Business
Omokri, Followers Bicker on Tinubu’s Tax-Driven Economy
With the first month of President Bola Ahmed Tinubu throwing up a tax-driven, citizen funded economy, activist, Reno Omokri and his followers appear to have been dissecting Tinubu’s economic strategies.
In a move that might be perceived as backing the president, Omokri, who boasts of over 2.3 million followers on Twitter, took to his verified Twitter handle, @renoomokiri to declare that Nigerians should wean themselves of lax lifestyles and face present globl economic realities.
He wondered how a country with one of the highest population growths globally could convince the world that the same citizens multiplying at an alarming rate were being confronted with stifling cost of living.
He tweeted, “We say fuel is expensive. We complain that food is too costly. We cry that ₦1000 Proof of Vehicle Ownership fee is too high. We lament that the cost of living in Nigeria is too high.
“Yet, Nigeria has one of the highest population growth rates on planet Earth. Only few countries, …”.
But one of his followers, Sir Dynamic, @mn_almustapha, countered that uncontrolled population growth had little to do with the populace.
Dynamic charge government with the responsibility of creating systems that will accommodate our population.
“This has nothing to do with the people but the government. The government are the ones responsible to make systems that will accommodate our population, … though Nigerians have share in this situation. Imagine increasing a salary of a man only for him to add wife,” @mn_almustapha, replied.
Omokri and Dynamic tend to agree that citizens’ lifestyles have a telling impact on how the economic policies reflect on the populace.
Consequently, Omokri charged the citizenry to wean itself of the long-held entitlement mentality because Nigeria’s economy had been oil-dependent for so long, while the human numbers had been on the rise.
He added, “Perhaps it is time for us to curb our entitlement mentality. It has gone on for too long. How much taxes do Nigerians pay? We have one of the lowest tax bases on Earth.
“We have an oil income of $30 billion to a population of almost 250 million.
“Stop blaming the government. We, as citizens have to take responsibility. Nigeria is like a cow that everyone is milking, and no one is feeding. It is only a matter of time for that cow to die!”
However, another of his followers, Hon Richard Benjamin, @Nwabrije1 disagreed with Omokri on the tax base. He pointed at the minimum wage, the cost of petrol per litre, and high rate of unemployment as critical areas the government need to look into to achieve balance in the taxes being imposed.
Benjamin tweeted, “Stop saying we have one of the lowest tax base in the world, how about $40 as minimum wage? And a litre of fuel is almost $1. People are suffering, no jobs.”
Recall that the high point of President Bola Ahmed Tinubu’s address on May 29 when he took over the baton from Muhammadu Buhari was the removal of subsidy on Premium Motor Spirit (PMS).
The Federal Government has gone ahead to discontinue funding for professiona bodies, impose consumption tax of 7.5% on other petroleum products, impose annual renewal charges on proof of ownership.
The FG has also tinkered with the monetary policy, which has merged the forex windows, allowing a free market determination of rates. The local currency, the naira, has been at the receiving end since.
Sources at the petroleum sector are already mooting that the pump prices of products would soon reflect the forex situation. This would mean that petrol might move from between N490 – N600 per litre where it is to between N750 – N1100 within the next 100 days.
The proposed 40% increase on electricity charges, which would have come into force on July 1, 2023 has been put on hold.
Biztellers reports that all these taxes are coming into force, without any form of palliative to the citizenry, hence, the public outcry.
Savannah Energy has shared a trading update on its Nigerian operations and other markets in Africa, including up-to-date cash collections in its Nigerian business.
According to the update, made available on Thursday in Lagos, its gross production in Nigeria averaged 23.1 Kboepd for FY 2024, broadly in line with the prior year’s 23.6 Kboepd, of which 88% was gas (FY 2023: 91%).
On the update, CEO of Savannah Energy, Andrew Knott, said, “I am pleased to provide a FY trading update which demonstrates the continued progress we have made in 2024, a year which saw the highest level of cash collections ever recorded by our Nigerian business. 2025 is expected to be an exciting year for our Company: we have a large planned operational programme in Nigeria which is anticipated to enhance both our oil and gas production levels and capacity; we intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we continue to seek to build our power business.
“Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND power sectors.”
The update It also shows that it generated a Total Income of US$393.6 million in 2024, compared to FY 2023’s US$289.8 million. This consists of Total Revenues of US$258.7 million and Other operating income of US$134.9 million.
The report also shows that Savannah’s FY 2024 Total Revenues were ahead of the previously issued financial guidance of greater than US$245 million, while FY 2024 financial guidance is reiterated for Operating expenses plus administrative expenses at ‘up to US$75 million’. The company expects its FY 2024 capital expenditure to come in lower than planned (previously guided at ‘up to US$50 million’) due to the phasing of spend.
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According to the update, Savannah’s cash collections in 2024 amounted to US$248.5 million, a slight increase from the US$206 million it received in 2023. The report further shows that its cash balances as at 31 December 2024 stood at US$32.6 million, compared to the 31 December 2023 figure of US$107.0 million.
The report shows that the company’s midstream subsidiary, Accugas Limited, had as at 31 December 2024 drawn down on its NGN332 billion of the NGN Transitional Facility, with the resulting funds being converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately US$212.3 million.
The report also provided new updates on Accugas’ US$45 million Uquo Central Processing Facility (“Uquo CPF”) compression project in Nigeria, noting that its commissioning which will enable the expansion of gas production in the medium term is well underway.
The report highlighted the progress being made in the procurement process of long lead equipment in Nigeria for a potential two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of supplemental production capacity and a potential exploration well targeting an Unrisked Gross gas initially in place (“GIIP”) of 154 Bscf (25.7 MMboe) of incremental gas resources.
The update shows that progress is also being made in the planned Savannah acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field (“Stubb Creek”), with regulatory approval and completion being targeted in Q1 2025. Following the completion of the acquisition, Savannah intends to commence an expansion programme which is anticipated to increase Stubb Creek gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.
In Niger, Savannah continues to seek to progress its 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger, while it continues to push for a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan as previously announced on 20 December 2024.
On the renewable energy front, the update shows that Savannah has up to 696 MW of renewable energy projects currently in motion, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. A firm believer in Africa’s transition to renewable energy, Savannah continues to target a portfolio of up to 2 GW+ of power projects in motion by the end of 2026.
The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.
This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.
Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.
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“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.
More to follow……….
The Central Bank of Nigeria (CBN) has announced the release of the Nigerian Foreign Exchange (FX) Code, a set of guidelines designed to promote ethical conduct among authorized dealers in the country’s FX market.
In a statement, the apex bank disclosed that the official launch of the Code would take place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
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“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market,” the statement read.
The introduction of the FX Code is expected to enhance transparency, accountability, and professionalism within Nigeria’s foreign exchange ecosystem, aligning it with global best practices.
The event is anticipated to attract key stakeholders in the financial and banking sectors, as well as representatives from authorized FX-dealing institutions across the country.
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