ogododo:

The International Monetary Fund (IMF) has said the Nigerian government has, through the backdoor, resumed the payment of subsidies on the premium motor spirit (PMS), otherwise known as petrol.

Recall that on May 29, 2023, during his swearing-in speech, President Bola Tinubu announced an end to the petrol subsidy, triggering a hike in the prices of goods and services in the country.

A few weeks later, the Central Bank of Nigeria (CBN) collapsed the different exchange rate regimes into one, with the value of the Naira to the Dollar weakening.

As of last Friday, the Naira was exchanged with one Dollar at the official market at N1,469.97/$1 and in the parallel market at N1,490/$1.

Over the weekend, the IMF issued a statement on the conclusion of its Executive Board’s Post Financing Assessment with Nigeria and it expressed concerns that the government had capped the prices of fuel at retail stations.

The global lender advised the administration of Mr Tinubu to completely stop the payment of subsidies on petrol to free funds to run the government.

In the past few days, there have been reports of queues returning to petrol stations in major cities in the country, but the Nigerian National Petroleum Company (NNPC) Limited have allayed the fears of consumers, assuring that it has enough to go around.

After the removal of the petrol subsidy in May 2023, the pump price changed from N185 per litre to N40 per litre and then to N568 per litre at NNPC fuelling stations, while others currently sell above N600.

The government had said the prices would fluctuate after subsidy removal from time to time but the pump price has remained steady despite the prices of crude oil in the global market going up and down.

In the statement made available to Business Post, the IMF said the government has “capped retail fuel and electricity prices” ostensibly to “ease the impact of rapidly rising inflation on living conditions,” “thus partially reversing the fuel subsidy removal.”

However, it noted that, “Fuel and electricity subsidies are costly, do not reach those that most need government support and should be phased out completely.”

The bank commended the government’s focus on revenue mobilization and digitalisation, saying this will improve public service delivery, safeguard fiscal sustainability and eliminate the need for CBN financing through ways and means, which have grown above N20 trillion.

https://businesspost.ng/economy/imf-confirms-return-of-petrol-subsidy-by-tinubu/

The logical thing to do is to subsidize staple foods and perhaps, healthcare and NOT PMS

CodeTemplar:
it remains 0.5 USD official forex rate it was before Tinubu declared that "subsidy is gone for good".

Only floating of Naira is what he has effected. Out of oversabi attitude, he destroyed his own reputation as the cause of inflation.

He could have just said, Naira is hereby floated on that May 29 speech and we will still be buying petrol at around N700-N750 which half the official rate of one USD today.

The man is not a savvy as his asslicker make him look here.

He had a good PR ni.... Everyone knows Tinubu is not it

pandax:


The logical thing to do is to subsidize staple foods and perhaps, healthcare and NOT PMS

1.Healthcare is subsidsied, especially if you go to government hospitals, and if you are under NHIS, PHIS, or your employer provided insurance service

2.As for staple foods...we used to do that in the 1970's and early 1980's, until 1984/5 when thanks to the oil crash of 1982, we ran out of cash to pay for subsides for such things(the whole essenco debacle), and the government was forced to end subsides on food, never to return.

Ttipsy:
what’s stopping us from having a functioning refinery?

Because fuel is to cheap in Nigeria so the profit margins makes the business of building n refining crude unattractive to investors

ogododo:

The International Monetary Fund (IMF) has said the Nigerian government has, through the backdoor, resumed the payment of subsidies on the premium motor spirit (PMS), otherwise known as petrol.

Recall that on May 29, 2023, during his swearing-in speech, President Bola Tinubu announced an end to the petrol subsidy, triggering a hike in the prices of goods and services in the country.

A few weeks later, the Central Bank of Nigeria (CBN) collapsed the different exchange rate regimes into one, with the value of the Naira to the Dollar weakening.

As of last Friday, the Naira was exchanged with one Dollar at the official market at N1,469.97/$1 and in the parallel market at N1,490/$1.

