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Senate Flays FG For Spending N11tn On Subsidy In Six Years

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The Senate on Thursday flayed the payment of N11tn to oil marketers as subsidy in the last six years, stressing that the development, if not halted, could kill the nation’s economy.

The upper chamber took the decision while considering the report of its Committee on the Downstream Petroleum Sector.

The Chairman of the committee, Kabir Marafa, had while presenting the report, told his colleagues that Nigeria spent over N11tn to pay outstanding subsidy claims in the last six years.

The development came just as the upper chamber, on Thursday, approved the payment of additional N129bn subsidy claims to 67 petroleum marketers.

The Senate had earlier on Tuesday approved the payment of N68.9bn as subsidy claims to 20 petroleum marketers.

Marafa’s report read in part, “That due to the scarcity of forex within the period, oil marketing companies were allowed to source forex outside the CBN rate to enable them to meet the country’s petroleum products demand.

“That NNPC Retail get their petroleum product allocation directly from PPMC at an already subsidised rate and so does not require forex to transact its business.”

Some of the oil marketers and the amount approved for them include Total Nigeria Plc, N13.7bn; Northwest Petroleum, N11.4bn;  Masters Energy, N10bn;  MRS Oil Plc, N8.8bn;  and Sahara Energy, N8.4bn.

Others are MRS Oil & Gas Limited, N6.3bn, Nipco Plc, N4.2bn; Forte Oil, N3.9bn; DEEJONES Petroleum & Gas, N4.1bn; and Emadeb, N4bn, among others.

The senators, before approving the payment, berated the Federal Government for paying subsidy to oil marketers over the years without the Senate’s approval.

Senator Barnabas Gemade wondered why the Federal Government and the anti-graft agencies had failed to convict any of the oil marketers who were indicted in the illegal subsidy claims.

He noted with regret that the government had not done enough in bringing the owners of the affected 50 oil firms to justice many years after their prosecution.

He said, “What has happened to those who defrauded the nation? I believe that the 9th Senate will do justice to know what has happened to this money.”

Gemade also reminded the President Muhammadu Buhari-led government of its pledge to stop subsidy payment when it came into power in 2015.

He said, “The government should stand by its words. If the government fails to end the subsidy regime, it will kill the Nigerian economy.”

Others who contributed and condemned the subsidy payment were Senators Bassey Akpan, Victor Umeh and Mathew Uroghide.

Umeh said, “If we continue to hope that one day this subsidy will end, we are deceiving ourselves. What would Nigerians face after this payment of arrears?”

“People in government have refused to face the problem. Everyone is depending on oil revenue and yet no functional refineries have been set in place.

“The government should be able to plan to build five refineries; why can’t we use the money we get from the sale of our crude to build refineries?

“The government should give us a programme to enable us to have four functional refineries in five years.

“Exchange rates are not the problem, but our inability to do what others are doing is the main issue.”

Uroghide, in his  contribution, said, “Government should be serious in their policies and not be directionless in executing these policies.”

The Deputy Senate President, Ike Ekweremadu, said, “I hope that the next Assembly will be able to sit with the Executive to address this issue and resolve it without creating unnecessary tension.

“The NNPC needs to also caution itself so that it does not encroach on the appropriation responsibility of the National Assembly.

“We need to do something about the provisions of refineries in our country – it is not rocket science. Even if it does not resolve the issue of subsidy, we would have gone a long way in addressing it.”

The breakdown showed that N10.8bn was approved as subsidy claim to Tanzila Petroleum Company, while N58.1 bn was okayed for 19 oil marketing companies.

Meanwhile, the Senate has adjourned till June 6 for its valedictory session.

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FG Signs $329m Deal with Chinese Firm to Boost Nigeria’s Power Supply

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The Federal government has signed a $328.8 million contract with a Chinese firm – China Machinery Engineering Corporation (CMEC) – to rehabilitate and expand Nigeria’s electricity transmission network under Phase 1 of the Presidential Power Initiative (PPI).

The agreement covers Engineering, Procurement, Construction, and Financing (EPC+F) for the development of 330kV and 132kV transmission lines across the country, aimed at improving grid reliability and reducing stranded generation capacity.

The project will be coordinated by FGN Power Company, a special purpose vehicle established by the federal government to oversee implementation of the PPI.

The Minister of Power, Adebayo Adelabu, speaking at the contract signing ceremony in Abuja, said the agreement would cover 544 kilometres of transmission lines with a load capacity of 7,140 megawatts, spanning both brownfield and greenfield sites.

He explained that these critical infrastructure projects would act as the main arteries for delivering increased power from midstream transmission directly to homes, businesses, and industries, helping to strengthen the country’s economy.

The minister described it as a vital step toward resolving persistent bottlenecks in Nigeria’s power value chain.

He emphasized that enhancing the transmission network is essential to ensure that generated electricity is delivered efficiently to end-users.

He noted that the signing of the agreement demonstrated the federal government’s commitment, under the leadership of President Bola Tinubu, to providing stable and reliable electricity to Nigerians.

The Managing Director of FGN Power Company, Kenny Anuwe, described the partnership with China Machinery Engineering Corporation (CMEC) as a strategic move to develop a robust transmission network capable of supporting increased generation capacity.

He explained that CMEC’s involvement complements the ongoing collaboration with Siemens Energy, which focuses on generation and high-voltage transmission technologies.

