Tag: Fuel Subsidy

  • Fuel subsidy: Investigate  Buhari’s government or face consequences – SERAP tells Tinubu

    Fuel subsidy: Investigate  Buhari’s government or face consequences – SERAP tells Tinubu

    Socio-Economic Rights and Accountability Project (SERAP), has warned President Bola Tinubu to either probe funds declared missing under the administration of his predecessor, Muhammadu Buhari or face legal consequences.

    SERAP In the letter dated 3 June 2023, and signed by its deputy director Kolawole Oluwadare, urged Tinubu to name and shame anyone suspected to be responsible for the alleged widespread and systemic corruption in the use of oil revenues and the management of public funds budgeted as fuel subsidy.

    The letter, read in part:
    “Any removal of fuel subsidy should not be used as a ploy to keep the poor in poverty while those who allegedly stole oil revenues and fuel subsidy payments keep their ill-gotten wealth.

    “Allegations of corruption in oil revenues and fuel subsidy payments suggest that the poor have rarely benefited from the use and management of the revenues and payments.

    “Poor and socio-economically vulnerable Nigerians should not be made to continue to pay the price for the stealing of the country’s oil wealth while state and non-state actors pocket public funds.

    “We would be grateful if the recommended measures are taken within 3 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel your government to comply with our request in the public interest.

    “The proposed panel should be headed by a retired justice of the Supreme Court or Court of Appeal, and its members should include people with proven professional record, and of the highest integrity that can act impartially, independently, and transparently.

    “A comprehensive approach that prioritises accountability and full recovery of missing crude oil and public funds is required to address the problems of the implementation of fuel subsidy since 1999.

    “According to the audited reports between 2016 and 2019 by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit N663,896,567,227.58 into the Federation Account. The Auditor-General fears that the money may be missing.

    “The NNPC also reportedly failed to account for the allocation of crude oil to refineries in 2019. 107,239,436.00 barrels of crude oil were lifted as domestic crude without any document. The Auditor-General fears that the crude valued at N55,891,009,960.63 may have been diverted.

    “The NNPC in 2019 also failed to remit N1,955,354,671,268.66 and N55,157,702,848.74 of generated revenues into the Federation Account, contrary to Section 162(1) of the Nigerian Constitution 1999 [as amended]. The Auditor-General fears that the money may have been diverted.

    “The NNPC also failed to account for N4,572,844,962.25 of ‘domestic gas receipts’, thereby ‘reducing the distributable revenue in the Federation account.’ The Auditor-General wants the money remitted.

    “The NNPC also in 2019 failed to account for 22,929.84 litres of PMS pumped from refineries and valued at N7,056,137,180.00. The Auditor-General fears that the PMS may have been diverted.

    “The NNPC also ‘illegally classified’ 239,800 barrels of crude oil valued at N5,498,045,220 as ‘crude oil losses.’ The Auditor-General fears that the crude oil may have been diverted.

    “The Department of Petroleum Resources (DPR) in 2019 also reportedly failed to remit US$1,278,364,595.49 in revenue to the Federation Account. The money was deducted by the NNPC from the Oil and Gas Royalty assessed by the DPR.

    “The DPR in 2019 also deducted N19,840,081.29 as ‘stamp duty’ payments from contractors and consultants but the DPR instantly paid back the money to the contractors and consultants instead of remitting it to the treasury.

    “The DPR in 2019 also paid N137,225,973.35 to contractors and consultants for various contracts and consultancies but failed to deduct stamp duty. The Auditor-General wants the money recovered.

    “The DPR also paid N11,856,088,271.92 as salaries for 2019 but failed to deduct N118,560,882.72 as contribution of 1% Industrial Training Fund (ITF). The DPR in 2019 also failed to transfer US$35,738,342.95 year balance. The Auditor-General wants the money recovered and remitted.

    “The DPR in 2018 also withdrew without any explanation US$759,387,755.10 from DPR Signature Bonus Account rather than paid the money into the Federation Account.

