News

Tinubu to Spend Nearly $4 Billion on Fuel Subsidies This Year, See Details

Published

4 months ago

June 7, 2024

Fuel Subsidy Spending to Surge by 50% in 2024 as Tinubu set to spend spend nearly $4 Billion on Fuel Subsidies.

Nigeria is poised to spend 5.4 trillion naira ($3.7 billion) on fuel subsidies in 2024, a 50% increase from the previous year. This significant rise comes amidst President Bola Tinubu’s ongoing economic reforms aimed at stabilizing the country’s financial health.

The draft document, “Accelerated Stabilisation and Advancement Plan” (ASAP), outlines the government’s strategy to address fiscal challenges while fostering growth.

The projected subsidy expenditure marks a substantial increase from 3.6 trillion naira in 2023 and 2.0 trillion naira in 2022. This rise is attributed to the government’s decision to maintain fixed petrol prices despite currency devaluations and increasing costs. The fixed petrol prices have been in place since July last year, following the removal of a costly but popular subsidy in May.

President Tinubu’s decision to eliminate the petrol subsidy was initially praised by investors, as it was seen as a crucial step to kick-start economic growth. However, the immediate effects included a tripling of petrol prices, higher transport costs, and surging inflation, leading to public dissatisfaction and pressure from labor unions.

The ASAP draft, created by the finance ministry in collaboration with private sector executives and economists, aims to address these economic challenges. It suggests several measures to improve the Nigerian economy, including:

Selling equity in state-owned refineries by May 2026.
Increasing excise duty on beverages.
Introducing a tax on single-use plastics and sweetened beverages.
Targeting an oil production increase to around 2 million barrels per day by December, up from the current 1.4 million.

These measures are designed to boost cash flow and address revenue gaps, potentially providing a pathway to sustainable economic growth.

If President Tinubu approves the ASAP, it could lead to the implementation of its recommendations through executive orders. The plan includes ambitious targets for the power, oil and gas, agriculture, and healthcare sectors, with a focus on supporting businesses and driving growth.

Despite these efforts, Nigeria’s economy continues to grow at a modest rate of around 3%, well below the 6% annual expansion target set by Tinubu when he took office. The upcoming increase in fuel subsidy spending underscores the complexities and challenges of implementing effective economic reforms in a volatile environment.

Nigeria’s proposed increase in fuel subsidy spending highlights the delicate balance between maintaining social stability and pursuing necessary economic reforms. As the government navigates these challenges, the success of Tinubu’s broader economic strategy will depend on its ability to manage fiscal pressures while fostering sustainable growth.

News

Rupture In PDP Governors’ Forum deepens

Published

2 hours ago

September 20, 2024

Austin Ojomah

By Ojomah Austin.

The evolving fall-out, which comes barely days to the contentious National Executive Committee (NEC) of PDP, followed a back and forth between the Federal Capital Territory (FCT) Minister, Nyesom Wike and the Governors forum, who declared support for Rivers State governor, Siminalayi Fubara to be made leader of the party in the state.

After a meeting with some members of the party’s National Working Committee (NWC) in Bauchi on Wednesday, Governor Mohammed, said “According to our party’s constitution, any leadership vacancy should be filled by someone from the region where it originated,” stressing that Damagum would be replaced soon considering that he hails from North East and not the North Central.

Same day, Makinde, during the groundbreaking of the upgrading of Ladoke Akintola Airport, Ibadan, to an international airport, which was attended by another set of NWC members, led by Damagum, said he would support whatever decision the Damagum-led NWC would take to reposition the party.

Damagum, who is considered a close ally of Nyesom Wike, the Federal Capital Territory (FCT) Minister, was appointed acting national chairman after the removal of Iyorchia Ayu in June 2023.

Meanwhile, the Board of Trustees (BoT) of the PDP led by Senator Adolph Wabara, met with members of the National Assembly caucus in Abuja.

The close door meeting comes barely hours after the BoT met with Wike in Abuja.

While Wabara refused to comment on the essence of the meeting with the lawmakers, it was noticed that most of the lawmakers didn’t honour the invitation.

News

Tears As Man Takes Own Life Over Tinubu’s Govt Hardship

Published

2 hours ago

September 20, 2024

Naijablitznews

By Mario Deepromoter

Sad development in Marika village, Kiyawa Local Government, Jigawa, where a 40-year-old man, Jibrin Adamu, committed suicide by hanging himself.

According to eyewitnesses, Adamu’s lifeless body was discovered in a classroom at Miftahul Khairat Islamiyya and Primary School Gurdiba on Thursday.

Police spokesperson DSP Lawan Shiisu Adam confirmed the incident, stating that preliminary investigations revealed Adamu had struggled with mental health issues.

“Police received a report on Thursday that at about 1830hrs, a tragic incident was reported at the Command headquarters that one Jibrin Adamu ‘m’ age 40yrs of Jigawar Maroka village, Kiyawa LGA has committed suicide by hanging himself over the ceiling at Islamiyya school,” the Police spokesperson told Daily Post.

The Jigawa State Commissioner of Police, CP AT Abdullahi, has instructed officers to conduct a thorough investigation into the incident.

News

Just in: Dangote Petrol Now Available at N765.99 Per Litre

Published

2 hours ago

September 20, 2024

Naijablitznews

By Mario Deepromoter

11plc, Total Energies, AA Rano, and other marketers have begun lifting Dangote Petrol through Nigerian National Company (NNPC) Trading Limited for N765.99 to retail outlets nationwide.

Findings showed some petroleum marketers who were able to complete their payment process on the NNPC trading payment portal commenced the lifting of petrol earlier this week under the existing agreement between marketers and the refinery.

Tunji Oyebanji, managing director, 11Plc confirmed to BusinessDay on Thursday evening that some marketers have started lifting the products at N765.99 from Dangote Refinery through NNPC who remain the sole off-taker of product.

“We were among the first marketers to complete the payment on the NNPC portal. We have no direct arrangement with the refinery,” Oyebanji said.

It was gathered that NNPC Retail, 11plc, Total Energies, A.A Rano are among the marketers that have picked up products from the refinery.

He added, “We don’t know the contractual financial arrangement between NNPC and the refinery but what I can confirm is we are buying at N765.99 from NNPC to lift Dangote petrol”.

Efforts to get the Independent Petroleum Marketers Association of Nigeria (IPMAN) to confirm if its members have picked up products at the Dangote Refinery proved abortive at the time of writing this report.

See also Nigeria’s Petrol Landing Cost Revealed
Adedapo Segun, executive vice-president, downstream at NNPC said marketers cannot purchase petrol directly from the refinery because the product is still sold at a subsidised rate.

“That is the same thing happening with Dangote. I said earlier that Dangote is a company and it is going to sell at market price,” he told Journalists.

According to Segun, “The market value of PMS is still higher than what N766 or N765 or N799 that NNPC is selling.

“The situation has not changed there. So, NNPC’s off-taking is only because the others would not buy at the price Dangote will be willing to sell, which is reasonable.

“As soon as the price allows for it, you will see the marketers go to Dangote and buy.”