The Vice President of SINOMACH, Li Xiaoyu, expressed appreciation to the Nigerian government for its trust in CMEC, adding that the project would play a significant role in improving electricity delivery across the country.

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FCT, Lagos, Rivers Listed Among 31 Flood-Prone States This Season

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The Nigeria Hydrological Services Agency (NIHSA) has warned that 1,249 communities across 176 Local Government Areas (LGAs) in 33 states and the FCT fall within the high flood-risk areas in 2025.

The warning was issued during the official presentation of the 2025 Annual Flood Outlook (AFO) by the Minister of Water Resources and Sanitation, Prof. Joseph Utsev, in Abuja.

According to the forecast, an additional 2,187 communities in 293 LGAs across 31 states and the FCT are expected to experience moderate flood risk this year.

States identified in the high-risk category include: Abia, Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, the FCT, Gombe and Imo.

Others are; Jigawa, Kebbi, Kogi, Kwara, Lagos, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Rivers, Sokoto, Taraba, Yobe, and Zamfara.

Utsev noted that floods are among the most devastating natural disasters affecting lives, property, agriculture, and infrastructure.

He said the 2025 forecast is aimed at raising awareness and encouraging preparedness among citizens, particularly in vulnerable communities.

He said this year’s theme on community preparedness and adaptation is timely, given the recurring floods and their impact on livelihoods and infrastructure.

The minister explained that the 2025 Annual Flood Outlook has been segmented into three parts to enhance flood preparedness.

These include a general flood forecast, a communication strategy for effective warning dissemination, and a mitigation plan to reduce exposure and vulnerability.

“According to the forecast, 657 communities in 52 LGAs are expected to experience high flood risk between April and June.

“544 communities in 142 LGAs between July and September; and 484 communities in 56 LGAs from October to November.

“Moderate flood risk is projected for 445 communities in 116 LGAs from April to June, 1,458 communities in 271 LGAs from July to September, and 1,473 communities in 171 LGAs between October and November,” he added.

He said flash and urban flooding are expected in major cities, including Abuja, Lagos, Port Harcourt, Ibadan, Kano, and Makurdi, largely due to poor drainage and weak infrastructure.

According to him, coastal states such as Bayelsa, Cross River, Delta, Lagos, Ogun, Rivers, and Ondo may also experience flooding caused by rising sea levels and tidal surges, posing a threat to livelihoods and river-based activities.

Utsev announced initiatives such as a National Flood Insurance Programme, to be piloted in Kogi and Jigawa states, and the Niger Flood Project to boost river navigation, flood control, and climate resilience.

He highlighted plans to launch an Integrated Climate Resilience Project and the forthcoming Annual Drought Outlook.

Utsev urged stakeholders to support government efforts in building flood-resilient communities and affirming the Federal Government’s commitment to proactive flood management.

Earlier, the NIHSA Director-General Umar Mohammed emphasised the agency’s commitment to using advanced technologies and fostering inter-agency collaboration to deliver accurate and timely flood forecasts.

Mohammed explained that this year’s forecast adopts a more community-focused approach, extending beyond local government areas to identify specific at-risk communities.

“Our aim is to equip decision-makers with actionable information to protect lives, livelihoods, and property,” he stated.

He added that the outlook identifies flood-prone states, local government areas, and communities, while also assessing impacts on sectors such as healthcare, education, agriculture, transport, and water quality.

According to Mohammed, the goal is to strengthen community resilience and support proactive flood management strategies across the country.

Key highlights of the event included the formal presentation of the NIHSA Flood and Drought Dashboard and the unveiling of the National Flood Insurance Programme.

Goodwill messages were delivered by representatives of the World Meteorological Agency, the National Water Resources Institute Kaduna, and others.

NAN

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Purported Arrest of Nigerian Businessman, Benedict Peters, in Ghana Overblown Says Dele Momodu

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By Eric Elezuo

Veteran journalist and Chairman, Ovation Media Group, Chief Dele Momodu, has said that the purported arrest of Nigeria billionaire businessman, and owner of Aiteo, Mr. Benedict Peters, in Ghana, was ‘overblown’, of ‘lurid picture’ and ‘littered with tarbrush’.

Speaking via his social media handles on Tuesday, Momodu frowned at how news that bears the citizen of Nigeria often “it often generates some hoopla and hysteria”, noting that he has been in touch with the businessman, who confirmed that all was well.

Momodu further quoted Mr. Peters, who he spoke with as saying that the Ghanaian authorities acted promptly, professionally and responsibly to douse the tension.

Below is Momodu’s detailed statement:

“Earlier today, the Ghanaian social media was awash with the overblown story of a Nigerian billionaire businessman BENEDICT PETERS who was purportedly arrested because his “armed militia” operatives blocked the entrance of a highbrow residential estate near Jubilee House in Accra.

As always, any news that bears Nigerian citizens in it often generates some hoopla and hysteria. But as someone who knows BENEDICT reasonably well as a well-informed and unassuming businessman, I knew the lurid picture being painted of him was obviously littered with tarbrush.

I have now spoken with BENEDICT and was happy that he said the Ghanaian authorities acted promptly, professionally and responsibly to douse the tension.

This is how Ghana can continue to be a destination of choice for investors and tourists…”

Beyond his pan-African status, Benedict Peters is a thorough investor in the oil and gas and mining industries among others.

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