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Tag: Fuel Subsidy

  • Atiku flays Tinubu over latest revelation on fuel subsidy

    Atiku flays Tinubu over latest revelation on fuel subsidy

    Former Vice President Atiku Abubakar has said the latest revelations circulating “regarding the federal government’s covert continuation of the subsidy on Premium Motor Spirit (PMS), represents another chapter in the opaque governance under President Bola Tinubu’s administration”.

    Atiku’s comments come on the heels of a recent publication revealing President Bola Tinubu gave approval for a request by Nigerian National Petroleum Company Limited (NNPC Limited) to utilise the 2023 final dividends due to the federation to pay for petrol subsidy.

    TheNewsGuru.com (TNG) reports the company released its 2023 Audited Financial Statement on Monday, posting a final dividend of N2.1 trillion for the year under review.

    A forecast by NNPC Limited seen by the newspaper showed that the cumulative petrol subsidy bill from August 2023 will hit N6.884 trillion by December 2024, leaving the national oil company unable to remit N3.987 trillion in taxes and royalties to the federation account.

    Although, the Chief Financial Officer of NNPC Limited, Alhaji Umar Ajiya has said the company was only taking care of Premium Motor Spirit (PMS) importation shortfalls and not necessarily paying subsidy, Atiku said the development starkly contrasts with Tinubu’s firm assertions in a national broadcast, where he declared the subsidy regime was gone.

    Taking to X (formerly Twitter), Atiku, who was the candidate of the People’s Democratic Party (PDP) in the 2023 presidential election, stressed the “dissonance between the President’s words and his actions not only undermines the moral fabric of his leadership but also significantly erodes the credibility of his administration”.

    He wrote: “The latest revelations circulating through credible media outlets regarding the federal government’s covert continuation of the subsidy on Premium Motor Spirit (PMS) represent another chapter in the opaque governance under President Bola Tinubu’s administration.

    “This development starkly contrasts with the President’s firm assertions in a national broadcast, which followed closely on the heels of public protests decrying poor governance, where he declared the subsidy regime concluded.

    “However, disclosures prior to his announcement have consistently indicated a resurgence of subsidy payments, albeit through less transparent means.

    “This dissonance between the President’s words and his actions not only undermines the moral fabric of his leadership but also significantly erodes the credibility of his administration.

    “At a time when the nation grapples with severe fuel scarcity and escalating energy costs, the continued delays in the re-operation of the Port Harcourt refinery stand as a national disgrace — a failure that rests firmly on the shoulders of President Tinubu, who also holds the office of the Minister of Petroleum Resources.

    “Moreover, the persistent denials by NNPC Limited only exacerbate the plight of Nigerians, who endure severe difficulties due to fuel shortages and resultant price inflations. Amidst a contentious dispute between local investors favouring refinery operations and those advocating for imported PMS, the President’s silence is profoundly disconcerting.

    “It is paramount that the President, who is intrinsically responsible for overseeing and intervening in such critical disputes to safeguard national interests, steps up to fulfil these expectations. The veil of secrecy shrouding the downstream petroleum sector, coupled with alarming reports of NNPC Limited diverting funds intended for other purposes to cover subsidy payments, adds layers of confusion that are unbearably unsettling.

    “If these reports hold true, they portend grave implications for the integrity of our fiscal federalism. It is imperative, therefore, that the Tinubu administration urgently clarifies the entanglements surrounding the subsidy policy and the refining of PMS. Only through transparent governance can Nigerians hope to find relief from the current debilitating conditions of fuel scarcity and the spiralling inflation affecting petroleum products”.

  • It is not subsidy, it is importation shortfall – NNPCL opens up

    It is not subsidy, it is importation shortfall – NNPCL opens up

    The Nigerian National Petroleum Company Limited (NNPC Limited) has disclosed it has not paid fuel subsidy to anybody in the last nine months.

    TheNewsGuru.com (TNG) reports Chief Financial Officer of NNPC Limited, Alhaji Umar Ajiya made the disclosure on Monday in Abuja.

