The Nation Newspaper

Category: Lead

  • Tinubu creates Infrastructure Support Fund for states

    Tinubu creates Infrastructure Support Fund for states

    • Fed Govt, states, councils share N907b •Excess revenue moved to CBN

    President Bola Ahmed Tinubu has approved the establishment of an Infrastructure Support Fund (ISF) for the 36 states.

    It is part of measures to cushion the effects of the petrol subsidy removal, according to Presidential spokesman Dele Alake.

    He said this was made known during yesterday’s meeting of the Federation Account Allocation Committee (FAAC) in Abuja.

    Alake’s statement further explained that the FAAC would be distributing N907 billion among the three tiers of government for June, out of the N1.9 trillion revenue.

    “The new Infrastructure Fund will enable the States to intervene and invest in the critical areas of transportation, including farm-to-market road improvements; agriculture, encompassing livestock and ranching solutions; health, with a focus on basic healthcare; education, especially basic education; power and water resources, that will improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.

    “The committee also resolved to save a portion of the monthly distributable proceeds to minimise the impact of the increased revenues occasioned by the subsidy removal and exchange rate unification on money supply, as well as inflation and the exchange rate.

    “Out of the June 2023 distributable revenue of N1.9 trillion, only N907 billion will be distributed among the three tiers of government, while N790 billion will be saved, and the rest will be used for statutory deductions.

    “These savings will complement the efforts of the Infrastructure Support Fund (ISF) and other existing and planned fiscal measures, all aimed at ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.

    “The Committee commended President Tinubu for the bold decision to remove the petrol subsidy, and even more importantly, for providing necessary support to the States to cushion the effects of the subsidy removal on Nigerians.”

    During the FAAC meeting, there were intense negotiations between the Federal Government team and the governors before an agreement was reached on the amount to be shared.

    The governors approved the Federal Government’s request not to share the entire N1.9 trillion realised in June.

    The decision to save a larger portion was further ratified at the NEC meeting shortly before the commencement of the FAAC meeting.

    This is the first time the governors are pushing to save revenue that will accrue directly to the federation account. 

    In the past, attempts to save excess revenue had been met with staunch resistance from the governors.

    The Nation learnt that the Federal Government had convinced the governors to save N1 trillion of the June revenue and get FAAC to share the remaining N900 billion in order not to saturate the economy with cash and further worsen inflation.

    Sharing the whole N1.9 trillion, the Federal Government, argued would also put additional pressure on the Naira and whittle down the desired impact of any palliative measures to cushion the subsidy removal.

    Instead, both the federal and the state governments have agreed to keep the N1 trillion extra with the Central Bank of Nigeria (CBN) to shore up the foreign reserve and in turn, defend the Naira from further decline.

    At the end of the FAAC meeting, a communiqué was issued detailing how the N907,054 billion should be shared.

    At the meeting chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, it was revealed that “the N907.054 billion total distributable revenue comprised distributable statutory revenue of N301.501 billion, distributable Value Added Tax (VAT) revenue of N273.225 billion, Electronic Money Transfer Levy (EMTL) revenue of N11.436 billion and Exchange Difference revenue of N320.892 billion”. 

    The total deductions for the cost of collection were put at N73.235 billion. The balance in the Excess Crude Account (ECA) remains $473,754.57.

    The communiqué stated that out of the N907.054 billion total distributable revenue, the Federal Government received N345.564 billion, the state governments received N295.948 billion, and the councils received N218.064 billion. Additionally, a total of N47.478 billion was allocated to relevant beneficiaries as 13 per cent derivation revenue.

    According to the revised FAAC figures, “the gross statutory revenue for June 2023 amounted to N1,152 trillion, which was an increase of N451.134 billion compared to the previous month’s N701.787 billion”.

    From the N301.501 billion distributable statutory revenue, the Federal Government received N146.710 billion, states received N74.413 billion, and the councils received N57.370 billion. Furthermore, N23.008 billion was shared among relevant states as 13 per cent derivation revenue.

    The gross revenue available from Value Added Tax (VAT) in June 2023 was N293.411 billion, marking a significant increase of N23.214 billion from May 2023’s N270.197 billion. 

    Out of the N273.225 billion distributable VAT revenue, the Federal Government received N40.984 billion, the state governments received N136.613 billion, and the Local Government Councils received N95.629 billion.

