Economy
Fuel Scarcity Menace In Nigeria
Fuel scarcity has been noted to be one of the maladies of the Nigerian economy (Sunday Akpan, 2020). Nigerian economy with a rising population of about 200 million, was formally a predominant Agricultural based economy before the advent or discovery of crude oil in Oloibiri River state in 1958. Shell started exploration earlier before a merger occurred between two major companies Shell and BP. They both had a 50/50 joint venture share in 1960 which led to the establishment of the Nigerian Petroleum Refinery Company (NPRC). This pact between these companies gave birth to the first oil refinery in Rivers.
Currently, there are four oil refineries in Nigeria (Warri, Port-Hacourt, Kaduna) but they are not functional. The Nigeria crude oil is refined majorly in the United States of America, Netherlands, United Kingdom, France, and Belgium. It is also Interesting to note that Nigeria is a frontline member of the Organization of Petroleum Exporting Countries (OPEC), with 2.7 barrels of crude oil production and 445000 barrels refining capacity per day. It is said to be the largest oil producing country in Africa and the 6th in the world (Oduntan, 2015). Nigeria appears to be the only oil-producing country globally where fuel availability is a major challenge over the years (Ugwu, 2016).
Fuel Scarcity could be described as the non-availability of fuel in time of need at the approved price. In other words, fuel scarcity is not limited to the absence of fuel at the required time, but also the availability of it at a higher rate (Nnabuife etal, 2016). Fuel Scarcity usually happens when the government or petroleum marketers wants to increase the pump price so there is false scarcity then the hike is effected. Nigeria has witnessed different periods of fuel scarcity from Gen Yakubu Gowon regime in (1966-1975), it was increased from 6k to 8.45k, in 1993. During Gen Sani Abacha regime in 1996, he increased the pump price three times from N5-11N at this period the refineries where not functional and were left with the option to export our crude oil.
President Obasanjo increased pump price seven times from N20 to N75. It is important to note that only late president Shehu Musa Yar’adua that did not increase fuel price during his tenure. Dr Jonathan regime had relatively stable pump price from N75 to N147 this happened 1st January 2012 when the then president removed subsidy and the whole nation revolted before it was brought down to N97 then to N87. President Muhammadu Buhari regime has seen fuel price fluctuating from N87 to 147 now current pump price at N165 at filling stations and to as high as 500 buying from black market.
Fuel scarcity is caused by different factors which are not limited to the following; Removal of subsidy as seen during the President Jonathan Ebele Goodluck administration. The then government wanted to use the subsidy money for revitalization of the economy, this was not welcomed by the Nigerian Masses. In 2014 the government decided to pursue the initiative of subsidy removal by lowering number of licenses to independent marketers and importers. But this was unsuccessful and made fuel in circulation to be reduced causing unnecessary fuel scarcity
In 2017 The scarcity was caused by rumors of increased pump prices. This rumor pushed people into panic buying. The Independent Petroleum Marketers Association of Nigeria (IPMAN) during that period withdrew their service, this worsened the situation of fuel scarcity.
The current fuel scarcity started sometimes in January in Lagos when adulterated fuel was noticed from the petrol imported from Europe. Where particles of methanol was found in about four petrol cargoes, this was only noticed when motorists who purchased fuel had problems with their cars had to report the development. The GMD OF NNPC ordered an investigation into the course of the problem.
The report of the investigation by the quality inspection officers had it that there was presence of emulsion particles in four cargoes owned by MRS, Oando, Duke Oil, Emandeb/Hyde/AY/Maikifi/Brittania-U Consortium. Since this report was established the petroleum companies have refuted such claims. The GMD of NNPC Ltd and everyone who failed to do their work has not been sanctioned and it has been over a month.
Nigerians are suffering the inaction of the Government, the multiplier effects has negatively affected manpower productivity, people spend long hours on fuel queue hoping to get PMS in other to get along with their day, transportation has sky rocked to the highest minimum. The current double digit inflation is not helping matters, food prices has gone up. There is epileptic power supply and the major option of alternative power supply used by both private individuals.
Companies and government(generator) is mostly not a better a choice due to scarcity and hike in prices. You get to some offices and you see people sleeping or telling you there is no network due to power outage. Hundreds of cars have been damaged because of the purchase of black market fuel mixed with water or any other substance for profit making, this black market fuels are sold exorbitantly. Nigerians indeed have a long span of patience, but our patience should not be taken for granted.
If it were a proper democratic government, solutions should have been implemented, persons involved should have been sacked or suspended but absolutely nothing has been done, meaning this will definitely repeat itself in the near future since there is no consequence for this action.
Written By Ojamaliya Abuh, An Economist.
