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Abdulsalami, Workers Warn FG As NEC Decides Subsidy Removal June

21Jan

By Obiajulu Joel NwoluNo Comments

Finance, News, Nigeria, Petroleum

Abdulsalami, Workers Warn FG As NEC Decides Subsidy Removal June

The National Economic Council has said it will take a decision on petroleum subsidy removal in June when the six-month period for subsidy payment in the 2022 budget elapses. NEC comprising Vice-President Yemi Osinbajo and state governors among others, stated this at its first meeting for the year at the Presidential Villa, Abuja, on Thursday. The council stated this as a former Head of State, General Abdulsalami Abubakar (retd.), and the Senior Staff Association of Nigeria Universities strongly warned the Federal Government against removing the subsidy, saying it would worsen poverty in the country. The warning came amid conflicting reports on whether the Federal Government would fully deregulate the downstream sector by removing fuel subsidy in February or not. Although the ...

Osinbajo-led Economic Council Recommends Fuel Increase To N302 Per Litre By February

19Jan

By Obiajulu Joel NwoluNo Comments

Finance, News, Nigeria, Petroleum

Osinbajo-led Economic Council Recommends Fuel Increase To N302 Per Litre By February

The Nigerian government may increase the price of Premium Motor Spirit (PMS), otherwise known as petrol, to N302 per litre in February 2022 as part of the recommendations of the National Economic Council (NEC). This is part of the government’s plan to completely deregulate the PMS prices, eliminating monthly subsidy payments with provisions to ensure fair competition in the market, TheCable reports. The NEC is headed by Vice-President Yemi Osinbajo. Petrol price is currently between N162 and N165 per litre in Nigeria. The recommendations were suggested by the NEC ad-hoc committee interfacing with the Nigerian National Petroleum Corporation (NNPC) on the appropriate pricing of PMS in Nigeria. The Governor of Kaduna state and head of the committee, Nasir El-Rufai presented the repor...

Subsidy: FG May Deduct N2.4tn Palliative From Federation Account, Plans Talks

26Nov

By Obiajulu Joel NwoluNo Comments

Finance, News, Nigeria

Subsidy: FG May Deduct N2.4tn Palliative From Federation Account, Plans Talks

The Federal Government may deduct at least N2.4tn from the Federation Account to fund the N5, 000 cash palliative that will be handed over to 40 million poor Nigerians after the fuel subsidy has been removed next year. Reports on Thursday suggest that the list of poor Nigerians on the Federal Government’s National Social Register had surpassed 42 million and may hit 43 million by December, Punch reports. This implies that the figure to be spent on the subsidy palliative may hit N2.58tn in one year. When contacted on the telephone on Thursday on how funds for the N5,000 palliative would be sourced, Yunusa Abdullahi, the Media Adviser to the Minister of Finance, Budget and National Planning, Zainab Ahmed, referred The PUNCH to a statement by his principal after the Federal Executive Co...

Fuel Marketers Predict N170/Litre, Claim Supply Drop, NNPC Disagrees

19Nov

By Obiajulu Joel NwoluNo Comments

Finance, News, Nigeria

Fuel Marketers Predict N170/Litre, Claim Supply Drop, NNPC Disagrees

The pump price of Premium Motor Spirit, popularly called petrol, may rise from the current N162-N165/litre to N170/litre, while its depot price is projected to increase from N159/litre to N165/litre, oil marketers said on Thursday. Dealers under the aegis of the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria warned that the rising cost of petrol at depots would definitely warrant commensurate increase in pump price if not checked. They also complained of PMS supply problems, stressing that many tank farms or depots had no petrol, which was why the few ones that had the commodity had to increase its price from the approved N148/litre price to N159/litre. But the Nigerian National Petroleum Company Limit...

FG Scraps DPR, PPPRA, PEF, Sacks CEOs, Inaugurates New Agencies

19Oct

By Obiajulu Joel NwoluNo Comments

News, Nigeria, Power

FG Scraps DPR, PPPRA, PEF, Sacks CEOs, Inaugurates New Agencies

The Department of Petroleum Resources, the Petroleum Products Pricing Regulatory Agency and the Petroleum Equalisation Fund are all officially scrapped and do not exist anymore, the Federal Government said on Monday. It also said while workers of the three agencies would be protected, their chief executives had been relieved of their various appointments. The Minister of State for Petroleum Resources, Chief Timipre Sylva, stated this while speaking on the side-lines of the inauguration of the boards of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Regulatory Commission in Abuja. He explained that with the passage of the Petroleum Industry Act, the NPRA and NURC had taken over the functions of the DPR, PPPRA and PEF. Responding to...