    TheCable had reported President Bola Tinubu gave approval for a request by NNPC Limited to utilise the 2023 final dividends due to the federation to pay for petrol subsidy. A forecast by NNPC Limited seen by the newspaper showed that the cumulative petrol subsidy bill from August 2023 will hit N6.884 trillion by December 2024, leaving the national oil company unable to remit N3.987 trillion in taxes and royalties to the federation account.

    However, Ajiya clarified NNPC Limited was only taking care of Premium Motor Spirit (PMS) importation shortfalls between the company and the federation.

    “In the last eight to nine months, the NNPC Limited has not paid anybody a dime as subsidy, no one has been paid kobo by the NNPC Limited in the name of subsidy.

    “No marketer has received any money from us by way of subsidy. What has been happening is that we have been importing PMS, which has been landing at a certain cost price and government tells us to sell it at half price.

    “So the difference between the landing price and that half price is what we call shortfall. And the deal is between the Federation and NNPC Limited. To reconcile, sometimes they give us money. So, there is no money exchanging hands with any marketer in the name of subsidy,” he said.

    According to him, credit lines are prevalent in the downstream business based on the world wide commercial system, adding that the company was in an open credit agreement with PMS suppliers in the past, with term lines agreement for payment.

    Also, Dapi Segun  the Executive Vice President, Downstream, NNPC Limited, said that establishing an open credit agreement with suppliers spoke volume of the credibility which the national oil company had built over a period of time.

    “Concerning the outstanding to the suppliers, it is not in that magnitude that has been put out, it is actually lower than the N6.8 billion.

    “What matters really is the relationship between us and our suppliers to ensure that we keep faith in making these payments to our suppliers which we have done overtime.

    “You would understand that it is not a static figure and I wouldn’t want to be quoting any figure, when we make payments it goes down, when they supply products it goes up.

    “It is a dynamic way, but the most important thing is to ensure that we continue to make PMS available across the country,” he said.

  • FG returned fuel subsidy – Ex-TUC President, Peter Esele

    FG returned fuel subsidy – Ex-TUC President, Peter Esele

    Peter Esele, a former Trade Union Congress, TUC ,president has posited  that the Federal Government resumed payment of fuel subsidy.

    Esele made the claim during an interview on Channels ‘Sunrise Daily’ show on Tuesday, February 20.

    Esele said in part: “Fuel subsidy is back, this is not something we should be arguing about, it is back and it’s even back in full force.”

    There were speculations  last week stating that petrol subsidy returned and is now bigger than the amount being paid before the president stopped it.

    According to Business platform, the country is paying about N907.5 billion subsidy on premium motor spirit, PMS popularly known as petrol monthly.

    This may not be unconnected to the country’s foreign exchange crisis, which reportedly pushed the actual cost of litre of fuel to N1,203 in some parts of the country.

  • What govt should do in 2024 – Catholic Archbishop

    What govt should do in 2024 – Catholic Archbishop

    The Catholic Archbishop of Lagos, Most. Rev. Alfred Adewale Martins, on Friday appealed to the Federal Government and all political leaders across the country to give Nigerians good reasons to smile in 2024.

    He made the appeal in his New Year message in Lagos.

    The archbishop’s message is contained in a statement signed by the Church’s Director of Social Communications, Rev. Fr. Anthony Godono.

    Adewale-Martins observed that 2023, an election year, with all its controversies, was characterised by untold hardship for millions of Nigerians due to the high cost of essential commodities.

    He enjoined government to make concerted effort to use all resources available to fashion out policies that would help alleviate the  hardship that Nigerians were going through.

    “The increase in the pump price of petroleum products and the drastic loss in the value of the naira, among other factors, have grossly affected the purchasing power of Nigerians.

    “They are finding it difficult to keep their heads above water. This along with the insecurity in the country has led many of the best brains in the country to being sucked out of the country as they yield to the Japa syndrome.

    ”Those of us who remain are struggling to breathe, as they say. This is unacceptable.

