₦airaland Forum

Suspected Gunmen attacked Sokoto village killing and abducting many in the early hours of Sunday.

The attackers storm Dudun Doki vilkage of Gwadabawa local government area Sokoto killing over ten people and abducted many at about 1:30 am of today Sunday.

President Bola Ahmed Tinubu’s harmless trip-and-fall mishap at the Eagle Square in Abuja during this year’s June 12 Democracy Day celebration simultaneously got camps of people who exulted in emotional triumph, who laughed in self-satisfaction, who lamented the state of the president’s health, and who sulked at people who exulted, laughed, or called attention to the president’s health.

Although the president is obviously ravaged by the infirmities of old age and possibly ill health, his fall obviously wasn’t triggered by any of these. It appears to be caused by a mere missed step or a trip over his flowing agbada. Fortunately, his fall was benign. I hope his minders learn from this and let him dress more appropriately next time.

But even if his fall was prompted by ill health, it is presumptuous to make any connection between the prospects of his longevity and the state of his health. Some of the most fragile people on earth can turn out to be longest-living people.

Take, for example, former Kaduna State governor Ahmed Mohammed Makarfi, who was so infirm and so sickly during his governorship that most people thought he wouldn’t survive his first term.

He not only survived his first term, but he also won a second term, and has outlived many of the people who said he was a walking corpse. His deputy, Stephen Shekari, who looked visibly healthy, unfortunately died in 2005 during their second term.

Our compassion or ill will do absolutely nothing to shorten or lengthen people’s lifespans. And there is neither reward nor punishment for our attitude toward people’s ill fortune or good fortune in spite of what superstitious people would want you to believe.

Nature and its vagaries are inexorable. They are insensitive to and unswayed by human emotions. Coincidences, happenstances, serendipities, flukes, etc. aren’t laws of nature. They are freaks of nature.

But while it is valid to fulminate against the celebratory tone that some people took over the president’s physical misfortune, it is helpful to situate its context and understand its utility.

Vast swathes of Nigerians are being roasted alive, like never before, by the heartless, self-centered, and anti-people “economic reforms” of the president. In its June 11 report on Nigeria, even the New York Times characterized the economic crisis Nigeria is going through now as its “worst crisis in a generation.” That’s a significant admission from one of the institutional mouthpieces of the West.

Yet Tinubu and his minions insist that they won’t change course, that Nigerians must learn to live with superhuman pain for a supposed deferred gain that I am certain will never come. Plus, it’s a pain that the people inflicting it and explaining it away are totally exempt from.

Predictably, there is so much bottled, combustible rage welled up in the minds of people who are struggling to stay alive, who are almost giving up on living. Two viral videos give expression to the untamable fury that most people feel toward Tinubu, the immediate source of the mass anguish in the land.

One is a protest video of intensely enraged women in what appears to be Lagos some weeks back. Some of the women in the video said in Yoruba—and with stone-cold, deathly seriousness—that they wished they had a chance to physically meet Tinubu so that they would pummel him mercilessly for the unendurable hurt that his policies are visiting on them.

The second video, which trended a few days ago in Hausaphone social media circles, shows teenage boys in a northern Nigerian city (possibly Kano) stoning a poster of Tinubu affixed to a wall while “Labbayka Allahumma labbayk (translated in English as, “Here I am, O Allah, here I am”), a prayer invoked by pilgrims in Makkah while stoning the devil, plays in the background.

People whose staggering misery has led them to desire a physical confrontation with the president and who stone him in a symbolic eruption of rage as the representative of Satan in Nigeria would find tremendous emotional release in his fall and physical hurt. To deny them this harmless, no-cost joy is to hurt them doubly.

In psychology and literature, we talk of something called catharsis, which refers to the process of releasing and thereby providing relief from strong or repressed emotions. Catharsis serves as a crucial psychological alternative to violence by offering safe and constructive ways to process and release emotions. It is said to foster emotional well-being and reduce the risk of aggressive behavior.

In other words, for millions of Nigerians who have been pushed to the very precipice of existence as a direct consequence of Tinubu’s pigheaded implementation of IMF’s people-annihilating “economic reforms,” his fall on June 12 was cathartic, that is, emotionally satisfying.

Don’t deny them the mentally purging sensation they derive from this by guilt-tripping them as being hardhearted, especially because Tinubu wasn’t hurt.

