Economy

Fuel Sells at N180/litre As Scarcity Hits Lagos, Abuja, NNPC Cuts Supplies

Published

4 years ago

June 21, 2022

Eric

Fuel queues hit major cities of Lagos, Abuja and Ogun on Monday, forcing motorists to spend hours at filling stations.

In Lagos and Ogun states, The PUNCH witnessed long queues at several filling stations such as Mobil, Capital, Fatgbems, Enyo, TotalEnergies and NNPC.

Though there were products at these filling stations, which also sold at N165/litre, motorists struggled to get gasoline with which to run their economic lives.

There were also queues in states bordering the FCT, including Nasarawa and Niger.

In the Federal Capital Territory, there were long queues at various filling stations such as the NNPC, Mobil, A.A. Rano, AYA Ashafa, Enyo, among others.

Hundreds of motorists besieged the few filling stations that dispensed petrol at various states, spending hours on queues in a bid to buy PMS.

Oil marketers blamed the development on the drop in supply, stating that the demand for petrol was currently higher than what was being provided by the Nigerian National Petroleum Company Limited.

NNPC is the sole importer of petrol into Nigeria, shouldering this responsibility for more then four years.

Speaking on the development, the President, Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Billy Gillis-Harry, said, “Lagos is having queues today, Kaduna is almost not having any PMS in its retail outlets.

“So, it is simply a situation of demand overwhelming supply. The supply process is not efficient to be able to meet the demands for products.”

Asked to explain whether there was not enough product, Gillis-Harry replied, “Well, clearly, if there is product, it should be delivered. However, I know the authorities are doing their best to make sure that everyone is monitored and encouraged to sell products at the approved pump price.

“But there are no products in the retail outlets, which is why there will be queues. So, it clearly shows that demand has overwhelmed supply.”

But last Thursday, the Nigerian Midstream and Downstream Regulatory Authority had stated that there were over 32 days sufficiency of petrol by the NNPC.

Also, The PUNCH learnt that the NNPC intentionally cut down supply of products to fuel marketers.

A source familiar with the matter told The PUNCH that marketers, two weeks ago, had a meeting with the marketing arm of the NNPC and the Pipelines and Product Marketing Company, PPMC, where they were quizzed on diversion of petroleum products to neighbouring countries.

According to the source, the supply of products to oil marketers was subsequently reduced due to issues around product diversion.

“We had a meeting with PPMC two weeks ago where we were told that the volume of product we load is too high. So, the NNPC has reduced the volume they give to us,” the source said.

Nigeria consumes an estimated 60 million litres of fuel per day. However, findings showed that by PPMC’s record, marketers loaded as much as 106 million litres per day as of April.

“So, PPMC kept lamenting and asking us where the extra products go. Of course, we all know that they go to neighbouring countries where they are being sold at higher prices. Apart from the fact that diesel price for transporting products is on the high side, fuel is a product highly subsidised by Nigeria, and Nigerians are not allowed to enjoy the benefits,” our source disclosed.

Diesel is a deregulated product. Checks on Monday showed that the product was sold between N780-N820/litre.

“That’s why marketers find it difficult to take products to the North. I don’t know why Lagos is experiencing scarcity. Already, buying and transporting the product to my station is at N170 per litre. So, how much will I sell? That means price has increased itself. If you go to states like Ibadan, Ekiti, Akure, it’s impossible to see the price at N165 because cost of transporting one litre is already N20. So, by the time you take it to states like Ekiti, you already have it at N182,” our source added.

A former chairman, Major Oil Marketers Association of Nigeria and Chairman/CEO, 11 Plc, Tunji Oyebanji, told The PUNCH that the scarcity was temporary.

“As of last week, there were some talks about low stock and suppliers not giving products, but I think it’s a temporary glitch because NNPC told us they have sufficient stock of fuel,” he said.

Fuel sold at N165/ltr in places like Ikorodu, Anthony, Surulere, Ikeja, Festac, Ago and VI in Lagos on Monday, but prices were higher at Isheri and its neighbouring towns.

In a telephone interview with The PUNCH, the National Operations Controller, IPMAN, Mike Osatuyi, said the scarcity was no fault of oil marketers.

Meanwhile, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Akeem Balogun, in a statement on Monday, said that considering the current price, it is impossible for the product to be sold at N180 per litre.

Balogun advised members to sell at a sustainable price within their environment adding that they should ensure that the price is on their pump.

“Distinguish marketers, the Chairman and executives in conjunction with some senior members of our unit, organised a press conference where we explained our predicament with the current price of PMS at private depot. We explained that with the current price, there is no way we can sell less than N180 per litre”

According to him, “On this note, members are hereby advised to sell at a sustainable price within their environment. Just make sure that the price is on your pump. Kindly contact the Secretariat should you have any authority challenging your operations.”

The Punch

Economy

World Bank Okays $1.25bn Loan for Nigeria, Unveils 6-Year Growth Strategy

Published

3 weeks ago

July 1, 2026

Eric

The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria as part of a new six-year partnership framework to accelerate private sector-led growth, create jobs, and support key economic reforms.

