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The federation account allocation committee (FAAC) says it shared N1.1 trillion among the three tiers of government in August 2023.
The figure represents an increase of N192.46 billion compared to N907.54 billion in July 2023.
The committee disclosed this in a communiqué issued on Friday at the end of its September meeting in Abuja.
According to the communique, the N1.1 trillion (N1,100.101 billion) comprises of total distributable statutory revenue of N357.39 billion, distributable value-added tax (VAT) revenue of N 321.94 billion, electronic money transfer levy (EMTL) revenue of N14.10 billion, exchange difference revenue of N 229.56 billion, and augmentation of N177.09 billion.
FAAC said the total revenue of N1,483.902 billion was available in August 2023. While the total deduction for the cost of collection was N58.755 billion, total transfers and refunds of N254.046 billion and savings were N71 billion.
The communique said from the N1.1 trillion total distributable revenue, the federal government received a total of N431.24 billion, states were given N361.188 billion, and the local governments got N266.538 billion.
For August, the committee said the gross statutory revenue of N891.934 billion was received — an amount lower than the N1.15 trillion received in the month of July 2023 by N258.49 billion.
FAAC said from the distributable statutory revenue of N357.39 billion, the federal government was given N173.10 billion, states got N87.8 billion, and local governments received N67.69 billion.
On the other hand, the gross revenue available from VAT was N345.72 billion. This was higher than the N298.78 billion recorded in the month of July by N46.93 billion.
From the distributable VAT revenue of N321.94 billion, the committee said the federal government got N48.291 billion, states received N160.97 billion, while the local governments were given N112.67 billion.
According to the communiqué, from N14.10 billion EMTL, the federal government received N2.11 billion, the states got N7.05 billion and N4.93 billion was allocated to the local governments.
FAAC also said from the N229.56 billion exchange difference revenue, the federal government received N114.44 billion, states were given N58.04 billion, and the local government got N44.75 billion.
A total of N12.32 billion in revenue went to the relevant states as 13 percent derivation.
Meanwhile, in the month of August 2023, VAT, import and excise duties, and EMTL increased considerably; while petroleum profit tax (PPT), companies income tax (CIT), oil and gas royalties, recorded significant decreases.
FAAC said the balance in the excess crude account (ECA) remained at $473,754.57.
The leadership of Nigerian Labour Congress (NLC) says it does not have any date for a meeting with the federal government that may lead to the suspension of the proposed strike scheduled to commence next Tuesday.
This is just as the organised labour vowed to mobilise all its affiliates and members across the country to ensure full compliance to the declaration of the proposed with a view to pressing home its demands until they are met.
The Congress, through the Head of Information and Public Affairs of NLC, Benson Upah, on Thursday said the issues on ground were beyond what the Ministry of Labour and Employment can handle, saying its position was not to denigrate the Minister, Simon Lalong.
“Firstly, we do not have any agreement with the government to suspend the planned strike action. Neither do we have any date for a meeting with government that may lead to the suspension of the proposed strike.
“While we do not intend to demean or minimise the office of the Minister of Labour and Employment, this matter is beyond the Ministry. This should have been obvious to them during our most recent meeting,” Upah said.
He said while they appreciate the role played by Lalong in securing the release of the executives of the National Union of Road Transport Workers from what it was described as “unlawful or illegal” police detention, he noted that they take exception to the Ministry describing the executives as factional leaders.
Upah added, “They were lawfully elected into office. We still find it necessary to advise the police and those elements behind their travails to desist from this despicable and shameful conduct. They are advised to retrace their steps.
“If democracy is to be of meaning to us, then we should resist the urge or temptation for impunity. Enough is enough.”
Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) directed all its affiliates and members to shut down the economy next week Tuesday, October 3, 2023 over the federal government’s failure to meet all its demands.
Meanwhile, the United Action Front of Civil Society, the Organised Platform of Civil Society Groups and activists on matters of Governance and Democracy has endorsed the declaration, noting that they would do everything to support the mobilisation of the organised labour.
One of Nigeria's main oil and gas unions will join a nationwide strike starting on Oct. 3 to protest against government policies that are causing economic hardship for Nigerians, union leaders said on Thursday.
Nigeria is Africa's largest oil producer and relies on the commodity for around 90% of foreign exchange earnings and about half its budget.
Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) directed its members to ensure "unwavering compliance" with the indefinite strikecalled by Nigeria's two biggest workers union federations.
NUPENG represents a myriad of workers across the entire value chain in the oil and gas sectors, including upstream oil platform workers, fuel tanker drivers and pump attendants, and its decision to join the strike is a significant escalation of the unions' dispute with the government.
