purchasing a house, car, or household appliances, nor do they intend to invest in properties or other investments. Additionally, there is little intention to save, as the survey suggests that many will rely on their savings or incur debt to manage their finances.

September 2, 2024

September 2, 2024 IFMNEWS

Police Issue Wanted Notice for Briton and Nigerian Over Alleged Plot to Overthrow Tinubu

The Nigeria Police Force announced on Monday that they have declared a British national, Andrew Wynne, also known as Andrew Povich, and a Nigerian, Lucky Obiyan, wanted for allegedly plotting to overthrow the country’s democratically elected government.

The police accused Wynne of creating a network of sleeper cells aimed at destabilizing the government and plunging the nation into chaos. Speaking to journalists in Abuja, Force spokesperson Muyiwa Adejobi revealed that Wynne had rented a space at Labour House and set up a school as a front for his activities.

"The Nigeria Police Force has initiated a thorough investigation into the activities of foreign nationals and subversive elements plotting to undermine the democratically elected government in Nigeria through unconstitutional regime change and orchestrating violence across the country," Adejobi stated.

He explained that, following extensive intelligence gathering and collaboration with other security agencies, nine suspects have been arrested. These suspects allegedly received substantial financial support from foreign sources to destabilize the country.

Preliminary findings suggest that these individuals orchestrated and funded violent protests, spread false information, and engaged in other illegal activities to create chaos and justify their plan to overthrow the government. Wynne, who was identified as a foreign mercenary, reportedly built a network of sleeper cells to execute this plot. He rented space at Labour House in Abuja for an "Iva Valley Bookshop" and established "STARS of Nations Schools" as covers for his subversive activities.

Documentary evidence and confessions revealed that Wynne provided financial and operational guidance to his collaborators, aiming to incite violence and provoke international condemnation of the Nigerian government. He is accused of mobilizing and deploying billions of naira to encourage his Nigerian collaborators to incite the public to violently attack police facilities and military barracks.

Since the investigation began, Wynne and his local coordinator, Obiyan, have fled the country. As a result, they have been declared wanted, and a global search for them is now underway.

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Author: IFMNEWS

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