Subsidy: Tinubu to fix one refinery before December — Kyari - Newstrends
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Subsidy: Tinubu to fix one refinery before December — Kyari

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4 months ago

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Group Managing Director of NNPC, Mele Kyari

Subsidy: Tinubu to fix one refinery before December — Kyari

The Group Managing Director of Nigerian National Petroleum Company Limited, Mele Kyari, has revealed that the administration of President Bola Tinubu has concluded an arrangement to have one of the four refineries repaired and operating at an optimal level before the end of the year.

Kyari made the revelation when he visited the party secretariat for a meeting with the National Chairman of the All Progressives Congress, Senator Abdullahi Adamu.

The NNPC boss, who arrived at the premises at about 12.30 pm, was warmly received by the chairman and members of the National Working Committee.

Addressing newsmen after the session, Kyari explained that following the hike in pump price and the resultant effect on commercial fares, the president is working out some palliative measures to ease the pains of Nigerians.

He also added that there is an ongoing process of rehabilitation to ensure one of the refineries is ready this year.

“I’m aware that Mr president has directed some engagements and some palliatives will be put in place. I am very sure this will happen. There is an ongoing process of rehabilitation. One of them will come this year, the second one will come on stream next year and then the third will follow thereafter.

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“Of course, it is very obvious that we can no longer afford subsidy. Subsidy bills have piled up. The country is not able to settle NNPC for the money we are spending on subsidy. Therefore pricing this petroleum at the market price is the right thing to do at this point in time and I believe it would benefit the country in the long term,” he said.

Recall Tinubu had affirmed during his swearing-in ceremony that his administration would not continue to pay subsidy on petroleum products.

He said the Federal Government was struggling to fund subsidies, noting that it was no longer justifiable to continue.

The development had triggered a 100 per cent hike in transport fares, while long queues resurfaced at fuel stations across Lagos, Abuja, Ilorin, Benin, Asaba, Port Harcourt, Kano, Makurdi and other major cities and urban areas.

To worsen the situation, many outlets shut down their facilities and refused to dispense fuel to motorists, further creating scarcity and panic buying at the fuel stations that were opened to customers.

But Kyari confessed on Thursday that the country can no longer sustain such an expensive regime.

According to him, over 38 per cent of the total fuel distributed in this country is consumed by four states namely Lagos, Abuja, Kano and Rivers.

He said, “There was subsidy in 2022 but in 2023, not a single naira was provided for the purpose. And ultimately while we held back our fiscal obligations, we still have a net balance of over N2.8trn that the federation should have given back to the NNPC. For any company, when you have negative N2.8 trn, there is no company in the whole of Africa that will lend to you. You cannot have receivables. The provision of subsidy is there but absolutely there is no funding for it. It means it is only on paper. It doesn’t exist.

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“We can no longer bear it. If we continue, we will run into defaults and the defaults of NNPC is the default of Nigeria. Once NNPC goes into defaults and liquidity, it affects every borrowing done by the country. Even the subnational. Your lenders will come back to you and say your country can no longer pay. The only way you can stop this is to stop this conversation around subsidy. It is why Mr President announced that the subsidy is gone. In 24 hours, the bond market appreciated. It is nothing else other than the statement around subsidy and balancing of the apex market. These two elements are major concerns that every investor all over the world, and every partner that we have is worried about.

“Before today, the average subsidy level was N400bn every month. There is nothing anybody can do about it. There is this common argument that the masses will suffer. I agree that once you increase prices of this proportion, as it has happened, it will have an impact on inflation. There is no doubt about it. The market determines what happens next. Even inflation in very many countries goes up when you have the economic indices become difficult.

“Mr president’s target is to have seven per cent growth of GDP. You cannot have it if you have this disruption in your demands and consumption pattern. Very many of us here have at least two cars in our houses including myself. When you buy fuel of 100 litres in an SUV, you are literally subsidising three litres with 100 naira for all of us.

“Even the consumption itself is clearly skewed in locations and states where the level of economic activities are higher than the others. It is very understandable and that is why people can afford it in Abuja, Lagos, Port Harcourt, and Kano. So over 38 per cent of the total fuel distributed in this country ends up in these places. All the other parts of the country suffer for it and you can see the relativity. Imagine the per capita basis?

Subsidy: Tinubu to fix one refinery before December — Kyari

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FG, states, LGs get N1.1tn as August allocation

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1 day ago

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September 30, 2023

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The Federation Account Allocation Committee (FAAC) has shared a sum of N1.1 trillion to the Federal Government, states and local government areas as August 2023 federation account revenue.

A statement issued on Friday and signed by Director (Press and Public Relations) Office of the Accountant General of the Federation (OAGF), Bawa Mokwa, said the balance in the Excess Crude Account (ECA) was $473,754.57.

