NNPC confirms return of fuel subsidy, experts demand transparency - Newstrends
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NNPC confirms return of fuel subsidy, experts demand transparency

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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.

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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

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Yemi Osinbajo Appointed Senior Strategic Adviser to Africa CDC

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Former Nigerian Vice-President Yemi Osinbajo
Former Nigerian Vice-President Yemi Osinbajo

Yemi Osinbajo Appointed Senior Strategic Adviser to Africa CDC

Former Nigerian Vice-President Yemi Osinbajo has been appointed as Senior Strategic Adviser to the Director-General of the Africa Centres for Disease Control and Prevention (Africa CDC), as the agency pushes forward the continent’s Africa Health Security and Sovereignty (AHSS) agenda.

The appointment, announced on Monday, comes at a critical time as Africa CDC seeks to enhance health systems, boost domestic financing, expand local production of medical supplies, and strengthen Africa’s influence in global health governance. In this role, Osinbajo will provide strategic guidance on pandemic preparedness, sustainable healthcare financing, policy direction, and continental collaboration.

Director-General Jean Kaseya praised Osinbajo’s wealth of experience, highlighting his expertise at the intersection of governance, finance, law, and diplomacy. “At a time when Africa must act with greater authority on the future of health, his leadership will be invaluable,” Kaseya said. He added that Osinbajo’s appointment reflects Africa CDC’s commitment to mobilising top African leadership in service of the continent’s health security and development.

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Osinbajo served as Nigeria’s Vice-President from 2015 to 2023, during which he chaired the Economic Sustainability Committee, contributed to reforms enhancing the ease of doing business, and played a key role in implementing Nigeria’s social investment programmes. Earlier, he was Attorney-General and Commissioner for Justice in Lagos State from 1999 to 2007. His legal and governance background positions him to offer critical insights on health policy, regulatory frameworks, and strategic partnerships.

The AHSS agenda, which Osinbajo will help drive, seeks to strengthen Africa’s self-reliance in health, improve disease surveillance, and foster regional collaboration to respond more effectively to pandemics and other public health emergencies. Experts say his advisory role will be crucial in promoting local production of vaccines and medical equipment, ensuring Africa can meet its own health needs while influencing global health decisions.

Africa CDC, operating under the African Union, aims to support member states in building resilient health systems capable of confronting future outbreaks and public health crises. Osinbajo’s appointment is expected to further amplify Africa’s voice in global health while ensuring sustainable health development across the continent.

Yemi Osinbajo Appointed Senior Strategic Adviser to Africa CDC

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Iran Lists Tough Conditions for Peace Talks with US

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Iran’s Foreign Minister, Abbas Araghchi

Iran Lists Tough Conditions for Peace Talks with US

By Agency Report

Iran has outlined a set of strict preconditions for engaging in negotiations with the United States aimed at achieving a lasting peace, signalling a hardening of its stance amid ongoing hostilities in the Middle East.

According to a senior Iranian official who spoke to Reuters, Tehran is insisting on an immediate halt to U.S. military strikes, alongside firm guarantees that such attacks will not be repeated, as a prerequisite for any talks.

The official also disclosed that Iran is demanding compensation for damages suffered during the conflict, underscoring the country’s position that any future negotiations must address the consequences of the ongoing war.

In a further indication of its firm posture, Iran has rejected proposals for a temporary ceasefire, maintaining that only a comprehensive and permanent peace agreement would be acceptable.

Tehran is also pushing for new arrangements regarding the strategic Strait of Hormuz, including the right to impose transit fees on vessels passing through the vital global oil shipping route. The proposed fees, according to the official, would vary depending on the type of vessel, its cargo, and prevailing conditions.

The development comes amid intensified diplomatic efforts led by regional mediators, including Pakistan, to broker a ceasefire between the two sides. A U.S.-backed proposal for a 45-day truce has reportedly been put forward as a stepping stone toward broader negotiations, though Tehran has dismissed the idea as insufficient.

Tensions between the two countries remain high, with both sides holding firm to their positions. Analysts say Iran’s demands reflect a broader strategy to secure long-term guarantees and reshape the terms of engagement in the region, rather than accept short-term de-escalation measures.

With neither side showing signs of compromise, prospects for immediate negotiations appear uncertain, raising concerns about further escalation and its implications for global security and energy markets.

 

Iran Lists Tough Conditions for Peace Talks with US

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Tinubu Unveils ₦3.3tn Electricity Bailout to Revive Nigeria’s Power Sector

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President Bola Ahmed Tinubu
President Bola Ahmed Tinubu

Tinubu Unveils ₦3.3tn Electricity Bailout to Revive Nigeria’s Power Sector

President Bola Ahmed Tinubu has approved a sweeping ₦3.3 trillion power sector bailout aimed at clearing long-standing debts and stabilising Nigeria’s struggling electricity industry.

The intervention, implemented under the Presidential Power Sector Financial Reforms Programme, is designed to resolve liabilities accumulated between February 2015 and March 2025, following a comprehensive verification process.

Presidential spokesman Bayo Onanuga disclosed that the ₦3.3 trillion electricity debt settlement represents a full and final agreement to restore financial stability across the sector. He explained that the debts, largely driven by unpaid invoices, tariff shortfalls, and subsidy obligations, had significantly weakened liquidity in the power value chain.

Implementation of the power sector debt repayment plan has already commenced, with 15 generation companies signing settlement agreements worth about ₦2.3 trillion. The Federal Government has raised ₦501 billion so far to fund the initiative, out of which ₦223 billion has already been disbursed, while additional payments are ongoing.

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The Nigeria electricity sector bailout is expected to inject much-needed cash into the industry, ensuring that gas suppliers receive payments, power plants can sustain operations, and electricity generation becomes more stable. With improved liquidity, officials say the country could begin to see gradual improvements in power supply, reduced grid disruptions, and better service delivery.

Special Adviser on Energy to the President, Olu Arowolo-Verheijen, said the programme is not just about clearing debts but rebuilding trust across the industry. She noted that restoring confidence is critical to attracting investment, maintaining consistent gas supply, and ensuring that power plants operate efficiently.

She further explained that the initiative forms part of broader power sector reforms in Nigeria, including nationwide metering improvements and the introduction of service-based tariffs that align electricity costs with the quality of supply. According to her, the government is also prioritising electricity supply to businesses, industries, and small enterprises, recognising that reliable power is essential for job creation and economic growth.

The Tinubu administration believes the electricity sector stabilisation plan will reduce reliance on generators, lower the cost of doing business, and improve productivity across key sectors of the economy. Analysts say resolving the sector’s liquidity crisis could unlock new investments and strengthen Nigeria’s overall economic performance.

President Tinubu also commended stakeholders for their cooperation in addressing long-standing challenges in the industry and confirmed that the next phase of the reform programme, Series II, will commence within the current quarter. The phase is expected to deepen structural reforms and ensure long-term sustainability of the electricity market.

Tinubu Unveils ₦3.3tn Electricity Bailout to Revive Nigeria’s Power Sector

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