6 — Vanguard, TUESDAY, SEPTEMBER 22, 2020 NEWS HOTLINES: 08052867023, 08052867058 LECTURE—From left: Pastor Ituah Ighodalo, Chairman, 2020 Kingsweek Planning Committee; Babagana Monguno, National Security Adviser; Leke Oshunniyi, Deputy president, King's College Old Boys' Association, KCOBA; Kashim Ibrahim-Imam, President, KCOBA; Olumide Akpata, President, Nigerian Bar Association, NBA; Andrew Agada, Principal, King's College, Lagos, and Sonny Echono, Permanent Secretary, Federal Ministry of Education, during the KCOBA 111th Annual Founders' Day Lecture, with the theme: 'Education: The Way Forward', held in Lagos. Photo: Akeem Salau. Fuel crisis looms nationwide, as truck owners withdraw tankers from roads By Michael Eboh NIGERIA Association of Road Transport Owners, NARTO, yesterday, ordered all its members to withdraw trucks, especially petrol tankers nationwide today and tomorrow. NARTO's directive was in protest to the order of the Federal Government, banning tankers with 45,000-litre capacity from lifting petroleum products in the country. The transporters are also issuing a 10-day strike notice to the Federal Government, effective September 24, 2020, over the issue. Addressing newsmen in Abuja, National President of NARTO, Yusuf Othman, stated that the leadership of the association, received with grave shock the recent government's decision to place immediate ban on all petroleum trucks above 45,000 litres capacity from plying Nigerian roads. Othman claimed that the Federal Government did not consult with transport owners before taking the decision, adding that the government also did not give them ample time to prepare for implementation of the policy. NARTO is the umbrella organization of all commercial vehicle owners in Nigeria, engaged in the haulage of petroleum products, general cargoes, and movement of goods and passengers within the country and the West-African sub-region. Othman described the sudden ban as highly insensitive and unappreciative of the efforts and contributions of NARTO members as businessmen and investors in the very critical and sensitive distribution and supply chains of petroleum products across the country. He also warned that if these trucks with 45,000-litres capacity are withdrawn suddenly and promptly as being demanded by the government’s decision, it would create another side effect of avoidable unemployment, especially as it is estimated that more than 40,000 drivers/drivers mate and artisans would lose their jobs. He said: "For the records, we wish to state very strongly that our members are already discouraged and distressed, even with the fact that the transport sector which is one of the sectors that are worst hit by the COVID-19 pandemic because of the total restriction of movement, the federal government refused to extend some intervention to the sector as done to many sectors of the economy, including aviation, agriculture and others. "In the light of the foregoing and the fact that we understand the reasons behind government's decision, we equally demand that government should be more empathetic and sensitive to the plight of our members and the very harsh economic situation of the time by giving us ample time to source for money to re-engineer all affected trucks and operations accordingly. "We can assure you that none of the major transport companies across the country can continue any form of operations with this policy within this short time frame. "In view of the above, we are, therefore, constrained to allow the decision of all our members to park their trucks as from tomorrow (today) to 23rd September, 2020, prevail as warning, and furthermore, issue 10 days ultimatum with effect from September 24, 2020, for a full blown withdrawal of service. "If such scenarios occur, we earnestly plead with those who will lose employment, income and general public that will be negatively affected by this avoidable situation." He clarified that the leadership of NARTO was not in any way against the decision of the federal government to ban the use of truck with more than 45,000 litres capacity in the conveyance of petroleum products, considering the dilapidated state of Nigerian roads but was particularly concerned about the sudden and prompt nature of the ban. "We consider the approach to be highly insensitive to the huge investments the Owners of these trucks have made and debts they incurred in executing the mandate given by previous administration. This move by the government will definitely be counterproductive considering the fact that sudden withdrawal of these trucks will impact heavily and negatively on the operations of our members and the withdrawal will also create heavy gaps in the supply and distribution chain bearing in mind the fact that NARTO, being the owners of these trucks, are integral part of the supply and distribution of petroleum products across the nation," he argued. NCC to usher in new pricing regime for mobile international termination rate •Commences cost-based study to determine new rate By Emmanuel Elebeke ABUJA — The Nigerian Communications Commission, NCC, has embarked on a cost-based study to set the new pricing regime for mobile international termination rate, ITR, for inbound international voice calls in the country. The ITR is the rate paid to local operators by international operators to terminate calls in Nigeria. As part of the process for the rate determination, the commission has organised a virtual stakeholders' engagement forum with relevant industry stakeholders to intimate them with the ongoing cost-based study and the need to cooperate with Messrs Payday Advance and Support Services Limited, the consultants engaged to carry out the study. Addressing the stakeholders in Abuja, the Executive Vice Chairman of NCC, Prof. Umar Danbatta, said the study has become imperative, following the various implementation constraints arising from contending industry and market dynamics that met previous efforts at finding an optimum price for the termination of international voice services in Nigeria. Danbatta, who was represented at the forum by the Executive Commissioner, Stakeholder Management, NCC, Adeleke Adewolu, said through the new ITR pricing, the commission would be able to balance the competing objectives of economic efficiency, allowing operators the latitude to generate reasonable revenue. The EVC, however, explained that in 2013, the commission issued a determination stating that mobile termination rate, MTR, were the same, irrespective of where the call originated, a