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

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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.

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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.

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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.

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A’Court reserves judgment on Kano LG poll dispute

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A special panel of the Court of Appeal sitting in Abuja has reserved judgment in five separate appeals arising from the legal disputes surrounding the conduct of the 2024 local government elections in Kano State.

The appeals stem from two rulings delivered by the Federal High Court in Kano, which, among other declarations, nullified the composition of the Kano State Independent Electoral Commission.

The cases include Appeal No. CA/KN/20/2025, filed by KANSIEC with the Independent National Electoral Commission and four others listed as respondents.

Another, CA/KN/233/2024, was filed by the Kano State House of Assembly and another party, with Aminu Aliyu Tiga and 14 others as respondents.

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Appeal CA/KN/290/2024 was brought by the Attorney General of Kano State and six others against the All Progressives Congress and three others.

Additionally, Appeal CA/KN/291/2024 was filed by KANSIEC and eight others, with the Kano State House of Assembly and six others listed as respondents.

In the appeal marked CA/KN/233/2024, the Kano State House of Assembly and another appellant, represented by Chief Adegboyega Awomolo (SAN), urged the appellate court to overturn the judgment of the Federal High Court, which had barred KANSIEC from conducting local government elections.

Awomolo argued that the Federal High Court lacked jurisdiction to entertain the case, noting that the suit filed by Aminu Tiga and the APC was statute-barred at the time of filing.

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He also contended that the plaintiffs lacked the legal standing to initiate the case.

Justice Simon Amobeda of the Federal High Court had, on October 22, 2024, restrained KANSIEC from conducting elections in the 44 local government areas of Kano State.

The judge ruled that the electoral commission’s members were card-carrying members of the ruling New Nigeria People’s Party, in breach of Sections 197 and 200 of the 1999 Constitution.

Justice Amobeda further directed INEC not to release the national voters’ register for the purpose of the local government elections in the state.

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Additionally, he barred the police, the Department of State Services, and other security agencies from providing support or protection for the polls.

Unhappy with the verdict, the Kano State House of Assembly and other affected parties approached the Court of Appeal, arguing that local government election matters are under the exclusive purview of the state and can only be adjudicated by a Kano State High Court—not the Federal High Court.

After hearing all arguments on Tuesday, the three-member appellate panel led by Justice Georgewill Ekanem announced that judgment had been reserved and would be delivered on a date to be communicated to the parties involved.

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Ondo poly workers commence strike action over unpaid wages

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Workers at the Rufus Giwa Polytechnic, Owo, in Ondo State on Tuesday embarked on an indefinite strike over the non-payment of salaries by the Ondo State Government.

The striking workers, who are members of the Non-Academic Staff Union and the Senior Staff Association of Nigeria Polytechnics, staged a peaceful protest on the institution’s campus to express their grievances.

The aggrieved staff revealed they are being owed six months’ salaries and accused the government of failing to implement the national minimum wage.

They carried placards with messages including, “We are hungry, pay our six months’ salaries,” “Mr Governor, please implement our 2025 budget,” and “Acting Rector, please clear our 2022, 2023, and 2024 promotion arrears.”

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During the protest, the Chairman of NASU, RUGIPO chapter, Mr. Julius Olugbenga-Aro, and his SSANIP counterpart, Mr. Saka Olokungboye, called on Governor Lucky Aiyedatiwa to urgently address the workers’ demands.

They lamented the hardship faced by their members, saying many are unable to meet basic needs due to the unpaid wages.

Olugbenga-Aro stated, “This protest is to express our frustration over the non-payment of six months’ salary arrears and the failure of the Ondo State Government to implement the national minimum wage for polytechnic staff.”

While acknowledging some of the governor’s developmental efforts at the institution, including the recent approval for the polytechnic’s conversion to a university, the union leaders appealed for more urgent actions.

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They urged the state government to approve immediate payment of the outstanding salaries, ensure full implementation of the 2025 institutional budget, and begin payment of the new national minimum wage.

They also warned that failure to act swiftly could result in prolonged disruptions to the academic calendar, further affecting students and the institution at large.

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Court imposes N100m damages penalty on Abuja school over student’s death

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A Federal Capital Territory High Court in Abuja on Tuesday awarded the sum of N100m in general damages against Louisville Girls Secondary School, Gwagwalada, for negligence of duty of care which led to the death of a student.

Mr Ifeanyi Ikpeatusim had sued the school for negligence that resulted in the death of his 9-year-old daughter, Kamzie,

In the suit marked CV/1738/18, Ikpeatusim alleged that the school’s failure to provide adequate medical attention after Kamzie who fell ill shortly after her admission and resumption in the school led to her untimely death.

Kamzie, who was admitted as a boarding student in September 2017 became severely ill by October 2 and died a few days later.

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Justice Sylvanus Oriji, while delivering judgment in the suit brought before the court after awarding the N100m cost, ordered a 10 per cent interest on the judgment sum from April 8 until full payment.

He also awarded an additional N300,000 as the cost of the suit.

Justice Oriji while pronouncing the decision of the court, held that the evidence presented showed the school and its agents acted negligently by failing to attend promptly and adequately to Kamzie’s medical needs.

“The claimant established his allegations of negligence against the school.

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“There is no amount of money that can bring back the child to life,” he stated.

Justice Oriji however acknowledged the fact that one significant outcome of the case was the improvement of the school’s sickbay following the incident.

He noted that the presence of doctors attending to students twice daily was a commendable development.

While the claimant had asked the court to order the school to name one of its structures in Kamzie’s name in her honour, Justice Oriji noted that the improvement in the school’s sickbay was sufficient enough to know the school is making amends from its mistake.

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“The court thinks that the improvement in the sickbay, ensuring doctors are available twice daily, is in honour of Kamzie, as part of reforms recommended by her family.

“The claimant should take solace in the fact that Kamzie has been honoured by the school through these improvements.”

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