Meta recently hosted its first Youth Summit in Lagos, Nigeria, bringing together over 200 young professionals, students, recent graduates, creatives, tech enthusiasts and aspiring entrepreneurs.
Themed ‘Empowering Youth Through Technology, Innovation and Entrepreneurship’, the summit included a series of thought-provoking panel discussions, a mentoring session and an interactive workshop designed to equip young Nigerians with the skills, insights and networks needed to thrive in today’s tech-driven world.
Commenting about the event, Phil Oduor, Head of Policy Programs, Sub-Saharan Africa said, “At Meta, we believe that today’s youth are tomorrow’s change-makers. Through initiatives like the Youth Summit, we aim to foster innovation, promote digital literacy and empower young Nigerians with the tools and opportunities to realise their potential and contribute to Nigeria’s growing digital economy.”
Delivering the keynote address, Femi Aluko, CEO/Co-Founder, Chowdeck, shared his journey of breaking barriers to achieve success in tech. He encouraged attendees to embrace the limitless opportunities within today’s technology ecosystem.
A panel discussion, led by Chinny Francis, Public Policy Manager at Meta, featured panellists Nifemi Akinwamide, Head of Operations, Alt School; Adaora Mbelu, Co-Founder of Lumination Global and Obaloluwa Adeagbo, Marketing Lead at Talstack. They shared valuable insights about the future of work, emphasising the importance of storytelling to build a personal brand, practicing self-awareness, developing soft skills, lifelong learning and honing problem-solving skills to thrive in a digitally transformed world.
Francis Sani, Technical Adviser for Innovation, Entrepreneurship & Capital at the Federal Ministry of Communications, Innovation & Digital Economy, spoke at the event. He highlighted the 3 Million Technical Talent (3MTT) program, emphasising that the program aims to build Nigeria’s technical talent backbone to drive the digital economy and position Nigeria as a net talent exporter. He encouraged youth to take advantage of this opportunity.
Another panel of industry experts took the stage during the ‘Lunch and Learn: Navigating Entrepreneurship in a Rapidly Changing Landscape’ session, moderated by Sade Dada, Head of Public Policy for Anglophone West Africa at Meta. Seye Bandele, CEO of PaidHR and Damilola Teidi-Ayoola, Head of Platform and Networks at Ventures Platform Fund, shared their invaluable insights. Seye highlighted the importance of grit, curiosity and candour, while Damilola reinforced the need to understand one’s target audience, deliver value through their business and embrace data-driven decision-making in the dynamic entrepreneurial landscape.
The event also featured inspiring conversations with leading figures in the creative industry. Miss Techy, an award winning tech content creator and Salem King, a creator, storyteller, author and speaker, shared their experiences and advice on achieving long-term success. Attendees also benefited from an interactive workshop and a mentoring session, where industry experts shared practical advice and strategies for entrepreneurs and tech enthusiasts.
Meta’s Youth Summit 2024 highlights a commitment to driving positive change, championing youth empowerment and advancing economic opportunities in Nigeria. Through investments in key areas—such as the creative industry, digital literacy, economic impact and youth job training—Meta is dedicated to empowering young Nigerians to thrive in today’s tech-driven world.
Cross-section of some of the attendees at the Meta Youth Summit 2024 in Lagos
L-R: Chinny Francis, Public Policy Manager, Meta; Nifemi Akinwamide, Head of Operations, Alt School; Adaora Mbelu, Co-Founder of Lumination Global and Obaloluwa Adeagbo, Marketing Lead at Talstack.
L-R: Sade Dada, Head of Public Policy, Anglophone West Africa, Meta; Damilola Teidi-Ayoola, Head of Platform and Networks, Ventures Platform Fund, and Seye Bandele, Chief Executive Officer, PaidHR during the Lunch and Learn: Navigating Entrepreneurship in a Rapidly Changing Landscape panel session.
Salem King, a creator, storyteller, author and speaker and Miss Techy, an award winning tech content creator
During a mentoring session workshop
Femi Aluko, Chief Executive Officer and Co-founder, Chowdeck.
Francis Sani, Technical Adviser to the minister of communications and digital economy of Nigeria
Economy
Tosin Eniolorunda: Fighting fraud related issues in financial ecosystem requires collaboration
Nigeria’s financial system has come under renewed scrutiny against the backdrop of the increase in the value of electronic payment transactions in Q1 2023 and the challenges posed by bad faith actors who exploit gaps in the payment systems even as Nigerian financial institutions have reported ₦159 billion ($201.5 million) lost to fraud since 2020. There is a need for all players in the financial services sector to come together in tackling these challenges.
