Tag: Fuel Subsidy

Subsidy removal: Consumption of fuel in Nigeria drops by 28 per cent – NMDPRA

Following the removal of fuel subsidies by President Bola Tinubu, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has revealed that the average daily consumption of fuel in Nigeria has fallen by no fewer than 28 percent.

According to new figures released to Reuters by NMDPRA, the average daily petrol consumption fell to 48.43 million liters (13 million gallons) in June, as against the previous average of 66.9 million.

The regulatory industry noted that since the scrapping of the subsidy, neighboring countries like Cameroon, Benin, and Togo, which relied on petrol smuggled out of Nigeria, have experienced a collapse in their black market.

Recall that Tinubu announced the removal of fuel subsidies, which had kept petrol prices low for decades, during his inaugural speech on May 29, 2023.

In his democracy day speech, June 12, the President admitted the decision to remove fuel subsidies would impose an extra burden on the masses, but appealed to the good people of the country to bear the brunt of the decision as it will “save our country from going under.”

According to the World Bank in June, despite having spent $2.41 billion on the subsidy in the first five months, Nigeria could save up to $5.10 billion this year from the removal of fuel subsidies and foreign exchange reforms.

The Nigerian government spent no less than $10 billion (£7.8 billion) on the subsidy last year.

July 7, 2023
N400bn fuel subsidy savings: Urgently publish details of spending – SERAP writes Tinubu

Following the report that federal government has saved N400bn within the four weeks of implementation of the policy on the removal of payment of subsidy on petrol, the Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to use his good offices and leadership position to “urgently publish details of spending.

SERAP urged him to “provide details of the plans on how subsequent savings from the removal of subsidy on petrol, including specific projects on which the funds would be spent, and the mechanisms that have been put in place to ensure that any such savings are not embezzled, misappropriated or diverted into private pockets.”

In the letter dated 1 July 2023 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “Your government has a legal responsibility to ensure that the savings from the removal of subsidy on petrol are spent solely for the benefit of the 137 million poor Nigerians who are bearing the brunt of the removal.

According to SERAP, “Nigerians have the right to know how the savings are spent. Publishing the details of the spending of the savings would promote transparency, accountability, and reduce the risks of corruption in the spending of the funds.”

The letter reads: “SERAP is concerned that the savings from subsidy removal may be embezzled, misappropriated or diverted into private pockets.”

“Opacity in the spending of the savings from subsidy removal would have negative impacts on the fundamental interests of the citizens and the public interest.”

“We would be grateful if the recommended measures are taken within 7 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.”

“Unless the government is transparent and accountable to Nigerians in how it spends the savings from the removal of subsidy on petrol, the removal will continue to undermine the rights of Nigerians, and increase their vulnerability to poverty and social deprivation.”

“Transparency would ensure that the funds saved from the removal of subsidy are not diverted into private pockets, and increase public trust and confidence that these savings would be used to benefit Nigerians.”

“The implementation of the National Social Safety Net Programme (NASSP) and spending on the programme have been mostly shrouded in secrecy.”

“Publishing the details of the spending of the N400bn and other savings from the removal of subsidy would also ensure that persons with public responsibilities are answerable to the people for the performance of their duties including the management of the funds.”

“Transparency and accountability in the spending details of the N400bn saved as a result of the removal of subsidy on petrol, and on the spending of subsequent savings from the removal would mean that the savings can help poor Nigerians to overcome the effects of such removal.”

“It would also help to avoid a morally repugnant result of double jeopardy on poor and socially and economically vulnerable Nigerians.”

The lack of transparency and accountability in the spending of savings from the removal of subsidy on petrol and the resulting human costs would directly threaten fundamental human rights that your government has an obligation to protect.”

“Your government has the legal obligations to address the effects of subsidy removal on the human rights of 137 million poor Nigerians, and to prevent and address some of the direst consequences that the removal may reap on human rights, especially given the disproportionate impact on these Nigerians.”

“SERAP also urges you to promptly instruct Independent Corrupt Practices and Other Related Offences Commission (ICPC) and Economic and Financial Crimes Commission (EFCC) to monitor the spending of all savings from subsidy removal.”

