NEWS
Tinubu Approves NNPC’s Plan To Spend Federation Dividends On Petrol Subsidy
President Bola Tinubu has approved a measure allowing the Nigerian National Petroleum Company (NNPC) Ltd to allocate the 2023 final dividends due to the federation to cover petrol subsidy expenses.
To bolster NNPC’s cash flow, the president has also sanctioned the suspension of 2024 interim dividend payments.
Additionally, NNPC has notified the president of its inability to remit taxes and royalties to the federation account due to the financial strain caused by the subsidy payments, which it has termed “subsidy shortfall/FX differential.”
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Forecasts from NNPC suggest that the cumulative petrol subsidy bill, which started in August 2023, could reach N6.884 trillion by December 2024. This would result in a deficit of N3.987 trillion in taxes and royalties owed to the federation account.
The total amount of dividends to be withheld or suspended has not been disclosed. NNPC plans to pause interim dividend payments from May to December this year.
Interim dividends, based on monthly inflow projections, are typically shared among the three tiers of government, while final dividends are settled at year-end following reconciliation.
Under the Petroleum Industry Act (PIA), NNPC is required to remit taxes, royalties, and dividends to the federation, its sole shareholder.
However, in June 2024, NNPC alerted President Bola Tinubu that its cash flow was under severe pressure due to the burden of subsidy payments, which threatened the company’s financial stability.
NNPC expressed concerns that it might be unable to sustain petrol imports as the rising subsidy costs, driven by “forex pressure,” continued to escalate.
TheCable reports that Mele Kyari, NNPC’s Group CEO, informed the president that the removal of the subsidy in June 2023 resulted in monthly savings of N400 billion for the federation.
This enabled NNPC to deposit N2.032 trillion in taxes and royalties into a secured account at the Central Bank of Nigeria (CBN) by January 2024.
Kyari explained that the situation worsened following the naira’s devaluation, leading to a continuous rise in the NAFEX exchange rate.
By August 2023, NNPC’s fuel importation costs had shifted from surplus to deficit, resulting in a subsidy bill of N52.73 billion.
This figure rose to N57.59 billion in September, N212.28 billion in October, and surged to N665.60 billion in November as the exchange rate more than doubled from when the subsidy was initially removed.
The subsidy bill slightly decreased to N537.66 billion in December but spiked again to N693.67 billion by January 2024.
In February, the bill dropped to N592.09 billion and further declined to N497.39 billion in March.
However, it surged once more to N833.68 billion in April, prompting Kyari to issue an urgent appeal to the president.
He stated that the mounting costs have placed “undue pressure” on NNPC, preventing it from remitting taxes and royalties to the federation account.
Kyari also warned that the country’s energy security is at risk, as NNPC may struggle to maintain petrol imports “beyond July 2024.”
In presenting his case to the president, Kyari highlighted that NNPC had implemented various strategies between August 2023 and April 2024, but the situation remained dire.
The measures included enhancing oil production by tackling theft and vandalism, rescheduling debts and initiating forward sales, deferring payments to suppliers and contractors, postponing non-essential projects, and intensifying debt recovery efforts.
Despite these interventions, projections indicated a worsening cash flow deficit driven primarily by the exchange rate fluctuations.
According to NNPC, while an estimated N3.987 trillion in taxes and royalties is expected to be owed to the federation account by December 2024, the company would still face an outstanding N2.897 trillion after reconciling its obligations and subsidy shortfalls.
Kyari urged President Tinubu to approve the use of the 2023 final dividends due to the federation and to delay the 2024 interim dividends to offset the subsidy costs.
It was understood that Tinubu granted Kyari’s request on June 6, 2024.
Recall that in August 2023, when President Tinubu was considering reintroducing the petrol subsidy, his spokesman, Ajuri Ngelale, promptly denied the claim, insisting there was no reversal on the new policy.
However, internal communications between NNPC and the president now frequently reference the term “subsidy.”
