NEWS
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.
Read Also >> Nigeria Approves Siemens 25,000 Mw Power Expansion Contract
“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.
NEWS
“Tinubu Deserves to Be President for Long, Long Time” — Olubadan
The Olubadan of Ibadan, Oba Rasheed Ladoja, has said President Bola Tinubu deserves to remain in office for a long time, citing the performance of his administration.
Ladoja made the declaration on Monday at the flag-off ceremony for the dualisation of the Ibadan-Ijebu Road in Ogun State, where Tinubu was represented by Ogun State Governor, Dapo Abiodun.
The monarch said the event should not be interpreted as an All Progressives Congress, APC, rally, despite repeated references to the ruling party during the ceremony.
ALSO READ: Tinubu’s Men Bomb Atiku on Fuel Subsidy
“I’ve been hearing everybody talking APC, APC. Bola Tinubu is not an APC man, no. Bola Tinubu is working and deserves to be president for a long, long time,” Ladoja said.
According to him, the gathering was primarily organised to appreciate Tinubu for approving the road project, which he described as important to the safety and economic wellbeing of residents of Ibadan and surrounding areas.
“This is not an APC rally. It is a rally that we are here to thank Mr President for making this road project possible,” he said.
Ladoja said the road had been associated with security concerns, particularly kidnapping incidents, adding that its reconstruction would improve safety and connectivity.
“Those of us in Ibadan know that the only area in Ibadan, where terrorists have been kidnapping people is this road,” the monarch said.
He maintained that Tinubu’s decision to approve the project demonstrated his concern for the people and argued that the President’s performance should not be viewed solely through the lens of party politics.
“He deserves more than being an APC president. He’s not an APC president. He’s president of Nigeria,” Ladoja said.
The Olubadan, however, acknowledged that the President’s performance could strengthen the APC’s chances in future elections.
“The only thing I can look at is that his performance is likely to help the APC win elections. So, we are not discounting the performance of Mr President at all,” he said.
Ladoja added that opposition parties seeking to challenge the ruling party would have to convince voters that they could provide a credible alternative.
“We believe he deserves a long tenure, even though other parties are scrambling to say they are there when they are not visible,” he said.
He expressed confidence that voters in Ibadan would ultimately determine their political choice when the time comes.
“We believe that by the time election comes, the people of Ibadan land will talk,” the monarch said.
The event was attended by Minister of Works, Dave Umahi; Ogun State Deputy Governor, Noimat Salako; APC governorship candidate in Oyo State, Sharafadeen Abiodun Ali; and other dignitaries.
NEWS
JUST IN: Midnight Fire Razes Nearly 300 Shops in Ibadan Market
An early Monday morning fire has destroyed several shops at the popular Oranya Market in Ibadan North-East Local Government Area of Oyo State.
The fire, which reportedly started around midnight, affected traders dealing in gold, furniture, second-hand clothes and other goods.
A trader identified as Iya Alia said nearly 300 shops were affected by the inferno.
SEE ALSO: BREAKING: Court Sentences Three to Life Imprisonment Over Oyo School Kidnapping
“The fire started around midnight. I cannot be specific about that time. And those affected were gold sellers, furniture sellers, second-hand clothes sellers and many others. The shops affected were almost 300.”
Another eyewitness described the incident as devastating, saying close to 300 shops were destroyed.
Confirming the incident, the Special Adviser to Governor Seyi Makinde on Fire Reforms and State Chairman of Fire Services, Morof Akinwande, said the fire started in the middle of the market following an explosion.
He, however, said the exact number of shops destroyed could not yet be established.
“Yes, it occurred. That number we cannot ascertain, but what is known is that some shops were destroyed and the fire incident started in the middle of the market with an explosion.”
Akinwande said it was too early to determine whether the explosion was caused by gas or another source, adding that the situation had been brought under control since about 1am.
“Whether it’s a gas explosion or other things. And when you have a gas explosion, it would spread, but as I am talking to you, the situation has been under control since 1 am.”
He explained that determining the number of affected shops and the value of goods lost would require a post-fire investigation.
“On the number of shops and inventory, that is too early because that’s post-fire outbreak investigation. So, I cannot be accurate about the number of shops that were destroyed. But shops were actually gone.”
The incident comes barely two days after another fire outbreak destroyed nine locked-up shops at the Nigerian Railway shopping complex along the popular Aleshinloye Market in Ibadan South-West Local Government Area.
The August 22 fire reportedly destroyed goods, household items and other properties worth millions of naira.
One of the affected traders, Busari Olayemi, said products worth about ₦21 million were destroyed, including window blinds, curtain fabrics, industrial sewing machines and other equipment.
Oranya Market also witnessed a major fire outbreak in 2024, when more than 200 shops in the herbal section were reportedly completely destroyed.
NEWS
Insecurity: ‘We Cannot Keep Counting Bodies’ — Obi Warns FG
The presidential candidate of the Nigeria Democratic Congress, Peter Obi, has condemned the recent killings and abductions in parts of the North-Central region, warning the Federal Government that Nigeria must not become a “killing field.”
Obi made the call in a statement posted on his X handle on Sunday, following recent attacks in Benue, Plateau and Niger states.
He described the situation as a national security emergency and urged governments at all levels to take urgent and decisive action to protect vulnerable communities and prevent further bloodshed.
SEE ALSO: Lokpobiri Inspects NCDMB Host Community Projects in Bayelsa
“What is happening to our country? In recent days, deadly attacks have struck Benue, Plateau and Niger States, three contiguous states in Nigeria’s North-Central region.
“In Mangu, Plateau State, at least 23 people were officially reported killed in the Jwak Maitumbi attack, while residents put the toll above 30. More than 45 houses were reportedly destroyed.
“In Borgu, Niger State, recent attacks reportedly killed over 40 people and abducted more than 100, though the figures remain contested. This comes amid continuing violence in Benue, where communities face repeated killings, abductions and the destruction of homes and livelihoods.”
Obi said the attacks were particularly disturbing because Nigeria was not officially at war, yet citizens were being attacked in their communities.
“Nigeria is not officially at war, yet citizens are being attacked in their villages, abducted after prayers, driven from their homes and stripped of their farms,” he said.
The former Anambra State governor argued that the violence in Benue, Plateau and Niger should no longer be treated as isolated incidents, noting that similar attacks were occurring in other parts of the country.
He called on governments at all levels to strengthen security measures, improve intelligence gathering and rapid-response capabilities, rescue abducted Nigerians and arrest and prosecute those responsible.
“I urge governments at all levels to wake up to their responsibility and take urgent and decisive action to end this madness once and for all,” he said.
“Government must protect vulnerable communities, improve intelligence and rapid-response capabilities, rescue abducted Nigerians, and arrest and prosecute those responsible.”
Obi further stressed that the government should focus on preventing attacks rather than responding only after lives had been lost.
“We cannot keep counting bodies after every attack. We must prevent these attacks before they happen.
“Protecting lives and property is the most basic duty of government. Nigerians deserve nothing less. Nigeria must not become a killing field.”





