Tuesday, May 10, 2016

Tensions run high as Nigeria's economy nose dives

Young men became entangled in a swirl of flying fists. Gas station workers swatted away boys hoping to fill their plastic cans. A mother with a sleeping baby in her minivan was chased off, rightly accused of jumping the line. A driver eager to get ahead crashed into several cars, the sound of crunching metal barely registering amid the noise.

Nigerians were getting used to days like this.

But then came the ultimate insult to everyone waiting at the Oando mega gas station: A bus marked Ministry of Justice rolled up to a pump, leapfrogging no fewer than 99 vehicles. “Service With Integrity” was painted on its door. A gas station supervisor who calls herself Madame No Nonsense stepped aside to let it fuel up before anyone else. The crowd howled at the injustice.

Plummeting oil prices have set off an economic unraveling in Nigeria, one of the world’s top oil producers, and the collective anger of a fed-up nation was pouring out.

“Starvation in the land of plenty,” said Tony Usidamen, a public relations consultant waiting for fuel.

For months, many Nigerians have endured painfully long lines for gasoline and power failures that last for days — with no fuel for backup generators. Scant power means water cuts for homes that rely on electricity to pump it. Everyday items are missing from stores, and those that remain cost more than usual.

In this country of rampant inequality, the poor have long been desperate, and the rich are still able to buy their way out of problems. But the situation in Nigeria, Africa’s largest economy, is having an outsize impact on the expanding middle class, which has become accustomed to air-conditioning, owning a car and going out for Domino’s pizza. Now, even a bottle of Perrier is too expensive for many.

President Muhammadu Buhari is urging patience, noting that when he took office last year he inherited a corruption-plagued mess.

“We are experiencing probably the toughest economic times in the history of our nation,” Mr. Buhari told Nigerians on Friday. “I cannot promise you that this will be an easy journey.”

Low oil prices are not helping. The resulting shortage of dollars means less cash for imports, including fuel to power the nation. Though Nigeria produces millions of barrels of oil a day, it has long had to ship its own crude oil out of the country to be refined into gasoline.

Imported fuel has been arriving in Lagos, a city of 20 million, by tanker truck, a trip that takes a week. Old trucks and bad roads cause delays. Trucks sometimes disappear across the border, where thieves sell the fuel and pocket the cash, and militants keep blowing up oil platforms and pipelines.

The lines at gas stations ebb and flow, depending on the day. But the government says the supply is getting better. It has finally fired up Nigeria’s three rickety oil refineries, and the wait in Lagos improved drastically last week. Eventually, officials say, Nigeria will make all of its own gasoline.

“A certain amount of pain must be endured,” said Garba Deen Muhammad, a spokesman for the Nigerian National Petroleum Corporation. “Everybody must make sacrifices.”

At the gas station in Lagos, Olafay Segun and Abu Bellow tried to sleep away the pain of losing a morning of valuable fares in their yellow minibus. They joined a huge line of vehicles backed up along the expressway. Both men stretched across the old metal seats. In the beating sun, it was like sleeping inside a TV dinner.

Suddenly, the car in front gave up on the wait, pulling out of line and leaving a gap. Mr. Bellow bolted for the driver’s seat, turning the key. Nothing happened. Long seconds passed as both men panicked that someone would pull in front of them. He tried the key again. Success. The bus jolted ahead a few feet.

They wound up behind Adeanike Oso, whose mind was on her chickens. As the owner of Oso Farms, a 3,500-bird operation outside Lagos, she worried they might not have enough food and water.

That morning, Ms. Oso had dropped off her children at school before heading to the farm, but her Nissan Pathfinder was running low on fuel so she pulled into line. That was two hours ago.

Toward the front was Toyin Adeniyi, who was on her way to work as a school administrator. Three hours after arriving at the station, she was still waiting.

As midmorning arrived, young men holding plastic gas cans gathered. “There’s no light, there’s no water, there’s no anything,” said one, Michael Tungi, venting about Nigeria. “Everything is spoiled.”

The station was not allowed to sell gas to Mr. Tungi, to prevent fuel from slipping onto the black market. People had been filling jerrycans and selling gas at high prices to drivers looking to skip long lines at filling stations. Mr. Tungi and the others were optimists, hoping to sneak a few liters.

First they would have to get past Nike Olorunfemi, 50, the station supervisor. Wearing a straw hat and bright yellow vest, she hollered, sometimes with a bullhorn, to let them know they were waiting in vain.

“That’s why they call me Madame No Nonsense Action Lady,” Ms. Olorunfemi said. “I don’t take nonsense.”