NUPENG President Williams Akporeha said the government's policies have caused "excruciating and debilitating socio-economic pains" for Nigerians without any accompanying measures to cushion "the immediate effects and impacts."
President Bola Tinubu has been under pressure to reverse his decision to scrap a popular petrol subsidy that had kept fuel prices low but was costly on government finances.
While his policies have cheered investors, unions say they have led to soaring costs for Nigerians - an estimated four in 10 of whom live below the national poverty line- as they grapple with the highest inflation in nearly two decades.
.. donates educational items to schools in Ogun
Nigerians have been urged to stop paying lip services to the development of Education in the country by funding and showing more commitment.
"This is one of the ways by which poverty, insecurity and poverty can be fully eradicated in the country".
The advice was given in a message by Mr Adekunle Soyombo, the chairman and founder of a not-for-profit , Non-Governmental charity organisation, the Adekunle Soyombo FoundatiNigerians have been urged to stop paying lip services to the development of Education in the country by funding and showing more commitment.
"This is one of the ways by which poverty, insecurity and poverty can be fully eradicated in the country".
The advice was given in a message by Mr Adekunle Soyombo, the chairman and founder of a not-for-profit , Non-Governmental charity organisation, the Adekunle Soyombo Foundation, ASF while donating educational materials to students across 4 local governments in Ogun State.
The educational support tagged, "ASF Back to School Programme" had one thousand (1000) bags containing items which include big notes exercise books, sandals, mathematical sets and other educational materials distributed across Primary and Secondary schools in Odeda, Obafemi-Owode, Abeokuta North and Abeokuta South local government areas of the State.
Mr Soyombo said, when education is fully developed it would have a better influence on the youth especially as it concerns meeting the needs of the people, security, workforce and labour.
He said, governments at all tiers have paid lip services to quality education for too long, urging private individuals and organisations to partner government to better education.
Afrexim Bank is tapping oil traders to finance a $3 billion loan to Nigeria's state oil company that is central to the country's efforts to support the naira, three sources told Reuters.
The currency hit an all-time low of 1,000 to the dollar on the black market on Tuesday.
Afrexim approached traders in recent weeks seeking their interest in funding the oil-backed loan to state oil company NNPC LTD, the sources said. It is working to craft terms to offer to the trading houses.
"There is a lot of interest, but they need to see terms," one oil executive close to the talks told Reuters. The executive, who could not be named because he was not authorised to speak publicly on the issue, added that oil prices climbing past $90 per barrel would help drive interest.
An NNPC spokesman did not respond to a request for comment. Afrexim did not immediately comment.
During his confirmation hearing on Tuesday, incoming central bank chief Olayemi Cardoso said clearing unsettled foreign exchange obligations to local lenders, which could be as high as $7 billion, was his top priority.
The backlog is limiting the availability of dollars on the official market, forcing businesses and individuals to seek them on the black market.
Traders who put up cash would be repaid in physical cargoes of oil. The bank is working to determine how much oil to offer those traders in exchange for the financing, one of the sources said.
Shortly after taking office in May, President Bola Tinubu announced long-sought reforms that allowed the official naira rate to fall versus the dollar and fuel prices to roughly triple. In June, the naira was close to the black market level, but the gap has widened.
Tinubu also allowed pump prices to more than triple, which cut fuel smuggling and relieved pressure on state oil company NNPC to import petrol.
But NNPC is still using oil cargoes to repay some of the oil trading firms that had contracts to supply gasoline in exchange for crude, limiting its immediate access to oil.
The Minority Leader of the Ogun State House of assembly, Hon Lukmon Olalekan Adeleye has donated a 500 kva transformer to the people of Ikoto Community, in Odogbolu Local Government Area of the State, in fulfillment of his promise during the electioneering period.
Hon Adeleye said our society would become better if we all continually strive to develop and meet the needs of the people.
He said that though the donation was a personal effort and the challenges in the constituency were enormous, he would continue to do his best to serve the people.
According to him, "this is in line with my policy of 'promise made, promise kept'. I am always sad each time I visit the community because of the total darkness, which usually pervades the area"
Hon. Adeleye explained that, in one of his campaign engagements, he promised to restore the community to the national grid if elected. "Though this project costs me a little over 8 million naira, to God be the glory, I have fulfilled that promise with a 500 kva transformer.
"It has always been on my mind and I am happy today as I mark my 100 days in office, which coincidentally falls with the birth of Prophet Mohammed (SAW) that I am putting back the community on the national electricity grid" the Minority Leader said.
The community head of the Ikoto community, Chief Olugbenga Adebanjo, who was joined by residents of the area, could not hide their joy while expressing appreciation to the legislator.
He explained that many'save our soul' letters were written to the state government and the former legislator representing Odogbolu, Hon Atinuke Bello, which did not yield any positive result.