    The N11.436 billion Electronic Money Transfer Levy (EMTL) was distributed as follows: the Federal Government received N1.715 billion, the State Governments received N5.718 billion, and the Local Government Councils received N4.003 billion.

    Furthermore, from the N320.892 billion Exchange Difference revenue, the Federal Government received N156.155 billion, the State Governments received N79.204 billion, the Local Government Councils received N61.063 billion, and N24.470 billion was allocated to relevant States as 13 per cent mineral revenue.

    According to the communiqué, there was a significant increase in Companies Income Tax (CIT) for June 2023. Import and Excise Duties, Value Added Tax (VAT), and Oil and Gas Royalties also saw substantial increases. However, the Petroleum Profit Tax (PPT) and Electronic Money Transfer Levy (EMTL) experienced considerable decreases.

  • N1.959tr allocation windfall for fed govt, states, councils

    N1.959tr allocation windfall for fed govt, states, councils

    • Monthly Federation Account inflow jumps by 148.4% following petrol subsidy termination

    Federal, state and local governments are set for a windfall from subsidy removal.

    They will receive the highest allocations today from the Federation Account Allocation Committee (FAAC).

    After sharing a total of N3.62 trillion from January to May 2023, FAAC is about to share an all-time high of N1.959 trillion.

    It is the revenue generated last month alone, the full month after the May 29 removal of petrol subsidy.

    Exactly N750.174 billion was shared with the three tiers of government in January. In February, N722.677 billion was shared.

    A total sum of N714.629 billion was disbursed in March.

    There was over a billion naira drop in shared revenue accruals for April but a marginal jump occurred in May with N786.161 billion shared.

    Since the beginning of the year, petroleum profit tax (PPT), companies income tax (CIT), oil and gas royalties and electronic money transfer levy (EMTL) have performed abysmally in contributing to the federation account.

    Going by FAAC records, PPT, CIT ROYALTY and EMTL recorded declines in their contribution to the federation account.

    For four out of five months, VAT maintained declining contributions, except for May. Import and Excise duties recorded 60 per cent monthly incremental contributions.

    However, since President Bola Ahmed Tinubu put a stop to the payment of subsidy on May 29, the federation account has recorded approximately a 148.43 per cent increase in revenue from N786.161 billion in May to N1.959 trillion in June.

    The technical and plenary meetings of the FAAC will be held today to formally approve the amount that will go to the Federal Government, state and local governments.

    Statutory collections make up N1.7 trillion of the federally collected revenues, followed by N293 billion from Value Added Tax (VAT) and N12 billion from electronic money transfer charges.

    The Nation learnt that a substantial part of the N1.959 trillion will come from the contributions made by the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), and foreign exchange gains as the receipts from the sale of crude oil.

    Officials at the Federal Ministry Of Finance and the Office of the Accountant General of the Federation (OAGF) did not deny the amount but said the figure could be “speculative”.

    A financial expert, Prof. Uche Uwaleke of Nasarawa State University, described the amount to be shared as a “remarkable increase in FAAC allocation”.

    He noted that for proper accountability and transparency of the funds’ utilisation, it is necessary to “ascertain from the FAAC Allocation the proportion of the increase in funds resulting from the naira devaluation”.

    He suggested a “ring-fence” of the funds “by creating special accounts for them and obtain approval from the National/State Assemblies as the case may be to apply them to special projects in education, health and infrastructure provision”.

    Such funds, he added, “should not be used to implement an increase in minimum wage or applied to recurrent expenditure.

    “All tiers of government should endeavour to increase workers’ salaries through reducing waste and cost of governance as well as plugging loopholes in revenue collection leveraging technology.”

    Managing Director/CEO of SD&D Capital Management Limited, Mr Gbolade Idakolo, told The Nation that the amount to be shared shows that increased revenue has started accruing to the federation account due to subsidy removal and tax revenues.  

    He added: “This revenue should be adequately utilised by the three tiers of government to substantially address infrastructural deficits and palliative to the people down to the grassroots.

    “The pain of the subsidy removal and exchange rates policy of the Federal Government is still very fresh and the government should take urgent proactive measures to intervene and reduce the hardship.”

    An official in the Presidency said: “That FAAC will share almost N2trillion for June, the first time in history, as revenue for the three tiers of government, is an immediate and major benefit of fuel subsidy removal.