    “Subsidy records show that N443,940,559,974.80 was paid as total subsidy for 2016 but the money was not budgeted for. The payments were for outstanding Petroleum Support Fund (PSF) commitments for year 2015.

    “However, there was no payment in 2016. Only outstanding payments for previous years 2014 and 2015 and interest payments were made in 2016.

    “The Auditor-General fears that the oil marketers that received the subsidy payments may not have been ‘eligible to draw from the Petroleum Support Fund as the Petroleum Products Pricing and Regulatory Authority (PPPRA) failed to provide any document on the payments.’

    “N39,141,210,181.74 was also paid from the Federation Account in 2016 to different Oil Marketers in 26 transactions, being Payments of Interest and Foreign Exchange Differential on Subsidy but without any document.

    “The NNPC also made ‘zero profit’ and recorded ‘losses from its joint ventures in 2016. This is contrary to expectations that profits should be made from the joint ventures.’

    “The Ministry of Petroleum Resources, Abuja in 2016 paid N14,490,000.00 for the supply of 3 Nissan Almera Saloon vehicles 1.5 to the Ministry without proper documentation. The purchase of ‘the vehicles were made through direct procurement without competitive bidding by at least three companies, as required by Financial Regulations. There was no advertisement and bidding for this contract.’

    “Although ‘N12,442,500.00 was approved by the Bureau of Public Procurement for the vehicles, the Ministry made an overpayment of N2,047,500.00 to the car company.’

    “SERAP urges your government to prioritise getting to the bottom of these allegations and ensure accountability for these serious crimes against the Nigerian people.

    “Promptly investigating and naming and shaming suspected perpetrators and recovering any missing public funds would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.

    “Section 13 of the Nigerian Constitution imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on your government to ‘abolish all corrupt practices and abuse of power.’

    “Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’ Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’

    “The UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption to which Nigeria is a state party obligate your government to effectively prevent and investigate the plundering of the country’s wealth and natural resources and hold public officials and non-state actors to account for any violations.

    “Specifically, article 26 of the UN convention requires your government to ensure ‘effective, proportionate and dissuasive sanctions’ including criminal and non-criminal sanctions, in cases of grand corruption.

    “Article 26 complements the more general requirement of article 30, paragraph 1, that sanctions must take into account the gravity of the corruption allegations.”

  • Mr. President, mind the gaps – By Chidi Amuta

    Mr. President, mind the gaps – By Chidi Amuta

    Between an inaugural speech full of quotable nuggets and his reflex actions in just one week of presidential power, Mr. Bola Tinubu may have sketched the footprints of his presidency.

    A casual off script remark on the removal of fuel subsidy (‘Fuel subsidy is gone!’) has set off a labour skirmish that could degenerate into labour unrest and popular protest. The incendiary aftermaths of that remark were instantly self evident. Fuel queues resurfaced all over the country. Petrol was widely hoarded across board. Prices of gasoline jumped 300-400%. Other price spirals may be in the offing. Many questions immediately began asking and answering themselves. Why insert a far reaching policy measure with implications for many ordinary lives as a casual aside right on inauguration ground? Why make an imperial pronouncement on such a matter when no government has been formed? Which government officials will handle the aftermath of such a serious decision let alone institute the palliative measures that should cushion people from an abrupt removal of petroleum subsidy? While street side speculations rage on these concerns, the new president has gone ahead to inspire further consternations in other areas of national life. Are we heading for an era of government by shock therapy?

    The president’s approach on the communication of his decision on the fuel subsidy matter in particular is a breach of the informal code of power in the presidential system. As a rule, a president must not be a bearer of ‘bad news’. He should ordinarily have a battery of officials who hint at the bad news, announce it to the public and possibly carry the burden of deniability. It is only when the government has considered the worst and best options on the bad news that the president could weigh in with the ‘good news’ of palliatives or phasing of the subsidy withdrawal for instance. Now without any government in place, without a National Assembly to mediate and without ministers to lead negotiations with labour and interest groups, the president will have to go face to face with angry unionists to negotiate the subsidy removal. That strategy could from the outset diminish the aura of the presidency as an institution and the gravity of the president as the highest priest of the deity of government.