It would be recalled that Hon. Adeleye had sponsored life impacting resolutions at the State Aaaembly, while he recently empowered 50 young people with cash gifts to aid their small-scale busineses in commemoration of the world international youth day.
There are clear indications that more manufacturing companies and businesses in the country may shut down in the coming months due to the unabating energy crisis, which has now pushed diesel prices to over N1,100 per litre.
This dire situation is worsened by the foreign exchange crisis and the floating of the naira, all occurring amid dwindling purchasing power as there are signs that the prices of Liquified Petroleum Gas and Compressed Natural Gas, which are being adopted as alternative energy sources, may spike further.
The Nigerian Association of Liquefied Petroleum Gas Marketers Gas said last week that the price of a 12.5kg cooking gas may hit N18,000 from the current N10,000.
Already, the number of factories shutting down yearly due to power shortages and harsh economic conditions remains worrisome as stakeholders yesterday, expressed deep concerns that without urgent actions, including halting taxes on petroleum products, job losses and revenue declines from the sector could severely impact the nation’s economic growth and its expected contributions to Gross Domestic Product (GDP).
This crisis was further exacerbated by the impacts of the Central Bank of Nigeria (CBN) Naira redesign policy. In the second quarter of this year, manufacturers witnessed a 17.3 percent increase in the cost of production and distribution. Capacity utilisation plummeted by 5.6 percent, volume of production contracted by 6.1 percent, manufacturing investment decreased by 5.6 percent, employment dropped by 5.7 percent, sales volume plunged by 6.3 percent, and the cost of shipment went up by 14.3 percent.
The Manufacturers Association of Nigeria’s Confidence Index for the second quarter of the year identified high cost of energy as the foremost challenge facing manufacturing in the country. This challenge is compounded by high credit costs and lack of loanable funds, multiple taxes, charges, levies, inconsistent tax policies for local producers and importers, raw material unavailability and delays in receiving imported raw materials, high raw material costs, forex scarcity, high exchange rates, and poor forex allocation.
While the nation’s electricity grid remains unreliable for manufacturing activities with over 134 system collapses in the last 10 years, manufacturers have spent nearly N1 trillion to source alternative energy in the last seven years.
Manufacturers spent N129 billion in 2016, N117.38 billion in 2017, N93.11 billion in 2018, N61.38 billion in 2019, N81.91 billion in 2020, N71.22 billion in 2021 and N144.3 billion in 2022.
With an average of 95 manufacturing companies shutting down yearly, with Gloxosmith being the latest, over 4,451 job losses are being recorded yearly in manufacturing sector alone as factory output value dropped to N2.68 trillion in first quarter of 2022 from N3.73 trillion in the first quarter of the year.
With the price of crude oil inching towards the $100 per barrel mark, stakeholders have predicted tougher times ahead for businesses in the country as the actual electricity output remains around 3500 megawatts in the last 10 years.
Director for the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf said the implications of the increase in the pump price of diesel would result in increased production costs for industries.
“Most small-scale producers are dependent on diesel generators as alternative sources of energy and this means that the production costs for them will go up. When you combine this with the forex crisis and all the other problems manufacturers are battling with, you can only imagine what will happen in the next few months.
“Also, it will affect the transportation of goods and services. The trucks and trailers we see on our roads are the ones delivering everything from raw materials to finished goods and they all use diesel. Almost 100 per cent of haulage in Nigeria is by road as our rail and water systems are under-developed. This will mean an increase in the cost of moving goods from one place to another, since they’re powered by diesel engines.”
Yusuf worries that these challenges would further cause inflation to skyrocket.
Concerned over the nation’s economic outlook, former Manufacturers Association of Nigeria (MAN) chairperson for Apapa, Frank Onyebu said the implications are dire both for the economy and for consumers.
“The exchange rate is scary, the price changes as much as twice a day, always reviewing upwards never downwards. We used to joke that the dollar would exchange for one thousand naira but we never imagined we would ever get there. But look at it, we’re practically at a thousand naira to a single dollar and nothing seems to be stopping it from getting there, same as diesel. Both dollars and diesel will surpass one thousand naira at this rate.”
He pleaded with the government to take deliberate steps to halt the shocking increase and mitigate the suffering of local manufacturers, who are dying out rapidly.
“We must reduce the cost of governance and cut down on government spending. Government must stop all these unnecessary appointments, reduce wastages, create policies that encourage production, rehabilitate public infrastructure, improve power supply, eliminate corruption and create an enabling environment for industries to thrive. These and many more need to be in place before the government can talk about deregulation to us.”
He further pointed out that higher diesel costs will also mean higher transport costs as the cost of moving goods will also go up significantly.
