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Tinubu’s petrol subsidy gulps N15trn as scarcity worsens

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President Bola Tinubu’s administration has spent N15.096 trillion on petrol subsidy in the last 14 months, according to BusinessDay’s calculations.
 
The value of the subsidy expenditure under Tinubu was obtained from the National Bureau of Statistics (NBS) data and information from petroleum marketers.
 
According to the NBS, Nigeria imports between 1.4 billion litres and 2.5 billion litres per month, indicating an average of 1.95 billion litres per month. In 14 months (June 2023-July 2024), the country has consumed 27.3 billion litres.
 
On the other hand, independent marketers say the landing cost of petrol and other logistics costs stand at N1,203 per litre. The NNPC Retail sells petrol at N650 per litre at its stations, leading to a differential of N553 for each litre of petrol.
 
With the N553 differential and 27.3 billion litres consumed in 14 months, the amount likely to have been spent over the period by the Tinubu administration is N15.097 trillion.
 
Kelvin Ayebaefie Emmanuel, CEO of Dairy Hills, said Nigeria must first of all be honest with the number of litres of petrol consumed in the country.
 
“The first step to address the cost of under-recovery on the premium motor spirit (PMS) subsidy is finding the actual daily consumption.
 
“The other two major factors that have gone into the re-introduction of under-recovery is the price of crude oil and the exchange rate. The only way to achieve non-payment is to have the Naira to USD pair at 750 and Brent prices at $75 per barrel,” he said.
 
“This is the reason why the government needs to adjust the domestic crude oil supply obligations and guarantee domestic refineries the feedstock they require to backwardly integrate production.”
 
President Bola Tinubu in his inauguration speech on May 29, 2023, said petrol subsidy was gone. However, it has grown bigger than the amount being paid before he came to power.
 
Nigeria’s former President Muhammadu Buhari spent N10.7 trillion on petrol subsidies between 2016 and the first six months of 2023.
 
In one year, however, Tinubu’s petrol subsidy expenditure has eclipsed that. Analysts attribute this to the naira slump after the foreign exchange liberalisation in 2023.
 
Naira has lost more than 60 percent value since it was liberalised by the current administration, analysts say. A dollar exchanges for N1,592.06 on Tuesday as against N740 on June1, 2023.
 
A week before the 2023 presidential election, which led to the new administration, Mele Kyari, group CEO of Nigerian National Petroleum Company (NNPC) Limited, revealed that the country was spending more than N400 billion monthly on fuel subsidies.
 
But on Monday, in a viral video, Kyari told the press that the state-owned company was not paying fuel subsidies.
 
“I told you there is no subsidy whatsoever. We are recovering our full costs from the products that we import.
 
“We understand why the marketers are unable to import. We hope that they do this very quickly and these are some of the interventions the government is doing. There is no subsidy,” he said.
 
BusinessDay’s analysis, however, has revealed that while the retail price of petrol stands between N650 and N750 across the country, the landing cost of petrol per litre is over N1,200 as of Monday, August 19, 2024.
 
“The government has seen the analysis and has now recognised the subsidy is back and bigger,” said Jide Pratt, chief operating officer of AIONA and Country Manager of TradeGrid.
 
Pratt said that the subsidy levels before Tinubu’s government were circa N50/N60 naira per litre using the gasoline index and the exchange rate.
 
He said: “A few months ago it was in the N200 per litre range. The exchange rate has been all over the place and this affects the landing cost of the sole importer of PMS, which is the NNPC.
 
“It was hard to justify how NNPC Retail had an N42 price advantage over other marketers who buy from her. It was very odd to justify in a petroleum market with slim margins.
 
“But I guess the chicken has come home to roost. The queues we keep witnessing albeit now longer and more frequent are a testament to maybe struggles with payment as and when due.”
 
According to a recent report by The Cable, President Bola Tinubu has approved a request by the NNPC Ltd to utilise the 2023 final dividends due the federation to pay for petrol subsidy.
 
The report showed that the president also approved the suspension of the payment of 2024 interim dividends to the federation in order to augment NNPC’s cash flow, according to presidency sources.
 
In addition, the national oil company told the president it will be unable to remit taxes and royalties to the federation account for now because of the subsidy payments, which it termed ‘subsidy shortfall/FX differential’.
 
Despite the Petroleum Industry Act of 2021 and the deregulation of the downstream sector, which permits licensed private oil marketers to import petrol, the state-owned oil company remains the only importer in Nigeria.
 
However, private marketers have struggled to access the foreign currency needed for petrol imports, forcing them to rely on the state-owned oil company for supply.
 
Over 90 licensed petroleum marketers in Nigeria have been unable to import products due to unresolved price differences, leaving them inactive nearly nine months after President Bola Tinubu announced the deregulation of the downstream petroleum sector.
 