    “As we enter into the year 2024, we call on government, at all levels, to lock its focus on economic policies that will help to rejig the economy and bring solace to the impoverished masses.

    ”Government must listen to the cries of poor Nigerians,” he said.

    The cleric said that oftentimes, political expediency and patronage militate against even good policies.

    “So, we expect that if President Bola Tinubu wishes to write his name in gold, he must begin from now to use all resources available, human and material, and not allow politics and political expediency to stand in the way of common good and the welfare of the people.

    ”All Nigerians ask for, is working out policies that will bring down the high cost of foodstuff, reduce transportation costs, and provide gainful employment for the jobless, especially the youths,” he said.

    The archbishop challenged President Tinubu, the state governors and members of the National and State Houses of Assembly to take the lead in making the sacrifices they expect of the people.

    He urged them to do so by reducing the cost of governance and the many travels that do not bring much good to the day to day life of the people.

    The cleric pointed out that the number of vehicles being purchased for government officials by the National Assembly and Executive arms of government was insensitive to the plight of the people.

    Adewale-Martins appealed to government to urgently address lingering wage-related issues that concern Nigerian workers.

    He said that the Resident Doctors, and University lecturers, amongst several others, should be accorded their entitlements.

    The archbishop congratulated all Nigerians for witnessing another new year and asked people to be hopeful.

    He urged Nigerians to cooperate with the leaders to ensure peace and economic stability, and to keep their minds positive about the year 2024.

    He prayed that it would be a prosperous and fruitful year for all Nigerians.

  • Kukah to Tinubu: More is needed to cushion effect of fuel subsidy removal

    Kukah to Tinubu: More is needed to cushion effect of fuel subsidy removal

    The Bishop of the Sokoto Dioceses, Most Rev. Mathew Kukah, has advised leaders to remain truthful and fine-tune formidable actions in solving the nation’s challenges.

    Kukah gave the advice in an interactive session with newsmen as part of Christmas celebrations on Tuesday in Sokoto.

    He said Nigeria as a country was endowed with human and mineral resources but was faced with resources management challenges, lamenting how lack of patriotism was affecting the development of the country.

    He called on governments at all levels to focus on meeting the yearnings and aspirations of the citizens with constructive directions and framework of policy decisions.

    Kukah decried the lack of clear cut definition of country direction stressing that citizens needed to be informed and be aware of programmes and policies that affect their lives.

    He cautioned Nigerians against accumulating illicit funds mostly stashed in foreign banks , stressing that some of the investment in such countries were alarming and disappointing.

    “It is high time ordinary brilliant Nigerians in the nation’s hospitals and academia are appreciated and encouraged.

    “More is needed to cushion the effect of the fuel subsidy removal, palliatives should be regarded as temporary measures.

    “Government should also fine-tune measures to end kidnapping and other security challenges in the interest of a prosperous nation, “ Kukah said.

    He appealed to leaders to have credible direction on the renewed hope agenda and tailor it on a solid foundation of faith and hope for the restoration of glory for the country.

    Kukah cautioned against over sensationalisation  of investigations of fraud cases, rather, he said the government should focus on policies with meaningful impact for citizens.

    He emphasised the need for more infrastructure development and scientific ways of dealing with corrupt practices,  to avoid distraction.

    “There must be a deliberate effort to restore hope to the poor and vulnerable in our society,” he said.

    The Bishop appealed to Nigerians to continue to have faith in the country.

    “God will do great things for our nation, but we individuals must renew our commitment towards self-examination and repentance,” he said.

  • Removal of fuel subsidy caused problems – Tinubu’s aide

    Removal of fuel subsidy caused problems – Tinubu’s aide

    Mr Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy has said the removal of fuel subsidy and the move to merge foreign exchange rates caused problems in the country.

    Mr Onanuga stressed the removal of fuel subsidy and the move to merge foreign exchange rates caused problems such as high fuel prices and the depreciation of the Naira.