“Labour costs have also risen because we understand that workers’ transport fare has gone up. We should also increase prices but how much can we really increase knowing that Nigerians are poor and struggling?
“Remember we are competing with imported goods from foreign countries that don’t have these many barriers we are dealing with here. Manufacturers here are having it tough truth be told and no matter how much we can endure, if the present situation doesn’t improve, many companies will relocate to saner climes while others will shut down. We know what this means, even more job losses and the economy will be worse off for it. I am calling on the government to save the real and industrial sector from total collapse,” he said.
While most heavy-duty vehicles rely on diesel, Nigerians have been advised to explore other alternative transport means to cope with the rising price of diesel in the country.
Stakeholders within the transport sector encouraged Nigerians to consider carpooling, explore electric vehicles, while adopting public transit options to cushion the effect of the hike.
They noted that the increment will mean an increase in household items, commodities and other things, stating that the government must quickly address fundamentals like wages; foreign exchange regime and security.
This is even as the Nigeria Employers’ Consultative Association (NECA) has called on the Federal Government to remove the 7.5 per cent Value Added Tax (VAT) on Diesel and Premium Motor Spirit (PMS), as measures to moderate increases in the prices of fuels in the immediate term.
Chief Executive Officer, West Atlantic Cold-Chain and Commodities Limited, Henrii Nwanguma, said this will throw up issues like salary increase; changing jobs and school for children to places nearer home; working from home; carpooling; online meetings and purchases as opposed to physical.
Nwanguma also added that rationalising movement; deployment of higher capacity vehicles; increase in crime (like “one chance”); demand for more efficiency in passenger and delivery services; use of cheaper fuels like gas (and the necessary switch over of generators and heavy-duty engines to gas from diesel), among others.
Perhaps, he said this will be the push many will need to jump into self-employment but it also calls for smart use of resources including collaboration. Like everything, there are positives and negatives.
Professor of Transport and Logistics, Lagos State University (LASU), Samuel Odewumi, said it is no brainer that the cost of freight transportation and manufacturing relying on diesel for their vehicles and generators will go up.
He said that will not persuade him to advocate for a return to the corruption burdened subsidy regime.
Odewumi, who doubles as Chairman of, Road Sector Committee, Chartered Institute of Transport Administration of Nigeria (CIOTA), said after all the prices of the same commodity is far more expensive in other West Africa countries, for instance, Ghana and yet industries are closing in Nigeria and relocating to Ghana.
“Our country needs to address other fundamentals like wages; foreign exchange regime and security.
“Let us hope that Dangote will be able to roll out the production of Diesel next month as recently announced,” he said.
Associate Professor at Keele Business School, United Kingdom, Emmanuel Mogaji, said the higher diesel prices translate directly into increased transportation costs for households.
Whether it’s commuting to work, school, or accessing essential goods and services, these rising costs affect the disposable income of families. This, in turn, can lead to adjustments in household budgets, potentially resulting in cutbacks on non-essential expenditures.
Mogaji said the increased financial burden from higher transportation costs can create stress and limit access to vital services, especially for lower-income households. It can also impede mobility and restrict opportunities for employment, education, and healthcare.
Considering these challenges, he said it’s imperative for individuals and households to explore alternative modes of transportation and evaluate their need for travel. This might involve considering more fuel-efficient vehicles, carpooling, or adopting public transit options.
According to him, as the world moves towards sustainable transportation, this increase may be what Nigerians need, a push towards exploring electric vehicles, bicycles, and walking as alternatives can not only reduce the financial burden but also contribute to a greener and more environmentally friendly transportation system.
Ultimately, he said the current diesel price surge underscores the importance of reevaluating the transportation choices and seeking cost-effective, sustainable, and inclusive alternatives that can mitigate the impact on household finances and overall well-being.
Director-General of NECA, Adewale-Smatt Oyerinde, made the submission, following the hike in prices of fuels, especially diesel cost that is almost N1,000.
He lamented that the challenge of the increase in diesel prices is even more precarious for local industries and auxiliary businesses that mostly depend on diesel to generate power as the electricity supply from the national grid remained epileptic and costly.
According to him, local manufacturers and businesses are really not finding it easy to stay in business, as industries would suffer most severely as the majority of their products are price elastic.
He said this limits their ability to transfer the element of diesel price increase to the prices of the commodities.
“LPG has been the last resort of households since the price of diesel and DPK escalated to about N800/litre, but unfortunately it has been drifting beyond the reach of households.
“It is a very precarious situation for transporters, industries and households as the prices of PMS, diesel and LPG are going beyond reach,” he said.