Group CEO, Moniepoint Inc., Tosin Eniolorunda during a courtesy visit to the Chief Executive Officer, Fidelity Bank, Nneka Onyeali-Ikpe in Lagos. Onyeali-Ikpe, who welcomed the Moniepoint boss, used the opportunity to reaffirm her bank’s appreciation for the patience and understanding demonstrated during its banking channel integration optimization which resulted in service disruptions and the inability of Moniepoint customers to receive financial inflow.
It will be recalled that Fidelity Bank had recently announced to its customers and the general public, the resumption of interbank transfers to all licensed financial institutions in the country. This was following speculative reports from various media publications that the bank had imposed transaction restrictions on some neo banks operating in the country.
During conversations around the growth of the digital payments segment and contributions of the financial services to Nigeria’s socio-economic development, Tosin Eniolorunda used the occasion to stress the point that Moniepoint as a responsible and compliant organization takes customer KYC very seriously. “KYC is not merely an acronym but indeed a cornerstone in establishing trust, ensuring security, and complying with regulatory standards. All accounts created on our platform have BVN verification and in addition to this we perform a liveliness check at the point of onboarding. This is a comparison of the account holder’s life picture and the BVN image as a way to reduce impersonation,” Eniolorunda maintained.
He continued, “we have zero tolerance for fraud and typically go all out to ensure that we track fraudsters and fraudulent transactions on our platforms. We have deployed and utilize robust fraud detection systems and technologies that can analyze patterns, identify anomalies, and detect suspicious activities in the system. As such we are better empowered to identify potential fraud incidents and trigger alerts for further investigations and remedial actions.”
As partners in deepening the CBN’s mandate of ensuring provision of adequate and convenient financial services to consumers and guaranteeing their protection as well as the various undercurrents in the financial services industry, Moniepoint and Fidelity agreed to work closely together to develop a tightly knit mechanism to stem the menace of fraudulent transactions and collaboratively push through in addressing payment challenges in the country.
The Republic of Angola has become the 21st African Member State and the 1st Lusophone Member State of pan-African insurer, Africa Trade Insurance Agency – ATI, after paying a capital subscription of USD25 million. The membership was funded the Angolan National Treasury resources and proceeds from the landmark BITA water project – a strategic public investment for the construction of infrastructure for the treatment, supply and storage of drinking water that will benefit 2.5 million people in Angola.
Welcoming Angola’s membership, ATI’s Chief Executive Officer, Manuel Moses, noted the country’s demonstration of its commitment to diversify its economy through ATI’s trade and investment risk mitigation solutions.
“We are happy to support Angola in its quest to economic diversification and becoming an agricultural powerhouse on the African continent. Angola’s membership is timely as ATI’s risk mitigation and credit enhancement services will act as a catalyst for strengthening and diversifying Angola’s economy, supporting both increased investment, exports and trade under Africa’s continental framework of the AfCFTA,” Mr. Manuel said.
Under this one of a kind blended finance and guarantee innovative structure, the Republic of Angola – along with the lenders covered by ATI under the transaction – agreed for the use of proceeds under the syndicated loan to also include the financing for the purpose of Angola becoming a member of ATI. ATI provided guarantee and insurance support for this World Bank’s partially guaranteed facility to the Government of Angola for the expansion and improvement of water supply service in the urban and peri-urban belts of Luanda.
Current exposure
ATI’s gross exposure in Angola, the largest country in Southern Africa Region, currently stands at USD467M mainly in construction, energy & gas, trade & transport, water supply and wholesale & retail sectors, with transactions valued at USD1.4B.
“This development was made possible because of ATI’s pan African mandate that allows the organization to cover transactions in Angola and beyond, despite ATI non-membership. Now that Angola is a fully-fledged shareholder of ATI, the country can fully access more of ATI’s guarantee solutions to attract more Foreign Direct Investments and boost its internal and external trade across the region,” Mr. Manual explained.
Angola’s economy is mainly driven by its oil sector but the country seeks to pursue new growth models for economic diversification through the agricultural sector and private sector development.
With ATI’s support, Angola is on the path to fiscal consolidation, manage their debt ceiling, increase in public and private investment, in order to resume the ascending curve of sustainable and inclusive economic growth as well as human development.
ATI has grown from a small African start-up in 2001 into a pan-African institution with presence across Africa and with a significant global reach. Besides Angola, other member countries include Benin, Burundi, Cameroon, Côte d’Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Senegal, South Sudan, Tanzania, Togo, Uganda, Zambia, and Zimbabwe.
Institutional members include African Development Bank, African Reinsurance Corporation, Atradius Group, Chubb, CESCE (Spanish ECA), Ministry of Finance India (represented by ECGC), SACE SIMEST, The Common Market of Eastern and Southern Africa (COMESA), Trade and Development Bank (TDB), Kenya-Re, The PTA Reinsurance Company (Zep-Re), and the UK Export Finance.
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