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FG Pays N1 Trillion Monthly As Petrol Subsidy — Pinnacle Oil MD
In a revelation that underscores the ongoing challenges in Nigeria’s oil sector, Pinnacle Oil and Gas Limited has disclosed that the country is incurring about N1 trillion every month on petrol subsidies.
This disclosure was made by the Managing Director/CEO of the indigenous oil and gas company, Robert Dickerman, during the Nigeria International Energy Summit (NIES) held in Abuja.
Despite the government’s efforts towards deregulation in the downstream sector, the persistence of such a hefty subsidy indicates a significant financial burden on the nation’s economy.
The subsidy mechanism, intended to make petrol affordable for Nigerians, has inadvertently resulted in the product being cheaper within the country compared to neighbouring nations.
This price disparity has been identified as a key driver for the smuggling of petrol across borders, further complicating the subsidy issue.
Speaking at the forum’s panel session six, which focused on Nigeria’s Downstream Sector, Dickerman highlighted the paradox that, despite substantial progress in the industry, the massive subsidy is a clear indication of the challenges still facing Nigeria’s oil and gas sector.
He said the situation not only affects the government’s finances but also impacts the operational dynamics of companies within the sector, like Pinnacle Oil and Gas, which operates across the entire downstream value chain.
Dickerman stated that the continued payment of subsidies at such a scale raises questions about the sustainability of such expenditures and the need for more effective policies to address the underlying issues.
He said, “Nigeria has a long history of allocating resources to oil and gas production at the expense of most other economic and social programs. To balance this, there has been a long-standing policy to mitigate consumer costs via palliatives such as fuel and food subsidies.
“But one of the net effects of oil money is underinvestment in local production, manufacturing and other value-added activities that could generate foreign currency through exports. There has also been a large under investment in the maintenance and upgrade of existing infrastructure including electricity, roads, health care, water, waste, education and financial infrastructure such as consumer credit.
As a result, we have a huge negative trade deficit, except for crude oil and LNG, and our banks are not sufficiently capitalized to support significant new capital programs.
“With legacy monetary policymaking currency exchange difficult, we desperately need Foreign Investment. This is a reality. So the best policy during this time of crisis is a national policy to transform our economy/regulations/laws to accommodate and encourage FDI.
“Foreign investors, foreign lenders and government-run DFIs have been very clear about what they want to see: Conservative fiscal policy, tackling corruption, enabling competitive markets, and enforcement of fairness in markets through policy, regulation and the ability to enforce contracts. Keeping that context in mind, I want to point out that there is still a massive subsidy in PMS, albeit in the FX portion of PMS Price, not the global price in dollars.
“The consequences of this subsidy are: The cost of gasoline in Nigeria is the lowest in Africa by far, which encourages smuggling out, further depriving Nigeria of value. Smuggling causes Nigeria to subsidize neighbouring countries even while our economy struggles. The cost is hurting the entire budget, Federal and State, as critical programs cannot be funded to pay this subsidy. It is currently calculated to be about 1 trillion Naira/month.
“Also, with this subsidy in place, ceasing subsidy payments would result in no petrol supply, if there are no refineries producing gasoline. All supplies come from the international market, which will only sell at market prices.
“There is no competition in bulk supply, as only the national champion owned by the government can import. Wholesale and retail prices are set based on their subsidized cost and they determine who gets supply. Without a competitive market, foreign investors are discouraged from investing in this sector in Nigeria.
“The solution to this problem seems obvious, even acknowledging the daily struggles most citizens and companies have today with reduced purchasing power, high inflation, high interest costs and high unemployment that exists today. Short-term palliatives have never resolved long-term issues in any nation at any time in history. We need long-term solutions.”
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2027: Rainbow Coalition Signals Fresh Political Realignment in Nigeria — Sokoto PDP Guber Candidate
The Peoples Democratic Party (PDP) governorship candidate in Sokoto State, Abubakar Sokoto, has described the emerging Rainbow Coalition as another chapter in Nigeria’s long history of political alliances and realignments.