    “This money that would have been frittered away, in a month, via fuel subsidy will now go into the coffers of government to improve living conditions of the people. What this means is that there will now be more money available for real development.

    “States and local governments will have enough money to pay salaries of workers and pensioners.

    “Government at all levels will become more solvent, be in a stronger financial position to easily pay new minimum wage and fund development in critical sectors, especially in education, healthcare and public transportation.”

    The official said Nigerians should “begin to focus attention on our states and local governments to demand more accountability and transparency in the use of public funds”.

    “The real governance impact should be at the state and local levels.”

  • Experts project firm up of naira in six months

    Experts project firm up of naira in six months

    • Foreign reserves likely to hit $60b by Decemberr 

    Financial market experts yesterday projected the naira to strengthen to between N550 and N600/$ at the Investors and Exporters (I&E) window-official market in six months.

    They insisted that the rate spike in the parallel market would be short-lived as more foreign investors pump dollars into the economy.

    The analysts also projected an uptick in foreign reserves to $60 billion as the impact of the ongoing economic reforms by the Federal Government resonates across key economic sectors.

    Analysts at Afrinvest West Africa Plc, an investment and research firm, made the predictions during the company’s mid-year investment parley in Lagos, with the theme: “The Turning Point: Positioning for Optimal Return”. 

    Managing Director of Afrinvest Consulting, Abiodun Keripe, said to achieve this support for the exchange rate, oil production must be ramped up massively to boost export earnings and stabilize the naira.

    He also called for massive improvement to foreign reserves, to the tune of over $60 billion, a $25 billion increase from the current levels. He said this level of reserves was briefly seen in 2008. 

    The naira closed at N793.70/$ at the I&E window and N810/$ at the parallel market. 

    Data from FMDQ Exchange showed that the total turnover at the I&E window stood at $87 million by the close of the market on Wednesday. 

    Keripe added that external borrowing is very critical to achieving this goal as yields in the global financial market (particularly the Sub-Saharan Eurobond market) must decline to a single digit to make this option attractive for the government. 

    He added that the importance of substantial but consistent inflows of remittances and foreign portfolio investment (FPI) cannot be over-emphasised, as remittances account for the largest chunk of foreign exchange inflows. 

    “We expect a more market-responsive forex rate, which will boost investors’ confidence and enhance trade and capital flows. However, the path to naira stability would be somewhat rocky,” he said. 

    He said the removal of the petrol subsidy and the process to stop the electricity subsidy are expected to keep prices elevated for the rest of 2023 but would spur an improved and more efficient allocation of resources by the Federal Government. 

    “The new administration’s policy drive brought with it positive momentum in the equity market as well as the interest of foreign investors,” he stated.

    Group Managing Director, Afrinvest West Africa Limited, Ike Chioke, spoke on the opportunities provided by the naira and energy reforms to investors and how they can be explored for optimum returns on investment. 

    He called on investors to position themselves for the opportunities in the economy which have been magnified by ongoing reforms. 

    Chioke said the factors seen in both domestic and global economies showed that the country’s economy is at a turning point for greatness. 

    “We’ve seen global inflation rates dropping alarmingly over the last six, seven months. We’ve seen that the rate tightening by global central banks has kind of come to a point where they are pulling back. 

    “They have achieved the objective of reining in inflation. For Nigeria, the new government and ongoing forex reforms also have implications,” he said.

    He said the removal of the petrol subsidy is expected to provide fiscal savings of N2 trillion in 2023. This, together with earnings from improved oil exports and non-oil sources would buoy revenue. 

    Chioke added that the forex reforms by the Central Bank of Nigeria have raised hope for sustainable economic development.

    He said the naira will face pressures in the parallel market but that will be for a short time. He said the bigger picture is that more foreign direct investments will find their way into the economy. 

    “The forex reforms have rekindled hope of domestic and foreign investors in the economy, and we expect it to pay out positively on the naira and foreign reserves in the long run,” he said. 

    They advised investors to remain overweight in fixed-income investments, with a particular emphasis on yield play. 

    “Sovereign with strong fundamentals should be the centre of focus while corporates should also take a substantial part for stability. The juiciest yield is seated on the short and belly of the curve. A higher yield with a shorter maturity will deliver a better risk-adjusted return. 

