Petrol pump price dilemma lingers as FG retains subsidy
• Nigerians to know fate on pump price tomorrow • Production costs, subsidy undermine gains from rising oil prices • Marketers adjust prices, threaten shutdown
NIGERIA’SHIGHER production costs and return of subsidy due to backlash from the public and labour unions are currently undermining the country’s ability to improve its revenue from the rising global oil prices, even as Nigerians know fate on fuel price tomorrow.
Indeed, the Federal Government and the organised labour will reconvene tomorrow for the consideration of the reports of the bipartite technical committees on fuel price and electricity tariff.
The committee had developed a transparent methodology and a template that will serve as guide on realistic PMS pump price and benchmark all pricing elements of the template with neighbouring countries.
Over 80 per cent of the Federal Government’s revenue comes from oil. Higher prices help government to address growing budget deficits, but creates problems for a population that depends heavily on imported fuel. With oil prices crossing the $ 60 mark due to production output cuts by OPEC+ members and Texas freeze, cartels may reconsider a review in cuts, leading to lower prices. The uncertainty has put the Federal Government in a dilemma on fuel subsidy removal amid public outcry due to rising inflation.
Despite claiming otherwise, Federal Government’s position on subsidy removal and stronghold on price control in the downstream sector create more problems for marketers who deal with investment uncertainty and for government in managing social welfare and expectations.
By maintaining monopoly for petroleum product importation, the Federal Government through the Nigerian National Petroleum Corporation ( NNPC), determines how much it sells the products to other marketers, creating concerns about how the price margins are managed.
Nnamdi Azikiwe International Airport, Abuja.
Firemen attached to the Federal Airports Authority of Nigeria ( FAAN) put out the fire in the after noon while officials of the National Emergency Management Agency ( NEMA) and the Federal Road Safety Commission ( FRSC) were on ground. About 1: 30p. m., a team of investigators arrived at the scene from the Accident Investigation Bureau of Nigerian ( AIB- N). Working with the Air force personnel, the investigators immediately mapped out the accident scene, examining and identifying body parts of the aircraft, which laid strewn around the crash site. About 2p. m, all emergency rescue teams had completed their task and were ordered to leave the scene for investigators.
An eyewitness said the aircraft struggled for balance and began descending dangerously until it hit a mango tree close to a stream behind Bassa village close to the airport.
The pilot of the aircraft had reportedly complained of engine failure barely moments after taking off. A source at the control tower, who spoke to reporters on condition of anonymity, said the pilot was advised to return to the Abuja airport immediately but it crashlanded.
The source said: “There have been frequent flights to Niger State since the abduction of the school kids. Last week, some ministers also flew. Soon, we will know their identities,” he said. Confirming the crash, Minister of aviation, Hadi Sirika, tweeted on Sunday that the aircraft reported engine failure en route Minna, Niger State capital. He said: “A military aircraft King Air 350 has just crashed short of our Abuja runway after reporting engine failure en route Minna. It appears to be fatal. We should remain calm and wait for the outcome of investigation by the military, while we pray for the departed soul/ souls if any.”
G
IVING more details late evening, NAF said the Beechcraft Kingair B350i ( NAF 201), was on its way to Niger State in in connection with the concerted efforts to secure the release of the students/ staff abducted from the Government Science College Kagara, Niger State. Director of Public Relations and Information, Air Vice Marshal Ibikunle Daramola, who this in Abuja, said the Chief of the Air Staff ( CAS), Air Vice Marshal Oladayo Amao, had instituted an investigative panel to determine the remote and immediate causes of the accident. He noted that NAF had notified the Next of kins/ family members of the deceased, and gave their names as: Flight Lieutenant Haruna Gadzama ( Captain) Flight Lieutenant Henry Piyo ( Co- Pilot), Flying Officer Michael Okpara ( Airborne Tactical Observation System ( ATOS) Specialist), Warrant Officer Bassey Etim ( ATOS Specialist), Flight Sergeant Olasunkanmi Olawunmi ( ATOS Specialist).
Others are Sergeant Ugochukwu Oluka ( ATOS Specialist), Aircraftman Adewale Johnson ( Onboard Technician).
A military source had earlier confirmed the crash, saying: “The Nigerian Air Force NAF201 aircraft departed Abuja at 10.33UTC.
“The aircraft which was en route Minna, Niger State capital reported engine failure at time 10.39UTC and crashlanded on the final approach path of Abuja runway 22 at time 10.48UTC.
Also, the spokesperson for Federal Airport Authority of Nigerian ( FAAN), Herrienta Yakubu, had confirmed the accident, but said the details were still sketchy because it involved military aircraft.
An eyewitness said: “I was there when it crashed close to aviation village called Bassa; the pilot did a great job by ensuring that it was not close to any of the structures.”
“I saw it while the plan was struggling but there was no way to help rather than praying for them.”
Following the crash, President Muhammadu Buhari assured the nation that safety of the Nigerian airspace would remain a key priority of his administration. IN his reaction, President Buhari also condoled with family members, friends and colleagues of the victims. In a statement signed by his Special Adviser on Media and Publicity, Femi Adesina, the President noted that while investigations were ongoing, the safety of the Nigerian airspace would remain key priority of the government. The Beechcraft King Aircraft is a line of American utility aircraft produced by Beechcraft.
King Air was the first aircraft in its class and has been in continuous production since 1964.
In August 2014, three new
Beechcraft King Air 350i aircraft were delivered to the NAF and were being operated by the NAF’S 209 Executive Airlift Group ( EAG), Minna, Niger State capital.
MILITARY air disasters have been relatively frequent in Nigeria over the past two decades.
However, Nigeria has a Category 1 rating under the US Federal Aviation Administration’s ( FAA) International Aviation Safety Assessment programme, meaning the country complies with globally accepted safety standards.
Recall that September 7, 1992, 158 people were killed when a military transport plane went down at Ejigbo, Lagos; on September 18, 2006, a Dornier 228 military plane crashed at Vandekiya, Benue State, killing 14 military officers, including 10 Generals. A crash on September 12, 1997 involved Dornier 228- 212 built in 1994 and operated by the Nigerian Air Force ( NAF). It crashed with 10 persons on board.
On September 17, 2006, 12 Nigerian military personnel, mostly high- ranking officers, were killed in a plane crash in Benue state. Six survived.
And on September 28, 2018, two NAF fighter jets crashed in Jikoko village, Abuja, near a quarry site owned by Limfond.