clause he said was largely misconstrued by operators at that time to mean that ITR should be the same rate as the MTR. He said this led to operators ignoring the international cost portion, where ITRs were agreed at MTR level, <strong>without</strong> a positive residual to cover the costs of the international leg for local operators. “As a result of this, the ITRs continued to decline, in line with the MTR glide path and as the ITR was set in Naira, it suffered a further downward slide in dollar terms, following currency devaluation. ''Ironically, Nigerian operators paid the international operators in dollars to deliver international calls which created an imbalance of payments as the ITR in Nigeria declined,” he said. Danbatta said Nigerian operators’ profitability and commercial results were negatively affected as a result, putting Nigeria’s ITR below that of most countries with which it makes and receives the most calls, thereby making Nigerian operators perpetual net payers. Danbatta said: “This has, therefore, led to undue pressure on the nation’s foreign reserves, which continue to get depleted by associated net transfers to foreign operators on account of this lop-sidedness, hence the need for Nigeria, with volatile currencies, to regulate the ITR to prevent or mitigate the imbalance of payments with international operators. Buhari asks <strong>Kaduna</strong> to surpass investment achievements •As USAID, KDSG sign MoU to drive economic devt in <strong>Kaduna</strong> Previous administrations spent N8.9trn on subsidy in 10 years —PPPRA By Michael Eboh ABUJA — THE Petroleum Products Pricing Regulatory Agency, PPPRA, yesterday, stated that N8.9 trillion was spent on fuel subsidy by the Federal Government, mainly by previous administrations, between 2006 and 2015. According to data released to support the need for deregulation of the downstream petroleum industry, the PP- PRA stated that the bulk of the sum was expended between 2011 and 2015, where N6.7 trillion, representing 74.8 percent of the total was spent on subsidy. Giving a breakdown of the figure, the PPPRA stated that N257.36 billion, N271.51 billion, N630.57 billion, N409.31 billion and N667.08 billion were spent on fuel subsidy in 2006, 2007, 2008, 2009 and 2010, while in 2011, 2012, 2013, 2014 and 2015, fuel subsidy gulped N2.1 trillion, N1.35 trillion, N1.32 trillion, N1.22 trillion and N653.51 billion. Minister of State for Petroleum Resources, Timipre Sylva, had stated that the Federal Government is not currently in a position, financially, to pay subsidy, as the COVID- 19 pandemic had impacted By Ibrahim Hassan-Wuyo ABUJA—President Mu hammadu Buhari has asked both domestic and foreign investments worth about $800 million since 2015, with investors pledging a further $2.1billion. In his good will message, President Buhari noted that KADINVEST had become a respected fixture on the investment calendar held annually since 2016.’ He said: ‘’It is a fitting statement of the resilience of the <strong>Kaduna</strong> State Government that it is able to host the 2020 edition amidst the severe disruptions to the normal order caused by COVID-19. ''This is the sort of determined focus that can help the country to navigate the challenging consequences of the pandemic.'' Buhari commended the efforts of <strong>Kaduna</strong> State government in establishing its credentials as the investment destination of choice in Nigeria. ‘’These efforts have received just recognition in the response of the business community which has put in new investments in the state.It is hardly a surprise that <strong>Kaduna</strong> State has emerged as the leading destination for foreign direct investment within Nigeria. ‘’This is a further affirmation of the ranking of the state as Number One for Ease of Doing Business by the World Bank’s Doing Business Report 2018. I call on the <strong>Kaduna</strong> State Government to keep up these laudable efforts and surpass the impressive results already attained,’’ he said. It will be recalled that the maiden edition of KADIN- VEST was held from April 6- 7, with the theme: ‘’Let’s Move <strong>Kaduna</strong> into the Global Economy.’’ El-Rufai, who gave an overview of what the previous summits have achieved, said: ‘’<strong>Kaduna</strong> has faced fiscal headwinds as a result of COV- ID-19 pandemic, with several mitigating strategies aimed at repositioning the state to maintain solvency and emerge stronger post- pandemic.’’ According to him, KADIN- VEST attracted 25 local and foreign investments worth $500 million. ‘’The summit also facilitated investments through the creation of a one-stop shop and operationalising of the ease of doing business charter, to break down barriers to investments and expansion of the fiscal space,’’ he added. El-Rufai said further that the second edition of the summit witnessed the launching of <strong>Kaduna</strong> State Development Plan, SDP, and ‘Sector Implementation Plan, SIP, as a vehicle to achieving SDP through annual budgeting framework.’’ ‘’The Ease of Doing Business charter, Bus Rapid Transit(BRT) system, the Eyes and Ears Citizens Engagement platform were all launched at KADINVEST,’’ he added. According to him, a three-year Memorandum of Understand(MoU) with the United States Agency for International Development(USAID), to help drive the economic <strong>development</strong> of the state was signed at the event. negatively on the country’s finances. Sylva had also told newsmen in Abuja, that since the introduction of the deregulation policy in March 2020, the country had saved about N1 trillion. Sylva noted that the deregulation of the downstream petroleum sector and the removal of subsidy was not a political decision, but had become inevitable, especially with the effect of the COV- ID-19 pandemic, the low crude oil prices and curtailing of Nigeria’s production output by OPEC, which had constrained government’s revenue. He said: “It became necessary that the country cannot sustain subsidy payments, hence the decision to deregulate. Government has stopped subsidizing petrol at the pump, but will now play its traditional role of protecting consumers from exploitation, by ensuring that marketers do not profiteer at the expense of ordinary Nigerians and consumers of the product. "We are no longer in the business of fixing prices; we have stepped back and allowed market forces to determine the prices. Henceforth, if crude oil price goes up or down, it would reflect at the pumps."
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