In the short to medium term, he said there was the need for the government to denominate the price of gas in Naira and in the long term, incentivise private investment in gas aggregation as well as resuscitate the four national refineries.
Noting that the price of diesel had stayed high at N800/litre since government ended subsidy in 2023, however, he said with the removal of the fuel subsidy, the price of diesel grew by almost N200/litre (25 per cent), which conforms with the law of economics given that PMS and diesel are close substitutes.
The National Association of Nigeria Nurses and Midwives, Lagos State Council, has said the suspect arrested for injecting the late Afrobeat singer, Ilerioluwa Aloba, popularly known as Mohbad is not a registered nurse.
The Association, Lagos State Council made this known in a statement released on Saturday.
Vanguard reported that the late singer’s father, Aloba had raised the alarm about how the Mohbad was injected by an auxiliary nurse before his demise which continues to spark controversy around his death.
Aloba said, “According to what I heard from people, The only thing I can think of is maybe this auxiliary nurse that used to treat people which is a very bad idea. I do not know the kind of level the woman is.
“They said they called her to give him an injection and that is a very bad idea and that injection can result in any length. He had wounds but I do not know the kind of wounds he had.”
The Nurses Association in its statement expressed its condolences to the Aloba family but chided media reports over the injection by nurses noting that there is a need for professionalism in reporting and conducting the ongoing investigation into the circumstances surrounding Mohbad’s death.
“The National Association of Nigeria Nurses and Midwives, Lagos State Council, expresses its deepest condolences to the family and associates of the late musician, Ilerioluwa Aloba, popularly known as Mohbad, during this difficult time. Our thoughts and prayers are with them as we mourn his tragic passing.
“We fully support the ongoing investigation into the circumstances surrounding his death and urge the relevant authorities to leave no stone unturned in the pursuit of justice for him.
“However, we must stress the importance of professionalism in reporting and conducting this investigation. NANNM is closely monitoring the situation with keen interest. Our preliminary investigations indicate that the individual reportedly taken into custody by the police for providing care to Mohbad is not a registered Nurse.
“We emphasise the critical need to verify the qualifications and professional status of individuals before labelling them as healthcare professionals,” the statement read in part.
“In Nigeria, to be recognised as a Nurse, one must complete a rigorous five-year Bachelor of Nursing Science program at a university, followed by an additional year of internship. Alternatively, one can undergo training at an accredited School/College of Nursing and become registered and licensed by the Nursing and Midwifery Council of Nigeria.
“We wish to clarify that the term ‘Auxiliary Nurse’ has no place within Nigeria’s healthcare system or its laws. An individual is either a qualified Nurse or an unqualified individual performing tasks beyond their competence.
“Furthermore, we call on the investigating authorities and the media to exercise caution and accuracy in their reporting during this investigation. We will not tolerate any misrepresentation of Nurses and the Nursing profession. We demand that all media outlets that inaccurately reported the arrest of a Nurse take immediate corrective action to rectify their stories”, it added.
Federal Government may spend about N1.68tn as subsidy on Premium Motor Spirit, popularly called petrol, from September to December this year, an analysis of data provided by oil marketers and the sector has shown, in report by the Punch.
PMS dealers stated on Thursday that the pump price of petrol should be between N890 to N900/litre based on the fall of the naira against the United States dollar and the surge in the price of crude in the international market.
Petrol currently sells at between N598 and N617/litre depending on the location of purchase, fuelling suspicion that the commodity is being subsidised by the Federal Government.
The government and the NNPCL have not officially admitted that subsidy on petrol has been reintroduced. President Bola Tinubu had on May 29 announced an end to the subsidy regime during his inaugural address.
The government subsidises PMS through the Nigerian National Petroleum Company Limited. NNPCL is the sole importer of PMS. Other marketers stopped PMS imports due to their inability to access foreign exchange.
The removal of subsidy led to an increase in the pump price of petrol from about N198/litre in May to the current rate of N617/litre. But the fall of the naira coupled with the rise in crude oil price have continued to mount pressure on the cost of PMS.
Dealers in the downstream oil sector explained that the cost of crude oil and the exchange rate of the naira-dollar accounted for over 80 per cent of the cost of PMS.
Brent crude, the global benchmark for oil, rose to about $95/barrel on Thursday. It had peaked to $97/barrel the preceding day, which was the highest figure in 2023.
Oil had started the year at about $82/barrel, dipped to $70/barrel in June, but traded above $94/barrel in the past week.
Also, the naira continued its downward trend after exchanging to the dollar at 980 on the parallel market on Wednesday.
A week earlier, the naira was exchanged to the dollar at 950/$.
However, on the FMDQ at the Investor & Exporter forex window, the naira appreciated slightly after closing at 770.71/$ on Wednesday from 776.76/$ on Tuesday.
