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Tinubu Approves NNPC’s Plan To Spend Federation Dividends On Petrol Subsidy

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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.”

Read Also: Mbappe Rues Poor La Liga Debut Result

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.

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UNIZIK Professor Suspended as University Investigates Alleged Sexual Assault

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The management of Nnamdi Azikiwe University (UNIZIK), Awka, Anambra State, has suspended a professor in the Department of Chinese Studies, Prof. Ifeanyi Odinye, for three months over an alleged sexual assault involving a female student.

The suspension, approved by the Vice-Chancellor, Prof. Ugochukwu Anyaehie, followed the preliminary report of a six-member special investigative panel set up to examine the circumstances surrounding the incident.

SEE ALSO: Horrific Abuse Exposed: London Imam Jailed For 21 Sexual Offenses

The university said Odinye would serve the suspension with half salary in the first instance.

The development follows an August 15 incident in which the professor was allegedly assaulted and stripped by some students after he was accused of attempting to sexually molest a female student in his office.

A video of the incident subsequently went viral on social media. In the footage, the female student was seen leaving the lecturer’s office with his clothes while alleging that he had attempted to sexually assault her.

The lecturer was later seen being pursued and assaulted by individuals believed to be students before leaving the university premises in a tricycle.

According to the university’s Public Relations Officer, Mr. Aloysius Attah, the investigative panel chaired by Prof. Emmanuel Obidimma, Provost of the College of Postgraduate Studies, has so far addressed two of its five terms of reference.

Attah said the panel’s preliminary report indicted Odinye for allegedly violating Section 5.8.3 of the university’s General and Academic Regulations.

He explained that the professor allegedly failed to properly record and submit an examination misconduct case involving the student, Chikamso Favour Okechukwu, using the prescribed examination misconduct report form.

The lecturer was also accused of returning an offending phone recovered during the examination to the student on the same day, allegedly in violation of Section 5.8.1(iv) of the university’s regulations.

Meanwhile, the student involved in the matter has been referred to the university’s Student Examination Misconduct Committee.

The Vice-Chancellor has extended the investigative panel’s assignment by another two weeks to enable it to complete its remaining terms of reference.

According to Attah, the outstanding issues include determining whether sexual harassment occurred, identifying those involved in the assault on Odinye and establishing whether there was any incident of kidnapping.

“The committee members are expected to conclude their findings with recommendations to the Vice Chancellor before a final verdict is initiated, including possible criminal prosecution,” the university spokesman said.

Attah added that the Vice-Chancellor had reiterated his administration’s commitment to the welfare of staff and students, while maintaining a zero-tolerance policy towards unethical practices.

The university also stressed that transparency and fair hearing would be upheld throughout the investigation as the panel works towards its final recommendations.

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2027: ‘You Can’t Win by Shrinking Your Support Base’ — Onoh Tells Tinubu

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Former South-East spokesman of the Tinubu/Shettima Presidential Campaign Council, Denge Josef Onoh, has urged President Bola Tinubu to review the composition of the All Progressives Congress (APC) Presidential Campaign Council ahead of the 2027 election.

Onoh made the call in a memorandum addressed to Tinubu, expressing concerns over the 223-member campaign council and what he described as inadequate representation of key APC stakeholders and loyalists from the South-East.

He warned that the composition of the council could undermine the party’s mobilisation efforts in the region ahead of the presidential election.

ALSO READ: APC Denies Withdrawing Tinubu’s 2027 Campaign Council List

According to Onoh, the structure used for the 2023 presidential campaign was more inclusive and provided opportunities for regional stakeholders and grassroots mobilisers who played roles in the party’s campaign.

He alleged that the latest campaign structure failed to adequately accommodate some longstanding APC supporters in the South-East.

Onoh also questioned the region’s representation in key operational, policy and management directorates of the campaign council, arguing that broader inclusion would give stakeholders a greater sense of ownership of Tinubu’s re-election bid.

The former campaign spokesman further criticised the council’s media structure, saying the campaign required experienced political communicators capable of effectively responding to the opposition.

“With the strict exception of only two persons who possess genuine fire and strategic depth, the current media team completely lacks the political tenacity and intellectual grit to face the opposition’s sophisticated PR machinery,” Onoh said.

He warned that leaving experienced campaigners and media operatives out of the structure could create vulnerabilities for the APC and provide opposition parties with an opportunity to gain political advantage.

Onoh therefore called on Tinubu to order a comprehensive review of the 223-member campaign council, with particular attention to geopolitical balance and the inclusion of established party leaders and grassroots mobilisers.

He also urged the President to strengthen the campaign’s media team by bringing in politically experienced and resilient communicators.

Onoh further appealed to Tinubu to ensure that APC stakeholders across the country felt a sense of ownership of the re-election campaign.

“Mr. President, do not let the short-sighted selfishness of a few handlers ruin the future of your administration. You cannot win a national re-election by shrinking your support base and telling an entire region they have no stake in your campaign,” he said.

He maintained that broader representation and effective coordination would be crucial to the APC’s efforts to retain the presidency in 2027.

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C’River: Man Takes Own Life Inside Obudu Market, Community Demands N300,000 Cleansing Fee

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A 56-year-old shoemaker identified simply as Anthony has reportedly died by suicide inside the Obudu Main Market in Obudu Local Government Area of Cross River State.

The incident occurred in the early hours of Sunday, August 23, 2026.

SEE MORE: Forced Marriage Gone Wrong — Borno Police Investigate Alleged Suicide Case

Anthony, who was said to be from Bekwarra Local Government Area, was found dead inside the market, prompting community leaders to shut down the facility.

The leaders reportedly demanded N300,000 from the deceased’s family for cleansing rites, insisting that the circumstances surrounding his death were considered sacrilegious.

Confirming the incident, the Cross River State Police Public Relations Officer, ASP Sunday Eitokpah, said the deceased was a 56-year-old man simply identified as Anthony.

Eitokpah said the police had commenced an investigation to establish the circumstances surrounding the death and determine whether foul play was involved.

He said, “Police operatives visited the scene, documented the area, and recovered the body to the mortuary. The circumstances surrounding the death are yet to be established.

“Further updates will be provided as the investigation progresses.”

The police spokesman’s statement indicates that the exact circumstances of Anthony’s death remain under investigation.

 

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