Labour kicks, as FG purportedly begins gradual withdrawal of petrol subsidy

Several petrol stations across the country have been selling the product at a new price, following the Federal Government’s purported official increase of the product by 8.8 percent to N185 per litre, from N170 per litre. The ex-depot price also shot up from N148 per litre to N167. However, many filling stations have been selling far above this new price, a situation which may have made the new price almost unrealistic. Accordibg to reports, in a notice to fuel marketers on Thursday, the government directed that the new price should…

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NNPC makes zero FAAC remittance again, as subsidy payments hit N3.3tr in 11 months

The Nigerian National Petroleum Company Ltd. (NNPCL), says it deducted N152.85 billion as a shortfall for the importation of petrol (subsidy) in November 2022. The national oil company stated this in its monthly presentation to the Federation Account Allocation Committee (FAAC) meeting on Wednesday. Subsidy, or under-recovery, is the underpriced sales of premium motor spirit (PMS), otherwise known as petrol. According to the FAAC document, due to deductions for subsidy payment, the oil company had zero contribution to the federation revenue account in the month under review. In January, February,…

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“We will resist fuel subsidy removal” – NLC vows

The Nigeria Labour Congress (NLC) has reiterated its position to resist any attempt to remove subsidy on Premium Motor Spirit without full restoration of the refineries in the country.  It also insisted on mobilising workers ahead of the 2023 general election to vote for candidates ready to implement economic and social policies that would promote members’ welfare. Speaking at the opening ceremony of the 18th edition of NLC Harmattan School, which was held at the Michael Imodu National Institute For Labour Studies in Ilorin, Kwara State, Wabba said the movement’s…

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Fuel Subsidy: IMF raises doubt over NNPC’s 66m litres daily fuel consumption claim

The International Monetary Fund (IMF) has raised doubts on the reported volumes of fuel consumed in Nigeria, calling for a proper audit of the financials of the state-owned oil company – the Nigerian National Petroleum Company (NNPC) Limited. In its latest 2022 Article-4 Mission in Nigeria yesterday, the IMF raised concerns of very poor revenue mobilisation amid huge subsidies, and therefore warned that fiscal transparency remained critical for a sound fiscal policy for Africa’s largest economy. Apart from the IMF, there have been similar doubts around NNPCL’s latest figures which…

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‘Without subsidy, petrol will cost N410 per litre’ – NNPCL

Without the Federal Government’s subsidy on premium motor spirit (PMS), the pump price of the fuel would have been costing consumers N462 per litre, the Nigerian National Petroleum Company Limited (NNPCL) has said. Recall that marketers are pushing for over N200/l as some stations in Abuja city centre sold for N180/l, while others in outskirts and neighbouring states sell for over N200. The petrol scarcity and queues have continued on Wednesday with fewer vehicles plying the city roads. He stated this yesterday at the Legislative Transparency and Accountability Summit organised…

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Calls to scrap NNPCL intensifies over fuel subsidy crisis

Strident calls for the scrapping of the national oil company, the Nigeria National Petroleum Company Limited (NNPCL), have continued to rent the air following indication that it no longer remits funds to the Federation Account, which is distributed to the various tiers of government. Despite being commercialised a couple of months ago to run as a profit-making venture, the national oil company has continued to be in the news for the wrong reasons. Although the oil firm declared profit for 2021, it claims to spend all its revenue on subsidies,…

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Fuel Subsidy Removal: IPMAN cautions Sanusi, el-Rufa’i against capitalist ideologies

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the former Emir of Kano, Muhammad Sanusi II and Kaduna State governor, Nasir el-Rufa’i, to stop making unguarded comments on the oil and gas sector. The association’s chairman, Northern chapter, Bashir Danmalam, gave the caution while addressing newsmen in Kano, on Tuesday. Danmalam was reacting to Sanusi’s comments at the 7th edition of the Kaduna Economic and Investment Summit, where he said that he was full of pity for the incoming president on account of the scale of the…

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Petrol subsidy gulps N2.6trillion so far this year, as NNPC again declares zero FAAC remittance

The Nigerian National Petroleum Company (NNPC) Limited has spent N2.565 trillion on petrol subsidy payments since the beginning of this year, an analysis has revealed. According to the national oil company, in its monthly presentation to the Federation Account Allocation Committee (FAAC) meeting yesterday, it deducted N525.71 billion as a shortfall for the importation of petrol (subsidy) in August, 2022. Subsidy or under-recovery is the under-priced sales of premium motor spirit (PMS), otherwise known as petrol. The FAAC document showed that due to the subsidy payment, the oil company failed…

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2023: “I won’t remove petrol subsidy, but I’ll ensure refineries work if elected” – Sowore

The presidential candidate of the African Action Congress, (AAC), Omoyele Sowore, says he will not remove the costly petrol subsidy if elected president. Sowore spoke on a television programme on Tuesday. The contentious issue of the removal of fuel subsidy has been a source of concern for oil and gas stakeholders, who argue that it is negatively impacting profitability in the sector and the country’s overall revenue. Recall that this year, the Federal Government has projected to spend N4 trillion on the subsidy, despite calls for its removal. Speaking on…

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“We need N3.4trillion to subsidise daily fuel consumption – NNPC

The Nigerian National Petroleum Company (NNPC) Limited says the sum of N3.4 trillion is needed to subsidise the 66.7 million litres of Premium Motor Spirit (PMS), otherwise known as petrol, for daily consumption, and not the N4 trillion approved in this year’s budget. The Chief Executive Officer of NNPC, Mele Kyari, disclosed this at the resumed hearing of the House of Representatives ad-hoc committee investigating subsidy regime from 2013 to 2021 in Abuja, on Monday. Kyari, who was represented by the NNPC’s Chief Financial Officer, Umar Ajia, said there is…

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