The forex crisis and the recent rise in crude price, according to oil marketers, have made it impossible for petrol price to still remain at N617/litre. They insisted the government had quietly reintroduced fuel subsidy.
A media report on Thursday indicated the Federal Government paid N169.4bn subsidy in August, 2023.
Quoting a Federal Account Allocation Committee document, the report said the Nigerian Liquefied Natural Gas paid $275m as dividends to Nigeria via NNPCL.
NNPCL, according to the report, used $220m (N169.4bn at N770/$) out of the $275m to pay for the PMS subsidy in the review month.
“I told you earlier that there is no way that the government will sustain the price of petrol at N617/litre without paying subsidy on it, going by the continued fall of the naira,” the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said on Thursday.
He added, “The dollar is almost N990 at the parallel market currently, and you can see the effect of this on the pump price of diesel. Diesel is close to N1,000/litre, so the retail price of PMS should be around N890 to N900/litre.
“Therefore, it is better the government assists the masses by paying subsidy. From our records, in the United States, the super product or petrol is sold around $3.9, which is close to about N3,000/litre.
“The premium product is sold at about $2.89, which is over N2,000/litre. And if you check in other African countries you will find out that the product is being sold at between N1,200 and N1,500. But going by the forex rate in Nigeria, it should be around N900/litre.”
It was gathered that the subsidised ex-depot price of petrol as sold by NNPCL, was between N585 and N600 depending on area of purchase.
By subtracting the ex-depot cost of N600/litre from the projected unsubsidised rate of N890/litre, that the government may have been spending about N290/litre as subsidy currently.
In July, data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that between June 1 to June 28, 2023, which was described as the post-deregulation period, the total petrol consumption across the country was 1.36 billion litres, while the average daily consumption was put at 48.43 million litres.
With an average daily consumption of 48.43 million litres and an estimated subsidy of N290/litre, the government could be incurring N14.04bn as subsidy daily, while this could rise to N421.3bn monthly.
This could rise to as high as N1.68tn for the months of September, October, November and December 2023, should the naira continues its fall against the dollar and crude price maintains its upward surge.By subtracting the ex-depot cost of N600/litre from the projected unsubsidised rate of N890/litre, that the government may have been spending about N290/litre as subsidy currently.
In July, data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that between June 1 to June 28, 2023, which was described as the post-deregulation period, the total petrol consumption across the country was 1.36 billion litres, while the average daily consumption was put at 48.43 million litres.
With an average daily consumption of 48.43 million litres and an estimated subsidy of N290/litre, the government could be incurring N14.04bn as subsidy daily, while this could rise to N421.3bn monthly.
This could rise to as high as N1.68tn for the months of September, October, November and December 2023, should the naira continues its fall against the dollar and crude price maintains its upward surge.
As Nigeria’s President Bola Tinubu rang the closing bell at New York’s Nasdaq exchange this week, he exhorted investors to “be confident in Nigeria.”
His ebullience was a stark contrast with the mood on the streets of Nigeria, where confidence in the country’s currency is ebbing fast. The naira plunged to a new record low on Thursday and is on the cusp of touching 1000-per dollar on the parallel market, according to traders who track the exchange rate. As citizens and companies alike rushed to buy dollars, the naira was quoted almost 30% below where it officially closed Wedneday on the FMDQ OTC trading platform.
“The demand for foreign exchange is currently a stampede,” said Ogho Okiti, chief executive of ThinkBusiness Africa, a Lagos-based advisory and data services firm. “The demand is now not just for imports, but also for store and preservation of value.”
The naira rout has dissipated much of the optimism generated by the reform program Tinubu unveiled soon after he took office in June. He pledged back then to unify a complex system of exchange rates, and scrapped a costly years-old system of fuel subsidies, sending Nigerian markets soaring.
Tinubu reiterated his commitment to reform in New York, telling investors they were “free to take in your money and bring out your money.” Bottlenecks had been removed while the exchange rate had been retooled “to a reliable, one figure exchange rate of the naira,” he added.
Market players disagree. Many attribute the latest naira plunge partly to the central bank’s failure to supply dollars to the official market. They say the bank has been on the sidelines since the start of the month, forcing buyers to flock to street traders for the greenback. That’s sharply widened the gap between the parallel and official exchange rates which had converged after Tinubu took office.
Authorities are not allowing the market to function on a “willing buyer, willing seller” basis, which they had pledged to do, said Ayo Salami, chief investment officer at Emerging Markets Investment Management Ltd. in London.
“With the current restrictions in the FX market, it is not possible to form a realistic judgement on the value of the naira,” Salami added.