“SERAP notes that the removal of subsidy on petrol continues to negatively and disproportionately affect poor Nigerians, undermining their right to adequate standard of living.”

“Your government has a positive obligation to protect individuals against the threat posed to human rights by the removal of subsidy on petrol. Your government also has legal obligations to effectively address the aftermath of subsidy removal.”

“SERAP is seriously concerned that years of allegations of corruption and mismanagement in the spending of public funds and entrenched impunity of perpetrators have undermined public trust and confidence in governments at all levels.”

“The Freedom of Information Act, Section 39 of the Nigerian Constitution, article 9 of the African Charter on Human and Peoples’ Rights and article 19 of the International Covenant on Civil and Political Rights guarantee to everyone the right to information, including the details of how the N400bn and other savings from the removal of subsidy on petrol would be spent.”

“By the combined reading of the provisions of the Nigerian Constitution 1999 [as amended], the Freedom of Information Act 2011, and the African Charter on Human and Peoples’ Rights, there are transparency obligations imposed on your government to widely publish the details of how the N400bn and other savings from the removal of subsidy on petrol are spent.”

“The Nigerian Constitution, Freedom of Information Act, and the country’s anti-corruption and human rights obligations rest on the principle that citizens should have access to information regarding their government’s activities.”

“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” in the country.”

“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.’”

“Similarly, articles 5 and 9 of the UN Convention against Corruption also impose legal obligations on your government to ensure proper management of public affairs and public funds, and to promote sound and transparent administration of public affairs.”

July 2, 2023
Subsidy removal: Nigeria’s inflation expected to reach 25 per cent – World Bank

As the fuel subsidy removal takes toll, the World Bank has predicted a significant rise in Nigeria’s inflation rate.

The Washington-based bank revealed this in its June 2023 edition of the Nigeria Development Update.

The bank predicts that the inflation rate will hit 25% in the coming months, attributing this surge to the adverse impact of fuel subsidy removal.

This projection follows the recent increase in the pump price of petrol, soaring from N197 per litre to over 500 per litre after the removal of subsidies in June.

The National Bureau of Statistics reports that Nigeria’s current inflation figure is 21.41%. However, the World Bank emphasises that this figure is expected to climb to 25% by 2023.

Despite this alarming projection, the World Bank suggests a potential decrease in headline inflation during the first quarter of 2024. The removal of subsidy is anticipated to have a disinflationary effect, relieving inflationary pressures, despite the higher petrol prices.

“Headline inflation is expected to rise from 18.8% in 2022 to 25% in 2023. However, by Q1 of 2024, the subsidy removal will start to have a disinflationary effect, alleviating inflationary pressures despite higher petrol prices. This is because the subsidy removal creates additional fiscal space and reduces reliance on financing from the CBN, curbing the growth of the money supply.”

In light of these projections, the World Bank urges the Nigerian government to implement macro-fiscal policy measures that promote price stability and provide palliative measures to mitigate the impact of fuel subsidy removal.

“To limit the risk of so-called second-round effects, where one-off price increases trigger more generalised inflation, including through wage-price spirals, it will be important to adopt macro-fiscal policy settings conducive to price stability,” the report said.

July 2, 2023
IPMAN speaks on selling petrol for N700 per litre

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has denied alleged plan by the association to increase pump price of Premium Motor Spirit (PMS) also known as petrol to N700 per litre nationwide.

The Chairman of IPMAN Southwest Zone, Alhaji Dele Tajudeen, who denied the allegation in an interview in Ibadan on Friday, urged Nigerians to disregard the speculation and not to engage in panic buying.

Tajudeen stressed that the price of the product would not be more than what is being sold presently.

He commended President Bola Tinubu for removing the subsidy on petrol adding that it was long overdue.

“Even in PIA bill, it has been clearly stated that the subsidy must be removed,

”So, I want to commend him for removing the subsidy and I want to say that we are in support totally. This is because the subsidy was a scam.”

He said the slight increase in pump price was because of the transportation cost and that Nigerians should be at rest as the commodity will not be out of reach for the masses.

“I want to disabuse the mind of the people that they should not panic about it, there is no cause for alarm, we are in control and there is nothing like that.

