Business

FG: Fuel Subsidy to Go in Second Half of 2022

Published

3 years ago

November 13, 2021

Director General of the Budget Office of the Federation (BoF), Mr. Ben Akabueze

The federal government has explained that the current subsidy regime on petroleum motor spirit (PMS), which is covered under the ‘Cost Recovery’ mechanism of the Nigerian National Petroleum Corporation (NNPC) would end in the first half of 2022.

The Director General of the Budget Office of the Federation (BoF), Mr. Ben Akabueze, disclosed this in Abuja yesterday during an interactive session with journalists, civil society organisations and other stakeholders on the 2022 budget proposals.

Akabueze explained that fuel subsidy exerts enormous strain on government finances and does not benefit the poor for which they are targeted, adding that the elite enjoy 80 per cent of subsidy.

The DG Budget stated that the revised 2022-24 Medium Term Expenditure Framework (MTEF) was premised on a hybrid of January-June which is anchored on the current fiscal regime with provision for cost recovery by the state oil company, as well as July-December based on the Petroleum Industry Act (PIA) fiscal regime.

According to him, by the second half of 2022, the NNPC would transit fully and operate as a full commercial entity funding its operations and maximising its gross revenues.

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Akabueze, who spoke extensively on the proposed N16.39 trillion budget, noted that 34.8 per cent of projected revenues is to come from oil-related sources while 65.2 per cent is to be earned from non-oil sources.

He pointed out that the combined expenditure of the federal, state and local governments was less than 15 per cent of Gross Domestic Product (GDP).

According to him, the biggest challenge stems from low revenue, lamenting that about 40 million of the 70 million Nigerians who should be in the tax pool were not paying taxes.

He said, “It is absolutely critical that we fix our revenue challenge because oftentimes people just say cut expenditure. The truth is cutting expenditure is not currently a viable option for two main reasons. Number one, our public expenditure to GDP ratio is about the lowest even on the continent of Africa.

“As a country, our public expenditure to GDP ratio is under 15 per cent. Even on the continent of Africa, that ratio, the average is over 30 per cent. The global average is over 30 per cent. I am talking of the whole of government – federal, state and local governments. The reality is that in aggregate, governments in Nigeria are not spending too much, they are actually spending too little.

“So, the solution is not to cut government spending. The solution is to make government spending more efficient and actually increase the scope for the government to be able to spend more because our public expenditure to GDP is so low. That is why the delivery of public goods and services is weak.”

Akabueze argued that there is correlation between low public expenditure to GDP ratio and low revenue to GDP ratio.

He further stated that the government’s revenue to GDP was also among the lowest in Africa.

Akabueze observed that many stakeholders had advocated a cut in personnel cost which currently stands at about N4.1 trillion to address revenue challenges, arguing that doing so was not an option.

This, he noted, is because public sector wages are already low compared to the private sector.

On the implementation of the Stephen Oronsaye Report which recommended the scrapping of some government agencies to save cost, Akabueze said the government was still considering the option, adding that another committee had been set up to look into it.

On the alleged duplication of some projects in the FGN 2022 budget proposal, he stated that a review of the claims in some quarters indicated that most, if not all the projects are not duplications.

He added: “For instance, two projects with the same narration and located in the same geo-political zone are not necessarily the same. They may be in different states, local government areas or communities.

“However, errors (including duplications, if any) in the budget, which must be within a reasonable margin of error, are corrected during the enactment process,” he said.

Also dispelling allegations of opacity in the composition of Statutory Transfers, and that they are stated as lump sum provisions without details especially the budget of the National Assembly, Akabueze said it was important to note that Nigeria is a constitutional democracy.

“The budget details presented to the National Assembly are those of the executive arm of the federal government. We can only encourage other arms of government to publish their budget details for public scrutiny. We believe the public deserves to have these details, and will support your advocacy in this regard.

“Indeed, the Budget Office of the Federation has implemented several reforms to deepen citizens’ participation, transparency and access to budget information.”

Thisday

Related Topics:Featured FG Fuel Second Half subsidy

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Aviation workers threaten nationwide airports shutdown over Customs officer assault

Published

2 days ago

March 25, 2025

Trends Admin

Aviation workers threaten nationwide airports shutdown over Customs officer assault

Aviation unions have announced plans to shut down airports across Nigeria starting March 31 in protest against the failure to remove a customs officer who allegedly assaulted the Director of Aviation Security at the Federal Airports Authority of Nigeria (FAAN).

In a joint statement signed by Ocheme Aba (NUATE), Frances Akinjole (ATSSSAN), and Abdul Rasaq Saidu (ANAP), the unions condemned the repeated physical assaults on FAAN staff, vowing not to tolerate such incidents any longer.

The unions also called on the government to urgently reduce the number of customs officers operating within the aviation sector, aligning with global best practices. They warned that if their demands are not met, they will proceed with the nationwide shutdown, potentially disrupting air travel and operations.

