Business

Subsidies benefit the rich, says IMF, promises to allow Nigeria decide

Published

2 years ago

April 17, 2023

The International Monetary Fund (IMF) says it will not interfere in the Nigeria’s government handling of its fuel subsidy policies.

It however expressed disapproval of subsidy policies for certain commodities in Nigeria, Kenya and other countries in Sub-Saharan Africa, maintaining that it should be scrapped.

Director, African Department of the IMF, Abebe Selassie, gave the position at the just concluded World Bank and IMF Spring meetings in Washington DC, USA.

He spoke to journalists at the forum against the recent development in which the Federal Government secured a $800 million World Bank facility as a fuel subsidy removal palliative.

Selassie said, ‘‘The benefits of such subsidies tend to accrue to richer segments of the society, and in a world where we still have elevated levels of poverty and with levels of development challenges, I’m not sure that this is the best use of resources.

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‘‘But then we leave it up to the governments the choices of whether to sustain those subsidy policies or remove them.

“However, what we asked them to do, and what is important is that the cost of this fuel subsidy is rather than being left as off-balance sheet it should be included in the regular fiscal appropriation process, so that the trade-offs that the government is making is clear and transparent.

‘‘Now, how governments do this, the extent of the fuel subsidies, of course also varies with global international market prices.

‘‘You know that whether to subsidize or not and to what extent, obviously is a very deeply domestic and deeply political issue. If governments want to do that, that’s fine. But we think it’s sub-optimal, as I said, for reasons I explained earlier that the benefits of subsidies tend to accrue to richer households.

‘‘We know, of course, in Nigeria that fuel subsidies have eaten up tremendous, tremendous amount of resources, at the same time that the government doesn’t have resources to address the huge investment needs, from health to education, to infrastructure. But this is a choice for Nigerian government and Nigerian civil societies to make.

‘‘We’ve also heard the discussion that’s going on the debate that’s going on, on whether this is ideal. We try and inform that debate with statistics and with practices elsewhere, but I think that’s our role.

‘‘So, for a country like Nigeria also, you know, the future trajectory of its economy is going to depend on a whole host of variables, or reforms that the government pursues and how effectively it uses the resources and the oil price trajectory.’

Already, the FG has announced that petrol subsidy will be removed from May 29 this year as a major assignment by the incoming administration.

The labour has vowed to frustrate the move.

International Monetary Fund

Related Topics:Featured fuel subsidy IMF

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FAAN advises travellers as aviation workers begin two-day strike

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Foreign, domestic flights to shut down on Monday

Aviation

Aviation workers threaten nationwide airports shutdown over Customs officer assault

Published

33 minutes 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.

Aviation workers threaten nationwide airports shutdown over Customs officer assault

Business

SEC announces stricter measures to protect investors

Published

23 hours 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

23 hours 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.