NEWS
Why Tinubu ‘Sneaked-In’ Subsidy On Petrol
It would appear that an interplay of market forces, business interests, political pressure and harsh economic realities have forced the hand of the Nigerian Government to reintroduce subsidy on Premium Motor Spirit, known along the streets as petrol, albeit secretly.
Reliable media sources, reported that the President Bola Ahmed Tinubu administration paid N169.4bn subsidy in August, 2023.
Citing documents from the Federal Account Allocation Committee (FAAC), the report revealed that the subsidy was funded from dividends paid by the Nigerian Liquefied Natural Gas (NLNG) to the Nigerian National Petroleum Company Limited (NNPCL), which amounted to $275m.
It was gathered that the NNPCL expended $220m (N169.4bn at N770/$) out of the $275m to pay for the PMS subsidy in the month of August.
In addition, The Punch cites the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, thus, “I told you earlier that there is no way that the government will sustain the price of petrol at N617/litre without paying subsidy on it, going by the continued fall of the naira.
“The dollar is almost N990 at the parallel market currently, and you can see the effect of this on the pump price of diesel. Diesel is close to N1,000/litre, so the retail price of PMS should be around N890 to N900/litre.
“Therefore, it is better the government assists the masses by paying subsidy. From our records, in the United States, the super product or petrol is sold around $3.9, which is close to about N3,000/litre.
“The premium product is sold at about $2.89, which is over N2,000/litre. And if you check in other African countries you will find out that the product is being sold at between N1,200 and N1,500. But going by the forex rate in Nigeria, it should be around N900/litre.”
Biztellers gathered that aside market forces (local and global), scarcity of forex, fragile economic underbelly and a ready-to-explode civil society and labour elements sent jitters to government quarters, thereby compelling a reintroduction of the subsidy regime.
According to dealers in the downstream oil sector, the cost of crude oil and the exchange rate of the naira-dollar accounted for over 80 percent of the cost of PMS.
For instance, the global benchmark for oil, Brent crude, rose to about $95/barrel on Thursday.
It had peaked to $97/barrel the preceding day, which was the highest figure in 2023.
Recall that oil had started the year at about $82/barrel, dipped to $70/barrel in June, but traded above $94/barrel in the past week.
It is noteworthy that the naira continued its downward trend after exchanging to the dollar at 980 on the parallel market on Wednesday.
And this is just seven days after the naira was exchanged to the dollar at 950/$.
Oil Marketers maintained that forex crisis and the recent rise in crude price, had made it impossible for petrol price to still remain at N617/litre.
According to them, the FG had quietly reintroduced fuel subsidy.
Biztellers findings show that the subsidised ex-depot price of petrol as sold by NNPCL, was between N585 and N600 depending on area of purchase.
By subtracting the ex-depot cost of N600/litre from the projected unsubsidised rate of N890/litre, that the government may have been spending about N290/litre as subsidy currently.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that between June 1 to June 28, 2023, which was described as the post-deregulation period, the total petrol consumption across the country stood at 1.36 billion litres, while the average daily consumption was 48.43 million litres.
With an average daily consumption of 48.43 million litres and an estimated subsidy of N290/litre, the government could be incurring N14.04bn as subsidy daily, while this could rise to N421.3bn monthly.
This has the potential of rising to as high as N1.68tn for the months of September, October, November and December 2023, should the naira continues its fall against the dollar and crude price maintains its upward surge.
NEWS
Peter Obi Reacts To Akwa Ibom Arrests, Says Independence Must Mean Real Freedom
Former Anambra State Governor and 2027 presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has reacted to reports of arrests involving members of the Obidient Movement in Akwa Ibom State, saying Nigeria’s independence means little without freedom.
Obi, in a statement posted on X on Friday, said citizens should be able to express themselves within the bounds of the law without fear.
SEE ALSO: ‘Nigerians Are Living as Displaced Persons in Their Own Country’ — Peter Obi
“As we continue to reflect on Nigeria’s Independence, we must remember that independence means very little if citizens cannot freely express themselves, within the bounds of the law, without fear,” he said.
His comment came after the reported arrest of Elijah Noah, the Akwa Ibom coordinator of the Obi-Kwankwaso Movement, during an attempted Independence Day march in Uyo.