    In quick succession, the president has appeared at a briefing session with the Governor of the Central Bank alongside his wife with the Vice President in attendance. As soon as that photo showed up on the social media, Nigerians expressed concern as to whether this was going to be the pattern going forward. Would the Vice President be sidelined? Would Mrs Tinubu be an active part of the executive business of government? What is going on?

    In far away Lagos, one of the president’s daughters has changed her designation from “Iya loja of Lagos” to “Iya loja of Nigeria” as well as informally created and ascribed to herself the nonsensical office of “First Daughter of the Federal Republic of Nigeria” on social media at least. Here again, many Nigerians are trying to get used to what might be signals of a fledgling personality cult and family oligarchy.

    Beyond these initial excusable procedural slip ups, it is refreshing, however, that President Bola Tinubu has indicated, quite early, an awareness of the enormous burden of his exalted office. In his inaugural address, he indicates a clear historic awareness of the burden of apex power in a country like ours: “Our burdens may make us bend at times, but they shall never break us…” Implicit in that courageous assertion is an underlying faith in the resilience of the Nigerian ideal. : “as long as this world exists, Nigeria shall exist”. There is therefore a sense in which Tinubu’s direct reach for power ‘Emilokan’ resonates with a sense of personal preparedness for the ultimate responsibility and historic burden of power. That at least is reassuring.

    However, the routine issues of presidential learning steps will not diminish the heavy burdens that confront the Tinubu presidency. First, Mr. Tinubu has to deal with the issues of his general legitimacy and credibility. The legitimacy of his presidency is still tied to the general reservations among the public about the integrity of the election that gave birth to his ascendancy. As a measure of the popularity of his mandate, a popular vote score of less than 36% in a presidential election has not quite convinced many Nigerians that Mr. Tinubu is as yet their president. There are segments of the populace that continue to hope that the proceedings at the election tribunal and the various courts could reverse the declaration of Mr. Tinubu as president. While it remains unlikely that any such outcome will materialize, the reservations remain deep seated and could deny the new president of the support of a significant segment of the populace. The peculiarities of the Nigerian political and judicial ecosystem make it unlikely that Mr. Tinubu’s incumbency could be upturned.

    Yet, Mr.Tinubu and his handlers must accord priority to an active engineering of his legitimacy in the post tribunal period. It is good that both in his inaugural address and afterwards, Mr. Tinubu has himself relentlessly harped on the broad national nature of his mandate. He has even extended a hand of fellowship to both Atiku Abubakar of the Peoples Democratic Party and Peter Obi of the Labour Party respectively. But this remakns valid as a manner of political speak.

    What is even more worrisome is that there is as yet an absence of an elite consensus on the Tinubu presidency. There is broad elite consensus on the issues that were at stake in the election that brought him to power, but on him as the carrier of that consensus. But Up to this point, the national elite remains fractured along ethnic, geo-political and general interest lines about this presidency. There are too many reservations about Mr. Tinubu as a person and the entire electoral process that produced his presidency across the spectrum of our national elite.

    Some feel that Mr. Tinubu’s resume contains too many inconsistencies , dark spots, unresolved scandals and murky controversies for him to carry the moral and political weight of our national leadership. There are segments of the elite that tend to see him as a product of an unfair and emergent Yoruba domination of the political space after a Fulani hegemonic prevalence. Such people point to Obasanjo’s eight years in office and Osinbajo’s eight years a deputy to Mr. Buhari.Even within his ruling APC party, there are clear divisions between those who supported Tinubu’s emergence at the presidential convention and an elite corps of party people who preferred differently. Throughout the campaign season, this faction of the party elite either avoided Tinubu’s campaigns or quietly distanced themselves from his prospects.

