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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.
Executive Vice President and Country Chair, Shell Companies in Nigeria, Elohor Aiboni was among 100 people honoured with the DTN@100 Award.
She joined a list of distinguished recipients recognised by the Daily Times newspapers. The contributions of the awardees to national development will be documented in a special publication, titled Nigerian Grand Book.
Daily Times which started publication in 1926 gave the awards as part of its centenary celebrations in Lagos. The centenary theme is: “Honouring the Past, Shaping the Future.” Chairman, Folio Media Group and Publisher Daily Times of Nigeria Fidelis Anosike said: “We proudly celebrate Elohor Aiboni, Executive Vice President and Country Chair of Shell Companies in Nigeria, for her well-deserved recognition at the Daily Times Heroes Award. As a visionary female leader, Elohor has shown that true leadership is defined by action. Her forward-thinking policies continue to drive real, positive change across our nation.”
In her response, Elohor said: “Although this award is presented to me, I do not regard it as mine alone. I share it with my colleagues across the Shell Companies in Nigeria, our partners, and the many people I have had the privilege of working with and learning from over the years.”
Elohor was commended for her achievements in a career in the energy industry that started in Shell in 2002. In addition to serving in operational roles within and outside Nigeria, she has worked as asset manager for Bonga, leading up to her appointment as Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo) in 2021, the first female to hold the post. Early this year, she took up the role of Executive Vice President and Country Chair, Shell Companies in Nigeria, also the first female and Nigerian to hold both roles.
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In her acceptance speech, Elohor also called for concerted efforts towards educating the girl-child. She said: “If we are serious about shaping Nigeria’s future, we must be equally serious about educating and empowering the Nigerian girl child. Education provides not only knowledge, but also confidence, choice and the opportunity to contribute meaningfully to her community and country.”
Photo Caption – L-R: Energy and Investment Solicitor, Sam Aiboni; Executive Vice President and Country Chair, Shell Nigeria, Elohor Aiboni; actress Rita Dominic; and Daily Times Chairman, Fidelis Anosike, during the award presentation at Harbour Point, Lagos.
President Bola Ahmed Tinubu has congratulated Nigeria’s U-17 women’s national football team, the Flamingos, following their historic qualification for the final of the 2026 FIFA U-17 Women’s World Cup in Morocco.
The President commended the team for their impressive 3-1 victory over Brazil in Wednesday’s semi-final, describing their achievement as a remarkable milestone that has brought immense pride and joy to Nigerians at home and abroad.
In a statement issued on Thursday, November 5, by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu also praised the coaching crew and everyone whose hard work and support contributed to the team’s successful campaign.
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With the Flamingos set to face Japan in the final, the President urged the players to remain focused, confident and determined as they pursue the historic world title.
“I encourage you to approach the final with the same fighting spirit and belief that have brought you this far. I have confidence in your ability to make history by winning the coveted world title,” he said.
Tinubu also called on Nigerians to rally behind the young players, describing them as national ambassadors whose achievements continue to showcase the country’s sporting excellence.
He said the team’s performance would inspire a new generation of girls to pursue their dreams without limitations.
“Once again, Nigeria is proud of you. Go for the trophy, Flamingos!” the President added.
The Nigerian National Petroleum Company (NNPC) Limited has disclosed its support for healthcare infrastructure in Sokoto State through the donation and subsequent handover of an Infectious Diseases Hospital (IDH) to the state government.
The development was contained in the company’s September 2026 Monthly Operations and Financial Report, which also highlighted its financial performance, oil and gas production, pipeline infrastructure and other operational activities.
According to the report, the Sokoto State Commissioner for Health visited the NNPC Foundation and NNPC Limited on September 1, 2026, to present a letter of appreciation to the Foundation for donating the Infectious Diseases Hospital and handing it over to the Sokoto State Government.
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The engagement provided an opportunity for the state government to formally acknowledge the Foundation’s intervention and support towards strengthening healthcare infrastructure in Sokoto State.
The report identified the engagement as part of the NNPC Foundation’s public impact initiatives.
NNPC Records ₦509bn September Profit
On its financial performance, NNPC recorded a profit after tax of ₦509 billion in September 2026, representing an 18.1 per cent increase compared with the previous month.
The company’s revenue also rose to ₦4.608 trillion from ₦3.74 trillion recorded in August, representing an increase of approximately 23.2 per cent.
Cumulative statutory payments to the Federation increased by 17.4 per cent, rising from ₦9.49 trillion between January and August to ₦11.14 trillion between January and September 2026.
Crude Oil and Gas Production
The report showed that average crude oil and condensate production stood at 1.70 million barrels per day during the period.
Natural gas production increased to 7,789 million standard cubic feet per day, while total hydrocarbon production reached 3.04 million barrels of oil equivalent per day.
The monthly operational summary also presented production and sales trends for crude oil, condensate and natural gas.
Pipeline Infrastructure Records Progress
On infrastructure development, NNPC reported 100 per cent availability of its upstream pipelines.
The company also disclosed that the Obiafu-Obrikom-Oben (OB3) Gas Pipeline had reached 100 per cent completion, while the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline stood at 95 per cent completion.
According to the report, the OB3 River Niger Crossing pipeline had been commissioned and operationalised.
For the AKK pipeline, NNPC said sustained collaboration with stakeholders was helping to accelerate construction and pre-commissioning activities towards achieving early gas delivery to Abuja in 2026.
NNPC Reports 54% Retail Station Availability
The report also highlighted the availability of petrol at NNPC retail stations across the country, putting the nationwide Premium Motor Spirit (PMS) availability level at 54 per cent.
A geographical map showing retail station availability across different parts of Nigeria was included in the monthly operational summary.
NNPC Outlines Strategic Production Efforts
On efforts to sustain production growth, NNPC listed accelerated restoration of shut-in wells and facilities, production optimisation and well interventions among its priorities.
The company also highlighted efforts to strengthen facility reliability and preventive maintenance, address infrastructure and operational constraints, improve community engagement and resolve storage, tank-top and export infrastructure challenges.
These measures, according to the report, are aimed at sustaining production growth and improving operational efficiency across its oil and gas assets.
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