Mohammed Shosanya

Natural Oil and Gas Suppliers Association of Nigeria, NOGASA,has lamented that its members are short of money to pay differentials as price of fuel tanker has increased to N25 million up from N7 million before the removal of fuel subsidy.

Mr. Bennett Korie, National President of NOGASA, expressed this at a world press conference in Abuja on Wednesday.

According to him, in as much as the group support subsidy removal 100 per cent, there is need to also consider the problems associated with the removal.

He complained about the cost interest of bank loans are as much as 30 per cent,and wondered where marketers would get money to continue the distribution of petroleum products across the country.

He implored the federal government to pay marketers their outstanding of the Petroleum Equalization Fund (PEF) to boost their Capita and enable them stay in business.

He added:”We are 100 percent in support of subsidy removal, but you know that everybody is talking about subsidy removal but they don’t talk about the problem behind the subsidy removal. It is good to remove subsidy but there are things that people don’t know, for instance, some of the marketers don’t have the money to pay differentials.

“This is because in less than an hour that Mr. President announced the removal of subsidy, the price changed and that affected a lot of marketers. We are talking about millions of naira. Before the removal, a tanker of fuel was selling for about seven million, but in less than an hour, it went up to 25 million naira, where is the money.

“As we speak, marketers are rioting in Port Harcourt and Warri. There are crisis there, they are not happy. Where are they going to get this money, from the bank, banks are giving loans at 30 percent, so where is this money going to come from, that is a fresh problem that no body is talking about. Subsidy was removed without considering some of these problems, at same time,

“Before now, we have this PEF. but they are not paying the marketers. There is no money, where do we get the money? Therefore, I want to use this opportunity to appeal to government to please pay marketers their PEF, so that they will continue in business, if it is not paid, we would not get fuel to sell.

“It is important for Nigerians to know that marketers do not have this money to pay, even though we support the removal, we have no choice. Because there is every need to pay this PEF, very very important” he said.

He also appealed to the government to expedite actions on repairing roads, adding that marketers are loosing a lot of products due to bad roads.

He added:”Again, the issue of roads, is another big problem that we are facing. Last year, I spoke about this road, today, the problem is still there. I am not saying that government is not trying, they are trying, there is no doubt about that, but some of these roads are very bad, we are losing products. So, if you remove subsidy, use that money to fix the road, it is important, not just to remove subsidy, also make it is easy for us to do this business.

“Pay the PEF, fix the road and again, the issue of interest in the bank, we are talking about 28 or 30 percent to borrow money from bank, it means we are working for the banks, the marketers are working for the banks, where are they going to get the 13 million naira differential to pay NNPC. I also want to use this opportunity to appeal to NNPC to note the marketers paid three months upfront for the products, before this subsidy removal.

“Now you are telling the marketer to come and pay the difference. Where are they going to get that money, be fair to marketers. Allow us to load our products at the price we paid before the removal of subsidy, because we are expected to load when we pay. Now we paid upfront, so, allow us to load our products at the old price.

“Removing subsidy is not the problem but it will suffer us, we are the traders, we are the one bringing the product to the stations, give us that chance to load our products.

“I also appeals to my fellow marketers to consider, they are considering because.. NNPC Ltd today is a private company, they are like us, but we know that it is government that floated it, however, they should also understand that we are also business men, they should consider that because it is very important, to allow marketers to load their product at old price”.

Mohammed Shosanya

Shell will ramp up its dividend and share buybacks while keeping oil output steady into 2030 as its boss, Wael Sawan moved to regain investor confidence that wavered over its energy transition plan.

Shell said it will increase its overall shareholder distribution to 30% to 40% of cash flow from operations, from 20% to 30% previously.

The increase,according to a new financial framework announced on Wednesday, includes a 15% dividend boost and an increase in the rate of its share buyback programme from the second quarter to $5 billion, from $4 billion in recent quarters.

The financial framework is the linchpin of Sawan’s effort to boost Shell’s share performance relative to its U.S. peers after many investors shunned the British company even after it posted a record $40 billion profit last year.

Shell has faced concerns that it was shifting away from oil and gas at a time of booming energy prices while returns from its growing renewables and low-carbon businesses remained poor.

“Performance, discipline, and simplification will be our guiding principles,” said Sawan, who took office in January.We will invest in the models that work – those with the highest returns that play to our strengths,” he added in a statement.

The dividend increase, to around 33 cents per share, is the sixth since Shell slashed its then 47 cent dividend by nearly two-thirds in April 2020, the first cut since the Second World War, in the wake of the COVID-19 pandemic.

The higher payout ratio will make keep Shell “competitive with peers”, RBC analyst Biraj Borkhataria said in a note.

Shell scrapped its previous target to cut oil output by 20% by 2030 after largely reaching the goal. It produced around 1.5 million barrels per day of oil in the first quarter of 2023.

It said it will now keep its oil production steady to 2030 and will grow its natural gas business to defend its position as the world’s biggest liquefied natural gas (LNG) player.