“If you look at the price of international crude, and you compare the refined products across Africa, how much is the landing price? Right now, every refined product you have is imported,” said Pedro Omontuemhen, partner & Africa oil and gas leader, PwC Nigeria.
 
“When you compare the international price, landing price, and the state of price (in the country), that means the difference is being borne by the government, either directly or through some of the government agents.”
 
According to Omontuemhen, it doesn’t matter what the government is saying as the reality of things in the country continues to show that someone is paying for the subsidy.
 
“One thing we should be aware of is that there are subsidies everywhere in the world. Another name for subsidy is a grant. They are all over the world.”
 
 
Negative impact on government revenue
 
Petrol scarcity has worsened across the country, with a litre selling at N900 and N1,000 at some filling stations in Lagos, Abuja, Port Harcourt, Kano and other parts of Nigeria. Petrol stations selling at N650-N750 often have long queues.
 
Muda Yusuf, chief executive officer of Centre for Promotion of Private Enterprise, said the current economic situation has necessitated the open acceptance of the subsidy payment, noting that the petrol product is already being subsidised.
 
“Obviously, this affects government revenues because remittances from NNPC is one of the major sources of revenue for the government. If that is removed, we will be left with just revenues from taxes and forex gains. And when you talk about the tax revenues, a lot of it has been taken off by tax credits being offered to some companies.”
 
Yusuf said that the current price of fuel, which ranges from N617 to N1,000 across the country, is already being subsidised by the government.
 
He explained that the prices of fuel may remain high until Nigeria stops the importation of petroleum products.
 
“It is a dilemma for the government also as they are in a tight corner. Look at the recent nationwide protest, which was because of the sufferings occasioned by fuel subsidy removal.
 
“With the exchange rate, the amount we currently pay for fuel has a huge subsidy component – just that the government is not open to us. Until we stop fuel importation, we may not get any relief from the high price of petrol,” he further said.
 
Ken Ife, lead consultant on private sector development to the ECOWAS Commission, said that the government has always subsidised the price of petrol, which is why it could be sold for less than N1,200 per litre.
 
“The price of petrol should be at about N1,200, but we still get to buy at N600 plus, which means somebody is paying for subsidy somehow and I do not see the price of per litre dropping anytime soon.
 
“And if the price must drop, then some things must be done and they include ensuring that Dangote receives sufficient crude and it is allowed to pay in Naira. Also, the NNPC must also buy refined crude from Dangote.
 
“Another issue of concern is that the NNPC has almost securitised all of its crude. So, we do not know how much it has left, but it is important we ensure that Dangote Refinery gets sufficient crude in naira. Also, if the NNPC continues to import refined petrol with all the cost payable in dollars, this may cause the price of PMS to remain high,” he added.
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Reps Launch Nationwide Probe into Illegal Mining, Vow Crackdown on Revenue Leakages

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By Gloria Ikibah

The House of Representatives has commenced a comprehensive investigation into illegal mineral exploitation across Nigeria, pledging to tackle the activities of criminal networks draining the country’s vast mineral resources.

The move was the resolution at a high-level stakeholders’ workshop on extractive industry governance organised by the House Ad Hoc Committee on Mineral Exploitation, Security and Anti-Money Laundering on Monday in Abuja.

Declaring the workshop open, Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, described the committee’s assignment as one of the most significant responsibilities before the National Assembly.

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He lamented that for years, illegal operators had continued to exploit Nigeria’s mineral wealth, depriving the country of much-needed revenue and weakening its economic potential.

Abbas explained that the workshop was designed to gather credible information, evidence and practical recommendations from regulators, security agencies and operators within the extractive industry before the House considers further legislative action.

He urged participants to speak openly and contribute meaningful solutions.

According to him, “Nigeria cannot achieve economic diversification, fiscal stability or job creation if the sector that should be a second revenue pillar is bleeding from illegality and opacity.

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“This is not an inquisition; it is a partnership. Withhold nothing, speak plainly and proffer solutions. The success of this intervention depends on the quality of information we receive and the sincerity of purpose we all bring to this room”.

Earlier, Chairman of the House Ad Hoc Committee on Mineral Exploitation, Security and Anti-Money Laundering, Rep. Sanni Abdulraheem, said the committee was also examining whether existing laws and regulatory institutions were strong enough to close loopholes that continue to encourage illegal mining.

He explained that the investigation will also trace the financial networks through which proceeds from illegal mining are concealed and laundered, while assessing whether security arrangements around mining communities are adequate.

Abdulraheem identified illegal mining, weak enforcement and money laundering as the major factors responsible for the disconnect.

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“Nigeria is blessed. Few nations on earth carry the range and richness of mineral deposits that lie across our states—gold, lithium, tin, coal, tantalite and many more. On paper, these resources should be transforming livelihoods, funding schools and hospitals, and strengthening our national economy. Yet, for too long, a troubling gap has persisted between the wealth in our ground and the prosperity in our communities.