Over the weekend, the IMF issued a statement on the conclusion of its Executive Board’s Post Financing Assessment with Nigeria and it expressed concerns that the government had capped the prices of fuel at retail stations.

The global lender advised the administration of Mr Tinubu to completely stop the payment of subsidies on petrol to free funds to run the government.

In the past few days, there have been reports of queues returning to petrol stations in major cities in the country, but the Nigerian National Petroleum Company (NNPC) Limited have allayed the fears of consumers, assuring that it has enough to go around.

After the removal of the petrol subsidy in May 2023, the pump price changed from N185 per litre to N40 per litre and then to N568 per litre at NNPC fuelling stations, while others currently sell above N600.

The government had said the prices would fluctuate after subsidy removal from time to time but the pump price has remained steady despite the prices of crude oil in the global market going up and down.

In the statement made available to Business Post, the IMF said the government has “capped retail fuel and electricity prices” ostensibly to “ease the impact of rapidly rising inflation on living conditions,” “thus partially reversing the fuel subsidy removal.”

However, it noted that, “Fuel and electricity subsidies are costly, do not reach those that most need government support and should be phased out completely.”

The bank commended the government’s focus on revenue mobilization and digitalisation, saying this will improve public service delivery, safeguard fiscal sustainability and eliminate the need for CBN financing through ways and means, which have grown above N20 trillion.

https://businesspost.ng/economy/imf-confirms-return-of-petrol-subsidy-by-tinubu/

Am not surprised.

If Landing cost was N720 by october, and has gone up since then, then there is no way that price of fuel would be lower than N700 as it is now.

The kind of news that gives yam leggers hard- on

Ttipsy:
what’s stopping us from having a functioning refinery?

Because if I open a refinery, and government tells me that I have to sell fuel below what it costs to produce it, and then they pay a subsidy that barely covers the resulting loss, and crucially does not let me make a profit, at the end of the day, I would be broke, and the refinery would be broke..

Unless you have the kind of financial resources like Dangote that can provide collateral for any loans you take to build a refinery, one cannot build a refinery with a subsidy in place. It is either the fuel is sold at a profit, or wahala dey.

Pot calling kettle black.

confusion everywhere. seems like bullion van is getting full

Jokerman:
So that means the price of petrol will go back to 200 per litre or 150 per litre now?

No.....

Nothing works here because the hyenas are running the show

IMF should mind their business. Government should bring back fuel price to #145 so that we can have a stable economy. If money that's used to defend naira is used for subsidy payment, over economy will boom internally and dollars will fall.

Jonathan paid 1trillon on subsidy when national budget was 2.5 trillion. Our economy became d best in Africa and dollar fell to #140.

Check d fraud in subsidy.we don't consume up to half of what NNPCL projects.
The suffering is unbearable and d only solution is to reduce fuel price to where Tinubu met it.

Tinubu online cretins have always said there's no more fuel subsidy, who is IMF? Are they more knowledgeable than Freestuffs and his comrades here? Mtchew

Otherwise known as Nigeria is bankrupted by those who have stolen billions and still stealing them. I hope a hero will rise up to collect our stolen scarce resources back

Problem no dey finished.

When dollar rise, didn't you expect that increase in general prices will affect petrol ⛽ as well. If the payment of subsidy is what government will do to avoid petrol price from being increase let them do. What has Tinubu use the money realised from subsidy removal to do than to share within government officials, especially governors

We do not want to hear increase in petrol price again please

Sincerely this Tinubu na just over hype dummy,he thinks to bribe, killed manipulate system to get ur way is intelligence now he's facing the reality he's incompetence is open to all,i wonder where that moniker @IconicR dey make she come see bad product she marketed for Nigerians.

CodeTemplar:
Before tinubu entered, we paid 0.5 USD official rate per litre and we are paying just around that 0.5 USD right now.

The only real policy change as it stands now is floating of Naira which we virtually all agreed on.

The complains and focus on Tinubu are largely inspired by political fortune of those rigged out.