    “Given that we expect muted volatility toward the downside, activity should be moderate. The surest bet remains to long the market. However, investors can short when the opportunity arises,” they said. 

    Managing Director/CBO, Optimus by Afrinvest, Ayodeji Eboh, said the reforms represent a turning point because, with Nigeria’s new government, there are going to be short-term pains, which will ease as time progresses. 

    He, however, said savings from subsidy should be tied to specific projects, that add value to the people. He called for investment in infrastructure and boosting policies that promote ease of doing business.

  • Man attempting 100-hour crying marathon goes ‘partially blind’

    Man attempting 100-hour crying marathon goes ‘partially blind’

    Cameroonian skit maker Tembu Daniel, fondly called Town Cryer attempting to break the Guinness World Record (GWR) for the longest crying marathon by an individual has gone partially blind.

    Recall Nigerian masseur, Joyce Ijeoma who was attempting to break the world record for the longest massage on different individuals, recently collapsed.

    In an Instagram post last week, the comedian, who is based in Lagos, had said he will be crying nonstop for 100 hours.

    In an accompanying flier, the skit maker had claimed he had the permission of GWR to proceed with the attempt.

    Read Also; Mendy signs for Lorient after being cleared of rape

    “I am going in to break the Guinness world record for the longest time crying,” he wrote.

    Backtracking, Daniel, told BBC that he experienced serious health issues.

    “I had headaches, a swollen face, went partially blind for 45 minutes and has puffed eyes.”

    “I had to re-strategise and reduce my wailing”. he added.  

    Daniel added that he was determined to see it through and so he is sobbing towards his target, even though he has not applied to GWR, so it won’t be an official record.

    Last week, GWR had issued a short statement to people attempting to break world records.

    The statement followed after Danny Zara, another Cameroonian, announced her intention to set a world record for the longest-sex marathon.

  • JUST IN: Tobi Amusan charged for missing dope tests

    JUST IN: Tobi Amusan charged for missing dope tests

    Reigning world champion and world record-holder in the women’s 100m hurdles event, Tobi Amusan, has been charged by the World Athletics Integrity Unity (AIU) of rule violation for allegedly missing three tests in 12 months.

    Amusan’s revelation came after she won the women’s 100m hurdles event on Tuesday , clocking an impressive 12.35secs at the Gyulai Istvan Memorial meet in Hungary as she edged American duo of Nia Ali (12.41 secs) and Alaysha Johnson(12.50 secs).

    Amusan via her social media handle @ihurdle_33.0inches , stated in a long post in the early hours of Wednesday said: :“Today (July 19) the Athletics Integrity Unit (AIU) has charged me with an alleged rule violation of having missed 3 missed tests in 12 months. I intend to fight this charge and will have my case decided by a tribunal of 3 arbitrators before the start of next month’s world championships.

    “I am a CLEAN ATHLETE, and I am regularly,(maybe more than the usual tested by AIU-I was tested within days of my third “missed test.”

    Read Also: Tobi Amusan wins 100m Hurdles at Silesia Diamond League

    “I have FAITH that this will be resolved in my favour and that I will be competing at the word championships in August.

    “In the meantime, I ask that the media respect my privacy while I address these distractions in my upcoming arbitration.”
    Her Tuesday’s victory came just days after finished first at the Diamond League meeting in Silesia on Sunday.

    “It is great to win a competition but the most important thing is to be in good shape at the World Championships,” an elated Amusan on Tuesday night. “My progress is going well, and I am looking forward to coming back to Hungary and competing with the best athletes next month.”

    She would have to clear herself with the AIU to have any chance of defending her 100m hurdles world titles at next month’ s World Championships in Budapest.

  • Tinubu orders release of grains to 50m farmers, others

    Tinubu orders release of grains to 50m farmers, others

    • •President directs review of N8,000 cash transfer to poor households

    President Bola Ahmed Tinubu yesterday ordered immediate release of grains and fertilisers to 50 million farmers and households.

    He also ordered a review of the N8,000 conditional cash transfer programme.

    The sum was proposed for payment to 12 million poor households for six months to ease the harsh effects of the fuel subsidy removal.

    The entire government’s palliative and relief package will be unveiled, the presidency said.

    The decisions were in response to feedback on the post-subsidy relief plan.