“That gap has a name: illegal mining, weak enforcement, and the laundering of proceeds that should belong to the Nigerian people. It is a gap filled instead by criminal networks, by revenue leakages we can no longer afford to ignore, and by security threats that have, in some of our communities, turned mineral-rich land into contested and dangerous territory”, hesaid.

The lawmaker noted that the committee had already engaged several government agencies and, where necessary, issued summons to compel cooperation.

He emphasised that the exercise was not intended to create confrontation but to ensure transparency and accountability.

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“Oversight without candour achieves nothing, and reform without accurate information is guesswork dressed as policy,” he added.

Abdulraheem maintained that addressing illegal mining required collaboration among regulators, security agencies, financial intelligence institutions, state governments, traditional rulers, licensed operators and civil society organisations.

He also commended security agencies, particularly the Nigeria Security and Civil Defence Corps (NSCDC) and the Mining Marshals, for their efforts in protecting the country’s mineral resources.

According to him, “We must understand your capacity gaps honestly, so that we can recommend the support and reform you genuinely need.”

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He further noted that illicit mining proceeds often pass through complex financial channels that require coordinated efforts to track and dismantle.

“Illicit proceeds do not vanish—they move through accounts, shell arrangements and cross-border channels that can be traced with the right tools and the right political will. We look to your expertise to help this Committee and the nation close those channels,” he said.

He therefore assured participants that all submissions, data and recommendations received during the workshop would form part of the committee’s final report to the House.

Also speaking at the event, the Nigeria Security and Civil Defence Corps disclosed that its Mining Marshals had arrested more than 671 suspected illegal miners across the country, with 397 already facing prosecution.

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Representing the Commandant-General of the NSCDC, Ahmed Audi, the Commander of the Mining Marshals, Attah Onoja, said the Corps had dismantled several illegal mining sites, leading to improved government revenue and renewed investor confidence in the sector.

He, however, identified inadequate logistics, limited manpower, delays in the judicial process and interference from organised criminal syndicates as major obstacles to effective enforcement.

Onoja called for increased funding, improved surveillance technology and the establishment of specialised courts to handle mining-related offences more efficiently.

The workshop attracted regulators, security agencies, industry operators and other stakeholders, who pledged to support efforts aimed at sanitising Nigeria’s mining sector and ensuring that the country’s mineral resources contribute meaningfully to national development.

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Tinubu Flags Off Tungan Madaki-Zuba Road(Photos)

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… Moves to Deepen Integration of Satellite Towns into Abuja Development plan

President Bola Ahmed Tinubu on Monday, advanced his administration’s drive to integrate satellite communities into the Federal Capital Territory’s development framework with the flag-off of the construction of the access road linking Tungan Madaki to the Abuja-Kaduna Expressway through Zuba.

The President, represented by the Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, said the project is part of the Renewed Hope Agenda aimed at ensuring that rural and suburban communities benefit from the same level of infrastructure development as residents of the city centre.

According to him, the road project formed a critical component of a broader strategy to connect communities, stimulate economic activities, improve mobility and unlock investment opportunities across the FCT.

“This project is a direct continuation of the road from the Bill Clinton Drive to Tungan Madaki Community Road which we commissioned a few weeks ago as part of the activities marking the third anniversary of the Renewed Hope Administration.

“What began as one road is now growing into a network, and that is how real development takes root,” Tinubu said.

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The President noted that residents of Tungan Madaki, Zuba and neighbouring communities, many of whom are farmers, traders and students, have endured years of poor road access that hindered movement, increased transportation costs and limited economic opportunities.

He explained that the new road would provide a direct link to the Abuja-Kaduna Highway, reduce travel time, lower vehicle maintenance costs and facilitate the movement of goods and services.

“This new road will link Tungan Madaki directly to the Abuja-Kaduna Road, cutting travel time, reducing vehicle maintenance costs, and opening a faster route for people and goods.

“It will connect rural productivity to urban opportunity. When farmlands are opened, food becomes cheaper in our markets. When communities are connected, young people have more reason to build enterprises at home,” he stated.

Tinubu further stressed that infrastructure development remains central to his administration’s economic agenda, describing roads as catalysts for prosperity, security and social inclusion.

“Infrastructure is not just concrete and asphalt. It is the bridge between potential and prosperity, and that is the core of the Renewed Hope Agenda,” he added.

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The President said the project would also ease traffic pressure on the Abuja city centre, provide alternative routes for commuters and strengthen the economic corridor between the FCT, Kaduna and the wider North-West region.

He noted that improved infrastructure along the axis would encourage investments in housing, healthcare, education and industrial development.