According to Bawa, a communique issued by the FAAC at its September, 2023 meeting indicated that the N1100.101 billion total distributable revenue comprised distributable statutory revenue of N357.398 billion, distributable Value Added Tax (VAT) revenue of N321.941 billion, Electronic Money Transfer Levy (EMTL) revenue of N14.102 billion, Exchange Difference revenue of N229.568 billion and Augmentation of NN177.092 billion.

In the communique, total revenue of N1.483 trillion was available in the month of August 2023.

Total deductions for cost of collection was N58.755 billion, total transfers and refunds was N254.046 billion and savings was N71.000 billion.

Gross statutory revenue of N891.934 billion was received for the month of August 2023. This was lower than the N1,150.424 billion received in the month of July 2023 by N258.490 billion.

The gross revenue available from the Value Added Tax (VAT) was N345.727 billion. This was higher than the N298.789 billion available in the month of July 2023 by N46.938 billion.

The communique stated that from the N1,100.101 billion total distributable revenue, the Federal Government received a total of N431.245 billion, the State Governments got N361.188 billion and the Local Government Councils went home with N266.538 billion.

A total sum of N26.473 billion (13% of mineral revenue) and N14.657 billion (13% of savings from NNPCL), were shared to the relevant States as derivation revenue.

From the N357.398 billion distributable statutory revenue, the Federal Government received N173.102 billion, the state governments got N87.800 billion and the Local Government Councils pocketed N67.690 billion.

The sum of N14.446 billion (13% of mineral revenue) and N14.361 billion (13% of savings from NNPCL) were shared to the relevant States as derivation revenue.

The Federal Government got N48.291 billion, the State Governments received N160.971 billion and the Local Government Councils went home with N112.679 billion from the N321.941 billion distributable Value Added Tax (VAT) revenue.

The N14.102 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government pocketed N2.115 billion, the State Governments got N7.051 billion and the Local Government Councils received N4.936 billion.

The Federal Government received N114.445 billion from the N229.568 billion Exchange Difference revenue; State Governments received N58.048 billion, and the Local Government Councils got N44.752 billion.

The sum of N12.027 billion (13% of mineral revenue) and N0.296 billion (13 % of savings from NNPCL) went to the relevant States as derivation revenue.

From the N177.092 billion Augmentation, the Federal Government received N93.292 billion; the State Governments got N47.319 billion, and the Local Government Councils pocketed N36.481 billion.

In the month of August 2023, Value Added Tax (VAT), Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased considerably while Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties recorded significant decreases.

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Railway

Subsidy: NRC to introduce Apapa (Lagos)-Kajola (Ogun) express train

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3 days ago

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September 28, 2023

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Subsidy: NRC set to introduce Apapa (Lagos)-Kajola (Ogun) express train

 

The Nigerian Railway Corporation says it will soon introduce a mass transit express passenger train between Apapa in Lagos and Kajola in Ogun State.

The action is part of the Federal Government’s palliative measures to cushion the effect of the petrol subsidy removal on the citizens, according to a statement by the NRC.

The statement obtained on Thursday and signed by the NRC’s Deputy Director Public Relations Yakub Mahmood, quoted Director Operations of the corporation, Akin Osinowo, as giving the details of the new train service on behalf of the Managing Director, Fidet Okhiria.

Code-Named Apapa Express Train, he said the Apapa-Kajola express train would run on the standard gauge railway line.

He gave the stopping stations for the express train as Mobolaji Johnson, Agege, Agbado and Kajola.

He further said the train service would reduce the hardship being experienced by commuters especially those plying Apapa-Kajola route.

Osinowo appealed to all train passengers to ensure that they obtain tickets at the designated stations before boarding the train.

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Railway

Lagos gov gives Agege traders two-day ultimatum to vacate rail track

Published

3 days ago

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September 28, 2023

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Lagos gov gives Agege traders two-day ultimatum to vacate rail track

Lagos State Governor Babajide Sanwo-Olu has given a two-day ultimatum to traders in Agege to vacate the train tracks.

The governor gave the ultimatum after paying a visit to the Agege Station of the Red Line Rail on Wednesday, September 27.

While addressing traders selling their wares on the train track, Sanwo-Olu said, “It is a government road that is why government built everything; it’s for transportation not for the market.

“I’m telling you now; I have given you two days’ notice. Everyone selling chicken, they are coming to pack everything next week. You can’t stay here; it’s impossible; that is the reason I came myself.

“We cannot have a situation after we have invested a lot of money in these things and we are not able to use it. Are you listening to me? I have told you. That’s why it’s going to be in the news and newspapers.

“We don’t want anybody to die when the train starts working because the train is scheduled to pass here every 10 minutes and I don’t want anybody to die here. I don’t want ‘Wahala’. So all of you should leave and I am going to block all the market that no one would be able to pass here.”

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