The day had started out orderly and calm. Drivers inched forward. The procrastinators, the planners, the innocents — the line absorbed them all, having mercy on no one.

“I’m late already,” grumbled Peter Ademola, a swimming pool maintenance man. He had hopped into a minibus, heading to a repair job, but it was low on fuel. Now he was stuck in line, wiping his brow. Tiny beads of sweat formed above the purple lipstick of the passenger next to him.

“What can I do?” Mr. Ademola said.

Another driver, Ify Ezeobi, a shopkeeper, figured every hour of waiting cost him $100 worth of business at his store. “I’m sick and tired of this,” he said.

It was almost noon when the line stopped altogether. The station’s supply had run dry. Vehicles squealed away to search for fuel elsewhere. It was anyone’s guess when the next fuel truck would arrive.

Some drivers made use of the empty hours until more fuel came. A policeman read over a stack of witness statements. One driver repaired a busted side mirror. A doughnut saleswoman paraded alongside the vehicles. Old friends found one another in line, their reunion an upside to the otherwise grim day.

The hottest part of the day came and, with it, stress. A mother made the calculations of every busy parent — if she waited, would she get to school in time to pick up her children? Three energetic boys bounced in the back seat of another car, hanging out the windows and slugging one another. It was the first day of vacation and their father needed gas to reach their grandparents outside the city.

A billboard with a man clutching his head taunted the stalled motorists: “Need pain relief?”

Ms. Olorunfemi — Madame No Nonsense — was still trying to chase off the people holding gas cans. She snatched a can from one man’s hand and threw it onto the freeway.

“Anybody jumping the queue, they call Action Lady and I send them out,” she said. “I hate cheating.”

But by afternoon, cheating was in abundance. Some drivers employed a fried-chicken strategy: gaining entrance inside the station’s parking lot by claiming they were patronizing the adjoining KFC.

At 2 p.m., a fuel truck rolled in, eliciting a cheer. But unloading its 33,000 liters would take hours.

Two men lugging a heavy generator rested it on the driveway. Three elementary-age boys, sent by their mothers, arrived after school with plastic cans to try their luck.

At nearly 5 p.m., fuel was finally in the pumps again. Drivers started their engines. Wheels spun in the dirt. Station employees blocked off the cars at the KFC, dashing the hopes of line jumpers. Workers gathered around Madame No Nonsense for a pep talk.

“Don’t sell to anyone with a can,” she said. “Be nice to all your customers.”

Horns started blaring. A security guard in T-shirt and jeans, with an AK-47 slung around his chest, stepped in front of the vehicles. The station’s gates scraped open.

“O.K.,” Madame No Nonsense said. “Let’s go.”

Monday, May 9, 2016

Video - Nigeria to enact capital punishment law for kidnapping




Nigeria may soon have a law that will prescribe capital punishment for kidnappers. Kidnapping for ransom is becoming rampant in the country and the Nigerian Senate now says it will commence the process of enacting a law that will punish convicted kidnappers with the death penalty. But there is still no public agreement on the issue.

Nigeria to fully deregulate petrol

Barring any last-minute change in plans, the federal government will, in a few days, introduce policy changes heŕalding the full deregulation of the downstream sector of the Nigerian petroleum industry, officials well briefed on the matter have told PREMIUM TIMES.

Nigerians may have to brace up for a minimum of 27.17 per cent hike in fuel price nationwide, the officials said.

The policy, they say, is likely to push the pump price of petrol to about N110 per litre at NNPC-owned filling stations and higher at other independent outlets.

Amid fears of a possible backlash reminiscent of the reaction by Nigerians in January 2012 when former President Goodluck Jonathan attempted to introduce a similar measure, PREMIUM TIMES learnt that no formal announcement of the policy would be made by government.

Industry sources familiar with the plan said government was on the verge of discreetly giving permission to petroleum products marketers to gradually adjust their pump prices as early as midweek to signal the formal take-off of deregulation in the country.

The sources, who asked not to be named because of the sensitive nature of the matter, said government resorted to that drastic decision to end the vicious cycle of fuel scarcity crises and avoid subsidy payments.

Unlike the situation in 2012, the sources said government appeared to have successfully wooed organised labour and its affiliate unions to its side.

That claim could not be independently verified by PREMIUM TIMES. The General Secretary of the Nigeria Labour Congress, NLC, Peter Ozo-Eson, said he was unable to respond to the reporter’s enquiries, as he was in a meeting. He did not also respond to the text message sent to his telephone on Sunday.

Also, , the acting Executive Secretary, PPPRA, Sotonye Iyoyo, did not respond to calls, and a text message.

