•Fed Govt ‘not moved’ by oil firms’ letter

•Labour awaits invitation for meeting

By Nduka Chiejina, Abuja


Governors will back withdrawal of petrol subsidy to end fleecing of the country, it was learnt yesterday.

They also opened discussions with the Nigeria National Petroleum Corperaton (NNPC) over the oil giant’s “zero remittance for May” letter.

A governor, who spoke in confidence, told our correspondent yesterday that the Nigeria Governors’ Forum (NGF) was on the same page with the NNPC because “fuel subsidy is a scam”.

The source added: “It is a case of heavens falling. All will be affected and hopefully, we will stop living a lie. We cannot continue with this scam called subsidy regime.

“Certainly, states may back withdrawal of fuel subsidy to have more funds for far-reaching and impactful projects for Nigerians.”

On the NNPC letter, the source said: “We are talking.”

Another governor, said: “Total withdrawal of petrol subsidy is inevitable. It is a reality we have to face as a nation.

“What is being shared from the Federation Account monthly to all the tiers of government is pittance because about N120billion is deducted for subsidy. This amounts to about N1, 3trillion to N1.4trillion annually.

“We are virtually subsidising the petrol being smuggled into neighbouring countries because our fuel consumption is between 55% and 60% of what is pushed out.

“With the subsidy level, about 27 states cannot break even. Instead, states have resorted to borrowing.

“We are already thinking ahead on palliatives which will mitigate the effect of the withdrawal of subsidy.

“The NGF is already talking with the NNPC on zero remittance and withdrawal of subsidy. The Federal Government has also raised a committee on petrol pump price ahead of the withdrawal of subsidy. The NNPC has presented all the indices to the FG-NLC committee.”

But Katsina State Governor Aminu Masari differs.

As far as he is concerned, the zero remittance plan of the NNPC will negatively impact the states and the battle against insecurity.

He told reporters at the Aso Villa after meeting Chief of Staff to the President Prof. Ibrahim Gambari, that “it’s with resources that state and local governments are able to contain some of these restive youths so that they can be used for better purposes because most of them might be foot soldiers for bandits.

“So, I think we have to look at this issue seriously, it will significantly affect even the capacity of states to pay salaries and to do what is necessary for the smooth running of government and fund the logistic requirements of security agencies.”

The federal government believes that zero remittance from the NNPC into the Federation Account next month will not amount to much.

A source at the Federal Ministry of Finance insisted yesterday that the “NNPC’s projections will not significantly affect FAAC disbursement for May”.

According to the source, “remittances from other agencies into the federation account have surpassed NNPC’s over time”.

“Contributions from the Nigeria Customs Service (NCS), the Federal Inland Revenue Service (FIRS) and remittances from non-oil sources, especially other mineral proceeds, have always been higher than what the NNPC brings to the table.”

The Finance ministry official who is a FAAC member said FAAC had survived past funds denials from NNPC, especially with under-remittance until the Corporation was forced to remit all it was owing.

Asked how this will affect workers’ salaries in the affected months and beyond the zero remittance from the NNPC persist, the official said “there are other strategic accounts the government can withdraw from to augment funds for sharing”.

“Some of the strategic accounts are the Excess Crude Account (ECA) and the Nigeria Sovereign Investment Authority (NSIA).”

Reacting to the development, Prof Uche Uwaleke of Nasarawa State University said, NNPC’s zero remittance “will adversely affect the distributable revenue for the months due largely to rising under recovery costs or petrol subsidy”.

This he said: “Is because the NNPC is a major contributor to that pool. The others are the FIRS, Customs and to a little extent, Ministry of Solid Minerals”.

Prof Uwaleke warned that “this should be of concern to Nigerians, especially civil servants at the state level, given that staff salaries, unfortunately, are either delayed or not paid whenever there is a shortfall in projected revenue. Ditto for contractors handling various projects in states”.

He advised sub national governments “to reprioritise their spending, placing premium on salaries and deferring expenditures that can wait till the situation improves”.

According to him, “these austere times equally call for cutting costs and reducing wastes in government spending”.

The NNPC had written to the Accountant-General of the Federation that “the sum of N111.966,456,903.74 will be deducted from April 2021 Oil and Gas Proceeds due to the Federation in May 2021, which will translate to zero remittance to the Federation Account from the NNPC in the month of May 2021. This is to ensure the continuous supply of petroleum products to the nation and guarantee energy security”.