Senator Shehu Sani has told Nigerians that Tinubu is the patron-saint and chief financier of protests in Nigeria. Now that he is president and causing the exact conditions that inspired past protests that he funded, there is no one to protest. Cathartic satisfaction from his karmic physical fall is all that severely grieving people have now.

Additionally, humor is the oxygen of democracy. As my friend Professor Moses Ochonu also pointed out in his Facebook status update a few days ago on Tinubu’s fall, comedians in the United States feast on the literal and metaphoric missteps of leaders, especially presidents, and citizens lap it up.

“In the US, where I live, late night hosts and comedians have jobs partly because the foibles, quirks, gaffes, and public physical failings and awkwardness of the president and other leaders are fair game for jokes and laughter,” he wrote.

Power confers an appearance of superhumanness, of invincibility, and of perfection on people who wield it. An occasional fall from this illusion of transcendence from familiar human weaknesses is often great grist for the humor mills.

President Gerald Ford is perhaps the most famous U.S. president for his falls. He slipped and fell multiple times during his presidency, including a notable fall while disembarking from Air Force One in 1975.

In 2003, President George W. Bush fell off a Segway. He also experienced a minor fall while running in 2004, which caused a scratch on his face.

Most people know that President Joe Biden has had a few notable falls, including tripping multiple times while boarding Air Force One in 2021 and falling off his bike during a ride in 2022.

The UK has also had its fair share of prime ministers who fell. For example, “Iron Lady” Margaret Thatcher had a fall in 1988 while walking at her official residence, 10 Downing Street.

In 2009, British Prime Minister Gordon Brown slipped and fell at the Cenotaph during a Remembrance Day ceremony. Another British Prime Minister, John Major, fell and injured his knee in 1995 while jogging.

And Australian Prime Minister Scott Morrison famously fell during a football game in 2019.

In all these cases, citizens laughed at the expense of their leaders. People weren’t guilt-tripped for laughing. No leader is entitled to any citizen’s unearned sympathy.

Thankfully, Tinubu appears to recognize this. He joked that he didn’t fall but merely observed the Yoruba tradition of dobale, that is, the physical gesture of prostration or kneeling as a show of respect to elders and people in positions of authority. It was good-natured, self-deprecating humor. It reminds me of a popular humorous quote in America when people fall: “I did not trip and fall. I attacked the floor and I believe I am winning.”

Unfortunately, some people who have no capacity to appreciate the nuances of humor, irony, sarcasm, and satire missed it and thought Tinubu told a barefaced, face-saving lie in the aftermath of his embarrassing fall! That’s such clueless humorlessness.

The naira depreciated further against the dollar at the foreign exchange market on Friday ahead of the Eid el-Kabir holidays.

FMDQ data showed that the naira depreciated to N1,482.72 against the dollar on Friday from N1476.24 on Thursday.

This represents an N6.48 depreciation against the dollar compared to the N1,476.24 traded on Thursday.

Meanwhile, at the parallel, the naira traded for N1,490 against the dollar on Friday, the same figure as on Thursday.

DAILY POST recalls that the naira depreciated marginally against the dollar on Thursday as foreign exchange transaction turnover crashed to $92.68 million.

In the week under review, the naira appreciated twice against the dollar, the same with its depreciation.

Human rights lawyer and Senior Advocate of Nigeria, Femi Falana said both the federal and state governments have the capacity to pay the national minimum wage if looted monies are recovered.

Falana stated this in an interview with Channels Television.

He said, “The state governments that are saying they have no money to pay, the money is there.

“All they need, including the Federal Government, is to muster the political will to collect and recover money either looted or withheld from the federation account,” he added.

Recall that the organised labour and the federal government have yet to reach an agreement on the new minimum wage with the latter rejecting the former’s N62,000 offer.

During the last meeting held by the Tripartite Committee on the New Minimum Wage on Friday in Abuja, labour reduced its demand to N250,000 from N494,000, while the Federal Government increased its offer from N60,000 to N62,000.


The proposed minimum wage may have to wait until 2 July because the National Assembly is on holiday. During the show, the senior lawyer asked the Nigerian authorities to muster the political will to pay the minimum wage.

iwaeda:
https://punchng.com/wbank-doubts-cbns-ability-to-curb-inflation-employing-rate-hikes/

lauzun:
https://www.mirror.co.uk/news/world-news/two-women-beat-man-death-33000818

oyera:
And when will the country get rid of news like this in 21st century

Residents of Maiduguri and its environs will experience power outages as vandals again have destroyed the recently rebuilt T193 and T194 towers along the Damaturu-Maiduguri 330kV Single Circuit Transmission Line.


