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News

Importers of Liquefied Petroleum Gas, popularly called cooking gas, have stopped importing the commodity.

Investigations also show that the cost of the product increased by 240 per cent for 12.5kg, jumping from N3,000 to N10,200 between January and October.

About 65 per cent of LPG is imported into Nigeria, while domestic production accounts for 35 per cent, hence the halt in imports could further shoot up cooking gas price if the situation is not addressed.

Executive Secretary, Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, told our correspondent on Monday that the reintroduction of customs duty and Value Added Tax on imported LPG were the basic reasons for the halt in its imports by importers.

He stated that there were several other issues and stressed that if the halt in LPG imports should drag further, the supply of the commodity domestically could suffer severe drop.

This came as NALPGAM in an open letter to Minister of State for Petroleum Resources, Timipre Sylva, urged the minister to urgently intervene in the skyrocketing price of LPG in Nigeria.

The open letter was signed by National President, NALPGAM, Olatunbosun Oladapo, and Essien. NALPGAM is the umbrella body of operators of LPG bottling plants licensed by the statutorily empowered government agencies to carry out the business of safe bottling of cooking gas.

Essien stated that due to the fears expressed by importers who had stopped importation of LPG into the country, cooking gas sourced from the Nigeria Liquefied Natural Gas company was now selling in the region of N11m per 20 metric tonnes truck.

This, he said, was with a cumulative daily increase of N300,000 to N500,000 per 20MT truck without the imposition of VAT and customs duties.

Providing further explanation on this, Essien said, “The NLNG supplies LPG to the terminals and these terminals sell to the marketers and at times in a day, the price can go up by about three times.

“Take for example, I was granting an interview on Saturday morning on this same issue and that morning some terminals were selling for N11.6m to N11.7m, but as I stepped out of the interview, it had increased to N12m.

“And the annoying part is that since about a week or two now, nobody has been importing gas because of the issues with customs and VAT. And this is because since the position on these issues have not been clearly stated, importers have to pause.”

He added, “The customs is even clamping down on importers and so they cannot import anything, which means that the product in circulation across the country is from the NLNG.

“But when there are issues like this, some unscrupulous people will want to capitalise on the situation, which they are doing, because right now, from what we’ve got, the price at which NLNG product gets to Lagos is about N7m, but you get it at N11m and above.”

On the price increase, the association stated that despite the decade of gas policy and measures by government, the cost of cooking gas had continued to rise.

It said, “Despite the strategies employed by the government with its anticipated benefits, the reverse seems to be the case with the bulk of LPG consumed in the country largely imported.

“The availability of the product for domestic consumption has been skewed majorly to 65 per cent import dependence while only 35 per cent has been attributed to local supply.

“The obvious devaluation of the local currency, inability to access foreign exchange by importers, the increasing international price against which the cost of domestic LPG is indexed as well as the anticipated re-imposition of VAT and customs duties with retrospective application have all contrived to push the price of LPG upward.”

NALPGAM added, “It has been observed that the above factors have seriously increased the price of gas to the extent that a 12.5kg gas which sold for N3,000.00 in January, 2021, now sells for between N10,000 to N10,200, depending on area of the country.

“The daily galloping price of gas if not properly handled may derail the lofty ideals of the gas expansion plans of the government as well as the job opportunities the programmes were intended to create.”

The association stated that the price of LPG had exponentially skyrocketed over the last few months.

It said the cost of 20MT of LPG as of January 2020 was N3.4m, but by December 2020, it had gone up to N5.4m; N5.6m in January, 2021, N6m in February, 2021 and N11m in October, 2021 without any signs of abatement.

Officials at Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited promised to revert when contacted.

Sylva had in August this year described LPG as a deregulated product and stated that government could not determine its price, but promised to meet with marketers on concerns about the persistent price hike.

Punch

 

 

 

 

Last week, the Central Bank of Nigeria (CBN) granted approval-in-principle (AIP) to MTN Nigeria and Airtel Africa towards the process of commencing payment service banks (PSBs).

The move is expected to close the unbanked population gap and help the country achieve its National Financial Inclusion Strategy (NFIS) — a projection that 95 percent of Nigerians would have access to financial services by 2024.

An AIP implies that the approving party (CBN) finds the proposal acceptable. It also means that telecommunication companies still need to fulfil certain conditions before securing a PSB licence.

According to the CBN, the decision is to promote a sound financial system in Nigeria and enhance access to financial services for low-income earners and unbanked segments of society.

Airtel and MTN Nigeria will join Globacom and 9mobile which are already operating in the financial space with their services.

