News
NNPC confirms return of fuel subsidy, experts demand transparency
NNPC confirms return of fuel subsidy, experts demand transparency
Despite initial denials, the Nigerian National Petroleum Company Limited (NNPCL) says the Federal Government is subsidising the pump price of Premium Motor Spirit (PMS), also known as petrol.
It said in a new report that President Bola Tinubu approved the request of the company to use its 2023 dividends due to the federation to pay for petrol subsidy.
The President was also said to have approved the suspension of the payment of the 2024 interim dividends to the federation in order to augment the NNPCL’s cash flow.
Tinubu announced the removal of fuel subsidy during his inaugural address on May 29, 2023.
Many analysts had argued that the government must have restored petrol subsidy with the landing cost at over N1,200/litre and pump price retained between M568 and N700/litre.
But the Federal Government before now consistently denied paying subsidy.
Some weeks ago, when some Nigerians hit the streets to protest hardship, one of their demands was the reinstatement of subsidy.
But in his national broadcast, Tinubu ruled out the return of subsidy, saying the decision to remove fuel subsidy as painful but necessary.
Newstrends.ng found in a report obtained by TheCable indicating that the President had given the NNPCL his approval to use its 2023 dividends to pay for petrol subsidy.
According to the 2023 Audited Financial Statement (AFS) of the national oil company, a net profit of N3.297tn was declared at the close of the financial year which ended in December, 2023, an increase of over N700bn (28 per cent) when compared to the 2022 profit of N2.548tn.
The NNPCL shareholders also approved a final dividend of N2.1trn in line with the Petroleum Industry Act (PIA) 2021 provisions.
READ ALSO:
- Mother, three children die after eating ‘poisoned’ rice in Kwara
- Delta: Men in military uniform arrest Okuama leader Prof Ekpekpo, two others
- Edo poll: Oshiomhole accuses Obaseki of frustrating APC campaign
Analysts react
An economic analyst, Dr Muda Yusuf, said that the government was only being “socially sensitive” by retaining subsidy payment.
Yusuf, who is the chief executive officer of Centre for the Promotion of Private Enterprise (CPPE), however, called for transparency and openness in the management of the payment.
He said, “I think the government is just being pragmatic; they are just being realistic and they are just being socially sensitive. That is why the price of fuel has remained at around N600, N650, N700.
“If the government had yielded to this argument that there should be no more subsidy, fuel price should have gone to around N1,200, N1,300. And how will the citizens feel?
“So, for the government to be able to show that it is sensitive, it has to continue to provide it until we are able to refine domestically.
“If we begin to refine domestically either through Dangote or through the government-owned refineries, the level of subsidy may drop but it will not completely disappear.
“It is a major dilemma because if you withdraw the subsidy, the citizens will begin to cry out. If you retain the subsidy, you would incur a lot of costs.”
NNPC confirms return of fuel subsidy, experts demand transparency
DAILY TRUST
News
NNPC has no right setting price of Dangote petrol – Falana
NNPC has no right setting price of Dangote petrol – Falana
Human rights lawyer, Femi Falana, SAN, says the Nigerian National Petroleum Company Limited, NNPCL, do not have the power to fix the price of Premium Motor Spirit, also known as petrol, for the Dangote Refinery after deregulation.
Falana said the NNPCL action violated the Petroleum Industry Act, PIA, which stipulated that the price of petrol must be determined by the market forces
In a statement on Tuesday, the legal luminary said it was an aberration for the NNPCL to peg the price of petrol produced and refined in Nigeria at 950 per litre.
“On September 5, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) stated that foreign exchange (forex) illiquidity had been a significant factor influencing the fluctuation in prices of Premium Motor Spirit (PMS) governed by unrestrained market forces, as provided for in the Petroleum Industry Act, PIA.
READ ALSO:
- Dangote Refinery hasn’t received full operational licence – NMDPRA
- JAMB gives reasons for limiting physical interaction with underaged candidates
- Tension in Kano, Ganduje reportedly plots to dethrone Emir Sanusi again
“The NNPCL was explaining the pump price of PMS imported into the country at the material time. Specifically, the Executive Vice President of Downstream NNPC Ltd Mr. Adedapo Segun, explained that Section 205 of the PIA, which established NNPC Ltd, stipulated that petroleum prices were determined by free market forces.