    Special Adviser on Special Duties, Communication and Strategy, Mr Dele Alake, in a statement, said: “You will agree with me that it has become part of the culture of President Bola Ahmed Tinubu administration to constantly dialogue with Nigerians who voted him into office. 

    “The President covenanted with Nigerians that their welfare and security will be topmost in the Renewed Hope Agenda of his government.

    “In the last few days, the conventional and new media platforms have become awash with stories of the government intending to embark on conditional cash transfer to vulnerable households mostly affected by the painful but necessary decision to remove subsidy from petrol.

    “The story has been widely reported that the Federal Government is proposing to give 12 million households from the poorest of the poor N8,000 monthly for a period of six months as government palliative to reduce the discomfort being experienced by Nigerians consequent upon subsidy removal.

    “A lot of ill-informed imputations have been read into the programme by not a few naysayers. 

    “The Administration believes in the maxim that when there is prohibition, there must be provision. 

    “Since subsidy, the hydra-headed monster threatening to kill the economy has been stopped, the government has emplaced a broad spectrum of reliefs to bring help to Nigerians.”

    The presidency noted that the cash programme is not the only item in the whole gamut of the relief package.

    Alake added: “The President has directed as follows: That the N8,000 conditional cash transfer programme envisaged to bring succour to most vulnerable households be reviewed immediately. 

    “This is in deference to the views expressed by Nigerians against it.

    Read Also: Tinubu and challenge of restructuring

    “That the whole gamut of the palliative package of government be unveiled to Nigerians.

    “Immediate release of fertilisers and grains to approximately 50 million farmers and households respectively in all the 36 states and the FCT.  

    “The President further assures Nigerians that the N500 billion approved by parliament to cushion the pain occasioned by the end of the subsidy regime will be judiciously utilised. The beneficiaries of the reliefs shall be Nigerians irrespective of their ethnic, religious or political affiliation.”

    Alake added that President Tinubu has promised to always prioritise the well-being of Nigerians and is irrevocably committed to the vow. 

    This, he said, is evident in several decisions taken so far.

    “You will recall that the President took a similar decision after listening to complaints from the business community/stakeholders about burdensome taxes, particularly the multiplicity of taxes they are made to experience. 

    “This warranted the signing of four executive orders cancelling some classes of taxes while suspending the implementation dates of others.

    “In addition, the President has also set up a Tax Reform/Fiscal Policy Committee to bring up recommendations that will engender a wholesome fiscal environment for the country and remove anti-business barriers.

    “I wish to assure Nigerians that President Tinubu will continue to be a listening leader whose ears will not be dull to the views expressed by the citizenry. 

    “The President believes government exists to cater for the interest of the people and he has demonstrated this so clearly,” the statement added.

  • Market forces driving price of petrol, says Kyari

    Market forces driving price of petrol, says Kyari

    • •NNPCL: price of petrol will go up and down as prevailing situation dictates’

    Nigerians woke up yesterday morning to a sudden hike in pump prices of petrol by the Nigerian National Petroleum Company Limited (NNPCL) at its outlets.

    The product rose from N490 per litre in Lagos to N568   at stations operated by NNPCL and major marketers. In the Federal Capital Territory, motorists and other users of petrol paid  N617 per litre as against  N540.

    The new prices ranged from N618 to N700 per litre in other parts of the country.

    Group Chief Executive Officer (GCEO) of the NNPCL, Mr Mele Kyari,    the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)  and the  Independent Petroleum Marketers Association of Nigeria (IPMAN) said that market forces will continue to drive the prices of petrol.

    The  NMDPRA   listed crude oil cost, exchange rate, freight and handling cost as well as import charges as some of the factors that determine imported petrol.

    Kyari, who also argued that the increase was not caused by a short supply of petrol,  assured that prices would fluctuate from time to time depending on activities at the international market.

    He spoke with reporters after a meeting with Vice President Kashim Shettima at Aso Villa in Abuja.

    He said: “I don’t have the details at this moment. The marketing wing of our company adjusts prices depending on the market realities. This is really what is happening; this is the meaning of making sure that the market regulates itself so that prices will go up and sometimes they will come down also. This is what we have seen and in reality, this is how the market works.

    “There is no supply issue completely. There is a robust supply.  When you go to the market, you buy the product; you come to the market you sell it at the prevailing market prices. We have over 32 days of supply in the country.