Commending the Minister of the Federal Capital Territory, Nyesom Wike, for the pace of infrastructure delivery in the capital city, Tinubu said the administration was witnessing a renewed emphasis on project completion and measurable results.

“From major highways to community access roads like this one, we are seeing a return to planning, a rejection of abandoned projects, and a focus on results that citizens can feel,” he said.

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The President also directed the contractor to ensure timely completion and quality delivery of the project while engaging local labour to create employment opportunities for youths in the area.

Earlier, FCT Minister, Barr. Nyesom Wike, said the road project was in line with Tinubu’s directive that all satellite towns and area councils should be adequately connected to the city centre through modern road infrastructure.

Wike disclosed that the project emerged after the Chairman of Gwagwalada Area Council drew the administration’s attention to the need for a direct link between Zuba and Abuja to reduce travel stress on residents.

“It has been the directive of Mr. President that all communities and all satellite towns must be linked up to the city. What we are doing today is to fulfil that promise that Mr. President made to Nigerians,” Wike said.

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He explained that upon completion, residents of Zuba and adjoining communities would enjoy easier access to Abuja and the Nnamdi Azikiwe International Airport without having to travel through Gwagwalada.

The minister described the project as another milestone in the FCT Administration’s efforts to open up rural communities and improve the quality of life of residents.

He expressed optimism that the contractor, China Civil Engineering Construction Corporation, CCECC, would complete the project before the end of the year.

“We are putting pressure on them to ensure that by December, by the grace of God, we will commission this road. For the people of Tungan Madaki and Zuba, this is a Christmas gift,” Wike said.

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While delivering a vote of thanks, FCT Minister of State, Dr. Mariya Mahmoud, stated that the construction of the access road from Tungan Madaki to the Abuja–Kaduna Road at Zuba was another bold demonstration of the commitment of President Bola Ahmed Tinubu’s Renewed Hope Agenda and the FCT Administration’s determination to extend infrastructure and economic opportunities to underserved communities.

Mahmoud also said the road would significantly improve connectivity, stimulate commerce, attract investment, and enhance the quality of life of residents across Tungan Madaki, Zuba, and neighbouring communities.

According to the Minister, the project reflects the Federal Capital Territory Administration’s unwavering resolve to ensure that no community is left behind in the ongoing transformation of the nation’s capital.

She expressed profound appreciation to President Bola Ahmed Tinubu, for providing the visionary leadership that has continued to drive unprecedented infrastructure development across the Federal Capital Territory through the Renewed Hope Agenda.

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Sad: Gunmen k!ll 300-level varsity student, abduct palace secretary, four others in Edo

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Unidentified gunmen suspected to be kidnappers have reportedly killed a 300-level student of the Ambrose Alli University, AAU, Ekpoma and abducted five others in Edo State.

The incident happened separately on Friday, July 10, and Sunday, July 12, 2026 in Idoa and Ekpoma communities, respectively.

In the accident that happened on July 12, 2026, a student whose identity is yet to be ascertained was reportedly abducted on the night of the fateful day when the gunmen invaded his residence. A woman was also allegedly abducted by the assailants on the same day.

The killing of the student and the abduction of the woman was disclosed in Esan Political Assembly facebook page.

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In the Idoa kidnapping incident, the gunmen abducted the secretary to the palace of the community alongside three children.

It was gathered that the victims were abducted on Friday morning, July 10,2026.

A source who said the secretary is his brother and the children those of his neighbours, added that the abductors have demanded for N30 million ransom.

He said the abductors threatened to kill the victims if the ransom was not paid before the end of July 13.

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According to him, my brother was kidnapped on Friday morning at the Idoa community, in Esan west Local Government Area. He is the secretary of the Idoa palace. They are demanding for N30 million.

“He was kidnapped alongside other small children that were with him. His vehicle broke down on his way to the farm and he left it where it broke down.

“The next day, he came back to the place with tools and other things to repair the motor. As he was there to repair the vehicle, gunmen just came out from the bush, rounded them up and took them into the bush.

“They have made contact demanding for N30m ransom and threatened that if we did not bring the money by the end of today, they will kill them.

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“The children are those of his neighbours. The children followed him to where he wanted to repair his vehicle just to give him support, and he was to bring them back home after the repair because they live together,” he said.

While appealing to government and security agencies for intervention for the rescue of the victims, he said the incident has been reported to the Police.

At the time of the report the Public Relations Officer of the Edo State Police Command, ASP Eno Ikoedem, was yet to respond to a message sent to her whatsapp.

Recall that a high-ranking chief of the community, identified as Chief Jimah Jacob Ogboi was on February 26, 2026 reportedly killed and his daughters abducted.

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The gunmen were alleged to have struck in the night and instantly shot the deceased while they used machetes and other dangerous weapons on his wife.

The gunmen who were four in number, allegedly invaded the deceased house, shot him and went away with his two daughters.

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