The NNPC said it arrived at the decision because “the average landing cost of Premium Motor Spirit (PMS) for the month of March 2021 was N184 per litre as against the subsisting ex-coastal price of NI28 per litre, which has remained constant notwithstanding the changes in the macroeconomics variables affecting petroleum products pricing.

“As the discussions between government and the labour are yet to be concluded, the NNPC recorded a value short fall of N111,966,456,903.74 in February 2021 as a result of the difference highlighted above”.

The last two FAAC meetings witnessed major revenue shortfalls.

In April FAAC, though there was an accrued revenue of over N800 billion, the federal government adopted a tough stance the state governments to accept N680 billion as amount to be shared for the month.

The last two FAAC incidences corroborate the NNPC’s claims of sustained revenue decline affecting the federation account.

The Nigeria Labour Congress (NLC) was still awaiting the invitation of the Federal Government on resumption of talks on fuel pump price per litre.

The Petroleum Products Pricing Regulatory Agency (PPPRA), preemptively in March published a new price regime for Premium Motor Spirit.

It said with the new template, fuel was expected to sell at N209.61 per litre and at an upper retail price of N212.61 per litre.

A high-ranking labour leader said: “They said the FG-NLC committee will reconvene after the Easter break, we are awaiting the invitation of the government.

“We have made some cost saving recommendations to the government team led by the Secretary to the Government of the Federation, Mr. Boss Mustapha. We said N168 per litre pump price is realistic. We have rejected either N209.61 per litre or N212.61 per litre.”

https://thenationonlineng.net/nnpc-memo-governors-seek-end-to-petrol-subsidy/

Administration of lies by liers and for those who love lies.

How many times will this administration remove subsidy.

Removal of the damn fuel subsidy thing is long overdue. Some unintelligent humans with appropriate connections are enriching themselves with it.

Remove it and add another line of allowance to workers salary to cushion the effect of its removal. The additional allowance may be called any appropriate name.

Please what is the meaning of subsidy? What's subsidized?

So the then opposition fought about removing subsidy, but after getting the power, they are still paying for that same subsidy while the present opposition dey look like dundee.

Issa okay

Another governor, said: “Total withdrawal of petrol subsidy is inevitable. It is a reality we have to face as a nation.

I hope they know what they a doing, the consequence will be daring.
The people are frustrated already don't push your luck.

They are not feeling the heat, everybody just wants more money to spend. No single form of innovation, no creativity, no ingenious idea. All they know is share money.
Diversify for once and stop talking about oil.

The governors are lazy. They just want to be sitting down in office and travel to Abuja to collect allocation every month end.

This system of government will collapse the nation even if we don’t have the insecurity problem.

They all met to back NNPC’s claim to remove the Fuel subsidy so that they can have their allocation for the month of May. When the people starts revolting, they won’t beat the heat but the president.

Governorship is about state sacrifice and proffering solutions on how the state can generate IGR which will make the state self sustaining and not having to rely on Federal allocation to stand which gives federalism its true meaning

And when PMS is stripped of subsidy and then it sells at the rate of #250/ litre, who will then take the blames when people start to wail?

These same Governors or the President again?

Abeg where Fashola I remember den e follow people wey protest Subsidy...

“We have made some cost saving recommendations to the government team led by the Secretary to the Government of the Federation, Mr. Boss Mustapha. We said N168 per litre pump price is realistic. We have rejected either N209.61 per litre or N212.61 per litre.”

Something baffles me so much.

The reason why the landing cost of the petrol has been increasing has been attached to the increase in the price of crude oil which is the raw material for petrol. The price is currently around $70 per barrel. And the speculated pump price if the subsidy is removed is between N209.61 and N212.61 per liter.

Now if the crude oil price now returns to about N130 per barrel, what will now be the landing cost of petrol and the pump price ?

Clueless government.

Will labour and in fact Nigerians agree to this? Will the governors come out boldly irrespective of party affiliation to defend the decision when the people start protesting?

Removal of subsidy is inevitable but we must be conscious of the effect on the people. The rate of inflation is currently very high so increasing fuel price to over N200 per liter will only worsen an already bad situation.

Federal and state governments should engage more with labour and Nigerians in an open, honest and transparent manner. All the facts should be laid on the table and all alternatives considered.

which sector of this country is Buhari even trying

Simplyleo:
Removal of the damn fuel subsidy thing is long overdue. Some unintelligent humans with appropriate connections are enriching themselves with it.