    “What I know is that the market forces will regulate the market.   I’m also assuring Nigerians that this is the best way to go forward. 

    “I know that a number of companies have imported petroleum products today.  There is no way they can recover their cost if they cannot take market reflective cost.”

    Chief Executive Officer of  NMDPRA Farouk Ahmed said the price increase was due to rising crude prices. c

    He said: “This market is deregulated. We have about 56 marketing companies that applied and obtained licences to import. Out of those, 10 of them have indicated to supply within the third quarter, which is July, August and  September.

    “Already, we received some cargoes from these marketers: Prudent Energy, AYM Shafa and Emadeb. Emadeb Cargo is arriving tomorrow (today). So, this is just an encouragement to see that the market is liberated and everyone is free to import so long as you are working within the framework, especially in terms of quality.

    “But as a regulator, we are not going to put a cap on prices because we are not part of those importing. We are not a marketing company.

    “When we say market forces are working, basically, what it means is that you buy and you consider the price of crude going up.

    Read Also: BREAKING: Market forces driving up petrol prices – Kyari ⁣

    A couple of weeks ago, the price of crude was hovering around $70/barrel. Now it’s hovering around $80/barrel.

    “So, the crude price also drives the product price.  Importers base their   cost of crude, freight and other cost elements.”

    IPMAN National Vice President, Alhaji Abubakar Maigandi,  said that exchange rate contributed to the latest hike.

    “The dollar rate has changed and since there is no more subsidy, it has also affected the cost of crude oil and eventually the landing cost of petrol,” Maigandi told The Nation in Abuja.

    IPMAN Secretary, Suleja /Abuja Branch, Shaibu Mohammed, who also spoke with The Nation said that the ex-depot price has risen from N504 per litre on Monday to N560   in all the depots as of yesterday.

    But   Mohammed expressed displeasure with the sudden price change.  He described the NNPCL as the actual regulator in a  deregulated oil sector.

    The IPMAN secretary sought competition in the market, stressing that the NNPCL   singlehandedly raised the pump price.

    He said, “The pump price has been jacked up to N617/litre(in Abuja). It is abnormal. The sector has been deregulated and liberalisation is on.

    “Let competition come in. As it is, NNPCL is still the sole importer. it is regulating  the market.”

    Across the states and the FCT, some filling stations that got a hint of the increment shut their gates to motorists and other users of petrol on the grounds that they had run out of stock.

    But some sold at the old prices in the early hours of yesterday before adjusting their pumps to reflect the new costs. Such stations witnessed vehicular queues.

    The customers lamented that the hike came at a time when they were trying to adjust to the hardship caused by the old price announced by the NNPCL barely 48 days ago.

    *NLC kicks

    The  NLC   rejected the new pump price, saying it was anti-people.

    This action will further increase the margin between the poor and the rich as it is clear that the government is taking away all the benefits meant for the poor and giving given to the rich.

    Government is provoking Nigeria and attacking workers, students and others, NLC president, Mr Joe Ajaero, said while being featured on a national television programme.

    He said: “I think Nigerians are being deceived.  In the first instance, going by the claim that the independent marketers are now importing the petrol. Nigerians would want to know how many are involved in this.

    “Nigerians also want to know the role of the NNPCL in the current dispensation. NNPCL cannot import and claim the fuel is imported by independent marketers.

    “Two, the government withdrew subsidy from PMS and while we were discussing the aftermath of the withdrawal, another price increase.

    “Now, why would the government go to court to seek a court injunction? Why will the government take other measures if it is not its business?

    “It is like Nigerians have entered a rein when Nigerians are being punished unnecessarily and where lies are the order of the day.”

    Ajaero said   that the congress would  “meet to take  a decision on how best to address the latest development.”

    * Oyebanji urges Nigerians to be patient 

    Governor of Ekiti State Abiodun Oyebanji has urged Nigerians to be patient with the administration of President Bola Tinubu over the hardship caused by subsidy removal.

    Oyebanji made this plea while answering questions from reporters after his visit to the Senate President Godswill Akpabio in Abuja.

    He assured that Nigerians would soon get the benefits of their sacrifices.

    “Nigerians should be patient with President Bola Tinubu.You cannot eat an omelette without breaking an egg, there is no microwave solution to our problem, you must confront these challenges head-on.