Insiders well briefed on the matter said top level secret meetings had been going on all week to weigh the security implications of the possible fallouts of the policy.

One of the meetings was held at the headquarters of the State Security Service in Abuja where the Minister of State for Petroleum Resources, Ibe Kachikwu, and his counterpart in the Ministry of Labour and Employment, Chris Ngige, met with heads of security agencies to finetune possible security response should Nigerians pour into the streets to protest the policy.

Official spokespersons for key petroleum industry agencies were evasive when asked for comments Sunday afternoon.

NNPC spokesperson, Garbadeen Mohammed, said reports of the planned introduction of deregulation by government was new to him.

Full deregulation policy, which involves opening up the downstream petroleum industry for participation by all players, particularly the private sector, is widely considered the panacea for the incessant fuel supply crisis in the country.

With full deregulation, there will be fair competition, with the burden of petroleum products supply and distribution shared between private investors and government, with both having equal access to all aspects of industry operations, ranging from refining, sourcing, to marketing and distribution.

While government will continue to monitor and enforce compliance with established standards, products pricing will be determined by the prevailing market forces in an atmosphere of competition.

Over the years, government bore the burden of subsidy payments on petroleum products consumed in the country.

Under the arrangement, landing cost of fuel, plus the distribution margins included in the Petroleum Product Pricing Regulatory Agency (PPPRA) pricing template have always imposed on government the extra burden of shouldering all costs in excess of a fixed retail pump price of N86 per litre as subsidy.

Until January this year when the price of crude oil at the international market dropped to less than $28 per barrel, government was paying subsidy in multiples of billions of Naira annually throughout the period of high oil prices.

With the introduction of price modulating mechanism by government, Nigerians experienced for the first time a situation where marketers had to refund to the PPPRA costs recovered for importing fuel at a landing price lower than government approved price band of N85.50 per litre for NNPC mega stations and N86 for other stations.

With crude oil prices gradually picking up in recent times, Nigerians have begun to hear reports of the return of subsidy payments by government.

A review of the latest PPPRA fuel pricing template for April 28 showed that retail price for petrol stood at N99.38, showig a fresh subsiďy level of between N12.08 and N13.08 per litre.

Our sources said government felt there was no better time than now to implement the decision, particularly when the price of crude oil, which stood at about $41 per barrel at the close of trading on Friday, was still low.

In January 2012, the NLC successfully mobilized Nigerians to shut down the country’s economy for five days to oppose the attempt by the Goodluck Jonathan administration to remove fuel subsidy, which resulted in hike in fuel prices nation wide.

That action by labour forced government to rescind its decision on the issue.

Nigeria bans anauthorised use of drones

The Nigerian Civil Aviation Authority, NCAA, has banned the launching of Remotely Piloted Aircraft, RPA, in the Nigerian airspace without its permit and that of the Office of National Security Adviser, ONSA.

This is contained in a statement issued by the General Manager, Public Relations, NCAA, Sam Adurogboye, in Lagos, yesterday. The statement said the move was part of the safety guidelines issued by the regulatory agency to drone operators, following the proliferation of the technology in the country. 

According to the statement, “in recent times, RPA/UAV (Unmanned Aerial Vehicles) are being deployed for commercial and recreational purposes in the country without adequate security clearance. 

“Therefore, with the preponderance of these operations, particularly in a non-segregated airspace, there has to be proactive safety guidelines. “The development of the use of RPA nationwide has emerged with somewhat predictable safety concerns and security threats.” 

According to the statement, the International Civil Aviation Organisation, ICAO, is yet to publish Standards and Recommended Practices, SARPs, as far as certification and operation of civil use of RPA is concerned. 

The statement said the NCAA had put in place Regulations/Advisory Circular to guide the certification and operations of civil RPA in the Nigerian airspace. 

It said this was contained in the Nigerian Civil Aviation Regulations (Nig. CARs 2015 Part 8.8.1.33) and the Implementing Standards (Nig.CARs 2015 Part IS.8.8.1.33). 

It said: “Therefore, no government agency, organisation or an individual will launch an RPA/UAV in the Nigerian airspace for any purpose whatsoever without obtaining requisite permit from the NCAA and ONSA. “The NCAA wishes to reiterate that all applicants and holders of permits to operate RPA/Drones must strictly be guided by safety guidelines. 

“In addition, operators must ensure strict compliance with the conditions stipulated in their permits and the requirements of the Nig. CARs.”

Friday, May 6, 2016

Video - Nigerians react to Leicester historic premiere league title win




Reactions have continued to pour in from across the world over Leicester City's remarkable feat. Fans in football crazy Nigeria which has one of Africa's highest followers of the EPL also shared their views.