“So, people should be rest assured that there is no way they can buy petrol more than the price it is being sold now.

“If we look at the price from NNPC retail limited, which is an integral part of NNPC limited, they have more advantages than independent marketers and major marketers.

”So, it was the retail price that they announced they had never given a specific price to the independent marketers.

“However, I have read what somebody put into the paper, it is just speculation it is not a reality. Nothing like that I want to assure the masses.

“There is no how the price can go to N700 as we speak, because even if the FX is N700 or N800 that has not nothing to take the price of petroleum from N500 to N700,” Tajudeen said.

He noted that the product had been deregulated, hence the differential in prices was due to transportation as it is related to location.

”If you are moving products within Lagos the price may not be more than N300,000 but if you are moving up to Ibadan or there about it could be as much as N500,000.

”And if you are going to Ilorin, it could be as high as N700,000 that would account for differential in prices.

“I want to say with all sense of authority that as of today within Lagos metropolis nobody should sell more than N515 to N520 per litre.

”Though NNPC has given us the price but the reality of it is that what we buy from the market; because NNPC limited is not the only source for our product, we get from private depots.

“So, whatever we buy is what we put our own margin and sell.

”But as of today, the highest you can get anywhere should be around N550; Lagos N510 per litre; Ogun State between N500 and N520,” Tajudeen said.

Meanwhile, a coalition of Civil Society Organisations (CSOs) had vowed to resist the alleged planned increase in pump price of petrol

They made their position known in a statement jointly signed by the Convener, Dr Basil Musa; and Co-Convener, Malam Haruna Maigida, in Abuja on behalf of others.

They vowed to resist by picketing IPMAN members’ filling stations across the country.

They accused the IPMAN of running a parallel government and inflicting pains on ordinary Nigerians by their unilateral adjustment of price of petroleum.

They described the planned increment as unacceptable and called on the Federal Government to stop IPMAN from its alleged profiteering at the expense of ordinary Nigerians.

The CSOs said the move was an economic sabotage, coming at a time Nigerians are still trying to come out of the “price shock”, occasioned by the increment on May 29.

July 1, 2023
State Govs pledge to complement FG’s relief initiatives for Nigerians

State Governors in the country have pledged to complement the Federal Government’s initiatives aimed at providing relief to Nigerians.

Gov. Yahaya Bello of Kogi State disclosed this after a meeting with President Bola Tinubu on Friday in Lagos State.

Governor Bello said the successful implementation of the succour pledged by the Federal Government to cushion the negative effect of the fuel subsidy removal must be matched by all tiers of government.

“Now we have a leader who has clearly spelt out his policy direction for revamping the economy and he needs all our support.

“That support will be complemented by the state governors.

“We are all ready to provide relief for our people. We feel their pains and trust the people to be patient in this trying phase, so that they will reap the benefits of the new government’s economic initiatives.

“We shall not let the President down and we shall not let our people down in this phase of new economic journey to a stronger and resilient nation.

“The President has given us that full assurance of being people-friendly,” the governor said.

Similarly, Rev. Fr. Hyacinth Alia of Benue said already his government has marshalled out an action plan to restore the lost glory of the state “after the long drought”.

He said the state government has worked out immediate policies to stimulate both the civil service and agriculture sector as remedial interventions towards a vibrant Benue.

“The people of Benue, and indeed all Nigerians, can be rest assured that a new dawn is coming to Benue.

“I have started by working on the welfare of the civil servants. That is not even a project that ordinarly one should state. But it’s a way forward due to what we met on ground.

“Other agricultural incentives for farmers are in the pipeline and will be unfolded very soon.

“I want to restore Benue to its position of being the food basket of Nigeria. Agricultural potential in the state is worth more than crude oil,” Alia said.

State governors in the country have national, zonal and local fora, irrespective of party affiliations, where they meet to harmonise policies and programmes.

The Nigeria Governors Forum, the Progressive Governors Forum and the six zonal chairmen of governors are all systems put in place for such meetings of minds.