    “I plead with Nigerians to be patient, very soon they will know that the President meant well.”

  • Senate, House to probe NNPCL, NDDC, others

    Senate, House to probe NNPCL, NDDC, others

    The Senate yesterday directed its Committee on Niger Delta Affairs (when constituted) to investigate the Niger Delta Development Commission (NDDC) over a N6.5 billion shoreline protection contract it awarded in 2006.

    The Red Chambers also mandated its Committee on Niger Delta Affairs, Environment and Ecology (when constituted), to interface with relevant ministries to work out modalities for instant intervention in the disaster of ocean surge ravaging the Ayetoro Community in Ondo State.

    The resolutions of the Senate followed its consideration of a motion titled: “Urgent need for intervention to arrest the incessant sea incursion ravaging Ayetoro Community in Ondo State,” sponsored by Senator Jimoh Ibrahim (APC – Ondo South).

    Ibrahim said the Ayetoro community and its environs account for 5.4 percent of the 60,000 barrels per day of Ondo State’s crude oil production output.

    This, he said, amounts to about 3.7 per cent of Nigeria’s total oil production, which ranks Ondo as the fifth among Nigeria’s oil-producing states under the NDDC.

    Read Also: House to probe illegal sale of govt property

    The Senator said he was aware that the NDDC, four years after its creation, attempted to stem the slide by awarding the contract for the construction of a shoreline protective wall designed with a geo-tube technology in Ayetoro to Gallet Nigeria Limited at N6.4 billion, of which 25 per cent was reportedly paid.

    Ibrahim said the contract was revoked in 2009 for alleged lack of capacity and re-awarded to Dredging Atlantic Limited at an undisclosed cost.

    “Eleven years after the new contractor took over, and 16 years after the contract was first awarded, there is nothing on the ground to show any intervention by the government, thereby creating the wrong impression of an unconcerned Federal Government.”

    The Senator said he was “worried that Ayetoro is on the verge of being completely lost to the sea if nothing is done urgently”.

    Also yesterday, the House of Representatives said it would investigate the alleged non-remittance of due taxes by the Nigerian National Petroleum Company Limited (NNPCL) into the Federation account.

    Its decision followed a claim by the Federation Account Allocation Committee (FAAC) that the NNPCL’s non-remittance has led to a loss of over N2 trillion in revenue.

    Adopting a motion by Hon. Uduak A. Odudoh, the House asked its Committee on Finance to begin a comprehensive probe.

  • Subsidy: Tinubu orders review of proposed N8,000 planned palliatives

    Subsidy: Tinubu orders review of proposed N8,000 planned palliatives

    • … Directs immediate release of fertilizers, grains to 50mn farmers, households

    President Bola Tinubu has directed an immediate review of the N8,000 conditional cash transfer programmed initially proposed to ease the harsh effects of the fuel subsidy removal.

    President Tinubu has also directed the immediate release of fertilisers and grains to about 50 million farmers and households respectively across the country, just as he has directed that the entire government’s palliative and relief package meant to ease the current harsh conditions be unveiled to Nigerians.

    The President gave the directives in response to public reactions and feedback to the administration’s efforts at ameliorating the harsh conditions that have trailed recent attempts at saving the economy from total collapse, one of which was putting an end to petrol subsidy.

    The President’s directives were contained in a statement issued Tuesday evening by his Special Adviser on Special Duties, Communication, and Strategy, Mr Dele Alake, who also explained that Tinubu took the decision because he had promised to always listen and dialogue with Nigerians.

    According to Alake, though the President had purposed to use the monthly N8,000 conditional cash transfer to 12 million families in the desperately poor category to ease the harsh realities for that category, there are other categories of plans and action plans to reach other categories.

    He however noted that to defeat negative perspectives that some naysayers had sold to the public on the administration’s plan to use multilayers of programme to ease the harsh realities, the President directed a review of the conditional cash transfer plan immediately, just as he directed the unveiling of other packages to the public.

    “You will agree with me that it has become part of the culture of President Bola Ahmed Tinubu administration to constantly dialogue with Nigerians who voted him into office. The President covenanted with Nigerians that their welfare and security will be topmost in the Renewed Hope Agenda of his government.