Unease has grown over other reforms too, especially after Tinubu was forced last month to suspend a planned gasoline price increase.
Hopes of a speedy and substantial interest rate hike to stabilize the naira were dashed meanwhile by a central bank announcement that it would postpone next week’s policy meeting until further notice. Interest rates are currently at 18.75%, compared with inflation approaching 30%.
Its new governor, former Citigroup executive Olayemi Cardoso, is yet to be confirmed in his role, while the acting governor and four deputy governors have resigned, effectively leaving a policy-making vaccuum at the top.
Foreign investors are still holding off investing in local assets, fearful of exposure to a falling naira and the possibility of being unable to withdraw their capital from the country. Authorities are also yet to clear a backlog of hard currency arrears to the tune of billions of dollars owed to foreign companies and investors.
The naira selloff has rippled into Nigerian dollar bond markets where the issue maturing 2033 fell more than half a cent on Thursday to 76.5 cents, some seven cents off end-July highs. The Lagos stock exchange closed modestly lower for a second day, though it is still hovering near the 15-year highs hit soon after Tinubu took office.
“People are not going to come in until they’re sure that there is a certain amount of stability around the exchange rate, and that’s where we are,” Segun Agbaje, chief executive officer of Guaranty Trust Holding Co., told investors last week.
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Judge Nancy Maldonado of the United States District Court for the Northern District of Illinois has placed an immediate stay on the release of President Bola Tinubu’s university records after he pleaded severe and irreparable consequences to his life.
Tinubu, through his lawyers, begged Maldonado, a district judge, that the September 6 order of Judge Jeffrey Gilbert, a magistrate, should be delayed. The judge agreed that the matter might be too severe for Tinubu to bear and granted a stay until further argument on the matter.
‘This needs to be handled with care,” Maldonado said.
The judge gave Tinubu’s lawyers until Monday to file a full brief on the matter before the court. Atiku Abubakar’s lawyers said they would reply to the brief by 11:00 p.m. on the same day.
“I may ultimately adopt the magistrate’s recommendation and allow the discovery to go forward, or I can ask all parties to file briefs afresh,” the judge added.
At issue has been the subpoena application filed by Abubakar seeking to obtain records of Tinubu at Chicago State University, following widespread inconsistencies with the Nigerian president’s academic records already in the public domain.
Abubakar’s application was granted in a judgement issued on Tuesday by Gilbert, who ordered the production of the documents as well as the deposition of the school’s administrators. Abubakar plans to use the records to demonstrate Tinubu’s ineligibility for president, relying on the constitutional section that disqualifies a candidate who submitted a forged certificate to the electoral office INEC.
CSU officials have insisted that Tinubu attended the school, but they they have also said they couldn’t authenticate his certificate under oath because they couldn’t tell where he found it.
Tinubu initially argued that the documents should not be released to Abubakar because they would not be tenable before the Nigerian Supreme Court, where Abubakar now intends to file them as part of his appeal against a tribunal verdict that certified Tinubu’s election on September 6.
Abubakar submitted his appeal to the Supreme Court on September 19, the same day Gilbert ordered CSU to release Tinubu’s records within two days.
But as the 48-hour deadline loomed on Thursday afternoon, Tinubu suddenly approached Maldonado, seeking a delay, and suddenly elevating the desperate situation of the matter to include potential damage to Tinubu’s life.
“Severe and irreparable harm will be done to Bola Tinubu if the records are released,” Tinubu’s lawyer argued at an emergency appeal before Maldonado of the United States District Court for the Northern District of Illinois in Chicago.
If the records are released, harm will be done and cannot be taken back to the bottle, Tinubu’s lawyer added during the court hearing that began at 3:00 p.m. via telephone conference and lasted about 40 minutes.
Atiku Abubakar, candidate of the Peoples Democratic Party (PDP), says the “disparaging words” used by the presidential election petitions tribunal when it upheld the victory of President Bola Tinubu were signs that it was biased against him and his party.
Abubakar said the tribunal failed to take into cognisance the “doctrine of legitimate expectation”, which he noted is a reason the verdict affirming Tinubu’s victory should be overturned.
On September 6, the tribunal dismissed the petitions filed by the PDP candidate and Peter Obi, standard bearer of the Labour Party (LP).
The court ruled that their cases were devoid of merit.
But the former vice-president has filed an appeal before the supreme court to challenge the verdict.
In the notice of appeal dated September 18, Abubakar argued that the alleged non-compliance by the Independent National Electoral Commission (INEC) with the electoral act is another reason the verdict should be nullified.