July 1, 2023
PDP commends Tinubu on subsidy removal, naira policy

The leadership of Peoples Democratic Party (PDP) in Edo, on Thursday, commended President Bola Tinubu for his decision to remove subsidy from Petrol and free-float the Naira currency.

The chairman of the State chapter of the party, Dr. Tony Aziegbemi, gave the commendation during an interactive session with journalists in Benin.

Aziegbemi said the two economic policies would give the country an excess of N2 trillion.

He, however, cautioned that the palliatives arising from the subsidy removal would determine the success of the economic policies.

“The two economic policies are the best way to go round the economy that have been grounded.

“I am an economist. So, when I see good economic policies from a distance, I will know,” he said.

Similarly, the party chairman also lauded the Gov. Godwin Obaseki-led PDP administration in Edo State for delivering on its promises to the people.

He noted that Obaseki was the most misunderstood governor in the country, adding that he was the one that has done most for his state and citizens than any other governor.

He listed some of the people-oriented programmes of the administration to include Education reforms, health and technology hub where youths are trained on software engineering.

According to him, “in the next five years in Edo, we are going to have over 15,000 trained software engineers that would generate programmes for companies like Google and others.

June 29, 2023
Why I rejected fuel subsidy, arbitrary exchange regime – President Tinubu

President Bola Tinubu has said he will not partake in the economic destruction of the country by enemies of the nation.

He said the bleeding of the country through the oil subsidy regime was a huge joke that should never be allowed to continue under any guise.

The president stated this on Thursday at a reception in his honour by the Lagos State Government.

“We will be needing the necessary resources to achieve the promise we made to Nigerians during our campaign.

“We need to stop the bleeding of our finances through fuel subsidy and the arbitrary exchange regime. We have no choice.

“We’ve to re-engineer the effectiveness of control and management of our resources in order to meet the obligations owed to Nigerians.

“I could have said yes I want a share of my benefit and participate in the arbitrage. But no, God forbid. That’s not why you elected me,” he said.

The president said that Nigerians would continue to see new and better initiatives for the benefit of, not only the adults, but the children who are the future of the country.

Tinubu pledged to work with the national assembly and state governors in a true separation of powers to achieve the renewed hope agenda of his administration.

The President of the Senate, Sen. Godswill Akpabio, promised to work with the executive arm of government to ensure that Nigerians enjoy the dividends of democracy.

“With what the president has done in Lagos, we are assured that Nigeria is in safe hands.

“We didn’t know this was the plan you had for the country, we wouldn’t have contested with you at the party primaries.

“These few decisions you have taken has served as a catalyst for the country’s development,” he said.

Akpabio said that Lagos has been a model of development for states in Nigeria, adding that the man that did the framework can also do it for Nigeria.

Gov. Babajide Sanwo-Olu of Lagos State also said that the state governors are in full support of the policies and programmes of the present administration.

He said that the support of the state governors was important towards the realisation of the dream of a better Nigeria.

Similarly, Gov. AbdulRahman AbdulRazaq of Kwara said the state governors support the urgent need of Tinubu to reposition the economy of the country.

“The removal of the petroleum subsidy and reversal of the arbitrary exchange regime was the right step in repositioning the country,” AbdulRazaq, who is also the Chairman, Nigeria Governors Forum, said.

Former governor of Lagos Raji Fashola, who represented past governors of Lagos state, assured the president of their continued loyalty to the Tinubu administration.

“We want you to know that we are only a phone call away. Whenever you need us, any of the class that you have mentored, we are ready to serve you once again,” he said.

In a dramatic event, the national assembly members and governors stood up on the podium with their current and former members to show solidarity with the president.

Tinubu vows to fast track Nigeria’s economic growth

President Bola Tinubu, on Thursday, pledged to continuously work and quicken the process of Nigeria’s economic growth and prosperity.

Tinubu gave the pledge at the palace of the Alake and Paramount Ruler of Egbaland, Oba Adedotun Gbadebo, during a private visit.

The president, who urged Nigerians to be united, stay positive and focused, solicited for the support and prayers of Nigerians in steering the ship of the nation ‘to the promised land’.

Earlier, Gov. Dapo Abiodun commended Tinubu for swinging into action upon assumption of power.