The initiative has been largely successful in M-Pesa in Kenya and India’s sachet banking model.

In this explainer, TheCable sheds light on PSBs and their impact on the financial services industry.

 

WHAT IS A PSB?

A PSB is like a digital bank, providing financial accesses through mobile and digital channels to low-income earners and people that do not use banks or banking institutions for transactions.

It offers the following services:

i. Accept deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme;

ii. Carry out payments and remittances (including inbound cross-border personal remittances) services through various channels within Nigeria;

iii. Sale of foreign currencies realized from inbound cross-border personal remittances to authorized foreign exchange dealers;

iv. Issue debit and pre-paid cards on its name;

v. Operate electronic wallet;

vi. Render financial advisory services;

vii. Invest in FGN and CBN securities; and

viii. Carry out such other activities as may be prescribed by the CBN from time to time.

 

ENTITIES ELIGIBLE TO APPLY FOR A PSB LICENCE

They include banking agents, telecommunications companies (telcos), through subsidiaries; retail chains (supermarkets, downstream petroleum marketing companies); postal services providers and courier companies.

Others are mobile money operators (MMOs), switching companies; financial technology companies (Fintech); financial holding companies; and any other entity on the merit of its application subject to the approval of the CBN.

 

HOW DO PSBs DIFFER FROM COMMERCIAL BANKS?

PSBs are expected to focus on the unbanked populations and financially excluded persons — have at least 25% financial service touchpoints in such rural areas where they must maintain ATMs and point of sale (POS) devices.

However, they cannot grant loans, guarantees, or advances of any form; accept deposits in foreign currencies and they cannot deal in the foreign exchange market except as prescribed by the CBN.

They are also not allowed to participate in insurance underwriting; undertake any other transaction which is not prescribed by the set guidelines, and must not accept any closed scheme electronic value (e.g. airtime) as a form deposit or payment.

The CBN specified that every PSB must use the words “Payment Service Bank” in its name to differentiate it from other banks.

Also, the name of a PSB shall not include any word that links it to its parent company.

 

PSBs AS TOOL TO BOOST FINANCIAL INCLUSION

Financial inclusion is the process of ensuring that individuals and businesses have access to financial products and services – basic bank accounts, fund transfer services, etc.

While CBN is seeking to onboard 95 percent of the bankable adults into financial services by 2024, the data by EFInA showed about 36 percent of the adult population, representing 38 million citizens do not have access to financial services.

PSB operators are expected to close the gap by removing barriers to having a basic bank account.

With just a phone number, any Nigerian can easily open an account, send and receive money, check balance, make deposits, cash withdrawals and more.

The Cable

There was a mild drama on the premises of the Federal High Court, Abuja, on Monday, after Abdulrasheed Maina, the former chairperson of the defunct Pension Reform Task Team (PRTT), was convicted and sentenced to eight years’ imprisonment.

The judge, Okon Abang, ordered that the terms of imprisonment for all the 12 counts shall run concurrently from October 25, 2019, the date the convict was arraigned.

The judge, who ruled that Maina must refund money running over a billion naira to the federal government coffers, among others, also ordered that the company used for the unlawful act be wound up.

However, as officers of the Correctional Centre, Kuje, were taking Maina out of the court premises amid tight security, EFCC operatives drove two vehicles into the premises, blocking the correctional centre’s Hilux van.

The development led to hot arguments between the two opposing personnel as they corked their rifles in defence.

However, the prison officers stood their ground, refusing to allow the EFCC operatives, some of whom came in police uniform, to whisk Maina away.

A prison officer, who spoke to our correspondent anonymously shortly after the pandemonium, said the EFCC operatives had come in the name of rearresting Maina for another charge.

“They said they have a warrant to rearrest him after he was just convicted.

“Our own stand is that the court just convicted him and if they need to rearrest him, they should come through the court.

“The court will give the directive for us to obey,” the officer said.

NAN

A teacher, Comfort Mufutau, has lamented unauthorised debits to the tune of N215,000 from her Guaranty Trust Bank account for the purchase of recharge cards from an e-commerce store, Jumia Nigeria.

Our correspondent gathered that Mufutau wanted to transfer the sum of N5,000 to someone using her GTB mobile application when she discovered that her account had been emptied.

The 36-year-old said she immediately approached the bank’s branch in Sango, Ogun State, to lodge a complaint, adding that she requested her statement of account to trace the missing funds.

While assessing the account statement, Mufutau said she discovered that the missing money was used in purchasing recharge cards on Jumia, adding that she never initiated the transactions.