    The more religiously inclined segments of the elite point at his Muslim-Muslim presidential ticket and see the outlines of simmering sectarian pre-eminence. Taken together, we are dealing with a presidency that could be assaulted from all sides by a lingering elite disapproval unless it actively and consciously addresses the matter of forging an elite consensus. And to have all this factionalism in a nation that is already badly divided increases the burden of power at the apex of our national leadership.

    Beyond the headache of our fractious elite, Mr. Tinubu could be haunted by the specter of his immediate predecessor. For this moment in time, the Buhari legacy is undeniably a burden around Tinubu’s neck. It is more importantly a nightmare in our collective memory as a nation. It may be politically convenient for Tinubu to reiterate his allegiance to continue with Mr. Buhari’s tradition.

    The president is tied to the Buhari umbilical cord by their common party heritage. In an ordinary situation, a party that has just been re-elected into power should have little or no problem continuing with its programmes and policies. After all, an electoral victory means a popular endorsement of the programmes and policies of a winning party. But it remains doubtful whether the majority of Nigerians could have in all sanity reelected a party to subjected them to an eight year nightmare.

    If it is in the area of infrastructure development, there may be no arguments about the necessity for Tinubu to vote for better federal highways and railroads. But of course Mr. Tinubu knows all too well that the Buhari legacy is dripping with infamy in virtually every area. It impoverished most Nigerians, creating a sea of abject poverty. It made the nation unsafe and dangerous, leaving too many orphans widows and widowers. It gave a free pass to all manner of crooks and mega corrupt officials. It devastated the economy and created enclaves of a dark economy that made the nation accumulate humongous debts beyond imagination. There is therefore no way in which Mr. Tinubu could possibly emulate or continue with these disgraceful legacies.
    The choice that confronts the new president in this regard is self evident. While it is politically convenient to pay lip service to party policy and programme continuity, Mr. Tinubu will sooner than later have to drop anything resembling Buhari like hot coal. He has already disowned the Naira re-design calamity.

    For the new president, there are ways out of what looks like a bind alley. An elite consensus can be engineered through a conscious effort to institute an enlightened governance. The starting point is perhaps in the quality of persons that Mr. Tinubu selects to run his administration. For political leaders after an election, the choice is usually a tricky one: to run with a cabinet of politicians or one of technocrats and intellectuals. In most recent Nigerian instances, the tendency has been to populate the cabinet with politicians. After all, they are the ones who worked to secure political victory at the polls. But the experience with governments run mostly by politicians is that they achieve little in terms of governance and national leadership. Such governments tend to end up producing conflicting political successes but fail disastrously on governance.

    On the contrary, governments run mostly by technocrats and intellectuals succeed better in terms of policy and governance. In our recent past, President Obasanjo achieved better results in his second term when he inundated his cabinet with technocrats and intellectuals than in his first term when he had mostly politicians. Under the military, easily the most successful regime in terms of governance, innovation, institution building and originality was the regime of Ibrahim Babangida whose cabinet and advisory committees were run by intellectuals, technocrats and seasoned bureaucrats.

    For Tinubu, this hour is auspicious for him to have the right mix of technocrats and some politicians. One hopes that he does not succumb to the menacing temptation to fill his cabinet with the hawkish politicians and political jobbers now hovering around him. If he is to be faithful to his legacy in Lagos state, he should dominate his government with highly accomplished Nigerian technocrats and intellectuals from across the world and the nation. That remains the heart of his Lagos achievement which is what brought him this far. This is one of the best ways to engineer a legitimacy that would neutralize his personal background shortcomings and help blur his political liabilities. It would also give him the national clout that he desperately needs.
    As everyone who visits metropolitan London for the first time knows, the best advice that every wise commuter on the London Underground knows by reflex is a simple one: “Mind the Gap!” It saves lives and enhances the joy of the ride.

    In the business of presidential power as well, Mr. Tinubu will do well to mind the present yawning gaps that threaten his path to a significant presidency.

  • Fuel price hike: IPMAN tells FG what to do to ensure competitive pricing for PMS

    Fuel price hike: IPMAN tells FG what to do to ensure competitive pricing for PMS

    The Independent Petroleum Marketers Association of Nigeria (IPMAN), has called on the Federal Government to issue licences to more importers and allow them to bring in Premium Motor Spirit (PMS) and other petroleum products into the country.