    Onanuga further stressed the resultant high fuel prices and the depreciation of the Naira combined to cause a general spike in the costs of services and goods.

    The presidential aide, however, noted that his principal was already taking measures to address the challenges brought about by the “bold reforms” introduced by the administration in all sectors of the economy.

    Onanuga disclosed this in a statement on Saturday in Abuja, adding that more of such measures would be taken in 2024.

    He said President Bola Tinubu had never shied away from acknowledging the temporary pains triggered by the reforms, stressing that proactive measures would continue to be taken.

    “Many of these measures are already being taken and, in the New Year, we expect the silver linings, that are at present understated, to blossom into rays of sunshine to be experienced by all Nigerians.

    “The removal of fuel subsidy and the move to merge foreign exchange rates, two headline reforms introduced by the Tinubu administration since late May, caused problems such as high fuel prices and the depreciation of the Naira, two monstrosities which combined to cause a general spike in costs of services and goods,” Onanuga stated.

    He said that the latest NBS report put Nigeria’s inflation at 26.7 per cent in September, which rose to 28.2 per cent in November from 27.33 per cent in October, adding that food inflation remained untamed.

    He noted, however, that the new policies alone were not solely responsible for the economic problems Nigera is facing today.

    “We were destined for the tough and rough patch, where we are today, because of the prevailing conditions before Tinubu took over on May 29.

    “As at June 2023, budget deficit was N10.8 trillion. Actual debt service was 98.95 per cent of revenue, far higher than the projected 59.37 per cent. Inflow into the country’s foreign reserve came in trickles.

    “And so bad was the state of affairs that Nigeria could not remit about $800 million fund of foreign airlines. JP Morgan exposed our near insolvency by claiming in a report that our net foreign reserve was just about $3.7 billion, not the $33 billion plus flaunted by Emefiele’s CBN.

    “President Tinubu, who promised during the campaign to take hard and difficult decisions, moved to tackle the economic problems from Day One, by first dispensing with the wasteful fuel subsidy that was billed to consume about N7 trillion this year, five times more than what was provisioned for capital spending.”

    Onanuga said that the situation was, however, taking a positive turn with the NBS report of the third quarter of 2023, adding that the president was focussed on turning the economy round for growth, development and prosperity.

    “In its third quarter report for the year, the NBS reported that GDP grew by 2.54 per cent. In a similar period in 2022, GDP recorded a growth of 2.25%.

    “To demonstrate that the sun may be shining on us again, the 2.54% GDP growth recorded in Q3, was also higher than the 2.51% recorded in Q2.

    “The service sector, made up of information and communication, financial and insurance, was responsible for the growth witnessed in Q3. It had a 3.99% growth, contributing 52.7% of the aggregate GDP. The agriculture sector declined from 1.34% growth in Q2 to 1.3% in Q3.

    “Growth was also recorded in construction and real estate, metal ores (69.76%), coal mining (58.03%), chemical and pharmaceutical products (6.77%), cement (4.2%) and construction (3.89%).

    “Oil reported a negative growth of 0.85%, a major improvement to the negative 22.67% recorded at the same period last year. It was 13.43% in Q2 of 2022.

    “The improvement in the oil sector and its contribution to GDP has been attributed to the improvement in the security of oil infrastructure and operations, leading to increased production.”

    He said that there was a big jump in the volume of trade from N12.16 trillion in Q2 to N18.8 trillion, adding that trade volume in the Q2 of 2022 was N12.28 trillion

    “We also recorded a trade surplus of N1.89trillion in Q3, an increase from the N708.8 billion in Q2 2023. In Q3 in 2022, we recorded trade deficit of N409.39 billion.

    “Value of exports in the third quarter was N10.35 trillion, far higher by 60.78 per cent than the N6.44 trillion posted in Q2 2023. Crude oil dominated the export, accounting for 82.5 per cent, a confirmation that our country is pumping out more oil for export unlike the previous years,” he stated.