The general manager of the Transmission Company of Nigeria, TCN, Ndidi Mbah, disclosed this in a statement on Wednesday.

TCN said the incident on its towers was done around 10:15 pm on Tuesday, resulting in its 150MVA power transformer at Molai Substation and 330kV transmission line supplying bulk supply to Maiduguri tripping.


“The Transmission Company of Nigeria, TCN, hereby states that two of its towers, T193 and T194, along the Damaturu-Maiduguri 330kV Single Circuit Transmission Line have again been destroyed by vandals.

“The incident, TCN believes, happened at about 10:15 pm, yesterday night, when the 150MVA power transformer at Molai Substation tripped at the same time as the 330kV transmission line supplying bulk power to Maiduguri from Damaturu Transmission Substation.

“After the line tripping, efforts were made by TCN engineers to close the Molai-Damaturu line to enable bulk transmission of electricity, which failed repeatedly. Early today, however, TCN lines engineers along with security operatives patrolled the line and discovered that towers 193 and 194 along the 330kV transmission line were brought down using an explosive device, whose fragments are scattered at the site of the incident.


“The area affected by this incident is Maiduguri and its environs. Two out of the towers in question are the towers affected by yesterday’s vandalism attack, which were rebuilt after that incident.

“TCN is currently assessing the situation with a view to deciding on the best approach to ensuring the temporary restoration of the power supply while a contractor is mobilised to rebuild the two transmission towers,” the statement reads.

DAILY POST recalls that on December 28, 2023, towers T193, T194 and T195 were destroyed with improvised explosives.

In February 2024 alone, TCN said it recorded five incidents of facility vandalisation.

Mr Akpabio said the errors were spotted in three lines in the standardised version of the anthem unveiled by the National Orientation Agency.

Senate President Godswill Akpabio has identified errors in lines three, five, and 18 of the new national anthem released by the National Orientation Agency (NOA).

Mr Akpabio observed the errors during the plenary on Tuesday and directed the National Orientation Agency (NOA) to immediately correct the errors.

Last Wednesday, the Director-General of NOA, Lanre Issa-Onilu, unveiled the “standardised version” of the national anthem in Abuja.

Mr Issa-Onilu, during the unveiling, urged Nigerians to pay attention to the words in lines three and five of the anthem as released by the agency.

“We call the attention of Nigerians to line three of the first stanza, which reads: ‘Though tribes and tongues may differ’.

“Note that the words ‘tribes’ and ‘tongues’ are in plural.

“We want you to also note that line five of the first stanza reads: ‘Nigerians all, are proud to serve’.

“The word ‘are’, not ‘and’ is correct” Mr Issa-Onilu said at the unveiling.

But, at the plenary, Mr Akpabio said the correction introduced by the NOA was not what the National Assembly passed.

“Take note, this is the version that was passed by the National Assembly. What the National Orientation Agency has is not what we passed,” he said.

“Where you have, ‘Nigerians all, are proud to serve’, they said ‘Nigerians all, and proud to serve’, that is number one, it should be ‘are’.

“And then it said ‘though tribes and tongues may differ’, they said, ‘though tribe and tongue, I hope you understand and at the end where we said ‘Nigeria shall be blessed’, they did not say so. They said ‘Nigeria may be blessed’.

“We are using the word shall, which is compulsion, that this country shall be blessed. So, tell the National Orientation Agency to drop what they are circulating now. Congratulations to all of us” Mr Akpabio added.

The Senate and the House of Representatives hurriedly passed the National Anthem Bill recently reverting to the old anthem introduced at the country’s independence in 1960 but changed by the Olusegun Obasanjo military regime in 1978.

President Bola Tinubu assented to the bill on 29 May.

President Bola Ahmed Tinubu has replaced Solomon Arase as the Chairman of the Police Service Commission (PSC).

Ajuri Ngelale, presidential spokesman, who announced this in a statement on Monday, said DIG Hashimu Argungu (Rtd) is the new chairman of the commission.



“President Bola Tinubu has approved the appointment of DIG Hashimu Argungu (Rtd) as the Chairman of the Police Service Commission (PSC).

“The President has also approved the appointment of Chief Onyemuche Nnamani as Secretary and DIG Taiwo Lakanu (Rtd) as Member of the Commission.