The statement reads: “Considering the enormity and frequency of physical and psychological assault on the staff and management personnel of FAAN, of which there is no end in sight, we are compelled to inform the management of the unwavering determination of our unions to cause the establishment of a clear framework of mutual respect among FAAN staff and the security agencies operating at the airports.

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“Consequential sanctions are in place which guarantee the safety and human rights of FAAN staff. We shall direct all the workers to withdraw from the airports with effect from March 31, 2025, pending when such protocols are established.

“The recent assault on no less a personality than the Director of Aviation Security of FAAN is one too many, which leaves a taste too bitter to swallow. It is our sincere hope that our demand in the above respect is well met to avoid the industrial conflagration that will ensue in the absence of acceptable remedial actions.”

In response, Abdullahi Maiwada, the spokesperson for Customs, stated in a recent release that the disagreement between FAAN officials and officers of the Nigeria Customs Service (NCS) stemmed from a miscommunication over equipment movement and seating arrangements.

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Business

SEC announces stricter measures to protect investors

Published

2 days ago

March 24, 2025

Trends Admin

Director-General of SEC, Dr. Emomotimi Agama

SEC announces stricter measures to protect investors

The Securities and Exchange Commission (SEC) has reaffirmed its commitment to protecting investors in Nigeria’s capital market by cracking down on fraudulent activities.

According to the Director-General of SEC, Dr. Emomotimi Agama, operators engaging in unscrupulous practices will face strict penalties as the Commission prioritizes safeguarding investor interests.

“So, clearly for us, it is getting people to understand that there is no hiding place anymore for anybody that has the intention to defraud Nigerians and to defraud anybody that is investing in this market,” Dr. Agama stated, emphasizing the Commission’s zero-tolerance policy.

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Dr. Agama highlighted that the Investments and Securities Act (ISA) 2007 serves as the framework for securities regulation in Nigeria, ensuring that market operators adhere to high ethical standards.

He emphasized the importance of the “fit and proper person’s test,” which requires operators to meet specific regulatory criteria to maintain their licenses.

“This is because the very ethics of regulating or registering a securities market operator is in the principle of the fit and proper person’s test,” he explained.

“What you have been seeing most recently by the revocation of licenses, the suspension of operators and our follow-up to operators that are not registered with the SEC is only a tip of the iceberg as to what we intend to do this year.”

Dr. Agama assured stakeholders that the SEC will leverage its regulatory powers under Nigerian law to deter fraudulent activities, noting, “We believe strongly that a protected investor is a powerful investor.”

SEC announces stricter measures to protect investors

Business

Bitcoin rises above $86,000 as crypto market gains momentum

Published

3 days ago

March 24, 2025

Trends Admin

Bitcoin rises above $86,000 as crypto market gains momentum

Bitcoin and other leading cryptocurrencies extended their gains on Monday, buoyed by positive investor sentiment despite concerns over upcoming U.S. tariffs and key economic data releases later this week.

As of 7am WAT, Bitcoin rose 3.2% to $86,590, while Ethereum gained 2.3%, trading at $2,047.

The global cryptocurrency market capitalization increased by 2.94% in the past 24 hours, reaching $2.84 trillion.

Other notable performers included XRP, Cardano, and Dogecoin, which posted gains of 3%, 2%, and 3.8%, respectively. Chainlink, Avalanche, Hedera, and Stellar recorded growth ranging from 3% to 10%.

“Bitcoin is holding above $86,000, registering a 3% gain today. The key resistance level to watch is $86,700; a breakout could pave the way for $90,000,” said Vikram Subburaj, CEO of Giottus.

Bitcoin’s market capitalization surged to $1.727 trillion, with dominance rising to 60.73%. Its 24-hour trading volume soared by 93% to $18.2 billion, while stablecoin transactions accounted for 94.74% of total crypto trading, reaching $57.58 billion, according to CoinMarketCap.

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Solana Outperforms Peers Amid Positive Market Sentiment

Solana (SOL) emerged as a standout performer, surging over 7% in the past 24 hours to trade above $139.

The rally was fueled by reports suggesting that President Trump’s April 2 tariffs may be more targeted than initially feared, easing market concerns.

Weekend rumors indicated that the tariffs might include country exemptions and non-cumulative charges on metals, contributing to improved sentiment across global markets.

The Federal Reserve’s projections for two rate cuts this year further supported risk assets, with the central bank describing potential tariff-induced inflation as “transitory.”

BitMEX co-founder Arthur Hayes expressed optimism about Bitcoin’s trajectory, stating, “The Fed’s policy orientation could help Bitcoin achieve $110k before it retests $76.5k.”

Solana’s momentum aligns with unprecedented acceptance rates. DeFiLlama reported that Solana’s total value locked (TVL) reached 54.87 million SOL, its highest level since June 2022. Ali Charts revealed that a record 11.09 million addresses now hold SOL, underscoring growing adoption.