Subsidy removal: Government, citizens must agree – World Bank

The Federal Government and the citizens must agree on the removal of petrol subsidy that will cost Nigeria over N3 trillion by the end of 2021, the World Bank’s Country Director for Nigeria, Shubham Chaudhuri, has said. Nigeria’s rising fiscal deficit is yet another sign of the country’s ailing finances and makes a mockery of the government’s insistence to continue with a wasteful petrol subsidy regime that gulps over a trillion naira per annum, among other overly expensive ventures of a cash-strapped government. To solve this, Chaudhuri said “there has…

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‘Subsidy removal may compound manufacturers’ woes, cause fuel-induced inflation’ ― MAN warns

The Manufacturers Association of Nigeria, (MAN), has raised concerns that the proposed fuel subsidy removal by the Federal Government will lead to inflation occasioned by an increase in production costs which may translate to higher prices of goods. MAN however agreed to the need for deregulation to enable competition and efficiency in the downstream oil sector, and ensure the adequacy of supply, adding that the government must take necessary measures to address the possible fallouts. The association’s Director-General, Segun Ajayi-Kadir, stated the position of the manufacturers in a chat with…

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‘Nigeria’ll be shut down if fuel subsidy is removed’, NANS threatens FG

…Rejects proposed N2.8tr palliative for poorest Nigerians The National Association of Nigerian Students, (NANS), has rejected the proposed removal of fuel subsidy as announced by the Federal Government, warning that the country will be totally shut down by students and Nigerian youths should the subsidy be removed. NANS President, Comrade Sunday Asefon, speaking at a news conference on Friday in Abuja, said Nigerian students and indeed Nigerians have suffered enough under the current administration of President Muhammadu Buhari, and would no longer take further anti-people policies that would aggravate the…

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Fuel subsidy removal: ‘Only the poor’ll continue to suffer’ – Former ACF scribe, Anthony Sani

Ahead of the Federal Government’s resolve to remove petroleum subsidy by next year, the former General Secretary, Arewa Consultative Forum, (ACF), Anthony Sani, has said that only the poor will continue to bear the brunt of the subsidy removal. The Federal Government has said that petroleum will sell for N340 per litre from February 2022. However, Sani in a statement made available to newsmen, said it is doubtful if paying N5,000 per month to some few million vulnerable Nigerians can add economic value to the polity compared to the benefits…

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Petrol price may hit N340 in 2022, to replace fuel subsidy with N5,000 transport grant for poor citizens — Zainab Ahmed

…Without subsidy removal, 35 States may be unable to pay salaries next year – el-Rufa’i  …Buhari suspends inauguration of NNPC Board  Finance Minister, Zainab Ahmed, has said that the Federal Government will remove fuel subsidy as from 2022. Speaking yesterday, during the launch of the World Bank’s Nigeria Development Update, she said it would instead pay N5,000 monthly to some 40 million poor Nigerians. The minister added that the final number of beneficiaries will depend on the resources available after the removal of the fuel subsidy. The Group Managing Director…

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‘Remove fuel, electricity subsidies early 2022’, IMF tells FG

…Says perception of corruption remains high The International Monetary Fund, (IMF), has called for the complete removal of fuel and electricity subsidies in Nigeria early next year. In the concluding statement of its 2021 Article IV Mission published on Friday, the Bretton Woods institution said the implementation of cost-reflective electricity tariffs as of January 2022 should not be delayed. The IMF urged the Federal Government to implement revenue-based fiscal consolidation in the country. Nigeria, according to it, needs major reforms in fiscal, exchange rate, trade, and governance to promote sustainable…

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FG unlikely to remove petrol subsidies until after 2023 elections – Report

The Federal Government is unlikely to do away with a wasteful petrol subsidy practice until after the general elections in 2023 even though a new oil law abolishing the practice was signed into law last August, the Economist Intelligence Unit, (EIU), said in a report yesterday. “Instability is chronic in some areas in Nigeria, and inflation and unemployment accentuate the problem; this backdrop creates uncertainty for much needed but unpopular economic reforms and EIU broadly expects that tax increases and the removal of subsidies for petrol will not happen until…

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“Fuel subsidy by FGN is a big scam” – Former CBN Gov Sanusi

…Says some people in power making billions of dollars from it In the last seven months, petrol subsidy payments gulped N714 billion, reduced monthly revenue accrued to the federation account. Fuel subsidy, also known as under-recovery, is the underpriced sales of premium motor spirit , otherwise known as petrol. Speaking during a television programme on Friday, Sanusi said successive administrations continue with fuel subsidy payments despite damage to the nation’s revenue and economy. The former Central Bank of Nigeria governor argued that the economic reality of the country is a…

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‘Fuel subsidy will stay because government is being considerate’ – Minister

The Minister of State for Petroleum, Timipre Sylva, has said that the fuel subsidy regime will stay for the time being because the government is being considerate of citizens. The Minister who spoke in an interview with Channels Television yesterday, noted that the government has not set any date yet for subsidy removal. “I cannot give you a date for now; but the Vice-President is actually leading the efforts and very soon, we will tell Nigerians what date the removal of subsidy will kick in,” he said. Sylva explained that…

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‘Petrol price could increase to N1,000 per litre if subsidy is removed’ – DPR

The Department of Petroleum Resources (DPR) has stated that the pump price of petrol in Nigeria may rise to N1,000 per litre when the petrol subsidy regime ends without an alternative energy source. Recall that group managing director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari last month had stated that the cost of petrol should be N256 per litre at filling stations without subsidy. The price of premium motor spirit (PMS), better known as petrol, currently hovers around N162/N163 per litre. According to the DPR Director, Sarki Auwalu,…

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