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CPPE Foresees Subsidy Leading Nigeria to Bankruptcy

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CPPE Foresees Subsidy Leading Nigeria to Bankruptcy

 

By Edozie Obasi-Eze

The Centre for Promotion of Private Enterprises (CPPE) has projected that barring changes to the situation in Russia and Ukraine, Nigeria’s subsidy cost may hit N4 trillion by the end of the year, which might lead the country to bankruptcy.

Chief Executive Officer (CEO), CPPE, Nigeria’s subsidy, expressed his opinion yesterday at its first-quarter press conference on the Nigerian economy.

He said, “With current subsidy trajectory, subsidy cost would not be less than N4 trillion by the end of this year. This is clearly a major source of disruption and dislocation for the finances of government at all levels.”

He averred that all things being equal, that is, if crude oil price did not shift from the current levels and the PMS price stayed fixed, Nigeria would be on the brink of bankruptcy, because the current subsidy regime was not sustainable.

He also opined that the deregulation dialogue needs to be brought to the table urgently to save the economy from further deterioration.

Dr Yusuf stressed that brave steps must be taken to ignite the reform process in the petroleum sector with the full activation of the Petroleum Industry Act (PIA).

He maintained that in the interim, all charges – import duty, levies, and taxes on importation should be suspended to moderate the cost of fuel, though the ultimate solution would be to revisit the deregulation engagement with stakeholders to pave way for a market-driven, private sector-led investment framework, with the government playing a regulatory role.

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“This is the option we have as a country to stop the bleeding, the distortions, the smuggling and loss of investment that our petroleum downstream sector had suffered over the years,” he added.

He listed the possible benefits of a market-driven pricing regime to include free resources for investment in critical infrastructures such as power, roads, rail systems, health sector, and education sector; unlocking the huge private investment potential in the downstream oil sector, especially in petroleum product refining.

According to him, it would also eliminate the patronage mentality, rent-seeking activities, and corruption that currently characterise the downstream oil sector, in addition to creating more jobs for the teeming youths in the downstream oil sector as an investment in the sector improves; would reduce smuggling of petroleum products outside the country.

The Russia Ukraine war, which he observed has disrupted global oil and gas supplies and resulted in sharp increases in energy prices globally, was already taking a toll on the cost of production, cost of business operations, haulage costs, and consequently on profit margin.

“The cost of the major energy products had increased significantly – diesel, aviation fuel, natural gas, and kerosene. The inflationary outcomes will affect the affordability of many products, leading to further worsening of poverty.

“We will see an increase in subsidy payment as the landing cost of petrol increases. Regrettably, we remain a major importer of petroleum products. Therefore, when oil prices increase, subsidy payment also surges. Only recently the estimate of subsidy was put at N3 trillion by the NNPC. That was before the Russian invasion of Ukraine.

The story would have changed now. We should expect subsidy payments to exceed the N3 trillion by the end of the year, depending on how long the sanctions and invasion last. This of course has very serious implications for our budget and government finances.

“If crude oil price remains at current levels, and the PMS price remains fixed, the country may be teetering on the brink of bankruptcy. The current subsidy payment regime is simply not sustainable. The deregulation dialogue needs to urgently resume to save the economy from further deterioration,” he noted.

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Edo: Gov Okpebholo Launches Probe Into Obaseki Administration

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Edo State Governor, Monday Okpebholo, has announced the establishment of a 14-member Assets Verification Committee to examine the financial records and asset management of the previous administration led by Godwin Obaseki.

In a statement released on Sunday by his Chief Press Secretary, Fred Itua, the governor revealed that the committee would be inaugurated on Tuesday, November 26, in Benin City.

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The panel is tasked with creating a detailed account of the state’s assets and liabilities to ensure transparency and accountability.

The committee will be chaired by Ernest Umakhihe, with Anslem Ojezua as Deputy Chairman and Frank Edebor as Secretary. Other members include Kassim Afegbua, Patrick Ikhariale, Taiwo Akerele, Patrick Idiake, Rasaq Bello-Osagie, Fredrick Unopah, Abdallah Eugenia, Patrick Obahiagbon, Kenny Okojie, Lyndsey Tes-Sorae, and Abass Braimoh.

Explaining the rationale behind the committee, Mr. Itua stated, “Despite repeated calls for a more holistic database of the assets and liabilities of the previous administration, the Godwin Obaseki-led government presented a scanty and limited report.”

He added that the initiative reflects the governor’s commitment to his campaign promises.

“In line with the governor’s campaign promise to ensure probity, accountability, and transparency in government, and to deepen the governance process, a committee made up of respected sons and daughters from Edo State has to be constituted,” the statement noted.

The committee’s work is expected to pave the way for a more accountable and developmental governance structure in Edo State.