“The lower court erred in law when it failed to nullify the presidential election held on February 25, 2023 on the ground of noncompliance with the Electoral Act 2022, when by evidence before the court, the 1st respondent (INEC) conducted the election based on very grave and gross misrepresentation contrary to the principles of the Electoral Act 2022, based on the ‘doctrine of legitimate expectation’,” the appeal filed by Chris Uche, Abubakar’s counsel, reads.
“The 1st Respondent neither deployed the electronic transmission of election results nor the electronic collation system in the said election, sabotaging the raison d’etre for the enactment of the new Electoral Act 2022 and the introduction of the technological innovations.
“Rather than hold the 1st respondent (INEC) as a public institution accountable to the representations that it made pursuant to its statutory and constitutional duties which created legitimate expectation on the part of the appellant, the lower court wrongly exonerated the 1st respondent of any responsibility by holding that the use of the technological innovations to guarantee transparency was not mandatory.
“The justices in their verdicts, while discountenancing the arguments and contentions of the appellants used expressions such as ‘ludicrous’ (page 721 of the judgment), ‘clever by half’ (page 557 of the judgment), ‘dishonourable practice’ (page 507 of the judgment), ‘smuggle’ (page 557), ‘fallacious’ (page 721 of the judgment); ‘foul play’ (page 560 of the judgment), ‘cross the line of misconception’ (page 644 of the judgment); ‘collect evidence from the market’ (page 765 of the judgment); ‘those who are not used to reading preambles’ (page 726 of the judgment); ‘hollowness in the argument of the petitioners’ (page 727 of the judgment); etc.
“It is the position of the appellants that the choice of words and expressions by the lower court shows the lower court’s contempt and disdain for the appellants.”
Abubakar said it is guaranteed under the law for a candidate to file a petition against an outcome of an election he is not comfortable with.
The Ogun State Chapter of the Peoples Democratic Party (PDP) has voiced strong reservations regarding the recent arrest of Damilare Bello, a sitting member of the Ogun State House of Assembly representing Sagamu Constituency 1.
Bello, a member of the PDP, was apprehended by officers of the Department of State Services (DSS) in connection with the ongoing investigation into the tragic Sagamu carnage that has reportedly claimed more than 25 lives.
In a statement by Asiwaju Akinloye Bankole, the Ogun State Publicity Secretary of the PDP, he said the PDP does not object to the DSS or any security agency conducting an investigation into the Sagamu incident, they assert that the inquiry lacks professionalism and sincerity. He accuse the ruling government, led by Prince Dapo Abiodun, of sensationalizing the arrest through state-owned media outlets, suggesting it’s an orchestrated attempt to tarnish Bello’s reputation.
According to the statement, "Of particular interest to the PDP is the coincidence that the arrest of the Honorable Member occurred shortly after he returned from London to Abeokuta, where he raised concerns about security matters in his constituency on the floor of the House. The PDP suggests that the Sagamu killings stem from the alleged empowerment of cultists by Governor Abiodun and his All Progressives Congress (APC) party, who were accused of violently rigging the same election contested by Bello".
The PDP calls upon the DSS to rise above partisanship in its duties, emphasizing that it is a legal entity and should not be used as a tool for political witch hunts.
The statement referenced previous incidents involving journalists which included Femi Davies, Daud Olatunji, and Wale Adedayo, expressing concerns about misuse of power.
"As a law-abiding political organization, the PDP commits to cooperating with the DSS and other security agencies to ensure peace and tranquillity in Ogun State"
Urging the DSS to remain impartial, they stressed the importance of addressing the root causes of the Sagamu crisis rather than targeting innocent members of their party.
The responsibility, the PDP suggests, lies with Governor Abiodun to investigate within his inner circle, including his appointees, functionaries, party leaders, and friends in Sagamu Local Government, to identify the source of the ongoing issues.
Security operatives in Ogun State on Wednesday tracked six suspected cultists, allegedly involved in the violence that erupted in Sagamu at the weekend to the official residence of a member of the state House of Assembly.
The member, representing Sagamu State Constituency (1), Hon. Damilare Bello Mohammed, was alleged to have provided shelter to the fleeing cultists.
A team of security operatives, in a sting operation after a tip-off, arrested the suspects in the premises of the lawmaker.
Those arrested, according to sources, include Damilare Bello Mohammed aka DRE, Debbo Animashaun, Bamidele Saheed, Ismaila Onitire, Adewale Otesanya and Tobi Owoade.
They are presently undergoing interrogation at the Department of State Service (DSS).
Sources alleged that many dangerous weapons, including guns, were recovered from the suspects.
It would be recalled that Hon. Bello was arrested by the DSS for allegedly masterminding the violent protest that took place in February this year in Sagamu over the naira redesign policy by the Central Bank of Nigeria (CBN).
During the protest, irate youths vandalised about 10 banks and other public infrastructures.