“The appointments are subject to confirmation by the Senate. Other members of the Police Service Commission will be appointed in due course.

“Furthermore, the President has approved the appointment of Mr. Mohammed Sheidu as the Executive Secretary of the Nigeria Police Trust Fund (NPTF) with immediate effect.

“The President expects absolute demonstration of integrity, diligence, and patriotic zeal in the discharge of these important functions for the overall wellbeing of the Nigeria Police and the nation.”

InfoGuru118:
https://news360ng.com/hajj-kwara-female-pilgrim-commits-suicide-one-other-die-in-saudi-arabia/

After a 10-week dip of $1.8bn, Nigeria’s foreign exchange reserve has shown a steady increase over the past six days, indicating a recovery process for the economy’s external reserve.

According to data obtained by PUNCH Online from the Central Bank of Nigeria’s website on Sunday, the foreign reserve stood at $32.80bn on June 6, 2024, indicating an increase of $110m from $32.69bn on May 31.

This upward trend has been consistent over the past six days, with the reserve increasing from $32.74bn on June 3 to $32.77bn on June 4 then $32.79bn on June 5 before the current value.

The steady increase in the foreign reserve is a welcome development for the Nigerian economy, which has faced challenges in recent times.

The PUNCH reported that the reserve had dipped by $1.8bn between March 18 and May 29, 2024, sparking concerns about the country’s ability to meet its financial obligations.

However, the recent increase suggests that the economy is on the path to recovery.

The foreign reserve is a critical component of a country’s economic health, as it serves as a buffer against economic shocks and provides the means to settle international obligations.

With this steady increase, Nigeria’s foreign reserve is expected to continue to grow, bolstering investor confidence and supporting economic growth.

PUNCH Online reported that the naira rebounded against the United States dollar in late March at the official and parallel markets, with the local currency recording a significant gain against the greenback at the black market.

This came as the Central Bank of Nigeria announced the final settlements of all valid foreign exchange backlogs, fulfilling a key pledge of the apex bank governor, Mr. Olayemi Cardoso, to process an inherited backlog of $7bn in claims.

No fewer than 30 persons were killed in separate attacks on villages in Dutsinma and Safana local government areas of Katsina State killed by bandits.

The Katsina State Public Relations Officer, ASP Abubakar Aliyu, confirmed this on Friday.

The affected villages include Tashar Kawai Mai Zurfi, Sabon Gari Unguwar Banza, Dogon Ruwa, Sanawar Kurecen Dutsi, Unguwar Bera, Kuricin Kulawa, Larabar Tashar Mangoro, Sabaru, Ashata, Unguwar Ido, Kanbiri, Kunamawar Mai Awaki and Kunamawar ‘Yargandu.

The bandits were said to have killed the victims on Tuesday.

Aliyu said, “The Command, in collaboration with all relevant stakeholders, is intensifying efforts to ensure the arrest of the perpetrators of the dastardly act as additional security measures are being put in place to prevent further occurrences of such situation.

“Further development will be communicated in due course, please. Sorry, I am at a workshop. I apologize please.” He added.

PUNCH reports that the attacks had forced residents to flee from their villages to neighbouring villages in Dutsinma town and Turare village for refuge.

The Federal Government has said President Bola Tinubu has fulfilled his promise on the economy and other sectors since assuming office a year ago.

The government also said that ‘more difficult decisions lie ahead before Nigeria is reshaped and growing economically to the benefit of its citizens and the wider continent of Africa.’

In an article published on a UK news website, Comment Central, on Thursday, the Minister of Information and National Orientation, Mohammed Idris, said President Tinubu has initiated some reforms his predecessors have failed to attempt while in office.

Idris also hinted that the President removed the fuel subsidy which gulps $6 billion annually, floated the Naira, and instituted a series of other reforms including changes to the tax code and waivers for foreign investors in critical industries including mining, energy, and infrastructure.

He also said the President stopped the artificial prop-up of the exchange rate, which led to the draining of the national budget while creating a black market in money exchange.

And that though the price of fuel has increased, Foreign Direct Investment inflows into the country have also moved up.

He wrote, “The border between Nigeria and Benin was, for decades, one of the busiest crossings in Africa. Thousands of trucks each year would transit, taking precious cargoes of petrol from the largest economy in Africa for sale in one of the smallest. Now that trade has all but stopped.