 

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NECO Expands Global Footprints, Accredits Niger, Equatorial Guinea Schools

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In a bid to increase its global presence, the National Examination Council (NECO) has accredited more foreign schools.

This was contained in a statement issued under the signature of its Acting Director of Public Relations, Azeez Sanni, on Saturday.

He revealed that the accredited schools are in Niger Republic and Equatorial Guinea.

Recall that last year, the examination body accredited some centres in Niger Republic to enable Nigerian students in the Francophone country to sit for the examinations.

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The statement read, “Determined to broaden its horizon and expand its global presence, the National Examinations Council has accredited more foreign schools to write the Senior School Certificate Examination and the Basic Education Certificate Examination.

“The newly accredited schools, in addition to the existing ones, are in Niger Republic and Equatorial Guinea.

“NECO accreditation team visited the Schools to assess their readiness to write the SSCE and BECE.

“The accreditation 5eam inspected classrooms, laboratories, libraries, computer laboratories, workshops, examination halls and sports facilities to determine their adequacy and suitability for NECO examinations.

“After a thorough evaluation and comprehensive assessment, the schools were granted full SSCE and full BECE accreditation status.”

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Ex-UN Envoy Warns Of New Cold War Threatening Africa’s Unity

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Renowned diplomat and former United Nations Under-Secretary-General, Ibrahim Gambari, has raised alarms over the looming threat of a new Cold War that could fracture Africa along geopolitical lines.

Speaking at the Realnews Magazine Annual Lecture in Lagos, Gambari urged African leaders to urgently reposition the continent amidst intensifying global power struggles.

The lecture, themed “Africa in World Shifting Geopolitics: Matters Arising on Demography, Technology, Artificial Intelligence, Natural Resources,” explored Africa’s strategic role in a rapidly evolving international system.

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Gambari cautioned that without proactive measures, Africa risks being sidelined or exploited in the unfolding global order.

Africa: Battleground in a New Power Struggle

Describing the increasing militarisation by major global powers, Gambari painted a picture of fierce competition for control over Africa’s resources and strategic locations.

He noted that the proliferation of foreign military bases across the continent is evidence of this struggle.

“A relentless militarisation is taking place across the world—from the Atlantic to the Pacific, the Arctic to the Antarctic,” Gambari said. “Rich in natural resources and strategically located, Africa has become a key battleground in this global power struggle.”

He cited Djibouti as a stark example of Africa’s strategic importance.

The country, located near the Red Sea, hosts both the United States’ only permanent base on the continent, Camp Lemonnier, and China’s first overseas military installation.

Gambari warned that the presence of such bases represents more than security interests, suggesting echoes of colonial ambitions aimed at controlling Africa’s wealth and arable land.

“The seaboard of Africa is already dotted with military bases operated by various powers,” Gambari observed. “The continent is once again at the center of a scramble as the new Cold War intensifies.”

The Return of Zero-Sum Geopolitics

Gambari also highlighted the resurgence of zero-sum geopolitics, where nations compete for influence at the expense of others.

He noted that China and Russia are emerging as dominant players in Africa, with China leveraging infrastructure projects and debt relief, while Russia offers weapons and military support.

“These actions signal a destabilising competition for influence,” Gambari said, adding that traditional powers like France, Germany, India, and the UK are also expanding their presence on the continent.

“The age of zero-sum geopolitics is back, with all its destabilising consequences for African countries,” he said.

Unlocking Africa’s Potential Amid Challenges

Despite the geopolitical rivalry, Gambari emphasized that Africa’s youthful and growing population provides a significant opportunity for the continent to assert its influence globally.

He urged African leaders to invest in education, innovation, and youth-driven initiatives to harness this demographic dividend.

“With well over a billion people and an overwhelmingly youthful population, the African continent is destined for a significant role in the demographics of the world,” Gambari said.

“But we must build national and regional strategies to leverage the energy, innovative acumen, and futuristic vision of our young people.”

Gambari warned that without these strategies, Africa’s demographic advantage could remain underutilised.

He also called for the continent to be proactive in shaping the rules of the emerging global order, rather than being passive participants.

“We cannot afford to sit on the sidelines while the rules of a new world order are being written,” Gambari said.

“We must insist on being joint rule-makers, ensuring the new global order reflects our values and aspirations for a fairer, more inclusive, and equitable world.”

A Call to Action

Gambari concluded with a rallying cry for African leaders to harness the continent’s abundant resources and human capital.

He said Africa must use its demographic and strategic advantages to achieve the structural transformation that has long eluded it.

He said, “We must be ready to harness our abundant human and natural resources to leapfrog our development. Although the outcomes of ongoing geopolitical shifts are uncertain, they need not come at the expense of our people and our continent.”

Gambari stressed the need for bold leadership, warning that Africa cannot afford complacency. “Our youth bulge must become an advantage that places us at the forefront of the digital economy and its innovations,” he said.

 

 

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