FG has been borrowing to fund petrol subsidy, says finance minister – Newstrends
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FG has been borrowing to fund petrol subsidy, says finance minister

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  • As FG ends petrol subsidy in June, allocates only N3.36bn

The Federal Government has been borrowing to fund petrol subsidies and this is totally unsustainable, Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, has said.

She said only N3.36 trillion had been allocated for subsidy in this year’s budget in preparation of the government’s termination of the subsidy regime in June.

She disclosed this on Wednesday at the public presentation of details of the 2023 budget in Abuja.

“Fuel subsidy cost was a very high one; We have been funding it from borrowing,” the minister said.

She added that petrol subsidy would “remain up to mid-2023 based on the 18-month extension announced early 2022. In this regard, only N3.36 trillion has been provided for the PMS subsidy.”

The FG had announced plans to end subsidy from July 2022 but changed its position when faced with threats of nationwide protests by labour and pushed it to July 2023.

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The minister also said the reconciliation between the ministry and the Nigerian National Petroleum Company Limited, NNPCL, was ongoing to determine crude oil revenues and what should accrue to the federation account.

On the controversial securitisation of the N22.7 trillion borrowing from the Central Bank of Nigeria by Ways & Means, she said her team would engage the National Assembly on the lingering disagreement between the two arms of government.

Debt securitization is the process of packaging debt(s) from a source or number of sources into a single security to be sold to investors.

The minister said the decision to securitise the debt was to reduce the burden on the Federal Government, as interest on the Ways & Means could hit N2 trillion this year, from N1.2 trillion, if nothing was done.

“If successfully securitized, rather than the current interest rate of MPR+3per cent (19.5%), interest on the Ways & Means, it would reduce to about nine per cent,” she said.

On the macro-economy, she said the economy had been fully diversified, with oil revenue projected to contribute only N2.29 trillion (22 per cent of revenue) to the budget in the current fiscal year.

She said, “In aggregate, 22% of projected revenues is expected from oil-related sources, while 78% is to be earned from non-oil sources. This shows that we have achieved a fully diversified economy in this country.”

Non-oil taxes are estimated at N2.43 trillion; Federal Government independent revenues are projected to be N2.62 trillion; while other revenues total N762 billion.

FG awaits stamp duty fund probe

The minister disclosed that the Federal Government was awaiting the outcome of investigations into claims that the CBN had large stamp duty funds in its account.

Ahmed said that investigations had been instituted into the matter but did not give details.

She said, “There is an investigation that is being carried out by a committee. There are also some investigations that are being carried out by some security agencies.

“We are anxiously waiting for the outcomes of these investigations. If funds are realized from these investigations, it will help us fund the deficit in the 2023 budget.”

The presidency had dismissed the allegations of misappropriation of the stamp duty funds levelled against the apex bank.

Budget deficit put at N 11.34tn

This year’s deficit has been estimated at N11. 34 trillion, representing 5. 03 per cent of the Gross Domestic Product (GDP).

Ahmed said that the deficit would be financed mainly by domestic borrowing of N7 04 trillion; foreign sources of N1.76 trillion; N1. 77 billion from multilateral and bilateral loan drawdowns; and privatization proceeds of N206.18 billion.

She said the deficit level had exceeded the three per cent of the GDP provided in the Fiscal Responsibility Act and it might be necessary for the law to be amended to accommodate the new realities.

She said there was no plan to restructure the nation’s debt, adding that the administration had consistently met debt obligations.

Rather, she said that the country would continue to spread debt maturities through debt refinancing.

The fiscal deficit for 2022 was estimated at N8.17 trillion, inclusive of the Supplementary budget. As at November 30, 2022, the deficit was N6.37 trillion, which the minister said was totally financed by borrowings, mostly from domestic sources.

Railway

NRC to revive Lagos 2pm MTTS train as Opeifa tours districts 

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From right: Lagos Railway District Manager, Engr Augustine Arisa, Director Mechanical, Electrical Engr Jerry Oche, NRC MD, Dr Kayode Opeifa and one of the women Engineers Omage Patrick...on Friday.

NRC to revive Lagos 2pm MTTS train as Opeifa tours districts 

The Nigerian Railwaiy Corporation (NRC) will soon revive its Lagos 2pm mass transit train service (MTTS) in line with the demands of passengers.

Managing Director of the NRC, Dr Kayode Opeifa, disclosed in Lagos, assuring Nigerians of the readiness of the corporation to serve them better.

He spoke at the Iddo Train Station, while addressing train passengers commuting daily from Ijoko and other border communities in Ogun State to Iddo and Idumota axis of the Lagos Island.