    Mr Chinedu Anyaso, Chairman of IPMAN Enugu Depot Community in charge of Anambra, Ebonyi and Enugu States, said this in an interview in Awka on Friday.

    Anyaso said current structure where the Nigerian National Petroleum Development Company Limited (NNPCL), a private company, was the sole importer of products was a monopoly that would serve the masses no good.

    He said only a ‘price war’ inspired by the participation of more importers alongside NNPCL would make the price of products find their natural levels.

    He said that only competitive pricing will address the current problem of PMS and other petroleum products.

    “Federal Government should issue more licences to importers and those who can build refineries for there to be competition and possibly price war.

    “NNPCL is a private company. They cannot be in business and still be regulating prices. What they released recently is their own price, private marketers’ prices can only be determined by what the private depots are selling,” he said.

    Anyaso described the price list recently released by NNPCL which pegged PMS between N515 and N520 in Southeast as its own company price which was not binding on independent marketers, but at best a guide.

    He said marketers in the zone would continue to serve the public to the best of their abilities subject to prevailing prices at the depots.

    He, however, condemned those selling PMS at as much as N600 per litre, saying it was exploitative.

    Most private outlets in Awka, the Anambra capital city, have closed their doors to customers while those selling were doing so for between N580 and N600 per litre.

  • BREAKING: Finally, NLC declares nationwide strike over fuel subsidy removal

    BREAKING: Finally, NLC declares nationwide strike over fuel subsidy removal

    The Nigeria Labour Congress (NLC) said it would begin a nationwide strike on Wednesday over the current increase in the pump price.

    Mr Joe Ajaero, NLC President, said this while addressing newsmen at the end of its emergency National Executive Council (NEC) meeting in Abuja on Friday.

    Ajaero said that Labour would embark on strike if the Nigeria National Petroleum Company Limited (NNPCL) fails to revert the current template on the increase in the price of fuel occasioned by the withdrawal of fuel subsidy.

    “Consequently, NLC has decided that If by Wednesday, the NNPCL, a private Limited Liability Company, that illegally announced the price regime in the oil sector, refuses to revert itself for negotiation to continue, the Nigeria Labour Congress and all its affiliates will withdraw their services and commence protest nationwide until this is complied with.

    “The NNPCL does not have the monopoly to fix prices even as a private company.

    “The NLC, therefore, directs all its state councils and industrial unions to commence mobilisation from this moment to make sure that the action is carried out,’’ he said.

    Ajaero also said that the ongoing negotiation between the NLC and Federal Government might not produce any meaningful result until President Bola Tinubu constitutes his cabinet.

    He said that it was important that the NLC entered into negotiation with properly constituted government that would see that any decision taken would be binding on it.

    According to him, it is instructive that until a government is properly constituted and the people who will negotiate with labour are such people with mandate and capacity to commit the government of the day, such negotiations may not be valid.

    The NLC president, however, said that hence, there was need to revert to the old pump price of petrol as a necessity for labour to continue its engagement with the government.

    He also called for a wholistic investigation into the fuel subsidy regime to determine the beneficiaries of what he described as the fraud in the system.

    Ajaero added that this should have been tackled by the current government, rather than going ahead to withdraw subsidy entirely.

    NNPCL had recently announced a new pump price for petrol ranging from N488 to N570 per liter depending on the region of the country.

  • Nigerians told to endure pains of fuel subsidy removal

    Nigerians told to endure pains of fuel subsidy removal

    Mr Victor Akande, a Member of Lagos State House of Assembly representing APC-Ojo I, urges Nigerians to endure the pains of the recent announcement over  subsidy removal by President Bola Tinubu.

    Recall that President Tinubu on May 29, 2023 announced the removal of subsidy during his inaugural speech at the Eagle Square, Abuja.

    Following the announcement to discontinue  petroleum subsidy, petrol pump prices immediately skyrocketed to  over N700 from N195 per litre.