  • Rep denies calling for fuel subsidy probe

    Rep denies calling for fuel subsidy probe

    The Chairman, House Committee on Navy, Rep. Yusuf Gagdi (APC-Plateau) has has denied calling for a probe of the fuel subsidy removal under President Bola Tinubu.

    Gagdi said this in a statement in Abuja on Monday.

    “The integrity of the media is very important, therefore, it should not be mortgaged or traded for anything.

    “There is a misleading story in some section of the media quoting me to have allegedly said our President, Bola Tinubu, will be probed over the subsidy removal.

    “Nothing can be farther than the truth in that news report; I urge the media to be thorough in its reportage and not lose its integrity especially when it involves translation,” he said.

    Gagdi said he was taken aback at the sensational headline saying that it was aimed at attracting clicks and gain traction.

    The lawmaker said that the story was most irresponsible and reckless saying that he had great regard for Tinubu which was why he dropped his speakership ambition when he was directed to do so.

    Gagdi urged all and sundry to ignore the mischievous and blackmailing headline and urged media houses to be more circumspect while casting their headlines.

  • Sacrifice is required to achieve Nigeria’s restoration – Tinubu

    Sacrifice is required to achieve Nigeria’s restoration – Tinubu

    President Bola Tinubu has said that the restoration of the country to its rightful place in the commity of nations requires sacrifice.

    Presidential spokesman Ajuri Ngelale said that the president disclosed this in an audience with a delegation of South-West Muslim faithful, led by Alhaji Rasaki Oladejo, in Abuja on Friday.

    The President said the current challenges facing the nation were only temporary, assuring Nigerians that better days were in the offing.

    “We have to believe in one country; we have to believe in Nigeria. We will do our best, and our economy will get better for the benefit of Nigerians. I am very sure of that, and we are putting in the work to ensure that,” the president said.

    He noted that the policies and programmes of his administration were aimed at achieving a fairer, better and honest society where hard work would be rewarded and laziness would reap little.

    “It is about our future. We must guarantee our future. Almighty Allah will not give us a burden that we cannot bear. He has put us here for a purpose. It may look difficult; even rough, but it will get better.

    “We avoided it (removing petroleum subsidy) for 40 years. We are all going through the pain now, but for Nigeria not to collapse, we had to remove the subsidy.

    “In the history of successful nations, there is nothing more vital than the leadership of a nation taking difficult decisions at the right time and for the right reasons. There would have been no money for the subnationals,” the president said.

    Tinubu commended the leaders for their prayers and support, assuring them that his administration would empower the youth with skills and create an enabling environment for them to prosper.

    Earlier, Oladejo, in company of the Minister of Marine and Blue Economy, Adegboyega Oyetola, commended Tinubu for his courage in removing the petroleum subsidy and for initiating necessary reforms.

    “There had been no leader, military, or civilian that could break this hard nut of removing petroleum subsidy for us to grow as a country. You have done it. God will see you through,” Oladejo said.

  • Anglican women urge FG to reconsider subsidy removal

    Anglican women urge FG to reconsider subsidy removal

    The Mothers Union and Women’s Guild of the Church of Nigeria (Anglican Communion) has urged the Federal Government to reconsider the removal of subsidy on Premium Motor Spirit (PMS).

    The President of the group, Mrs. Angela  Ndukuba, made the call at the closing of its 24th annul conference titled “Walk Before Me and Be Blameless” in Abuja.

    It could be recalled that the Federal Government had on May 27, announced removal of fuel subsidy which had since seen the price of PMS risen to N635 per litre.

    Ndukuba said that proper and effective measures should first be put in place and local refineries rehabilitated before subsidy  removal.

    She said that the removal of subsidy on PMS had affected the overall economy and resulted to untold hardships to the masses.

    According to her, it has affected transportation, housing, prices of foodstuff, school fees and every aspect of life in Nigeria.

    She said: “We are calling on the states and Federal Government to be mindful of the plights of the citizens and alleviate their sufferings.

    “Giving N8,000 to 12 million Nigerian households or increasing salaries is not the solution, what will be the fate of those who are not salary earners and the unemployed?”