It is believed that the All Progressives Congress (APC) government prefers to avoid the term due to its historical use as a key argument against the Peoples Democratic Party (PDP) during the 2015 election campaign, when the “subsidy scam” narrative helped dislodge the PDP from power.
During the Muhammadu Buhari administration, the term “under recovery” was used as a substitute for “subsidy,” although the word “subsidy” eventually reappeared in official discourse later on.
The Tinubu administration’s official stance is that “subsidy is gone.” Despite this, NNPC projects that over N5 trillion will be spent on subsidy payments this year alone.
When the subsidy was initially removed in June 2023, the exchange rate stood at N463/$, but it has since surged to approximately N1,500/$. Combined with high crude oil prices, this has created a “double whammy” for NNPC in managing fuel import costs.
NNPC utilizes a “derived FX rate” to keep petrol prices between N600 and N700 per litre. The gap between this derived rate and the official exchange rate represents the subsidy or FX differential.
The Kano State Police Command has warned residents of a potential terror attack, targeting public gatherings in strategic locations across the state.
In a statement issued on Friday, the command’s Public Relations Officer, SP Abdullahi Haruna, disclosed that intelligence reports indicated suspected terrorists were planning to carry out attacks.
“The Kano State Police Command, in liaison with other security agencies, has received intelligence reports of suspected terrorists planning to launch attacks on public gatherings in strategic locations within Kano State.
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“In response, we hereby urge residents to exercise caution and avoid crowded places and environments until further notice as a preventive measure to enable security operatives to identify and dislodge possible attackers,” the statement read.
To address the threat, the police command has enhanced security arrangements across the state. SP Haruna revealed that specialized units, including the Explosive Ordinance Disposal (EOD) and the Chemical, Biological, Radiological, and Nuclear (CBRN) teams, have been deployed to strategic locations and are on high alert.
“A team of experts from the command’s Explosive Ordinance Disposal, Chemical, Biological, Radiological, and Nuclear units have been deployed to strategic locations and are on high alert.
“The unit can be contacted through: 08169884988 or 07067157218 for report of suspicious persons or item(s),” Haruna stated.
Residents have been urged to remain vigilant and report any suspicious activities to the nearest police station or contact the command through the designated hotlines.
“The command remains committed to protecting lives and properties as well as maintaining law and order in Kano State.
“We appreciate the support and cooperation of the good people of Kano State and urge everyone to remain vigilant. Your vigilance and cooperation are crucial in ensuring public safety,” the statement concluded.
NEWS
Ifon-Ilobu-Erin Osun Land Disputes: Osun Constitutes A 100-Member Boundary Resolution Committee
In the bid to resolve the incessant land disputes between the communities of Ifon, Ilobu and Erin Osun, the Governor of Osun State, Senator Ademola Adeleke has constituted an enlarged 100-member high powered land crisis resolution committee in which each of the affected communities has 25 representatives, and the state government represented by 25 members.
The Osun State Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi made the disclosure in a statement in Osogbo, on Friday.
He revealed that the Ataoja of Osogbo land, Oba Jimoh Adetunji Olanipekun Larooye is the Chairman of the Committee, while a retired judge of Osun State Judiciary and Chairman, Osun State Boundary Commission, Justice Moshood Adekunle Adeigbe, would serve as the Co-Chairman.
According to Alimi, Gov Adeleke put in place the Committee with a view to bringing a lasting end to the incessant land disputes among the three affected communities.
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It was gleaned from the statement that there were four other traditional rulers on the panel, including His Royal Majesty; Oba Abioye Oyebode, the Olokuku of Okuku, His Royal Majesty; Oba Adams Iyiola Bamidele Yusuf, the Oloba of Oba Oke, His Royal Majesty; Oba Adekeye Oyedare, the Oloyan of Oyan and His Royal Majesty, Oba Akeem Ogungbamgbe,The Owaloko of Iloko-Ijesha.