“But contrary to the well-publicised statement, the NNPCL has fixed the price of PMS produced by the Dangote Refinery and Petrochemical Company Limited. The action of the NNPCL is a violent contravention of section 205 of the PIA, which stipulates that the prices of petroleum products shall be determined by market forces.
“Furthermore, since the petrol sold by Dangote is not imported into the country but produced at the Lekki Economic Free Trade Zone, the NNPCL cannot justify the sale of petrol at N950 per litre without freight cost, lightering cost, jetty depot fees, storage fees, foreign exchange costs, NPA charges: NIMASA charges, Customs duties etc,” he said.
Falana’s outburst followed the commencement of PMS lifting by the NNPCL from the Dangote Refinery.
You would recall that as soon as lifting commenced, NNPCL announced that the product would sell for N950 per litre in Lagos State and its environs, and above N1,000 per litre in states such as Borno.
Reacting, the Independent Petroleum Marketers Association of Nigeria, IPMAN, on Monday, criticised NNPCL, saying it was not right for petrol lifted from the Dangote Refinery to cost higher than imported ones
NNPC has no right setting price of Dangote petrol – Falana
News
Coffee prices double in Nigeria after global supply disruptions
Coffee prices double in Nigeria after global supply disruptions
Nigeria is feeling the impact of the global coffee crisis as futures prices surge by over 30% due to severe supply disruptions caused by drought in Brazil, the world’s largest Arabica coffee producer.
In Nigeria, coffee prices have doubled in 2024, with popular brands like Nescafe and TopCafe experiencing significant hikes.
For instance, “Nescafe 3 in 1” spiked to N34,000 per carton in August, up from N28,000 in May, and a steep rise from N18,000 last year.
READ ALSO:
- No going back on increase in boarding fee – Lagos Govt
- Man gets 16-week jail for stealing two iPhones
- World’s oldest Sunday newspaper, Observer, up for sale
The rainfall shortage in Brazil, which began in April, has led to a sharp decline in coffee production, sparking a global rush to secure supplies.
This has driven up coffee futures, with U.S. Coffee Futures and Arabica Futures both soaring by more than 30% in 2024, impacting markets worldwide, including Nigeria.
Coffee prices double in Nigeria after global supply disruptions
News
UN donates $6m to support Borno flood victims
UN donates $6m to support Borno flood victims
The United Nations has announced the donation of a $6 million fund in support of the Maiduguri flood victims in Borno State.
In a statement on Tuesday, the UN’s Humanitarian Coordinator in Nigeria, Mohammed Fall, said a joint mission comprising UN agencies and non-governmental organisations (NGOs), alongside the Nigeria Red Cross Society, visited the main city of Maiduguri over the weekend.
According to Fall, the team met with people who had been impacted, many of them had already displaced multiple times by conflict and insecurity in the area.
The flood was caused by an overflow in the Alau Dam located just over 10 miles to the south of Maiduguri.
READ ALSO:
- Lady laces food with laxatives to know those eating it
- 18 burnt to death in Ore-Ijebu-Ode road crash
- Hamas chief says they’re ready for ‘long war’ in Gaza
“We and our partners are providing them with hot meals, we are facilitating air drops of food in hard-to-reach areas cut off by flood waters, and we are also trucking in water.
“We are also providing water and sanitation hygiene services and water purification tablets to stem disease outbreaks.
“This is in addition to supplying hygiene and dignity kits to women and girls, as well as emergency health and shelter services.”
He added that the staff of the UN Office of the Coordination of Humanitarian Affairs were also working closely with donors to secure additional funding.
UN donates $6m to support Borno flood victims
-
metro3 days ago
FG begins free CNG conversion in three Ogun centres
-
Business3 days ago
Petrol: Dangote pump price emerges as NNPC trucks begin loading
-
Business17 hours ago
Dangote refinery to transport 75% of fuel locally by sea
-
News3 days ago
Dangote fuel supply forces Scotland refinery to announce shutdown date
-
Politics3 days ago
I never said I’d be VP to anyone in 2027 – Peter Obi
-
metro8 hours ago
Four burnt to death, eight others injured in Ore-Ijebu Ode road crash
-
metro3 days ago
Men beware – Lack of sex can make your wife miserable, angry
-
Aviation3 days ago
Air traffic controllers threaten to ground Nigeria’s airports Wednesday