    Akande, also the Chairman, House Committee on Judiciary, noted that there were lots of benefits that Nigerians would enjoy with the removal of subsidy after few months of the pains.

    He said: “The removal of subsidy will look like a disaster and pain to us at the moment but tomorrow we shall all enjoy the benefits it will bring to us.

    “Truly, the price has gone up but by the time things start to stabilise, the price will come down. In short, in the next six months, everything will start coming down.

    “It will be good if the subsidy is channelled towards salary increment than using it to pay subsidy to few people. The cost implication will be lesser if the salary is increased.”

    Akande stressed further that continuous payment of subsidy by this government was like enslaving Nigerians by some individuals who smiled to the bank at the expense of the masses.

    He said President Tinubu knew the magnitude of the job before him which prompted him to say nobody should pity him.

    The lawmaker said the president had the blueprint of what he wants to do and that was why he told Nigerians not to pity him because he asked for the job and he was ready to do it.

    According to him, Tinubu is a man of his words and it is good that the subsidy has been removed because it is a fraudulent means of acquiring wealth to people that are involved.

    Akande added that this was the right time to start paying the country’s debt rather than paying some individuals.

  • Fuel subsidy not budgeted for in 2023 budget – NNPC

    Fuel subsidy not budgeted for in 2023 budget – NNPC

    Alhaji Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company (NNPC), has said that contrary to speculations, the immediate past government did not make provisions for petroleum subsidy in 2023 budget.

    He said this on Thursday in Abuja when he met with the Sen. Abdullahi Adamu-led APC National Working Committee (NWC) at the party’s National Secretariat.

    “There was subsidy in 2022 but in 2023, not a single naira was provided for the purpose of financing the subsidy.

    “And ultimately while we held back our fiscal obligations, we still have a net balance of over N2.8 trillion that the federation should have given back to the NNPC.

    “For any company, when you have negative N2.8 trillion, there is no company in the whole of Africa that will lend to you, you cannot have receivables.

    “The provision of subsidy is there, but absolutely there is no funding for it,” Kyari said, adding that it was only on paper and does not exist.

    This, he said, was the true situation of things, adding the the Federal Government could no longer bear the burden of fuel subsidy.

    “If we continue, we will run into defaults and the defaults of NNPC is the default of Nigeria.

    “Once NNPC goes into defaults and liquidity, it affects every borrowing done by the country, even the sub-nationals. Your lenders will come back to you and say your country cannot longer pay,” he said.

    The NNPC group chief executive officer added that subsidy constituted a huge amount of money which the country might not be able to survive and pay its debts.

    Kyari, while admitting that Nigerians would have problems with the removal of fuel subsidy and that it would impact on inflation, assured that government was working on putting in place palliatives to cushion the effect.

    According to him, President Bola Tinubu has directed some engagements and some palliatives will be put in place soon.

    Kyari added that the market would stabilise with time following the removal of fuel subsidy and the current pump price when other players came in.

    “There is a transition going on now and NNPC cannot continue to be sole importer. So, we know that this is going to vanish, the market will stabalise,” he said.

    On when the country would have all its four refineries working, Kyari said there was an ongoing process of rehabilitation of the refineries.

    He added that one of the refineries would come on stream before the end of 2023 while the second one would come on stream in 2024 and the third one would follow there after.

    He maintained that the fuel subsidy regime was gone for good because government could no longer sustain it.

    “Of course it is very obvious that we can no longer afford it. Subsidy bills have piled up, the country is not able to settle NNPC for the money we are spending on subsidy.

    “And therefore, pricing petroleum at the market is the right thing to do at this point in time and I believe that this would benefit the country in the long time,” he said.

  • Just In: Edo boils over petrol price hike, barricades Benin-Lagos highway, others

    Just In: Edo boils over petrol price hike, barricades Benin-Lagos highway, others

    Following the adjustment in pump price of Premium Motor Spirit (PMS), several people in Edo state have barricaded the Benin-Lagos highway and other portions of the city of Benin.

