News

Petrol price may hit N1,800/litre over Dangote’s subsidy removal call in Nigeria

Published

4 months ago

September 25, 2024

By Mario Deepromoter

Dangote Petroleum Refinery, the sole producer of petrol being off taken and distributed for Nigerians, has declared that the government should end subsidy, a move that would cause an imminent surge in the prices of the product to as high as N1,800 litre.

The Founder of the 650,000 barrels per day capacity refinery, Alhaji Aliko Dangote, who threw his full weight behind subsidy removal just nine days after his facility started production of petrol, said in an interview with Bloomberg that this is the right time for the federal government to stop petrol subsidy.

The product, which sold for N650 per litre at the NNPCL outlets before September 15, skyrocketed to as high as N1,010 per litre in the same outlets on the day the private refinery began production. With the call for full subsidy removal, the prices could be as high as N1,800 per litre.

“I think it is the right time to (take away subsidy) because all countries have gotten rid of subsidy,” he said.

Statistics showed that the price of the product would go up to the market price which is higher than the subsidised price any time the subsidy is removed, but Dangote maintained that what actually increases a product’s price is the subsidy.

Subsidy, according to him, is a sensitive issue, adding that once a country subsidises the product, people would increase the price.

To Dangote, the subsidy would lead to the government “paying what they are not supposed to be paying.” Dangote said petrol subsidy is not sustainable and the government cannot afford to keep subsidising.

“Our price of gasoline is about 60 per cent the price of our neighbouring countries and we have porous borders, so it is not sustainable. Government cannot afford the amount of subsidies we are paying,” he said.

Speaking further on the viability of petrol subsidy, Dangote said it is the government’s decision to either continue with or halt the payments.

“We have a choice of exporting when we produce and we sell locally. We are a private company and it is true we have to make a profit,” he said.

We built something worth $20 billion, and definitely we have to make money.

“The removal of subsidy is totally dependent on the government, not on us.

“We cannot change the price but I think the government would have to give up something for something.”

Dangote said eventually, the subsidy would have to go, adding that the petrol sold locally by his refinery will be tracked to ensure the consumption rate is accounted for.

“But this refinery will bring quite a lot of issues out there. It would show the real consumption of Nigeria because nobody can tell. Some people say it is 60 million litres per day, some say it is less,” the billionaire said.

“But right now, by us producing, everything can be counted and accounted for. Most of the trucks or ships that will load from us, we will put a track on them to be sure they are going to take the oil within Nigeria and that can help the government to save a lot of money.

“For example, in Saudi, citizens believe that oil is our god-given gift and should not charge for it. The government was selling it at a very low price. But today, as we speak, gasoline is about 40 per cent cheaper in Nigeria than in Saudi Arabia, which I think does not make sense.”

On May 29, 2023, President Bola Tinubu said the petrol subsidy regime was over.

Almost three months later, TheCable reported that Tinubu was considering a “temporary subsidy” on petrol as crude oil prices and foreign exchange rates soared.

However, Ajuri Ngelale, former presidential spokesperson, said there was no reintroduction of subsidy.

Also, on January 3, the Nigerian National Petroleum Company (NNPC) Limited denied the return of the petrol subsidy, saying it had been removed entirely.

However, on April 15, Nasir el-Rufai, former governor of Kaduna state, said the federal government is spending more on petrol subsidy than before.

TheCable also reported on August 19 that Tinubu approved a request by NNPC to utilise the 2023 final dividends due to the federation to pay for the petrol subsidy — but NNPC denied the existence of petrol subsidy, only to admit hours later that the federal government owes it N7.8 trillion for subsidising petrol.

Almost a month later, Tinubu said Nigeria’s daily consumption of petrol was reduced to about 30 million litres after subsidy removal.

News

NNPCL Declares N10trn Remittance, N3.5trn Dividends for 2024

Published

6 hours ago

January 15, 2025

Gloria Ikibah

By Gloria Ikibah

The Nigerian National Petroleum Company Limited (NNPCL) has announced a total remittance of N10 trillion to the Federation Account by September 2024, alongside N3.5 trillion in dividends after taxes for the 2024 fiscal year.

The Group Chief Executive Officer, Mele Kyari, disclosed this during a budget defense session before the Joint Finance Committee of the Senate and House of Representatives in Abuja on Wednesday.

Kyari emphasised the transparency of NNPCL, that it is the only organization in Nigeria that publishes 100 percent of its financial accounts annually, and highlighted the its role as the Nigeria’s highest taxpayer and its significant contributions through royalties and dividends.

He also called for a forensic audit to evaluate funds spent on stabilizing petrol prices from January to September 2024. He noted that, until October 1, 2024, NNPCL, as mandated by the Petroleum Industry Act (PIA), acted as the supplier of last resort for fuel.

“Our transactional accounts are fully transparent and published annually. NNPCL remains the highest taxpayer, royalty payer, and dividend contributor in the country,” Kyari stated.

On revenue projections for 2025, Kyari revealed that final figures would be determined after an upcoming board of directors’ meeting. He assured the committee that the company’s parameters for the 2025 budget are realistic.