She said, “On October 5, 2021, I was at home for the Teacher’s Day holiday and was about to transfer N5,000 to someone using my GT Bank app when I discovered that I could not see N215,000 in the account.

“I quickly went to the Sango 2 GTB branch to lodge a complaint. I told them to print my statement of account and we found out that my money was used to purchase something from Jumia. I contacted Jumia to look into the issue and its representative, one Tomi, replied that the money was used in purchasing recharge cards.

“I asked for the number used in purchasing the recharge cards but was told that they did not have the power to release the customer’s details.

“In my GTB app, I saw that my balance remained N2,000 and I was also seeing a booked balance of N215,000 indicating that the money had been removed from my account because of an ongoing transaction.”

Mufutau said efforts to prevent the N215,000 booked balance from becoming successful, including blocking her account, proved abortive.

She alleged that the porosity of the bank’s system contributed to the unauthorised debits.

“It was later I started receiving debit alerts for transactions I never initiated. The recharge cards were purchased at N10,000, N50,000 in four places, and N5,000, making N215,000. A banker at the GTB head office told me that the first debit of N10,000 was used to test if my money could be withdrawn.

“I later received the debit alerts on October 7 and 8 for transactions done on the 4th and 5th. I did not give anyone OTP or initiate any transaction requiring OTP. Surprisingly, I saw seven OTPs I never initiated on my phone, but I was home alone and never received any call or gave anyone OTPs, so how was the transaction completed?” she queried.

On October 7, 2021, Mufutau petitioned the head, legal department, GTB, regarding her case, but did not get a response.

The petition was titled, ‘Fraudulent disappearance of N215,000 in my GTBank account.’

Mufutau said she also petitioned the Area F Police Command in Ikeja, Lagos State.

Our correspondent obtained a document indicating that the Assistant Commissioner of Police, Area F, John Ali-Zongo, petitioned Head of Legal Department, Jumia Nigeria, over the case.

The document, dated October 20, 2021, read in part, “This office is investigating a case of criminal conspiracy and stealing in which the fleeing suspect(s) used transaction numbers to perpetrate the crime.

“You are kindly requested to furnish the office with the following information: name, address and location of the airtime purchasers/beneficiaries; phone numbers, photographs of the airtime purchasers/beneficiaries, among others.”

Around 10.13am the following day, Mufutau said she got an email from Jumia regarding her case.

The email read, “Kindly note that we are liaising with the police regarding your request. Kindly follow up with the police to get updated information about the issue.”

The teacher said she received another email from the e-commerce store that it was unable to find any document from the police regarding her case, but urged Mufutau to send an acknowledgement letter of the area commander’s petition to Jumia.

The 36-year-old said since she scanned the letter to Jumia, she had yet to get a response or the phone numbers of the suspects.

The victim stated that subsequent emails to the online company were not replied.

She alleged that Jumia was protecting the perpetrators of the crime because of its complicity.

When contacted during working hours, a spokesperson for GTB, Chichi Ikonta, promised to connect our correspondent to an official for a reaction.

 She had yet to do so as of the time this report was filed.

Subsequent calls and a text message to get a reaction from Ikonta were abortive.

Our correspondent sent an email regarding the case to Jumia Nigeria, but had yet to get a reaction as of press time.

Punch

 

 

Over one million Nigerians have been internally displaced in the past 12 months, National Commission for Refugees, Migrants and Internally Displaced Persons has said.

Federal Commissioner of the NCFRMI, Imaan Sulieman-Ibrahim, disclosed this while defending the budget of her agency before House of Representatives Committee on Internally Displaced Persons on Monday.

Ms Suleiman-Ibrahim informed the committee that the total number of internally displaced persons in Nigeria is about three million.

She also said Nigeria is host to about 73,000 refugees from 23 countries while over 500,000 Nigerians awaiting repatriation from Chad, Niger, Cameroon, Mali, Libya and other countries.

As part of measures to cope with the increment in IDPs, she said the commission is working on building resettlement cities in Borno, Kano, Edo and Katsina.

She stated that Zamfara State was on the original plan but the commission resolved to build the city in Kano State because of difficulties in acquiring the right for the land.

The commissioner said the budget of the commission is not sufficient to take care of five per cent of its mandate.

Muhammadu Fattahu (APC, Katsina) queried the duplication of responsibilities by the National Emergency Management Agency, NCFRMI and North-east Development Commission. He said most of the line items in the budget of NCFRMI are also replicated in those agencies.

He questioned the N25 million annual rent paid for the headquarters and urged the commission to approach President Muhammadu Buhari for one of the seized properties.

The commission was also queried for not completing most of the projects in its budget despite over 60 per cent of funds released.