“Usually when cross-border trade declines it is a sign of economic regression, but in this case, it is the result of sound policy: the ending of a petrol subsidy that was costing Nigeria annually more than the state budget for health and education combined.

“This was no fault of our neighbours, but rather of our own making, and this $6 billion annual bung was leaking low-cost subsidised petrol sold beyond our borders while the Nigerian taxpayer ultimately paid for it.

“For decades politicians of all parties could see this reckless subsidy was killing the economy and the federal budget while being widely abused for profit. Its end was repeatedly promised but never brought.

“The same has been the case with floating our currency, the Naira – a decision repeatedly delayed. Instead, we continued to artificially prop up the exchange rate – leading to a further and constant draining of the national budget while creating a black market in money exchange.

“No country in the world is free of politicians ducking hard political decisions. What is different is that now, nearly a generation after the return of democracy, Nigeria has a president willing to put his credibility and re-election on the line to drive through the reforms which are needed.

“Since taking office a year ago, President Tinubu has done what he promised on the economy: he has removed the fuel subsidy, floated the Naira, and instituted a raft of other reforms including changes to the tax code and waivers for foreign investors in critical industries including mining, energy, and infrastructure.”

The minister stated that President Tinubu dealt with security challenges facing the country and refused to pay ransoms to bandits and terrorists.

He added: “On security he has moved decisively too, refusing to pay ransoms to kidnappers and – when 137 schoolchildren were taken hostage in Kaduna State in March – instead sent in the military.

“Contrast this with ten years ago and the tragedy of Chibok where 276 schoolgirls were kidnapped by the terror group Boko Haram. It took the administration of then President Goodluck Jonathan more than two weeks even to publicly acknowledge the disaster had occurred.

“By the time the military was sent – after vast national and international outrage – vital hours and days had been squandered: the terrorists, and girls, were gone. Some of the schoolgirls remain missing even to this day.

“It is through this kind of disconnect between an elite and the people that has left Nigeria needing such swift and decisive action. It must be recognised that other political leaders have attempted some of the reforms the Tinubu administration has initiated.

“But they left it late in their terms in office – when political determination and public goodwill are sapped for every politician the world over. They may have had the way, but no longer possessed the will, to drive them through.”

Idris admitted that though the price of fuel has increased, Foreign Direct Investment inflows into the country have also moved up.

He, however, said the President is trying his best to reshape and grow the economy to the benefit of its citizens and the wider African continent.

“Twelve months since his election the effects are becoming clear. None, including the Nigerian people, thought this would be easy, or pain-free. The cost of fuel has, understandably increased – but so has FDI inflows into the country, increasing by close to 70 per cent in the manufacturing sector alone year-on-year in 2024.

“There is a sign of new trust between the Nigerian state and the international community, now the country is finally making the decisions that have been avoided for decades, and they are repaying our determination by making the investments that will create jobs and prosperity for today’s and future generations.

“More difficult decisions lie ahead before Nigeria is reshaped and growing economically to the benefit of its citizens and the wider continent of Africa. The administration has joined the Global Methane Pledge, intended to reduce emissions from our oil industry.

“Oil majors who have worked for years in the country are seeking to divest, and the government is offering them a way to disengage quickly, should they fund the environmental clean-up of their operations. We will see more of this form of partnership in the years ahead.

“Nigeria, and our continent, has for too long been held back by our lack of urgency and determination. The tough choices being made today will mean in the years ahead both are better for it.”

iwaeda:
Tinubu can only deceive his paid singers. Nigeria is bleeding.

The Federal Government is insisting that the era of petrol subsidy is “gone for good.”

It said this while reacting to a leaked draft copy report of the Accelerated Stabilization and Advancement Plan (ASAP) presented to President Tinubu by the finance minister, Wale Edun, on Tuesday.

The ASAP, designed to address key challenges affecting the reform initiatives and stimulate development in various sectors of the economy, showed that the estimated expenditure on fuel subsidy for 2024 is N5.4 trillion, a sum of N1.8 trillion more than the amount spent in 2023.

The Presidency said that two fiscal policy documents in circulation being given wide coverage by the mainstream media and social media platforms were not official.

Bayo Onanuga, Special Adviser to the President on Information and Strategy, said this in a statement in Abuja on Thursday.

He said one of the documents titled: “Inflation Reduction and Price Stability (Fiscal Policy Measure etc) Order 2024” was being shared as if it was an executive order signed by President Bola Ahmed Tinubu.