Sokoto, in a statement issued in Sokoto on Tuesday, said political coalitions had remained a recurring feature of Nigeria’s electoral history, with parties and political groups often coming together to pursue shared political objectives.
According to him, while the names, personalities, circumstances and goals behind such alliances may change, political realignment remains an established part of the country’s democratic process.
He cited the 1999 AD-APP joint presidential ticket of Olu Falae and Umaru Shinkafi as one of the notable examples of political cooperation in Nigeria.
He also recalled the Coalition of Progressive Political Parties ahead of the 2015 general elections, as well as the merger involving the Action Congress of Nigeria (ACN), Congress for Progressive Change (CPC) and All Nigeria Peoples Party (ANPP), which eventually led to the formation of the All Progressives Congress (APC).
“The greatest lesson from these experiences is that political coalitions are about people as much as they are about parties,” he said.
On the latest political realignment, Sokoto noted that the Minister of the Federal Capital Territory (FCT), Nyesom Wike, had described the Rainbow Coalition as a multi-party platform mobilising support for President Bola Tinubu’s 2027 re-election bid.
He added that Wike had also maintained that the coalition was not an APC structure.
Sokoto said concerns reportedly expressed by some APC governors over the emerging coalition should be viewed within the broader context of Nigeria’s history of political alliances and realignments.
He urged APC governors and other party leaders to adopt what he described as a pragmatic approach to the developing political configuration ahead of the 2027 elections.
The PDP candidate also called on Nigerians to support efforts aimed at ensuring that the 2027 general elections are free, fair and credible.
News
2027: Rainbow Coalition Signals Fresh Political Realignment in Nigeria — Sokoto PDP Guber Candidate
The Peoples Democratic Party (PDP) governorship candidate in Sokoto State, Abubakar Sokoto, has described the emerging Rainbow Coalition as another chapter in Nigeria’s long history of political alliances and realignments.
Sokoto, in a statement issued in Sokoto on Tuesday, said political coalitions had remained a recurring feature of Nigeria’s electoral history, with parties and political groups often coming together to pursue shared political objectives.
According to him, while the names, personalities, circumstances and goals behind such alliances may change, political realignment remains an established part of the country’s democratic process.
He cited the 1999 AD-APP joint presidential ticket of Olu Falae and Umaru Shinkafi as one of the notable examples of political cooperation in Nigeria.
He also recalled the Coalition of Progressive Political Parties ahead of the 2015 general elections, as well as the merger involving the Action Congress of Nigeria (ACN), Congress for Progressive Change (CPC) and All Nigeria Peoples Party (ANPP), which eventually led to the formation of the All Progressives Congress (APC).
“The greatest lesson from these experiences is that political coalitions are about people as much as they are about parties,” he said.
On the latest political realignment, Sokoto noted that the Minister of the Federal Capital Territory (FCT), Nyesom Wike, had described the Rainbow Coalition as a multi-party platform mobilising support for President Bola Tinubu’s 2027 re-election bid.
He added that Wike had also maintained that the coalition was not an APC structure.
Sokoto said concerns reportedly expressed by some APC governors over the emerging coalition should be viewed within the broader context of Nigeria’s history of political alliances and realignments.
He urged APC governors and other party leaders to adopt what he described as a pragmatic approach to the developing political configuration ahead of the 2027 elections.
The PDP candidate also called on Nigerians to support efforts aimed at ensuring that the 2027 general elections are free, fair and credible.
News
Niger Miners’ Deaths: ‘Anyone Who Tampers With Evidence Will Face Full Wrath of Law’ — Tunji-Ojo
The Federal Government has warned that anyone who attempts to destroy or conceal evidence, intimidate witnesses or obstruct investigations into the deaths of 37 suspected illegal miners in Niger State will face prosecution.