Mhen...you are heartless...you really are! Let's stop the politics of bitterness and blind support for once and be sincere with ourselves!

IMF is taunting us now.
Mr President, join BRICS, IMF has no right to be meddling in our nation affairs, when they know our reliance on dollar for imports brought us to this mess. Shun dollar, join BRICS, South Africa will bring us in, or we can form our trade organization with trade partners and pay each other with local currency...what is so special about European imports, that we can't get elsewhere?

Nothing is special, most of the goods we need are in Africa and Asia.

CodeTemplar:
Before tinubu entered, we paid 0.5 USD official rate per litre and we are paying just around that 0.5 USD right now.

The only real policy change as it stands now is floating of Naira which we virtually all agreed on.

The complains and focus on Tinubu are largely inspired by political fortune of those rigged out.

na I’m make rice reach 75k per bag?

Odè

ogododo:


https://dailytrust.com/imf-confirms-return-of-petrol-subsidy-under-tinubu/#:~:text=The%20IMF%2C%20in%20its%20latest,reversing%20the%20fuel%20subsidy%20removal.%E2%80%9D

Why back door not the front door?
Everything about this balablu is always back.
*Election back door 🚪
*Subsidy back door 🚪
*His education back door 🚪
*Palliative back door 🚪
He suppose be renamed to:
Bola Back door Tinubu front back republic.

Lols this country na proxy president we have
Nothing real
Just bunches of idiots marauding the Aso rock claiming that Nigeria have president


Nonsense

Beautifulday:


Show us in the budgets

It jusrt means that its padded and hidden under a different name which makes this crime even worser than we thought . The truth is irrespective of politics leanings we can all agree that the subsidt is thw worst thing to happen to Nigeria , so why resume the payment an hide it under a name?

Soon, all Nigerians will demand Tinubu head on a platter.

Beautifulday:

Show us in the budgets

ok

Only floating of Naira is what he has effected. Out of oversabi attitude, he destroyed his own reputation as the cause of inflation.

Even if there is still partial subsidy, removing it completely as advised by IMF is unwise because there isn’t a viable substitute.

Let’s say electricity is constant, Nigerians can easily switch to electric vehicles and won’t rely on diesel/petrol powered generators for power.

IMF really want Nigerians to bite Tinubu.

It's a dog eat dog world .... President go, president come...the looters go still remain

IMF plays two significant roles in Nigerian government:monitoring spirit and advisory role.Emilokan is far more clueless than the Jonathan government he called clueless.

How much do you buy paint rubber of garri now?

CodeTemplar:
Before tinubu entered, we paid 0.5 USD official rate per litre and we are paying just around that 0.5 USD right now.

The only real policy change as it stands now is floating of Naira which we virtually all agreed on.

The complains and focus on Tinubu are largely inspired by political fortune of those rigged out.

Which subsidy?

Since 2023 (why prices didn't increase beyond 650 naira per litter)

That means government is still bribing people while we suffer.


https://www.youtube.com/watch?v=-rGlYAM6iPY?si=fYIXbPKEqwrxlB4I

ogododo:


https://dailytrust.com/imf-confirms-return-of-petrol-subsidy-under-tinubu/#:~:text=The%20IMF%2C%20in%20its%20latest,reversing%20the%20fuel%20subsidy%20removal.%E2%80%9D

How petrol prices feared since subsidy removal

After the removal of the petrol subsidy in May 2023, the pump price changed from N185 per litre to N400 per litre, and then to N568 per litre at NNPC fueling stations, while others currently sell above N600.

The government had said the prices would fluctuate after subsidy removal from time to time but the pump price has maintained a steady rise despite the fact that the price of crude oil in the global market keeps going up and down.

The IMF, in its latest statement at the weekend, said the Tinubu administration has “capped retail fuel and electricity prices” ostensibly to “ease the impact of rapidly rising inflation on living conditions, thus partially reversing the fuel subsidy removal.”