    Ndukuba said those palliative measures would only increase the already rising inflationary rate in the country.

    She said government should go into mass transportation, provision of other social amenities as well as making food available to the public at affordable prices.

    “Our refineries should be put in order and made to serve the nation and stop fuel importation,” she said.

    The president commended  the Chief of Defence Staff, Maj.-Gen. Christopher Musa and all security chiefs in their efforts to curb insecurity in the country.

    She called on all the security agencies not to relent in their efforts at making the country a safe place.

    Ndukuba admonished all women to engage in farming and growing of foods and animal husbandry to sustain their families and contribute to the economy of the country.

    She said with the current food shortage and very high cost of living, farmers should be encouraged by making fertilizers and high breed seeds available.

    According to her, farmers should be supported to move from sustenance farming to mechanised farming.

    On the theme of the conference, Ndukuba said that being blameless did not mean that one would never make mistakes.

    She explained that everyone must continually seek to live by God’s will as stated in the scriptures and seek reconciliation when we fall short of God’s grace.

    The president urged the women to be agents of transformation, saying that it could start with having faith in Christ Jesus.

    She said that transformation could lead to a pursuit of holiness, righteousness, and being blameless, living by God’s moral standards and exhibiting the fruits of the Holy Spirit at all times.

  • How Nigeria’s fuel subsidy removal, FX unification can translate to economic growth

    How Nigeria’s fuel subsidy removal, FX unification can translate to economic growth

    The International Monetary Fund, on Friday, said for Nigeria’s fuel subsidy removal policy and foreign exchange unification initiative to translate to economic growth and stability, the Federal Government must collect more taxes to fund the national budget and pay public debts.

    The IMF Africa Department Director, Abebe Selassie, made the position known during a press briefing on the Sub-Saharan Africa Regional Economic Outlook at the ongoing World Bank Group/International Monetary Fund Meeting in Marrakech, Morocco.

    Selassie said, “The exchange rate reforms that the government did were very, very welcome, trying to unify the rate, similarly the fuel subsidy. But that will not help and will not stick unless you also are tightening monetary policy; unless you’re also doing something to mobilise more tax revenues. So, a holistic package of reforms is what’s needed.

    “So, you have a medley of things mainly rooted in the fiscal challenges that Nigeria has faced, not having tax revenues. At the same time, this is a country with incredible potential and we have seen reforms moving in the right direction in recent months. What is needed, we feel, is making the reforms holistic and help reinforce each other. Just as things were not reinforcing each other in the past, I think there is scope to make the reforms reinforce each other.”

    The IMF director noted that Nigeria had over-relied on oil revenue, making it difficult to tap its potential in other areas.

    He said, “Why are there not enough tax revenues? I think in the past, over-reliance on oil was when prices were high. Second, of course, also is the subsidy regime, which also entails quite a lot of loss of government resources being directed where they perhaps should not be. So, I think these are all interlinked issues, including causing some of the inflation that you’re seeing, because, given the difficulty to tap international capital markets, the government has had to rely more on domestic financing, which has either crowded out the private sector or of course caused the monetary injection, which again has weakened the exchange rate.”

    “I think we have to give a bit of time to the new administration also, I mean, the central bank governor has just been appointed. The Minister of Finance has only been in office for a few weeks. So, we’re hopeful that they will move in the right direction, and we stand there to provide any policy advice the government needs.”

    The IMF has supported the CBN’s removal of the forex ban on 43 items.

    Selassie said, “On the trade restrictions, our view has always been that in Nigeria, as in many other cases, our economies now are so sophisticated and so complex. I don’t think that these kinds of restrictions work. The best way to manage modern economies is for the government authorities to use both the fiscal policy lever and monetary policy lever to affect the right kind of outcomes, rather than going in and saying I don’t like this good, so I don’t want it to come in, et cetera.

    “That tends to create unhelpful distortion. But in general, I think the direction that the CBN has moved is a helpful one.”