According to him, the second one is a 65-page draft document with the title, “Accelerated Stabilisation and Advancement Plan (ASAP), which contains suggestions on how to improve the Nigerian economy.”

He explained that a copy of the draft was received by President Tinubu on Tuesday.

“We urge the public and the media to disregard the two documents and cease further discussions on them. None is an approved official document of the Federal Government of Nigeria.

“They are all policy proposals that are still subject to reviews at the highest level of government. Indeed, one has ‘draft’ clearly written on it,” said Onanuga.

Quoting the Coordinating Minister of the Economy, Mr Wale Edun, he said, “It is important to understand that policymaking is an iterative process involving multiple drafts and discussions before any document is finalised.

“We assure the public that the official position on the documents will be made available after comprehensive reviews and approvals are completed.”

According to Edun, emanating from the two documents have been reports second-guessing government’s policy on customs tariffs, fuel subsidy and other economic matters.

“The government wants to restate that its position on fuel subsidy has not changed from what President Bola Ahmed Tinubu declared on 29 May 2023.

“The fuel subsidy regime has ended. There is no N5.4 trillion being provisioned for it in 2024, as being widely speculated and discussed,” Edun stated.

The Coordinating Minister of the Economy further clarified: “As previously stated by government officials, including myself, President Tinubu announced the end of the fuel subsidy programme last year, and this policy remains firmly in place.

“The Federal Government is committed to mitigating the effects of this removal and easing the cost of living pressures on Nigerians.

“Our strategy focuses on addressing key factors such as food inflation, which is significantly impacted by transport costs.

“With the implementation of our CNG initiative, which aims to displace high PMS and AGO costs, we expect to further reduce these costs.

“Our commitment to ending unproductive subsidies is steadfast, as is our dedication to supporting our most vulnerable populations.”

He urged the media to always exercise necessary checks and restraints in the use of documents that did not emanate from official channels so that the members of the public would be properly informed, guided and educated on government policies and programmes.

The Federal Government may have to spend about N5.4tn on fuel subsidies in a proposed economic stabilisation plan documen[/b]t.

This is contained in the [b]Accelerated Stabilization and Advancement Plan report obtained by PUNCH Online on Wednesday.

The plan presented by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to President Bola Tinubu, aims to fast-track economic recovery, assist as many Nigerians as possible, and further mitigate the impact of the ongoing economic reforms of this administration.

The plan to be implemented within one to six months will tackle inflation and further increase the purchasing power of the populace.

The report said the subsidy payment was part of difficult challenges threatening to unravel bold reforms by the president.

The report said, “Fuel subsidy: At current rates, expenditure on fuel subsidy is projected to reach N5.4 trillion by the end of 2024, This compares unfavourably with N3.6tn in 2023 and N2.0tn in 2022.”

The amount represents an average of N450bn monthly subsidy bill.

The document indicated the government had yet to reduce, “fuel subsidies to zero given the current inflationary and consequent social pressures.”

It also recommended developing a framework for market-driven pricing of petroleum products and a full fuel subsidy sunset to facilitate growth in the oil sector.

Government officials including the Minister of State for Petroleum Resources, Heineken Lokpobiri, have severally denied the reinstatement of subsidy.

At an event recently, the minister stated, “Let me say categorically that the president had rightly said, on the day he was sworn in, he said subsidy is gone. The last government did not make any provision for subsidy in the 2023 budget.

“And I can confirm to you that subsidy is gone. But there could be strategic interventions from time to time. But officially, the subsidy is gone. If you look at the Petroleum Industry Act, the NNPC, as a national oil company, also has a legal obligation to intervene from time to time.”

But the International Monetary Fund among other stakeholders said the silent reintroduction of fuel subsidy by the Tinubu administration was expected to gulp almost half of its projected oil revenue this year.

“To help Nigerians cope, authorities started capping fuel pump prices below cost, reintroducing implicit subsidies by end-2023, the IMF said.

Similarly, the report cited persistent high inflation, interest rates that make it difficult for businesses to borrow, and a volatile exchange rate as part of macroeconomic indices’ challenges.

The document added that the finance minister is expected to advise on the macro-fiscal position of the plan, and is to consider non-exclusive options, including a push for prioritisation of initiatives to reduce supplementary budget requirements, pursue supplementary budget as a partial funding source, pursue virement of the current budget, and sale of government assets (but this will have a time lag).