Other members are Umar Abba Mohammed, Osun State Commissioner of Police, Ayoola Kehinde, Osun State Director, Department of State Services( DSS) Brigadier General, Aliu Mohammed, Commander E.C.C, Ede, Sotiyobo Igbalawola, Osun State Commander, Nigeria Security and Civil Defence Corps( NSCDC), Anthony Chikezie, Commander, Immigration Service, Osun State, Adekunle Omoyele, Osun State Commander, Amotekun Corps, and Special Adviser to Osun State Governor on Security, Barrister Dare Ojo.
Also on the enlarged Committee, where members are enjoined by Gov Adeleke to bring in their wealth of experience to bear on the highly critical assignment, are the Chairman, NBA Osogbo branch, Yemi Abiona, Esq; the Chairman, NBA, Ikirun, Niyi Akinsola, Esq; the Chairman, NBA, Ile Ife, Tope Olajoko, Esq; the Chairman, NBA, Ilesha, Raymond Oki, Esq; Others appointed to serve on the Ifon- Ilobu- Erin Osun Peace Resolution Committee are; Soladoye Abioye, the Surveyor General of Osun State – Dr Sodiq Olohunde, Office of Chief of Staff to the Governor, Marufat Adekemi Bello, Permanent Secretary , Ministry of Justice – Femi Ogundun,- Permanent Secretary, Ministry of Local Govt and Chiertincy Affairs, Dr Fritz Mobolaji Olaoye, Permanent Secretary, Ministry of Lands and Physical Planning.
Completing the list of the Committee members are Comrade Wasiu Ajadosu, Osun NUJ Council Chairman, Comrade Waheed Lawal, Osun Civil Society Coalition and Comrade Saka Mao, a Public Affairs Analyst
The statement has it that Gov Adeleke, will on Tuesday, the 28th of January, 2025 perform the swearing in ceremony of the 100-member enlarged Ifon, Ilobu, Erin Osun Land Crisis Resolution Committee, at the Multi purpose hall of Local Government Service Commission, State Government Secretariat, Abere Osogbo by 11:00am.
Edo State Governor, Senator Monday Okpebholo, has charged the Managing Director of the Edo State Traffic Control Management Agency (EDSTMA), Engr. Stainless Ijeghede on indiscriminate parking and traffic gridlock, especially in market areas.
According to a statement in Benin City on Friday, by Chief Press Secretary to Edo State Governor, Fred Itua, his principal gave the charge while decorating Ijeghede with his new rank as the head of EDSTMA.
He noted that while addressing the new Managing Director and his personnel at the Exco Chambers in Government House, Gov Okpebholo pointed out that the agency should do its job well by ensuring free flow of traffic across the state.
He called on Ijeghede and men of the agency to ensure they checked indiscriminate parking of vehicles and buses, especially in market areas.
“Edo State belongs to all of us and whatever we are doing, we should do it with care not to harm anybody. I appeal to EDSTMA to ensure that the city is well kept because whenever I drive round town, I see vehicles everywhere as the city is not well kept.
“This is your primary assignment. You should ensure the city is well kept as vehicles park indiscriminately and they are causing obstruction. Traffic is not flowing as it should and it is causing serious gridlock. Is it that you are not doing your job well?
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“Is it that you are not doing your job well or because you have a new leader that is why traffic is not flowing, or because you don’t know your job?
“You people should wake up and keep the state clean. Make sure that vehicles are parked well especially in the market areas. Monitor markets very well as these areas are looking really unkempt with vehicles and buses parked indiscriminately, causing traffic gridlock. Edo people are worst hit. They suffer from this. Ensure free flow of traffic so that the people will be happy,” Governor Okpebholo emphasized.
The EDSTMA boss, thanked Gov Okpebholo for the opportunity to serve the people of Edo State and assured him of the loyalty of the agency.
He added that his men will do their job professionally and ensure that the is free flow of traffic across the state.
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Ifon-Ilobu-Erin Osun Land Disputes: Osun Constitutes A 100-Member Boundary Resolution Committee
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Okpebholo Moves To End Indiscriminate Parking, Gridlock In Edo State
Leadership Newspaper Backs Adeleke For Second Tenure, Names Him ‘Gov Of The Year’
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