    The protesters who are mainly members of the Edo State Civil Society Organisation (EDOCSO), called for urgent reversal of the fuel pump price.

    Displaying placards with inscriptions such as “Nigerians can’t buy petrol at N520”; “We can’t buy petrol at N520 but N210”; “Petrol must be N210 till July end”, the protesters said Nigerians awere already confronted with numerous challenges..

    The development, however, caused gridlock, forcing commuters to trek to their destinations

    Addressing journalists, former coordinator general, EDOCSO, Omobude Agho, said the protest was to get the attention of President Bola Tinubu so that he could look into the fuel pump price.

    “We are protesting because of the increase in fuel price which started yesterday, marketers moved the price from N210 to over N500.

    “We were shocked to see that even the NNPC Limited fixed over N500 as the pump price. So, we feel this is a plan to kill Nigerians or send us to our graves.

    “The strategy is called local protest, we are localizing the protest. It is currently ongoing in places such as Uselu shell, Ologbo, Siluko and Agbor park.”

    He added that if by Friday the government fails to address the situation, the protest will spread to other areas.

  • Fuel subsidy removal: We are in a very difficult moment – APC Chairman

    Fuel subsidy removal: We are in a very difficult moment – APC Chairman

    The National Chairman of the ruling All Progressives Congress (APC), Abdullahi Adamu, has said that fuel subsidy removal is subjecting Nigerians to a difficult phase.

    Adamu made this statement in Wednesday during a meeting of the party’s National Working Committee (NWC) and the Progressives Governors Forum, (PGF).

    Adamu told the governors that they have emerged at a very difficult period, confessing that the removal of the fuel subsidy will be very challenging to Nigerians, particularly the state governors where it matters most.

    “For us, anything that we want to say to you is adherence to the manifesto as much as you can. We have a general framework for the governance of the country and you represent those who fly the flag of the party and it is expected that whatever you do, you will have in mind the manifesto that the party gives the country.

    “You, as the chief executive officers of the states, must key into this manifesto but there are peculiarities, there are priorities you must have set and you are bound to do as much as you can to meet the expectations of those who voted for us.

    “We are in a very difficult moment and you have come at a very difficult period. Even with the timing so, of the lifting of the fuel subsidy, this is going to be very specially challenging to us, particularly to you because you are where it matters most. From national politics, you are the shock absorbers in the various states of the federation.

    “You live with the people. You wake up with the people and you work with them. The expectation is that you could have a better appreciation of their pains as citizens of this country. So, a lot of expectations will be on you as governors of the federating units of this great country.

    “As far as the party is concerned, we will give you every cooperation you need. If you have any problem, turn to us and we will give you the best advice as we can. But whatever we do with you, you are the one wearing the shoes and know where it pinches.

    “Two years are for actual governance. Before you know, you will finish with the tribunals, it will be getting to two years and you will start seeing posters and billboards flying, newspaper publications. This is a tradition in our democracy, fortunately or unfortunately. We must be ready for that. So, you have no time to waste”.

  • 10 benefits of petroleum subsidy removal

    10 benefits of petroleum subsidy removal

    President Bola Tinubu, in his inauguration speech on Monday, announced the end of fuel subsidy that resulted to high prices and long queues nationwide.

    Barely 48 hours after the announcement, Nigerian National Petroleum Company (NNPC), Limited fixed the price of Premium Motor Spirit (PMS), at N488 and N555 per litre at the peak.

    In fabuary 2023, the International Monetary Fund (IMF) has urged the Nigerian government to deliver on its commitment to remove fuel subsidies by mid-2023.

    The Washington-based lender in a report titled ‘IMF Executive Board Concludes 2022 Article IV Consultation with Nigeria’ said Nigeria’s economy has recouped the output losses sustained during the COVID-19 pandemic supported by favourable oil prices and buoyant consumption activities.

    Reacting to the development, the Trade Union Congress of Nigeria, (TUC) rejected the removal of fuel subsidy as announced  by the president saying that ‘it is a joke taken too far’.

