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Petrol price may hit N1,800/litre over Dangote’s subsidy removal call in Nigeria
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.
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BREAKING! Okonjo-Iweala reemerges WTO DG
World Trade Organization chief Ngozi Okonjo-Iweala was reappointed Friday for a second term, in the shadow of the coming return of Donald Trump and his disdain for international trade rules.
Okonjo-Iweala, the first woman and the first African to head the WTO, was the only candidate in the race, and had been all but assured a second term.
The organisation’s 166 members “today agreed to give incumbent Ngozi Okonjo-Iweala a second term as director-general,” the WTO said in a statement.
But with Okonjo-Iweala the only candidate, African countries called for the process to be speeded up, officially to facilitate preparations for the WTO’s next big ministerial conference, set to be held in Cameroon in 2026.
The unstated objective is to “accelerate the process, because they did not want Trump’s team to come in and veto her as they did four years ago”, said Keith Rockwell, a senior research fellow at the Hinrich Foundation.
The common practice of appointing directors-general by consensus made it possible in 2020 for Trump to block Okonjo-Iweala’s appointment for months, forcing her to wait to take the reins until after President Joe Biden entered the White House in early 2021.
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Northern Senators hold closed door meeting on Tax Reform Bills
Northern Senators convened a closed door meeting on Thursday, lasting over two hours, following the Senate’s passage of the contentious Tax Reform Bills for a second reading.
The closed-door session, held in Room 301 of the National Assembly Complex, was announced during the day’s plenary, igniting speculation about the agenda.
However, Senator Abdulaziz Yar’Adua, Chairman of the Northern Senators Forum, refrained from divulging the details of their deliberations.
The Tax Reform Bills, which include significant changes to Nigeria’s fiscal landscape, have drawn considerable attention. Earlier in the day, the Senate instructed its Committee on Finance to organize a public hearing involving state governors, the Governors Forum, traditional rulers, and other key stakeholders. The committee is expected to present its findings and recommendations within six weeks.
During plenary, Senate Leader Opeyemi Bamidele (APC, Ekiti Central) spearheaded discussions on the bills, emphasizing their importance for modernizing the nation’s tax framework. The four bills include:
The Nigeria Tax Bill 2024 – designed to establish a comprehensive fiscal framework for taxation in the country.
The Tax Administration Bill – aimed at providing a unified legal structure for all taxes in Nigeria while minimizing disputes and ambiguities.
The Nigeria Revenue Service Establishment Bill – which seeks to repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service for improved efficiency in tax collection.
The Joint Revenue Board Establishment Bill – intended to create a tax tribunal and a tax ombudsman to resolve disputes and enhance accountability in revenue management.
The Senate described the reform bills as critical to ensuring sustainable revenue generation and streamlining tax administration. Lawmakers highlighted the need for robust engagement with stakeholders to address potential concerns and ensure a fair and inclusive tax system.
However, the Northern Senators’ meeting has raised questions about whether regional interests or specific provisions within the bills influenced the closed-door discussions. The region’s lawmakers have previously expressed concerns about the disproportionate fiscal burdens placed on states with lower internally generated revenues, often reliant on federal allocations.
Observers are keenly watching for outcomes from the public hearing and the Senate Finance Committee’s report, as the Tax Reform Bills could significantly reshape Nigeria’s fiscal policies and their impact on citizens and businesses.
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Just in: Military Detains Investigative Journalist, Fisayo Soyombo
Nigerian investigative journalist, Fisayo Soyombo, has been reportedly arrested and detained by the 6 Division of the Nigerian Army in Port Harcourt, Rivers State.
The arrest, which took place three days ago, was confirmed by the Foundation For Investigative Journalism (FIJ) on its official page on Friday morning.
It was gathered that Soyombo’s detention may be linked to his work exposing corruption and smugglers aided by Nigerian Customs Services.
The FIJ has called for his immediate release and raised the alarm over the increasing threats to press freedom in the country.
Soyombo, known for his investigative reporting on high-profile issues such as corruption, abuse of power, and human rights violations, has previously faced various threats and harassment.
“The 6 Division of the Nigerian Army in Port Harcourt has been detaining our founder ‘Fisayo Soyombo 3 days running. Journalism is not a crime,” FIJ said.
Earlier in November, the media had reported that Soyombo released more videos to establish his smuggling allegations involving Nigerian Customs Service (NCS) officers.
Fisayo, in a statement issued on his verified social media handles, had alleged that Nigerian customs officers had conspired with Adeyemi Habeeb Abdulganiy, an alleged multi-billionaire-naira smuggler better known as Abuga, to illegally pass about 2000 cars and smuggle in bags of rice into the country.
He had said the illegal operation was slated to take place on Sunday, 10th of November, 2024.
The journalist wrote: “All is set. Your men, working with Adeyemi Habeeb Abdulganiy, the multi-billionaire-smuggler better known as Abuga, are primed to pass more than 2,000 cars containing at least 65 bags of rice each from Bebe in the Benin Republic into Sango, Nigeria.
“Some of these cars will enter Sango from the toll gate by driving against traffic, consequently endangering lives, while some will gain entry into Sango through Ifo; others will use the Oju-Ore-Ota route.
“Road users in Sango can expect traffic congestion early tomorrow morning unless this post prompts an about-face from the actors. I understand as well that soldiers from the 192 battalion at Owode will be patrolling during the journey to prevent any resistance.
“So, @CustomsNG, just so you know, the people are watching; they will be hysterically laughing at you when you announce “seizure of one million bags of rice and 25 cartons of guns” later this week.”
However, the Nigerian Customs Service (NCS) National Public Relations Officer, Abdullahi Aliyu Maiwada, said that Fisayo’s claims were fictitious.
He had said it was illogical for anyone to believe their personnel were involved in the illegal operation.
In his another post, Fisayo had released two more videos to substantiate his smuggling allegations against the customs officers.
He said: “Since Maiwada considers my revelations ‘tales by moonlight’, I am supplying two more video evidence of smuggling-ready rice cars merely awaiting final clearance from rogue Customs officers.”
“If, after this, Maiwada still considers my revelations fictitious, I’m happy to share more videos with you. I’m just trying to be useful to you, so you can in turn be useful to Nigerians rather than your pockets,” the journalist added.
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