Nigerians Spend N7.6trn Yearly On Petrol,Generator Maintenance-Report

 

Mohammed Shosanya

 

 

A new report by Sustainable Energy for All (SEforALL),Lagos State says Nigerians spend $10 billion (N7.6trillion) trillion) annually on petrol and generator maintenance.

 

The development underscores the country’s heavy reliance on fossil fuels for energy generation,despite huge challenges and environmental concerns,the report said

 

 

According to the report,the high cost of fuel and generator (genset) maintenance place a heavy burden on households and businesses, hindering economic growth and development.

 

 

It said:“Nigerians reportedly spend $10 billion (N7.6 trillion) annually on fuel and maintenance for small petrol genset,” SEforALL said in the report entitled, “Beyond Gensets: Advancing the Energy Transition in Lagos State.”

 

 

The report noted that Lagos State’s heavy reliance on diesel-powered generators has resulted in an alarming environmental toll, with estimated annual carbon emissions reaching 39 million tons of CO2 equivalent (tCO2e), higher than three other African countries such as Rwanda, Gabon, and Togo.

 

 

The report disclosed that emissions from Lagos’ residential, commercial, and market sectors are overwhelming.

 

 

The residential sector alone accounts for 21 million tonnes of CO2 emissions annually, while the commercial sector contributes 17.8 million tonnes, with markets adding a further 141,125 tonnes.

 

 

“Together, these emissions amount to 39 million tonnes of CO2, a staggering figure when compared to emissions from other nations,” SEforALL said.

 

 

According to the report, the average small business in Africa’s biggest economy spends N20,000 to 40,000 per month just on fuel.

 

 

 

“This is the largest cost to many small and medium enterprises (SMEs) in their operations,” SEforALL said.

 

 

“The cost of electricity for petrol generators is 83 percent higher than the cost of electricity from the grid,” SEforALL said.

 

 

 

The report further stated that Togo emits approximately 9.8 million tonnes of CO2 annually, Rwanda 10.6 million tonnes, and Gabon 10.2 million tonnes.

 

 

 

It estimated that Lagos State alone has a generator set capacity of around 19 gigawatts (GW),far exceeding the national grid’s installed capacity of 12.2 GW.

 

 

“This dependency has not only placed Lagos at the forefront of Nigeria’s power generation challenges but has also contributed to a substantial environmental burden,”the report said.

 

 

The report noted that the city’s dependence on gensets is largely a consequence of Nigeria’s unreliable electricity grid, which has long struggled to meet demand due to inefficiencies, underinvestment, and maintenance issues.

 

 

Despite having an installed capacity of 13,014.14 megawatts (MW), Nigeria’s national grid frequently operates below optimal levels, with outages and inconsistent power supply forcing residents and businesses to rely on alternative power sources like generators.

 

 

The SEforALL report emphasized the import of transitioning to cleaner, more sustainable energy sources in Lagos and across Nigeria.

Labour Accepted N70,000 Minimum Wage To Avoid Fuel Price Hike-Ajaero

Labour Accepted N70,000 Minimum Wage To Avoid Fuel Price Hike-Ajaero

 

 

President of Nigeria Labour Congress, NLC, Mr Joe Ajaero,has disclosed the understanding which the organized labour had with President Bola Tinubu before accepting the N70,000 minimum wage during the national minimum wage talks at the President Villa,Abuja

 

 

 

 

At a Morning Show programme on Arise Television,Ajaero said that  during the meeting on new Minimum wage with President Bola Tinubu at the Presidential Villa, the organised labour refused the offer of increase in the price of petroleum to accept N70,000 as the new minimum wage.

 

 

 

 

 

According to him,after the organized labour had agreed with the president on the Compressed Natural Gas, CNG, alternative, the labour went ahead to negotiate with a team of experts who agreed to convert vehicles to CNG at the rate of N300,000.

 

 

 

 

He said on meeting with the government team, the officials rejected the NLC deal and instead announced that conversion of vehicles to CNG would cost N800, 000.

 

 

 

 

Asked whether the President betrayed the trust of the NLC by increasing the petrol pump price despite the alleged agreement with him, the NLC President said: “I have to narrate the scenario to you, and then we now choose the appropriate word, whether it is betrayed, deceit or whatever. While we were discussing, we stalemated at N62,000, even the states were saying they wouldn’t pay, so there was a stalemate that took us to Mr. President.

 

 

 

“We insisted on N250,000 and Mr President at the meeting, turned to me and said, ‘Ajaero, you are the person holding my hand from increasing further’. And I said increase what? The president said, ‘since I said the subsidy is gone, we should have gotten the appropriate price. We should have increased. I want to sponsor you people, labour, to travel to these West African countries and know how much they are paying. Some are paying N2,000, N1,800, N1,700’. As he announced it, we declined immediately that we were not going to take that sponsorship.

 

 

 

 

“He said, ‘Okay, I will go to my office for one hour. You guys decide, if you agree for me to increase the price of petroleum products, I will pay you N250,000 minimum wage, if not, you take this N62,000’.

 

 

 

“But we said, Mr. President, no, we can’t sit down here to decide in your office, we will take about one week to go back and discuss and get back to you, which was exactly what happened and we adjourned for one week. And when we reconvened, we made it clear to Mr. President that we didn’t have any mandate to come there to discuss the price of petroleum products or increase, we were only there to discuss minimum wage and minimum wage alone we were going to discuss. And on the basis of that we accepted 70,000 (Naira)”.