    Economists have highlighted the following 10 benefits of fuel subsidy removal:

    1. Infrastructural Development: Frees up public funds for more meaningful infrastructure and developmental program that stimulates industrialization, create jobs, economic growth and social prosperity. For example:
    Almost N12 trillion spent on subsidy in the last 4 years is more than sufficient to develop any of the following project:
    -2,400, hospitals of 1000 bed capacity across 774 LGA
    -or 500,000 new houses to provide shelter to over 3.5 million Nigerians
    -or 27GW of electricity generation
    -or skill up and provide education up to tertiary levels for over 2 million Nigerians

    2. Grow Domestic Refining: Subsidy removal creates a market reflective downstream which invariably stimulates more downstream investments especially in the domestic refining space, thereby creating more jobs, prosperity and growth.

    3. Reduce Gasoline Smuggling and Diversion: The removal of fuel subsidy eliminates the unhealthy price arbitrage with neighboring countries thereby preventing the diversion and smuggling of gasoline outside the Nations borders which bleeds our economy.

    4. Reduce Corruption: It also reduces corruption surrounding internal product diversion as many marketers procure gasoline at subsidized regulated wholesale prices but still sell at deregulated retail prices.

    5. Resource Rebalancing: The rich benefit more from the subsidy than the poor as they have higher number and capacity of vehicles to buy more gasoline; removal of the subsidy creates an opportunity to redistribute this benefit directly to those who need it more.

    6. Stimulate Responsible Consumption reducing Waste: Waste makes want. Subsidy removal enable responsible gasoline consumption which reduces waste as the prices is more market reflective and the demand for the product will rebalance itself with the new price realities

    7. Grow upstream Production: Subsidy removal allows the full recovery of upstream revenues which enables reinvestment required to grow our national petroleum production and reserves and overall forex earnings.

    8. Strengthen the Naira: Growth of our forex earnings combined with reduction in product consumption reduces pressure on forex thereby strengthening the Naira.

    9. Reduce Product Scarcity: Open market reflective prices, brings in more players, creates a more efficient market thereby reducing fuel scarcity and its adverse effects on the economy.

    10. Reduce Growing Deficit and Public Debt: Subsidy removal reduces the growing and unsustainable Budget deficit and consequently the debt burden creating a more robust economic and sustainable future.

     

  • Fuel Price Hike: Amadi advises NLC on how to deal with FG

    Fuel Price Hike: Amadi advises NLC on how to deal with FG

    Sam Amadi ,the Director of the Abuja School of Social and Political Thoughts has advised the Nigeria Labour Congress, (NLC) to change their tactics in their dealings with the Federal Government.

    According to Amadi, NLC should demand that the budget for the National Assembly and the Presidency should be slashed.

    The DOS of the Abuja School of Social and Political Thoughts made this post known via his Twitter handle on Wednesday, asking the NLC to look beyond fuel subsidy and focus on accountability and equality.

    TheNewsGuru.com reports that negotiations between the federal government and the NLC on Wednesday in Abuja over the fuel subsidy removal ended in a deadlock.

    Findings show  that the new price adjustment of petroleum products currently generating controversies has stimulated the hoarding of fuel by marketers, causing queues in stations.

    The development followed the announcement by President Bola Tinubu, Monday, on removal of fuel subsidy.

    Meanwhile, Amadi has made a list of items, which he described as negotiating advisory to the NLC.

    Below are what Amadi advised NLC to do

    1. Look beyond fuel subsidy, look at accountability and equality
    2. Ask for 2/3 slashing of @nassnigeria and @NGRPresident budget
    3 Ask that $800m WB palliative to be managed by special committee of NLC, TUC, NBA, NMA and farmers club etc
    4 Ask to have social protection established by law equal at least to South Africa’s
    5 Establish a special commission for ESC Rights as required by Item 60(a) of const.”

    6 Ask for immediate probe @nnpclimited accounts and affairs. NLC to chair the probe
    7 Ask for Minimum Wage of 70k