Abiodun noted that the various pronouncements made so far by Tinubu had defined his government and renewed the hope of Nigerians.

The Osile of Oke-Ona Egba, Oba Adedapo Tejuoso, Olowu of Owu, Oba Saka Matemilola, former Gov. Olusegun Osoba and former Deputy Governor, Salmot Badru, all prayed for Tinubu’s success as president.

In his remarks, Alake commended the president for his determination and resilience in getting to power and for deeming it fit to pay a ‘thank you’ visit to the state.

Present at the palace to receive Tinubu were former Gov. Ibikunle Amosun, a former Speaker, House of Representatives, Dimeji Bankole, Sen. Shuaib Salis, representing Ogun Central Senatorial District and some traditional rulers.

The president had earlier in the day visited the Awujale and Paramount ruler of Ijebuland, Oba Sikiru Adetona, at his private residence in Ijebu-Ode.

Tinubu appreciated the traditional ruler and the people of Ijebuland for their support during the 2023 presidential elections.

He said that his visit was to thank the royal father, the chiefs and the entire people of the state for their love and support toward his emergence as president.

The president described Oba Adetona as a man of uncommon courage whom he owed lots of appreciation.

The Awujale, in his remarks, expressed satisfaction with the various programmes already initiated by the president and sought for support from all the citizens.

While expressing confidence in Tinubu’s capacity and capability to take Nigeria to the promise land, the royal father prayed God to grant the president guidance, good health and wisdom.

Tinubu arrived Ijebu-Ode at 10.17 a.m. in company with his Chief of Staff, Femi Gbajabiamila, National Security Adviser (NSA), Nuhu Ribadu, and the Special Adviser on Special Duties, Communication and Strategies, Dele Alake.

June 29, 2023
Fuel subsidy had to be removed – Gov Abiodun

Gov. Dapo Abiodun of Ogun on Wednesday urged Nigerians to be more patient with President Bola Tinubu’s administration, saying the fuel subsidy had to be removed for Nigeria’s economy to survive.

The governor made the appeal while speaking with journalists shortly after this year’s Eid-el-Kabir prayers at the Lantoro praying ground in Abeokuta, Ogun.

Abiodun, who was represented by Sen. Shuaib Salisu (Ogun Central – APC), said more funds would be available to the Federal Government to address Nigerians’ needs with the removal of fuel subsidy.

“Nigerians need to be patient with President Tinubu over the removal of fuel subsidy. The hardship being experienced now is temporary.

“The fuel subsidy had to be removed for Nigeria’s economy to survive, because corruption in the fuel subsidy regime had cost Nigeria a huge amount of revenue, and millions of Nigerians were not benefiting from it,” he said.

The governor urged Nigerians to be more understanding and support the current reforms in critical sectors of the nation’s economy, just as he promised that better days are ahead for Nigerians.

“I want to assure Nigerians that the current administration, both at the state and national levels, will significantly improve a lot of things in the country.

“When the leadership is provided, the challenges of Nigeria are not unsurmountable. There is nothing that can be achieved without some pains.

“On the issue of fuel subsidy, you can see for instance that smuggling has gone down… because fuel subsidy is not being enjoyed by Nigerians.

”More money will now be in the pockets of the Federal Government in order to be able to take care of the masses.

“Every good thing will come with some little pain. But what is important is that you can see a clear direction, that Bola Tinubu is providing the leadership as President and by providing that leadership every other thing will fall into place.

“So there is no better time to make those difficult but very necessary decisions. In another six months or one year, we will begin to see the benefits,” he said.

Speaking also on the issue of the unification of the exchange rate, Gov. Abiodun stated that a small number of people were benefitting from unnecessary brokage.

”They buy the dollar at N400 or N420 and they go and sell it in the open market. The average Nigerian is not benefitting from that,” he said.

Meanwhile, the Chief Imam at the praying ground, Saad Bamgbola who led the prayers session, used the occasion to admonish Muslim faithful of their obligations to their God.

“You must continue to shun all acts that can bring the religion into disrepute,” he said.