Minister of Interior, Olubunmi Tunji-Ojo, issued the warning on Tuesday in Abuja while inaugurating a 10-member independent investigative committee set up to establish the circumstances surrounding the deaths of the detainees in the custody of the Nigeria Security and Civil Defence Corps (NSCDC).
The 37 detainees died on September 17, days after they were arrested during NSCDC operations against suspected illegal mining in the M.I. Wushishi and Lukoto areas of Niger State on September 15 and 16.
The circumstances and actual cause of the deaths remain under investigations.
Speaking at the inauguration of the panel, Tunji-Ojo directed the NSCDC leadership and all officers linked to the incident to cooperate fully with investigators and ensure that all relevant records and material evidence are preserved.
“All records and material evidence connected to this incident, I have directed that they must be preserved and made available,” the minister said.
He added: “Any attempt by anybody to destroy or conceal evidence, intimidate witnesses or obstruct this investigation will be treated as a serious offence against the nation and it will not be tolerated.
“If it ever happens, I give you my word, the full hammer of the law will descend on such an individual.”
‘We Owe Nigerians the Truth’
Tunji-Ojo said the Federal Government was determined to establish the truth and ensure accountability, regardless of the status of anyone found culpable.
“To Nigerians, I say this: we owe you the truth.
This committee will give you the truth. No officer, no matter how highly placed, or any individual will be shielded if found culpable,” he said.
The minister also appealed to the families of the deceased to remain calm, assuring them that the government would not abandon them.
“To the families who lost loved ones, I appeal for calm and patience. This government will not and will never abandon you,” he said.
Tunji-Ojo charged the committee to conduct a thorough investigation and promised that its findings would not be ignored.
“I challenge you: let your antecedent speak when the report is submitted, and I assure you of one thing: this report will not be swept under the carpet,” he said.
He added that those found culpable would face the appropriate legal consequences.
“We will call a meeting like this; we will present the report, and whoever needs to be prosecuted will be prosecuted, and whoever needs to be dealt with in line with the law will be dealt with,” the minister said.
Panel to Determine Cause of Death, Responsibility
The committee, chaired by retired Deputy Director-General of the Department of State Services (DSS), Jonathan Kure, is expected to establish the identities of the deceased and investigate the circumstances surrounding their arrest and detention.
It will also determine the cause and circumstances of the deaths, establish responsibility, complicity, negligence or misconduct, and recommend appropriate action, including compensation where applicable. The panel is also expected to recommend measures to prevent a recurrence.
The committee has two weeks to complete its investigation and submit its report to the Minister of Interior.
The NSCDC initially attributed the deaths to a suspected disease outbreak, but the official cause has not been established.
The Federal Government has ordered a comprehensive investigation into the circumstances surrounding the deaths.
The incident has generated widespread public outrage, with survivors and relatives making allegations about the conditions in which the detainees were held. Reports have included claims of overcrowding and poor ventilation, as well as allegations that an unidentified substance was sprayed inside the cell. Those claims remain subject to investigation.
Following the incident, the Federal Government suspended the Niger State NSCDC Commandant, Suberu Siyaka Aniviye, along with 20 other officers pending the outcome of the investigation.
The NSCDC subsequently paraded the suspended commandant and other officers linked to the incident at its national headquarters in Sauka, Abuja, as the Corps presented preliminary findings to journalists.
President Bola Tinubu had earlier ordered a full and transparent investigation, saying the government would not tolerate mass deaths arising from official negligence, dereliction of duty or failure by public officials to protect people placed in their care.
Channels Television
2027: Rainbow Coalition Signals Fresh Political Realignment in Nigeria — Sokoto PDP Guber Candidate
2027: Rainbow Coalition Signals Fresh Political Realignment in Nigeria — Sokoto PDP Guber Candidate
Niger Miners’ Deaths: ‘Anyone Who Tampers With Evidence Will Face Full Wrath of Law’ — Tunji-Ojo
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