Petrol Subsidy Rises To N905.27bn, Oil Increases to $79.71

28Sep

By Obiajulu Joel NwoluNo Comments

Finance, News, Nigeria, Petroleum

Petrol Subsidy Rises To N905.27bn, Oil Increases to $79.71

The Nigerian National Petroleum Corporation spent a total of N905.27bn on petrol subsidy in eight months amid rising global oil prices, the latest data obtained from the corporation show. With the international oil benchmark, Brent crude, nearing $80 per barrel on Monday (up 2.07 per cent at $79.71 per barrel as of 7:00pm Nigerian time), the landing cost of imported petrol and subsidy are expected to increase. The subsidy, which the NNPC prefers to call ‘value shortfall’ or ‘under-recovery’, resurfaced in January this year as the government left the pump price of petrol unchanged at N162-N165 per litre despite the increase in global oil prices. The Federal Government had in March 2020 removed petrol subsidy after reducing the pump price of the product to N125 per litre from N145 f...

Buhari: Saudi Arabia Cuts Oil Production To Help Nigeria

8Sep

By Chinedu IbeakanmaNo Comments

News, Nigeria, Petroleum

Buhari: Saudi Arabia Cuts Oil Production To Help Nigeria

President Muhammadu Buhari yesterday played host to the Saudi Arabian minister of Foreign Affairs at State House, Abuja, declaring that the oil rich kingdom had been quite kind to Nigeria. Receiving HRH Prince Faisal Bin Farhan Al-Saud, the President in a statement by presidential spokesman, Femi Adesina, said with Nigeria’s large population and infrastructural deficit, the country needed all the revenue she could get from oil, a mainstay of the economy, “and Saudi Arabia has been very kind to us, making sacrifice by reducing production to accommodate us a number of times.” See Also: FG To Borrow $3 Billion Via Eurobonds In October President Buhari noted that the relationship between the two countries is very strong, “and dates back in time, both at the personal and nati...

FG Implements Cooking Gas Imports Tax, Price Jumps By 100%

30Aug

By Chinedu IbeakanmaNo Comments

Interview, News, Nigeria, Petroleum

FG Implements Cooking Gas Imports Tax, Price Jumps By 100%

The Federal Government has implemented a 7.5 per cent tax on imported Liquefied Petroleum Gas, popularly called cooking gas, as the cost of the commodity leap by over 100 per cent within a period of eight months. It was gathered on Sunday that the government implemented the VAT on LPG imports about three weeks ago and some dealers were also mandated to pay the tax for commodities imported several months ago. Operators told our correspondent that Nigeria imports about 70 per cent of the commodity, while the rest was mainly supplied by the Nigeria Liquefied Natural Gas company. It was also gathered that the cost of a 12.5kg of cooking gas that sold for about N3,500 in December 2020 had jumped to as high as N6,800 in parts of Abuja. A resident along the Lagos-Ibadan road said she ...

No Petrol Price Hike Until FG, Labour Conclude Negotiation – PPPRA

23Aug

By Obiajulu Joel NwoluNo Comments

Finance, News, Nigeria, Petroleum

No Petrol Price Hike Until FG, Labour Conclude Negotiation – PPPRA

The Petroleum Products Pricing Regulatory Agency, PPPRA, has restated that the Petroleum Industry Act had marked the full deregulation of the downstream oil sector. It added that the negotiations between the Federal Government and labour would cushion the effect of subsidy removal upon full deregulation of the sector. The Executive Secretary, PPPRA, Abdulkadir Saidu, who said this in a statement issued in Abuja, stated that the petrol price would be adjusted in a way that it would not cause hardship on consumers. He said, “There is no gainsaying that the PIA signals the implementation of full deregulation of the downstream sector. “However, it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS. Read Also: Naira ...

PMB: Call Him Master Finisher By Femi Adesina

20Aug

By Obiajulu Joel NwoluNo Comments

Agriculture, News, Nigeria, Power

PMB: Call Him Master Finisher By Femi Adesina

The country has been agog this week with fallout from the signing of the long-awaited Petroleum Industry Bill (PIB) into law. That legislation has now become Petroleum Industry Act (PIA). President Muhammadu Buhari has done what Napoleon couldn’t do. Again and again. The Bill had defied Olusegun Obasanjo who introduced it, got the better of Umaru Musa Yar’Adua (God rest his soul), worsted Goodluck Jonathan, but has finally been subdued by Buhari. The man has proven to be adept at concluding things that had long trounced and vanquished many leaders before him. The PIB overwhelmed the first to eighth National Assembly, which couldn’t pass it into law. But through synergy and cooperation between the Executive and the Ninth Assembly, Nigeria now has a law for her cash cow, the oil and ga...