In the 2021 budget, N13.38 billion was appropriated for capital projects, N705 million for personnel cost for 458 staff and N1.6 billion for zonal intervention projects.

For the 2022 estimate, N1.7 billion was appropriated for personnel and N4.5 billion for capital component.

After the interactive session, the lawmakers dissolved into executive session.

PT

No fewer than 213 persons have lost their lives in seven major building collapse incidents in Lagos State in the last seven years.

This is just as at least 145 buildings have collapsed in the state between 2007 and now.

The 213 figure is the summation of casualties in seven different incidents between 2014 and 2020.

It was learnt that while the state government had taken possession of the building sites and threatened sanctions, there has been no known conviction.

In a bid to instil sanity in the industry, a former governor of the state, Babatunde Fashola, set up a tribunal to look into the matter in 2013. The tribunal, headed by Abimbola Ajayi, an architect, blamed weak enforcement of laws, especially the 2010 Planning Regulations and Building Control Law, “crass indiscipline and gross corruption by all and sundry” for the problem.

The tribunal discovered that 135 cases of building collapse were recorded in Lagos between 2007 and 2013. A tally by The PUNCH showed that at least 10 more buildings have since collapsed in the state based on media reports, bringing the total to at least 145.

The most notable collapse was that of the guesthouse of the Synagogue Church of All Nations, which claimed 115 lives in 2014.

Lagos State Coroner, Oyetade Komolafe, ruled that the church should be prosecuted, but no charges were preferred against its owner, Temitope Joshua, until his death this year.

On March 8, 2016, a five-storey building owned by Lekki Gardens crumbled, killing 34 persons, according to the state government, although the firm claimed only five died.

Managing Director of Lekki Gardens Estate, Richard Nyong, and seven others were arraigned for criminal negligence, but last year, Babajide Taiwo, the prosecution counsel, told the court that all the parties involved came to an agreement on January 23, 2020 and resolved to settle out of court.

It was gathered that the terms of the settlement included payment of N100m fine by Lekki Gardens Estate to the state government and N50m as compensation to families of the victims. However, only five of the victims’ families were identified.

On March 30, 2018, a one-storey building collapsed at No. 9 Abeje Street, Morikaz Road, Agege, killing two persons, while scores were left injured.

On March 13, 2019, a three-storey building at No. 53 Massey Street in the Ita Faaji area of Lagos Island collapsed, killing 20 persons and leaving over 40 trapped. Many of the deceased were pupils of a school operating in the building without a permit.

Following the collapse of the building, Lagos State Building Control Agency conducted integrity tests on buildings in the area and found that 150 had suffered structural distress and were not fit for human habitation.

On July 11, 2020, three persons died, while nine were injured when a three-storey building collapsed on Freeman Street, Lagos Island.

On July 8, 2021, a five-year-old child died when a building came down at No. 19 Church Street, off Adeniji Adele Street, Lagos Island.

In the latest incident, a 21-storey building in Ikoyi collapsed on Tuesday in which 43 persons have so far been confirmed dead.

When contacted on Thursday by one of our correspondents, the state Commissioner for Information and Strategy, Gbenga Omotoso, said, “How do you react to something that happened before you got into government? It will not be fair for me to answer for what happened years ago.

“Let us be realistic. I don’t know anyone that has been taken to court or has been convicted by the administration of Babajide Sanwo-Olu and that is because this is the first major building collapse with a high number of casualties that I can recall under Sanwo-Olu’s watch.

“The governor has done the right thing. He has set up a panel of inquiry comprising experts, and he has said anyone who is found culpable will not be spared.”

Punch

Anambra governorship election has been declared inconclusive by INEC.

The state Returning Officer for the election, Florence Obi, vice-chancellor of University of Calabar, who made the declaration in the early hours of Monday, said this was because there was no election in Ihiala Local Government Area which has over 148,000 registered voters.

Charles Soludo, candidate of the All Progressives Grand Alliance (APGA), scored a total of 103,946 votes and won the election in 18 out of the 21 local government areas of the state.

His closest rival, Valentine Ozigbo of the Peoples Democratic Party scored 51,322 and won in only one local government area.

“Based on constitutional provision and consideration of the Electoral Act as well as the revised regulations and guidelines for the conduct of elections issued by the commission, supplementary election is indicated for Ihiala Local Government Area,” the state returning officer, Obi said.

She said the constitution provides for a candidate to secure both the highest number of votes cast and 25 per cent of votes cast in at least two-third of the local government areas of the state to declare the winner.

