Nigerian govt re-launches failed scheme to enforce N50 kerosene price

Nigerians queuing for kerosene

In spite the failure, three years ago, of the Kero Direct initiative, a policy which sought to deliver kerosene at the regulated price of N50 to consumers, the federal government on Sunday re-launched a similar scheme.

The new plan, Kero Correct’ Initiative, KCI, is also designed to bring down the retail price of household kerosene, HHK, in homes nationwide, the Executive Director, Commercial, Pipeline and Products Marketing Company, PPMC, Frank Amego, said.

Under the new scheme, kerosene, one of the most commonly used fuels in Nigerian homes, would be sold to consumers at the regulated price of N50 per litre.

But, petroleum industry analysts say the so-called new initiative bear a close semblance to the controversial “Kero Direct” scheme introduced in July 2011, and may not also succeed.

The “Kero Direct” initiative, which was meant to supply kerosene to Nigerian homes directly at government regulated price of N50 per litre, only succeeded in making multi-billionaires out of close allies of the Presidency and Petroleum Resources Ministry involved in the scheme.

At the peak of the kerosene scarcity in the country, the Minister of Petroleum Resources, Diezani Alison-Madueke, had announced the launching of the initiative.

Under the scheme, the Ministry of Petroleum Resources, with the assistance of the Nigerian National Petroleum Corporation, NNPC Retail Limited, was to work with Capital Oil & Gas Limited, an indigenous petroleum products marketing company, to distribute kerosene to Nigerians at N50 per litre.

While the PPMC provided the product, Capital Oil & Gas was expected to use its dispensing trucks to deliver the product to end users directly across the country.

However, throughout the brief period the programme lasted, consumers hardly bought kerosene at designated filling stations at less than N120, sometimes as high as N250 per litre, as the programme was hijacked by a cabal in the oil industry.

Only soldiers and other uniformed organizations and privileged persons connected to top NNPC officials, were allowed to buy kerosene at N50 per litre.

Others who were perpetually on long queues were only able to buy the products resold mainly by members of the security agencies at exorbitant prices.

As the programme ended without success, Ifeanyi Ubah, whose company, Capital Oil & Gas Limited, facilitated the kero direct scheme not only emerged one of Nigeria’s richest, but also one of the biggest beneficiaries of the controversial oil subsidy payments by the federal government.

The new “Kero Correct” initiative, Mr. Amego said, has its main objective, to “cut off the several layers of middle men, who make it difficult for the end users to enjoy the subsidy on the product.”

“The ‘Kero Correct’ initiative is aimed at getting kerosene to the Nigerian masses who use the product as their domestic cooking fuel at the correct price,” he said.

The introduction of ‘Kero correct’ initiative was announced at a one-day workshop by NNPC for some grass-roots non-governmental organizations, NGOs and volunteers engaged to monitor the distribution and sales of kerosene at the corporation’s mega and affiliate stations nationwide.

Mr. Amego said though kerosene was the most subsidized fuel product, the Nigerian masses have always been denied the benefit of the subsidy due to the illegal activities middlemen, who connive with corrupt officials to abuse the process.

The officials, he explained, connive with distribution and retail agents to divert product allocations to marketers in the construction industry, where Kerosene is used for blending of bitumen for roads construction.

“The ‘Kero Correct’ initiative is thus designed to distribute and sell kerosene directly to end users from NNPC Retail mega and affiliate stations across the country at the government-regulated price of N50 per litre to ensure effective control,” Mr. Amego said.

The PPMC, he said, has sufficient stock of kerosene as well as the necessary facility to ensure efficient distribution of the product from Lagos and Oghara in Delta state to NNPC retail mega and affiliate stations across the country.

The General Manager, NNPC Retail, Ufford Ibanga, also assured that all the 524 NNPC retail mega, floating mega and affiliate stations across the country would be involved in the Kero Correct scheme.

He said the volunteers were brought into the project to help monitor discharges and sales of the product to serve as an independent feedback system to promote transparency and ensure that the product got to the desired end users.

The Chairman of the Kero Correct Committee and Manager Media, Group Public Affairs Division, Nwakwu Anthony, said the NGOs and volunteers would help monitor the discharge and sales of the product, ensuring orderliness at points of sales as well as serve as whistle blowers.

When the scheme takes off, Mr. Anthony said a total of about 1,500 trucks of kerosene would distributed across NNPC retail’s mega and affiliate stations across the country over the next three months.


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  • Jika

    Another white Elephant Scheme!!!!

    • Kay Soyemi (Esq.)

      No, bruv.

      Another project to create a new set of multi-billionaires and to reward those who “donated” to the $21bn Jonothing political fund!

    • Mark Nsikan

      sebi if na white elefant…e go beta,dis kind elefant no get color o

  • buhari pickin

    Why now

  • Bidemi Lukman

    This gov will not stp exposing thier failures and hypocracy. You initially lunched “Kero Direct” in July 2011 and since then, users are getting the product at N150. For over 4yrs, the gov never found reason to correct or ensure compliance untill now that they just woken up from thier slumber. After re-election (which will never be possible) the status quo subsists.
    The Finace Minister intially said price of petrol will not be reviewed until the winds of current crude price is over, am surprise they woke up just yesterday night to reduce N10 per litres which is a little over 10% when the reduction in crude price is almost 50%.

    Well, they shold steal whatever they need to steal till May 29, 2015 when GEJ and his staeling cabinet will be back to Otuoke

    • warry

      Who stole from 1960 to 2010? Everyday corruption, corruption, corruption. Every Tom Dick and Harry will shout corruption without proof. Buhari shouted corruption like this in 1983,got the chance for 20 months, didn’t know what else to do,things became so bad that he had to be driven away in 1985

      • Bidemi Lukman

        I know where you belong. There cant be prove since stealing is not corruption. You are not in this country when one John Yakubu Yusuf confessed before High Court in Abuja of stealing N23billion Police Pension Fund with other 8 suspects. He was given 2yrs in prison with option of N750,000 fine.

        People like you will never see a prove.

        You must be one of those GEJ addressed during his 2015 campaign in Lagos referring them to thier parents to confim authenticity of his lies.

        Buhari confisticated the loots from the politicians when he took over power but same loot was returned by IBB. I will immitate GEJ here- go and confirm this from any elder arround you if Buhari actually collected the loot and if IBB did not return them



  • warry

    Now concerning pump price of petrol,the cost of the crude is only one of the components that make up the pump price. Other components like cost of refining,tranport to and from the place of refining and other handling charges did not drop in cost. Therefore expecting the % drop in cost of crude alone to determine the pump price shows ignorance. We must not run an economy of ignorance.

  • Omababa

    This govt of Jona who see corruption and bad governance as acheivement to celebrate, will always creat loopholes for looters of our commonwealth. We have to chase them out on 14/2/15.

  • Mark Nsikan

    why all these mumu rulers no fit think d 21st century way?….kero dirct?…wtf does dat mean?/…put kerosene for petrol station at 50 naira,,we go go buy..thank u oo….*as if dey are duin me a favor..shioor*