The approval, announced on Wednesday, falls under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme and is part of the World Bank’s Country Partnership Framework (CPF) for Nigeria, covering 2026 to 2032.

According to the bank, the financing will support reforms to improve competitiveness, deepen capital markets, modernise regulations for the digital economy, strengthen power sector reforms, expand agricultural productivity and enhance domestic revenue mobilisation. The programme also seeks to reduce trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area.

The approval follows public debate over Nigeria’s rising debt profile, with some Nigerians questioning the country’s continued reliance on external borrowing and calling for greater transparency in the use of previous World Bank loans.

Beyond the financing, the World Bank said the new partnership framework aims to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens and support 9.5 million farmers through higher agricultural productivity.

World Bank Country Director for Nigeria, Mathew Verghis, said recent macroeconomic reforms had helped stabilise the economy but stressed that sustained improvements in living standards would depend on addressing structural constraints to private investment and job creation.

The World Bank Group added that its private sector arms, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), will support the strategy by mobilising private capital, expanding infrastructure investment and providing guarantees to reduce investment risks.

The new framework reflects the World Bank’s continued focus on supporting Nigeria’s economic reforms while encouraging greater private sector participation to drive long-term growth and reduce poverty.

Economy

Dangote Refinery Files Lawsuit Against FG, NNPC, Marketers over Petrol Import Licences

Published

2 months ago

May 18, 2026

Eric

Dangote Petroleum Refinery has filed a fresh lawsuit against the Nigerian National Petroleum Company Limited (NNPC) and several fuel marketers, seeking to overturn fuel import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

According to court documents filed at the Federal High Court in Lagos and cited by Reuters, the refinery is asking the court to nullify import permits recently granted or renewed by the regulator, arguing that the approvals violate an earlier directive ordering all parties to maintain the status quo pending the determination of the case.

The legal action comes at a time when Nigeria is recording a sharp decline in petrol imports due to rising domestic refining capacity, largely driven by output from the Dangote Refinery.

In its filing, Dangote Refinery argued that Nigerian law permits fuel importation only when local production is unable to meet national demand. The company maintained that continued issuance of import licences undermines its operations as it ramps up production from its multi-billion-dollar refinery located on the outskirts of Lagos.

Fuel marketers, however, have consistently defended importation, insisting that imports remain necessary to guarantee a stable supply and prevent shortages across the country.

This is not the first dispute between Dangote Refinery and fuel importers. In 2025, the company filed a similar suit against NNPC Ltd and several marketers, including AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd and Matrix Petroleum Services Ltd, while also seeking ₦100 billion in damages. The suit was later withdrawn without explanation.

Recent industry data showed petrol imports dropped to 965.52 million litres in Q1 2026 from 2.43 billion litres in the same period of 2025. Meanwhile, supply from local refineries rose to 3.18 billion litres, accounting for about 76.7 percent of Nigeria’s petrol supply during the quarter.

Economy

World Bank Flags ‘Hidden Spending System’ Diverting N34.53trn of Nigeria’s Revenue

Published

3 months ago

April 19, 2026

Eric

The World Bank has raised concerns over Nigeria’s fiscal framework, revealing that more than N34.53 trillion was diverted from federation revenue over the past three years through pre-distribution deductions.

In its latest Nigeria Development Update obtained from its website, the global lender disclosed that although total federation revenue rose sharply to about N84 trillion between 2023 and 2025, about 41 per cent of the earnings did not reach the Federation Account for distribution to the federal, state and local governments.

According to the report, gross revenue increased from N17.08 trillion in 2023 to an estimated N37.44 trillion in 2025. However, deductions classified as “first-line charges” also rose significantly, from N6.22 trillion to nearly N15 trillion within the same period, reducing the pool of funds available for distribution.

The World Bank noted that the development has created a paradox in which rising revenues have not translated into improved public spending capacity, as a substantial portion is automatically retained by certain agencies before allocation.

It explained that reforms such as the removal of petrol subsidy and foreign exchange adjustments boosted nominal revenues, but much of the gains were offset by the structure of deductions tied to cost of collection and statutory transfers.

Agencies such as the Nigeria Customs Service, Nigerian National Petroleum Company Limited, and the Federal Inland Revenue Service account for a significant portion of these deductions. The report stated that their funding is based on fixed percentages of gross revenue, leading to higher allocations as revenues increase.

Describing the model as “pro-cyclical”, the Bretton Woods institution said it operates outside the conventional budgetary framework and weakens legislative oversight. In some cases, allocations to individual agencies exceed the revenues of several states and even the budgets of key federal ministries.

The report also highlighted the impact on public finances, noting a decline in capital expenditure from N5.5 trillion in 2024 to N4.5 trillion in 2025, with only about 25 per cent of the approved capital budget implemented. Meanwhile, the federal fiscal deficit remained elevated at N16.9 trillion, driven by debt servicing and recurrent expenditure.

The World Bank warned that the current arrangement undermines fiscal transparency and accountability, as significant portions of public revenue are spent outside the standard appropriation process.

Source: tribuneonline