“Therefore, it is important to complete the election in Ihiala to make this determination,” she said.

PT

Supporters of Chukwuma Soludo, candidate of the All Progressives Grand Alliance (APGA), on Sunday, thronged his residence ahead of the election result announcement.

Soludo has so far secured the majority of the votes cast in Saturday’s Anambra governorship election.

The results of the election were formally announced at the INEC state collation centre in Awka, Anambra State, on Sunday.

Political associates, youths and women in their hundreds thronged Soludo’s residence at Isuofia, Aguata Local Government Area, on Sunday.

Some of the residents, who spoke with our correspondent, said that they believed that he would emerge winner at the end of the process.

Chioma Ocha said she was happy because a governor would emerge from her community.

“We are here to show solidarity to our brother and son while we wait for INEC to announce the final result.

“But I’m particularly happy that my town, Isuofia, will be producing the next governor of Anambra. That is a very big achievement,” She said.

Also speaking, another resident, Chinedu Ogubuiro, said he came to jubilate with Soludo ahead of INEC’s announcement.

“I am one of Soludo’s kinsmen and I want to be on the ground to celebrate with him when INEC announces the results of the election,” he said.

Soludo, who joined the crowd in singing, urged them to be patient as INEC would announce the results of the election.

Disparities

The APGA candidate won in 17 of the 21 local government areas of the state. One local government was won by the PDP candidate (Valentine Ozigbo) while the candidate of the YPP, Ifeanyi Ubah, also won in one local government.

Soludo was, however, not declared the winner of the election yet due to the technicalities with the figures.

NAN

 

 

Nigerian Union of Teachers (NUT) has decried growing security challenges in the country, claiming the union has lost at least 800 of its members to the insurgency which has been ravaging the Northeast zone of the country.

It also threatened to withdraw teachers from some local government areas in some states in the Northwest over rising kidnapping, banditry and other criminal activities ravaging the zone.

President of NUT, Nasir Idris, who stated this during an interview with selected journalists in Abuja at the weekend, asked the federal government to wake up to its responsibility of protecting lives and property.

“I can say that we have lost up to 800 teachers in the Northeast.

“And about the issue of banditry in Northwest, not that we have lost teachers but teachers are being kidnapped together with their children because some of these teachers said you can’t carry our students and go with them alone, carry us along.

“We can’t just allow you to carry our students alone. So, we have these problems honestly,” the union leader said while fielding questions from newsmen on NUT’s position on the kidnapping of a vice principal who was abducted a few days ago at one of the Abuja schools.

He added, “We want to appeal to the federal government again to provide security in our schools, not only security but enough ones so that they can man these schools where we are having problems.

“The problems are in some local governments in some states where we have this banditry, kidnapping, insurgency, etc. We have lost a lot of members as far as this issue is concerned.

“Any place that the federal government does not provide enough security, we can’t just put our children and teachers in problems, that’s why we said that if security isn’t going to be provided, definitely we are going to ask our teachers in those areas to withdraw their services. We’ve made this clear to the federal government.”

Idris also asked the federal government to make the teaching profession more attractive by fast-tracking the approval of policies on 65 years of age in service and 40 years in service as well as better welfare package.

According to him, classrooms at basic levels were already deserted, saying maltreatment of teachers by the federal, state and local governments have forced many people out of the profession.

Daily Trust

A yet-to-be-identified middle aged female driving along Gbongan-Osogbo Road on Saturday plunged her car into the Gbodofon river, causing panic among road users.

She was however rescued unhurt by locals after her car plunged into the Osun river.

The woman driving a Toyota Camry was said to be heading towards Olaiya when the car suddenly veered off the road on the Gbodofon bridge in Osogbo and plunged into the river.

The incident according to an eye witness, Samson Owoyokun occurred around 11:40 am and she was rescued by locals around the area before the fire service arrived at the scene.

Owoyokun, a Senior Special Assistant to Governor Adegboyega Oyetola on Special Duties, said he was just around the community to attend to personal issues when the accident happened.

“Thank God the driver came out unhurt while no life was lost in the accident.

“When she was rescued by locals, she was too shaken and could not talk. She was taken to a private hospital for treatment,” he said. He, therefore, urged motorists to be careful when driving to avoid unnecessary loss of life.

Meanwhile, the Federal Fire Service revealed that the driver of the vehicle was likely to be on high speed before the vehicle swerved into the median and fell into the Osun River, after loosing control.

Efforts to get the Federal Road Safety Commission (FRSC) to tow the vehicle out of the river were ongoing as at the time of filing this report.

 

Last modified on Sunday, 07 November 2021 09:53