The report further added that constrained revenues have impeded the government’s ability to achieve financial projections in the 2024 budget.

“Our ability to achieve the 2024 Budgeted revenue step-up of 77.4 per cent from 2023 actual is at risk should oil production remain 27.0 per cent below budget. 50 per cent of the annualized Year To Date variance suggests a lower-than-budgeted revenue of N15.7trn at the current run rate.

“FG retained revenue for January and February 2024 was approximately 60.0 per cent of budget, largely driven by lower crude oil production volumes (running at 74.5 per cent of budget projection) If current revenue shortfalls persist the revenue for 2024 is unlikely to exceed N15.8tn,” the report submitted.

The plan is structured to advance Tinubu’s economy-related eight priority areas and is broken down into Agriculture and Food Security Sub-Committee plan, Energy Sub-Committee plan: Oil, Energy Sub-Committee plan: Gas, Energy Sub-Committee plan: Power, Health and Social Welfare Sub-Committee plan, and Business Support Sub-Committee plan.

There are indications that the landing cost of Premium Motor Spirit, PMS, otherwise known as petrol rose year-on-year, YoY, by 46.8 per cent to N1,026.71 per litre in May 2024, from N545.83 per litre, recorded in the corresponding period of 2023.

The landing cost excludes other additional costs which include deport-related charges, transportation logistics and marketers’ margin, which would combine to bring delivery at filling stations at nearly N1,052.39/litre, at an Exchange rate of N1,510 to a dollar (a differential of N458.71 per litre).

This is contrary to claims by the federal government that the Bola Tinubu administration has scrapped subsidies on petrol.

Sources around oil marketers told Energy Vanguard that the landing cost for June is expected to rise further as the factors that propelled the rise in May figures have worsened as of last week.

Giving further insight, they said foreign exchange has been a major concern where scarcity has persisted while the exchange rate has also continued to deteriorate.

The marketers also noted that the cost of fuel import is rising in response to the recent rises in the price of crude oil in the international market.

A transactional analysis of a major operator, sighted by Vanguard yesterday showed that marketers were paying N1,052.39 per litre as total direct cost.

A breakdown shows product cost per litre at N1,026.71, freight (Lome-Lagos) at N10.37, port charges at N7.37, NMDPRA levy of N4.47, storage cost at N2.58, Marine insurance cost at N0.47, fendering cost at N0.36 and ”others” at N0.06 as well as a finance cost amounting to N28.04.

Specifically, the transactional analysis put the landing cost of 28,000 metric tons of imported petrol at over $25 million, including total product cost, total direct cost, and total finance cost, capable of generating more than N39 billion as sales revenue, indicating a loss of over N19 billion.

Marketers remain upbeat as petrol scarcity enters third week

As a result of this development, the marketers said it would be unprofitable to import at the current pump price, while the government has not guaranteed a free float of pump prices.

Consequently, the Nigerian National Petroleum Company Limited, NNPCL, has remained the only importer of the product.

The situation appears to be worsening as Nigerians are forced to struggle with the cost of living as a hike in transportation has resulted in an increase in goods and services across the country.

Fuel price rises by 176.02% to N701.24 per litre – NBS

The National Bureau of Statistics, NBS, latest report on the national average retail price of petrol saw an increase year-on-year, YoY, by 176.02 per cent to N701.24 per litre in April 2024 from N254.06 per litre recorded in the corresponding period of 2023.

On a month-on-month, MoM, basis, an increase of 0.64 per cent was recorded from N696.79 per litre in March 2024.

Experts give insight

Commenting on the oil price situation, Managing Director/CEO of Pinnacle Oil, Mr Robert Dickerman, disclosed that Nigeria is currently paying about N1 trillion monthly as a petrol subsidy.

He said there is still a massive subsidy, which explains why the product remains cheap, thus encouraging smuggling to neighbouring countries.

He added: “The consequences of this subsidy are: the cost of gasoline in Nigeria is the lowest in Africa by far, which encourages smuggling out, further depriving Nigeria of value. Smuggling causes Nigeria to subsidize neighbouring countries even while our economy struggles. The cost is hurting the entire budget, federal and state, as critical programs cannot be funded to pay this subsidy. It is currently calculated to be about 1 trillion Naira/month.”

Market volatility discourages importation, investment – IMF

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.

The IMF stated 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 President Tinubu to completely stop the payment of subsidies on petrol to free funds to run the government, adding that the subsidy regime was robbing the poor for the rich.