    “In the last few days, the conventional and new media platforms have become awash with stories of the government intending to embark on conditional cash transfer to vulnerable households mostly affected by the painful but necessary decision to remove subsidy from petrol.

    “The story has been widely reported that the Federal Government is proposing to give 12 million households from the poorest of the poor N8,000 monthly for a period of six months as government palliative to reduce the discomfort being experienced by Nigerians consequent upon subsidy removal.

    Read Also: NLC knocks FG on new pump price, palliatives plan

    “A lot of ill-informed imputations have been read into the programme by not a few naysayers. The administration believes in the maxim that when there is prohibition, there must be provision. Since subsidy, the hydra-headed monster threatening to kill the economy, has been stopped, government has emplaced a broad spectrum of reliefs to bring help to Nigerians.

    “While it should be noted that cash programme is not the only item in the whole gamut of relief package of President Bola Ahmed Tinubu, as a listening leader who has vowed to always put Nigerians at the heart of his policy and programme, the President has directed as follows:-

    “1. That the N8,000 conditional cash transfer programmed envisaged to bring succour to most vulnerable households be reviewed immediately. This is in deference to the views expressed by Nigerians against it.

    “2. That the whole gamut of palliative package of government be unveiled to Nigerians.

    “3. Immediate release of fertilisers and grains to approximately 50 million farmers and households respectively in all the 36 states and the FCT”, the statement said.

    The Presidential spokesman further said President Tinubu has given the guarantee that he would always prioritize the wellbeing of Nigerians, adding that this was proven in his recent decision to sign four Executive Orders, aimed at lifting some tax burdens.

    He added that the President would be guided by his people-focused vow in deploying the recently approved N500 billion for palliatives, ensuring that it is deployed in the interest of all Nigerians, ethnic and religious tendencies notwithstanding.

  • NLC knocks FG on new pump price, palliatives plan

    NLC knocks FG on new pump price, palliatives plan

    The Nigerian Labour Congress (NLC) has rejected the new pump price of petroleum products and plans by the Federal Government to distribute N8,000 to 12 million Nigerians.

    While the Federal Government few days ago announced plans to lift 12 million Nigerians with N8,000 monthly to cushion the effect of fuel subsidy removal, Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr.Mele Kyari, had on Tuesday announced N617 as the new price for the petroleum product in all its outlets.

    Reacting on Channels Television Politics Today, NLC president, Mr. Joe Ajaero said the new pump price was anti-people.

    He also said the labour union rejects in its entirety the money and the figure said to be captured by the government’s palliative initiative.

    He said: “I think Nigerians are being deceived. In the first instance, going by the claim that the independent marketers are now bringing the product into the country, Nigerians would want to know how many are involved in this.

    “Nigerians also want to know the role of the NNPC in the current dispensation. NNPC cannot import and claim the fuel is imported by independent marketers.

    “Furthermore, the government withdrew subsidy from PMS and while we were discussing the aftermath of the withdrawal, another price increase.

    “Now, why would the government go to court to seek a court injunction? Why will the government take other measures if it is not its business”, he queried.

    “It is like Nigerians have entered a rein when Nigerians are being punished unnecessarily and where lies are the order of the day.

    Read Also: Subsidy Removal: Fuel queues resurface in Lagos as NNPCL increases pump price

    “I think clearly, the government is toiling with Nigerians and it is a reign of impunity.

    “If the same government is approving N70 billion for the members of the National Assembly to buy vehicles and furniture but you’re increasing the cost of fuel, should the removal of subsidy affect only the poor?

    “This policy will further increase the margin between the poor and the rich as it is clear that the government is taking away all the benefits meant for the poor and being given to the rich.

    “Government is provoking Nigeria and attacking workers, students and others.

    “Labour is not involved in the arithmetic of fuel price fluctuation. We can only make a better informed decision when we understand what the government is trying to do and what it has done so far.”

    On the palliatives, Ajaero counters: “The N8,000 to 12 million households in Nigeria is another issue. How did the government arrive at the statistics it is reeling out?

    “We, at NLC, have rejected that because we are not clear on how and where the government got the statistics it is relying on for the planned palliatives.”

    “There is a committee in place between government and labour to work out the modalities. The government cannot set up the committee and go back to do another thing. This is unacceptable.

    On what the NLC will do in view of the fuel price increase, Ajaero said: “We’ll meet to make a decision and best to address the new development.”