He explained that NNPCL no longer makes direct payments into the Consolidated Revenue Fund due to its restructured operational framework under the PIA. Instead, its contributions now come through dividends and taxes.

Addressing production dynamics, Kyari explained that NNPCL operates within joint venture arrangements and can only account for its share of production. He reported that the company achieved over 90% of its 2024 production targets despite challenges related to Premium Motor Spirit (PMS) pricing and delayed tax and royalty remittances.

Meanwhile, the Nigerian Ports Authority (NPA) revealed a remittance of N753 billion for 2024 and projected N997 billion for 2025. However, the Joint Finance Committee, chaired by Senator Sani Musa and Hon. James Faleke, revised the NPA’s revenue projection to N1.75 trillion to optimize income from the agency’s 56 revenue streams.

This revision, the committee noted, reflects a commitment to maximizing Nigeria’s revenue-generating potential.

News

House of Representatives Mourn the Loss of Deputy Chief Whip, Rt. Hon. Adewunmi Oriyomi Onanuga

Published

6 hours ago

January 15, 2025

Gloria Ikibah

By Gloria Ikibah

The House of Representatives has announced the passing of Deputy Chief Whip, Rt. Hon. Adewunmi Oriyomi Onanuga, who passed away earlier today, January 15, 2025, after a brief illness.

Onanuga until her death represented Ikenne/Sagamu/Remo North Federal Constituency of8 Ogun State.

Born on December 2, 1965, Hon. Onanuga was a respected public servant and advocate for social development. Her political journey began in 2019 when she was first elected to the House of Representatives under the platform of the All Progressives Congress (APC). During the 9th Assembly, she served as Chairperson of the House Committee on Women Affairs and Social Development, where she spearheaded initiatives aimed at empowering women and improving social welfare.

She was re-elected in 2023, and appointed Deputy Chief Whip in the 10th Assembly. Known for her firm leadership and discipline, she played a pivotal role in maintaining order and decorum during legislative proceedings.

Fondly called “Ijaya” by her colleagues and constituents, Hon. Onanuga was celebrated for her intellect, humility, and dedication to public service. Her contributions to the political landscape were marked by a deep commitment to the betterment of society and the welfare of her constituents.

In a statement, by House Spokesperson, Rep. Akin Rotimi, he extended condolences to her family, friends, associates, and the people of Ogun State, particularly her Ikenne/Sagamu/Remo North constituency.

“The National Assembly expressed its collective grief over the loss of a vibrant and devoted lawmaker whose impact will be remembered for generations”, statement read in part.

Funeral arrangements will be communicated by her family in due course. The House called for prayers for her soul to rest in perfect peace and for her legacy to continue inspiring future leaders.

News

Health Agencies Demand Increased Funding in 2025 Budget

Published

6 hours ago

January 15, 2025

Gloria Ikibah

By Gloria Ikibah

Key health agencies under the House Committee on Healthcare Services have appealed for more funding in the 2025 budget, citing critical needs in addressing healthcare challenges across the country.

This was their position during the 2025 budget defense session on Tuesday in Abuja.

The Executive Director of the National Primary Healthcare Development Agency (NPHCDA), Dr. Muyi Aina, presented a proposed budget of ₦48.1478 billion for 2025.

He highlighted that while the agency benefits from the Basic Healthcare Provision Fund and Vaccine Immunisation Funds, additional funding is key for optimal performance.

Dr. Aina also expressed hope for better budget releases in 2025, and noted that the 2024 disbursement was insufficient.

Similarly, the Nigeria Centre for Disease Control and Prevention (NCDC) requested ₦7.38 billion to combat the country’s ongoing eight disease outbreaks and enhance preparedness.

The Director-General of NCDC, Dr. Jide Idris, emphasised the efforts if the agency in capacity building, research, and collaboration with state governments to strengthen disease surveillance. He therefore called for a dedicated contingency fund to manage emergencies effectively.

The Medical and Dental Council of Nigeria (MDCN) proposed ₦113 billion for its 2025 operations. The Registrar, Dr. Fatima Kyari, revealed that the council received no allocation in 2024 due to its exclusion from the budgeting process, relying instead on funds from doctors’ registration fees and levies.

Dr. Kyari pledged to intensify advocacy to expand funding sources and alleviate pressure on federal medical institutions.

The National Health Insurance Authority (NHIA) is seeking ₦130 billion to increase health insurance coverage. The agency’s Director-General, Dr. Kelechi Ohiri, disclosed that only 19.4 million Nigerians are currently covered under NHIA, with an additional 2.5 million under the Basic Healthcare Provision Fund.

Dr. Ohiri outlined plans to engage the private sector, telecom companies, and digital technology to boost enrollment and expand coverage.

During the session, the Chairman of the House Committee on Healthcare Institutions, Rep. Amos Magaji, emphasised the importance of a functional healthcare system in reducing corruption and alleviating financial burdens on Nigerians.

He commended the agencies for their presentations and assured them that the Committee would review their funding requests for possible increases.

Members of the Committee also scrutinized the agencies’ 2024 expenditures and deliberated on their proposed budgets and plans for 2025.