A statement by the Deputy Director of Public Relations at the NRC, Mahmood Yakubu, quoted the MD as saying, “NRC management being aware of the centrality of the MTT Kajola to Iddo rail line to the continued prosperity of the Iddo, Idumota and some other big markets in Lagos will not only continue to sustain the line, but work to add addition service after careful commercial market viability and sustainability studies.”

Opeifa was at Iddo Station to assess the available space in preparation for upcoming developmental and revitalization initiatives.
According to him, the transformation of the Iddo Terminal is central to the corporation’s goal to significantly improve the terminal’s infrastructure, optimize its capacity and elevate the passenger experience
He also said the management would urgently embark on the rehabilitation of the coaches to improve the ambience of the interior of the trains and the Iddo stations for better customer experience and patronage.
Opeifa said he would not hesitate to terminate the contract of any contractor not willing or ready to add value to the corporation’s service.
The managing director, who spent some time going round the Iddo Station, also directed the installation of solar panels around the station to better improve the lightening condition, even as he sent the signal that a comprehensive review of all land leases around the station is underway.
Opeifa was nostalgic about the several interesting monuments and railway relics.

He called on corporate organisations and other philanthropists to support the corporation in the area of provision of conveniences for train passengers as part of their corporate social responsibility.

The Railway District Manager (RDM), Engr Augustine Arisa, and District Superintendent, Mrs Chidinma Mba, also informed the MD that the prosperity of the Idumota market is also related to the operations of the MTT line as any day the train does not run, the market feels it.
The NRC MD had earlier commenced his maiden tour of the NRC districts across the country, with a tour to the Running Shed of the corporation at Ebute Metta, which he learnt was a hub to other districts.
He expressed delight at the industry of ironmen (women engineers and technicians) working in the corporation who are competing with their male counterparts in ensuring that all the nation’s rolling assets are in serviceable conditions.
The tour took him to the store, where Opeifa directed that the management must commence the painting of several legacy buildings of the corporation across the country.

He added that the corporation was determined to improve its image as a frontline mobility service provider and the hub for logistics services in the country.
Opeifa who observed that there are no scraps in the railway, reiterated earlier calls on Nigerians to beware of anyone vandalizing the rail materials across the country, adding that security agencies especially the Nigeria Security and Civil Defence Corps (NSCDC) had been directed to prosecute anyone caught vandalizing any rail assets.
He said the corporation would put back to shape as many narrow gauge locomotives still serviceable and would deploy them across the country to serve passenger traffic anywhere the corporation had existing train lines just as the Federal Government would aggressively continue to invest and expand the national standard gauge corridor.
The tour also took the managing director to the Battery Room, as well as the laboratory, an inspection of all the mechanical fluids which was a crucial facility responsible for analyzing the quality and integrity of mechanical fluids used in NRC rail operations.
He assured the laboratory that the management under his watch would continue to support their growth and development as he himself trained and once worked as an analytical chemist.
The tour also took Opeifa to Agege Station where he had a closed door meeting with officials from the Lagos Metropolitan Area Transport Authority (LAMATA), led by the Director Rail Services Engr Olasunkanmi Okusaga, on how to firm up security challenges between the two stations Babatunde Raji Fashola Station and the Lagos State Train Station at Agege Station.
Opeifa who was led round by the Agege Station Manager, Mrs Ese Asowata, went round to check the station’s conveniences, the VIP Lounge, the control room, the ticketing lounge and administrative sections among others.
The managing director took time to address the concerns of some train passengers, one of them, Olatunde Apata, who complained of what could be done for any passenger who missed his train. Apata, who was heading to the Prof. Wole Soyinka Station, in Abeokuta, Ogun State, had missed his train because he went to pray.
Addressing all challenges Opeifa directed that under no circumstances should the ticket not work to relief passengers with disability access the train.

He equally said efforts were being made to see how the issue of those missing their train would be addressed even as he disclosed that the NRC and LAMATA were working at how to ensure passengers could co-switch and access the metro train to continue their journey from the stations.

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KIA, Access Bank launch special finance scheme for vehicle ownership 

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KIA, Access Bank launch special finance scheme for vehicle ownership 

 

KIA Motors Nigeria in partnership with Access Bank Plc has unveiled a new finance scheme designed to increase vehicle ownership and affordability in the country.

The deal, according to a statement by the auto firm, offers flexible and affordable financing alternatives, enabling individuals, women, and businesses to own cars with ease.

The scheme features the all-new Kia Rio 2023, with repayment plans spanning five to seven years.

Marketing Manager, KIA Motors Nigeria, Omolade Akinyode, said, ”Dana Motors has been at the forefront of Nigeria’s automotive industry since 2002, providing exceptional automotive solutions and presently leading the charge for luxury electric cars, CNG cars and buses.

“Our partnership with Access Bank reinforces our commitment to supporting Nigeria’s economic growth, individuals, and women.”