Reports also said police fired tear gas as supporters gathered for the planned march, while Obidient Movement coordinator in the state, Dr Ben Smith, was later reportedly arrested after going to facilitate the release of detained members.
The development followed a directive by the Akwa Ibom State Police Command for political parties, groups and associations to reschedule rallies, meetings and processions planned for Independence Day, citing security concerns.
Reacting to the reports, Obi said the arrest of Nigerians for identifying with the Obidient Movement should concern anyone who believes in democracy and freedom.
“One of the greatest tragedies of our society is that people who once described themselves as freedom fighters can become defenders of oppression when they eventually occupy positions of authority,” Obi said.
He added that those who had previously complained about injustice should not become comfortable with it when it is perpetrated against people they disagree with.
“That must not be the Nigeria we accept,” he said.
Obi said Nigeria’s independence should ultimately mean freedom from fear, injustice, intolerance and abuse of power.
“Our independence must ultimately mean freedom from fear, injustice, intolerance and abuse of power.
“Nigeria must belong to all of us,” he added.
NEWS
NELFUND Payments: ‘We Now Have A Clear Schedule’ — Education Minister
The Minister of State for Education, Prof. Suwaiba Said Ahmad, has said the Nigeria Education Loan Fund (NELFUND) now has a clear schedule for student loan payments based on submissions from institutions.
Ahmad made the disclosure while responding to concerns over alleged delays in the payment of student loans.
The minister acknowledged that there were challenges when the scheme initially commenced but said NELFUND and institutions have become more familiar with the process.
SEE ALSO: NELFUND: ‘Have You Given Students ₦5,000 Scholarship?’ — NANS President Replies Dino Melaye
“I wouldn’t say there is much delay in the payment because as I said, NELFUND now has a clear schedule for payment based on submission from the institutions,” she said.
“When it started, I said we had issues, but now we are used to the system now. The universities are familiar with the system, NELFUND itself is more familiar with the institutions and how it works.”
Ahmad also explained that complaints about delays may sometimes arise from individual cases or misunderstandings of the payment process.
She further clarified that students are required to apply for the NELFUND loan every academic year and are not automatically covered for the duration of their programmes after their initial application.
“You need to apply every year because we don’t know whether you are still interested in getting that loan,” the minister said.
According to her, students’ financial circumstances can change, meaning that a student who required the loan in one academic year may no longer need it in another.
Ahmad stressed that students are not compelled to take the NELFUND loan, adding that those who wish to benefit must apply before they can be paid.
She disclosed that more than 1.6 million students have so far keyed into the NELFUND scheme.
NEWS
‘Nigerians Are Living as Displaced Persons in Their Own Country’ — Peter Obi
Former Anambra State Governor and presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has raised concerns over the plight of Nigerians displaced from their communities by insecurity and forced to live in Internally Displaced Persons (IDP) camps.
Obi made the remarks in an Independence Day post shared on his official X account as Nigeria marks its 66th anniversary.
READ MORE: Nigeria@66: Tinubu Has Plunged Nigeria Into Its Worst Cost-of-Living Crisis – Atiku Slams Tinubu
The NDC presidential candidate said he recently visited Sokoto State alongside Senator Rabiu Kwankwaso, where they held consultations on insecurity, out-of-school children, poverty, youth unemployment, drug abuse and other challenges confronting residents.
According to Obi, their visit to the Internally Displaced Persons camp at Ramin Kura within Sokoto metropolis was particularly troubling.
He said thousands of women and children were living in deplorable conditions after being displaced from their homes and deprived of basic necessities.
“Many of the children have no access to education. Mothers and children have limited access to basic healthcare,” Obi said.
He questioned why Nigerians who should be living in their communities, attending school, farming their land, running businesses and contributing to the economy are instead living in displacement camps.
“These are Nigerians who should be living in their communities, going to school, farming their land, conducting their businesses and contributing to the economy. Instead, they live as displaced persons in their own country,” he said.
Obi said the situation reflects some of the broader challenges confronting Nigeria, including insecurity, poverty, lack of access to education and inadequate healthcare.
He argued that Independence Day should provide an opportunity for honest national reflection and for Nigerians to examine whether the country is moving in the direction envisioned by its founding fathers.
The former Anambra governor said Nigeria remains richly endowed with human and natural resources, but stressed that the country must convert those resources into human development, security, productivity and shared prosperity.