June 28, 2023
I was possessed, subsidy removal not included in my inaugural speech – Tinubu

President Bola Tinubu has disclosed that his speech writers led by Wale Edun did not include the removal of fuel subsidy payments in his inaugural speech on inauguration day.

President Tinubu disclosed this on Friday while interacting with some Nigerians resident in Paris, France after attending the Summit on New Global Financing Pact.

The President said he was possessed with the courage to announce fuel subsidy removal regardless at the inauguration ceremony, which was held at Eagle Square, Abuja.

“Some countries were bleeding us. Courage was missing. Sometimes I became an advocate for it. Remove this thing but God gave me the opportunity when I danced around, strategised with my team, we won the Presidency and the day I was declared the winner I fell almost sick with joy.

“The few friends visited me rejoicing, so I asked the question, you asked me to bring this trophy, this victory what do you do with it?

“I brought it. I won. We must achieve it. We must change Nigeria with it and then Wale Edun and co, We started debating, putting my speech together without the question of subsidy. I got to the podium, I was possessed with courage and I said subsidy is gone.

“They thought it was a joke of the century until I called NNPC. We are tired of feedings smugglers, making few people rich, and subsidizing the next-door neighbor.

“I met with the President of the Benin Republic today, everybody is equal now, we are friends. We are conjoined twins joined by the hips, how we will separate each other is with this fuel subsidy. Let us see whether we will survive or not but we are going to survive you,” Tinubu said.

June 24, 2023
We will make more pronouncements on the economy soon – VP Shettima

Vice President Kashim Shettima has disclosed that the administration is going to make more pronouncements on how to reposition the Nigerian economy soon.

TheNewsGuru.com (TNG) reports VP Shettima to have said the pronouncements is on how to make the economy more vibrant for business.

Shettima made this known when he received the British High Commissioner to Nigeria, Richard Montgomery on a courtesy call at the presidential villa.

He advocated for the creation of the Nigeria-UK Bi-National Commission to strengthen bilateral relations between the two nations.

The Vice president said that Nigeria and UK had long standing historical relationship, business activities and shared common interests, which has led to the exceptional cordial relationship between the two nations.

He lauded the British government for its regular support and assistance to Nigeria while expressing hope for a more robust business relations ahead.

“I will urge you to facilitate the setting up of the Nigeria-UK Binational Commission. The Bi-national Commission can be the driver for accelerating enhanced business relationship between our two countries.

“We need to ramp up the trade between our two nations taking into cognizance of our proximity and the long lasting relationship.

“There is no nation that we are close to than the UK and our trade represent less than five per cent of the volume of our import and export,” Shettima said.

He said that the Federal Government was committed to creating an enabling environment for businesses activities to flourish in the country.

The VP underscored the need for economic reforms in order to position the country’s economy for growth in order to march the recent removal of fuel subsidy.

“This is just the beginning because it was a fait accompli to withdraw the fuel subsidy.

“We either get rid of the fuel subsidy or the fuel subsidy get rid of the Nigerian nation.

“In 2012, we spent 10 billion dollars on fuel subsidy alone.

“Last month, we were purportedly consuming 67 million litres per day, but after the removal of the subsidy it drops to 41 million litres per day, nearly four per cent off.

”So the whole subsidy regime was opaque, ridden with a lot of inconsistencies.”

He said that the previous multiple exchange rate regime with a lot of corruption brought about the proliferation of many schemes.

He said that the government had no other option but to collapse the exchange rate regimes into one.

“In the coming weeks and months, we are going to make more pronouncements on how to reposition the Nigerian economy and make it vibrant for business,” he said.

He spoke on the role of the private sector in driving economic growth.

According to him, Lagos is booming fundamentally because of the private sector but not because of government as the government has created the avenue for businesses to thrive.

On efforts to find a lasting solution to the security challenges in the country, Shettima stated that there was need for both kinetic and non-kinetic approaches toward addressing the problems.

In his remarks, Montgomery commended the new administration’s proactive economic policies especially the reforms.

He lauded the long standing relationship and cooperation with Nigeria especially in areas of trade and investment, security and defence, digital technology, and education.

He assured the willingness of the UK government in partnering closely with the Nigeria towards achieving overall development of the nation.

June 22, 2023