She also said, ”Our core competitive edge in the auto industry is the offering of best in class vehicles at affordable prices and this retail financing scheme is a significant step towards promoting vehicle ownership in Nigeria.

”With a flexible repayment option of up to 48 months, equity contribution as low as 10% and over N6m discount and we are proud to be at the forefront of this initiative to make owning the all-new Kia Rio 2023 a dream come through for our Nigerian Customers.”

KIA stated that the car in the package, Rio 2023, is an award winning five-seater sedan, a fun car with a reputation for durability, reliability, comfort and fuel efficiency.

With safety features which include stability control, traction control, and multiple airbags, the all new KIA Rio 2023 is an excellent choice for customers who prioritize dependability in vehicle options,” it stated.

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NADDC DG hails Kojo Motors for establishing CNG conversion centre in Owerri

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NADDC DG hails Kojo Motors for establishing CNG conversion centre in Owerri

Kojo Motors has partnered the National Automotive Design and Development Council (NADDC) in setting up the vehicle Compressed Natural Gas conversion centre in Owerri, lmo State.

Director-General of the NADDC, Joseph Osanipin, during an empowerment and awareness summit on Wednesday, March 19, 2025, commended the auto firm for the monumental project.

“Today, we are gathered here for Compressed Natural Gas (CNG) Empowerment and Awareness Summit 2025 with the theme ‘Building a youth-based nation through cleaner energy’,” he said.

Osanipin said that the the purpose of the summit was to create awareness and sensitize the public to safety, standards and regulation in the use of the CNG as a better alternative source of energy for mobility.

NADDC, he said, was equipping technicians with the knowledge, skills and competencies required to safely and efficiently convert vehicles to run on CNG.

“The Council is a parastatal of the Federal Government under the Federal Ministry of Industry, Trade and Investment,” he added.

“It has the regulatory oversight on the Nigerian Automotive Industry to initiate, recommend, supervise and regulate policies and programmes for locally manufactured vehicles and components in Nigeria.

The NADDC boss noted that the Council had worked tirelessly to ensure the survival and growth of this sector with a view to enhancing its contribution to the national economy.

As part of the CNG conversion programme, 60 technicians will be receiving hands-on training in converting vehicles to run on CNG which would run for five days from the March 17 to 21,2025.

Osanipin emphasized the importance of using certified conversion kits and specialized workshops to ensure safety during the process.

“The cylinders used in CNG vehicles are fortified, making them safer than traditional vehicle fuel tanks,” he said.

Also speaking during the event, Professor Anoka Njan, representative of the Minister of Industry Trade and Investment, praised the NADDC and Kojo Motors efforts, stating that the ministry fully supported the initiative as part of broader efforts to alleviate challenges in the auto industry and empower the youth.

Imo State Commissioner for Youth Development, Dr. Emeka Mandela Ukaegbu, who spoke at the summit on behalf of Governor Hope Uzodinma, emphasised the immense potential of the CNG in easing Nigeria’s transportation challenges and improving the economy.

“CNG offers a safer, cleaner, and cheaper alternative to the hardships many face in the country,” Dr. Madela said.

The administration is partnering with NADDC and automotive industry bodies to establish conversion workshops and CNG refilling stations across Imo State, ensuring that the state plays a key role in this important shift toward greener energy solutions.

The event marks a significant step in NADDC’s ongoing efforts to transform Nigeria’s automotive industry, making it more sustainable while creating new opportunities for skilled technicians and local communities.

Chinedu Oguegbu, Managing Director of OMAA, which is the vehicle brand promoting the petrol-powered to CNG conversion project, highlighted the economic benefits of running vehicles on CNG instead of petrol.

He listed the economic advantages to include savings up to 60 percent in the cost of fuel relative to dirtier options like diesel and petrol.

According to him, there is up to 90 percent reduction in knocks and carbon emission, and it is found to be healthier, cleaner and more environmentally friendly.

Besides savings in foreign exchange (FX) with abundance of gas locally, there is also massive resources in-country over 203 tcf of proven reserves that requires no refining and relatively lower investment for processing.

Nigeria has an estimated 15-20 million vehicles in operation that can be converted to dual-fuel or bi-fuel.

The OMAA boss reiterated the crucial need to provide an alternative to existing fuel system with the abundance of CNG as an option.

Delivering his goodwill message, Chino Ogwumike, the National Sales Manager at Kojo Motors, thanked the DG of NADDC for partnering with Kojo in this laudable project in Owerri, the heartland of the South-East of Nigeria and the government of Imo State for accepting to provide the land for building the CNG hub in the state capital.

Ogwumike stated that the flourishing automotive dealership with branches spread across the country under the visionary leadership of the founder and Executive Chairman, Ikenna Oguegbu, is strongly committed to contributing its quota towards the progress and development of Nigeria’s automotive sector and the economy.

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