Remove it and add another line of allowance to workers salary to cushion the effect of its removal. The additional allowance may be called any appropriate name.

Lmao � people sha ..so what would be the difference

If same money is spent on 1% of Nigerians that are civil servants ...at least 60% of nigerians benefits from subsidy


They said free of cash you want to add more expenses ....

Civil servants are worse than politicians they eat up 70% of our collective revenue

Igbochief001:

Lmao � people sha ..so what would be the difference

If same money is spent on 1% of Nigerians that are civil servants ...at least 60% of nigerians benefits from subsidy


They said free of cash you want to add more expenses ....

Civil servants are worse than politicians they eat up 70% of our collective revenue

Note, everyone might not be a civil servant but most civil servants have dependants.

If the subsidy is sustained, few individuals latch on to it to enrich themselves.

If the subsidy is withdrawn so it could be reinvested, then reinvested in what?

Roads? Rubbish, good as enriching few.

Any other infrastructure? Another rubbish.

Employment generation? Cant be done with sincerity, thereby reverting to same problem.

Only way out, add another line to workers allowances to cushion the effect.

Also, on civil servants being worse than politicians, I'm still struggling to understand what that means. Because, last time I checked, civil servants only get paid their monthly salaries at the end of every month.

Simplyleo:

Note, everyone might not be a civil servant but most civil servants have dependants.

If the subsidy is sustained, few individuals latch on to it to enrich themselves.

If the subsidy is withdrawn so it could be reinvested, then reinvested in what?

Roads? Rubbish, good as enriching few.

Any other infrastructure? Another rubbish.

Employment generation? Cant be done with sincerity, thereby reverting to same problem.

Only way out, add another line to workers allowances to cushion the effect.

Also, on civil servants being worse than politicians, I'm still struggling to understand what that means. Because, last time I checked, civil servants only get paid their monthly salaries at the end of every month.

What's the percentage of our revenue we spend on civil servants ? And what's their percentage on the population

Igbochief001:

What's the percentage of our revenue we spend on civil servants ? And what's their percentage on the population

A case in point, majority of students at various levels of education are being sponsored by their parents who are mostly civil servants. Note, this is just one case. I don't have the statistics but this is a clear case.

For your information, I'm not even a civil servant, but that is the best way out.

First he said there is nothing like subsidy and opposed Jonathan's move to remove subsidy.

He won the election increase the pump price to #145 claiming that the same subside has been removed.

Still not satisfied he increase it to #165 again claiming to have eliminated subsidy and the money will be used to refurbish our refinery.

Now he is planning of increasing it again.

Abeg make una cut soap give Buhari make em use m go wash our economy.

Nigeria Insecurity + Hardship = Coup/Breakup

I'm tired of nigerian news!

seunmsg:
Will labour and in fact Nigerians agree to this? Will the governors come out boldly irrespective of party affiliation to defend the decision when the people start protesting?

Removal of subsidy is inevitable but we must be conscious of the effect on the people. The rate of inflation is currently very high so increasing fuel price to over N200 per liter will only worsen an already bad situation.

Federal and state governments should engage more with labour and Nigerians in an open, honest and transparent manner. All the facts should be laid on the table and all alternatives considered.

Seconded.
ANYTHING to move our darling nation forward is what we are after.
Anything to make the good, sane, honest Nigerian happy is what we are fighting for.
Nigeria will be great again.
God bless Nigeria.

Petrol subsidy regime should be wholly discontinued in its entirety.

Petrol subsidy subsidizes the lifestyles of the rich and affluent while denying the average Nigerian access to basic infrastructure and social amenities.

The costs of fuel in Nigeria is too cheap for a country grappling with the problems of revenue generation and fall in the price of crude oil, its major export.

Removing subsidy will definitely affect the average Nigerian in the short-term but the long-term benefits can never be overemphasized as more funds will be available for infrastructural developments and social welfare, which will in good faith, increase the disposable income of the average Nigerian.

O

More revelation to come. Indirectly, fuel will be sold above 300 soon. Hmmmmm.
You may reach us for a free quote for building plans too. See my signature for info. Thanks.

Which thing is more valuable


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Buhari claimed during campaign that subsidy was a SCAM which is 100% true but later won election and continued the SCAM and took it to a different level #BMC over to una

post=101252498:

Let sell this country and share the money

those In management of the Petro sector are zombies..

RTR