The Federal Government has postponed the planned petrol subsidy removal till further notice due to “high inflation and economic hardship”.
Subsidy or under-recovery is the underpriced sales of premium motor spirit (PMS), better known as petrol.
The government had planned to stop subsidy payments on petroleum products from July this year.
Zainab Ahmed, minister of finance, budget, national planning, disclosed this on Monday in Abuja at a meeting with Senate President Ahmad Lawan.
The meeting had Timipre Sylva, minister of state for petroleum resources; representatives of oil companies, among others, in attendance.
Last week, Lawal had said Buhari did not direct the removal of petrol subsidy, saying their “constituents are raising concerns over the policy”.
The National Economic Council (NEC) said it is still considering the recommendations of its ad-hoc committee – which proposed full deregulation and N302 per litre for PMS.
Ahmed said petrol subsidy was provided for in the 2022 budget to run from January till June.
She, however, said that after consultations with stakeholders — in view of the high inflation and economic hardship – additional provisions would be made beyond the initial period.
According to her, it has become clear that the timing for the removal of petrol subsidy will be problematic as the country still experiences heightened inflation.
“Provision was made in the 2022 budget for subsidy payment from January till June. That suggested that from July, there would be no subsidy,” Ahmed said.
”The provision was made sequel to the passage of the Petroleum Industry Act, which indicated that all petroleum products would be deregulated.
“Sequel to the passage of the PIA, we went back to amend the fiscal framework to incorporate the subsidy removal.
“However, after the budget was passed, we had consultations with a number of stakeholders, and it became clear that the timing was problematic.
“We discovered that practically, there is still heightened inflation and that the removal of subsidy would further worsen the situation and impose more difficulties on the citizenry.
“Mr President (Muhammadu Buhari), does not want to do that. What we are now doing is to continue with the ongoing discussions and consultations in terms of putting in place a number of measures.
“One of these include the roll-out of the refining capacities of the existing refineries and the new ones, which would reduce the amount of products that would be imported into the country.
“We, therefore, need to return to the National Assembly to now amend the budget and make additional provision for subsidy from July 2022 to whatever period that we agreed was suitable for the commencement of the total removal.”
On his part, Lawan appealed to the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to shelve their planned industrial action over subsidy removal as it has become unnecessary.
TheCable
The General Council of the World Trade Organization (WTO) has agreed by consensus to reappoint Dr. Ngozi Okonjo-Iweala as Director-General for a second four-year term, set to begin on 1 September 2025. This decision reflects broad recognition of her exceptional leadership and strategic vision for the future of the WTO.
The reappointment process, initiated on 8 October 2024, was overseen by Ambassador Petter Ølberg of Norway, Chair of the General Council. With no additional nominations submitted by the 8 November deadline, Dr. Okonjo-Iweala stood as the sole candidate. The process was conducted in a fully open and transparent manner, adhering to the WTO’s “Procedures for the Appointment of Directors-General” (WT/L/509).
During a special General Council meeting on 28-29 November 2024, Dr. Okonjo-Iweala outlined her forward-looking vision for the WTO. Following her presentation and a Q&A session with members, the Council formally endorsed her reappointment by consensus.
Ambassador Ølberg praised her achievements, stating:
“The General Council commends Dr. Ngozi Okonjo-Iweala for her outstanding leadership during her first term. Amid significant global economic challenges, she strengthened the WTO’s ability to support its members and set a forward-looking agenda for the organization. Her leadership was instrumental in securing meaningful outcomes at pivotal moments, including the 12th and 13th Ministerial Conferences (MC12 and MC13), where major milestones were achieved.”
He continued:
“As we look ahead, the Council fully supports Dr. Okonjo-Iweala’s commitment to ensuring that the WTO remains responsive, inclusive, and results-driven. Her leadership will be critical as the organization continues to advance a resilient, rules-based, and equitable global trading system.”
Dr. Ngozi Okonjo-Iweala first assumed office as Director-General on 1 March 2021, becoming the first woman and first African to lead the WTO. Her first term concludes on 31 August 2025. Her reappointment highlights the strong support for her efforts to enhance the WTO’s relevance and capacity in addressing the evolving challenges of global trade.
Source: wto.org
The Federal Capital Territory Administration (FCTA), on Thursday, published a list of 9, 532 alleged land title debtors in Abuja, giving them a two-week ultimatum to settle their outstanding bills.
The list, which includes prominent individuals and government agencies, was published on November 26, with defaulters expected to pay for their certificate of occupancy (C-of- O) within the stipulated timeframe.
Among those listed as defaulters is former Head of State, Ibrahim Badamosi Babangida (IBB), who owes N152 million for a plot of land in Asokoro, a highbrow area in the nation’s capital. IBB, who ruled Nigeria from 1985 to 1993, is not the only high-profile individual on the list.
Other notable defaulters include Samuel Ortom, former governor of Benue, who owes N950,000 for a plot of land in Bazango, and Aminu Tambuwal, senator representing Sokoto south, who owes N18 million for a plot of land in Carraway Dallas.
The FCTA has threatened to revoke the land titles of defaulters who fail to settle their bills within the stipulated timeframe. The administration has urged defaulters to settle their bills by e-payment to the “FCT department of land administration” account.
In addition to individual defaulters, some federal agencies, including the Nigerian Financial Intelligence Unit (NFIU), the navy, and police, were also named as defaulters.
The Lagos governor’s lodge in Asokoro, the Kaduna state government, and ‘State House Abuja’ were also listed as land title debtors.
This development is not the first time the FCTA has taken steps to recover outstanding debts from landowners. In June this year, the administration set up a committee to recover over N29 billion owed by property owners.
The committee has since identified 430 individuals and organisations as defaulters, with plans to prosecute them.
The FCTA has also partnered with anti-graft agencies, including the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC), to check the activities of land grabbers in the territory.
The Senate has granted approval to the ₦1.77 trillion ($2.2b) loan request of President Bola Tinubu after a voice vote in favor of the request.
The Senate presided by Deputy Senate President, Barau Jibrin, approved the loan after the Senate Committee on Local and Foreign Debts chaired by Senator Wammako Magatarkada (APC, Sokoto North) presented the report of the committee.
The request which was submitted by the President on Tuesday is part of a fresh external borrowing plan to partially finance the N9.7 trillion budget deficit for the 2024 fiscal year.
Tinubu had on Tuesday written to the National Assembly, seeking approval of a fresh N1.767 trillion, the equivalent of $2.209 billion as a new external borrowing plan in the 2024 Appropriation Act.
The fresh loan is expected to stretch the amount spent on debt servicing by the Federal Government. The Central Bank of Nigeria recently said that it cost the Federal Government $3.58 billion to service foreign debt in the first nine months of 2024.
The CBN report on international payment statistics showed that the amount represents a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.
According to the report, while the highest monthly debt servicing payment in 2024 occurred in May, amounting to $854.37m, the highest monthly expenditure in 2023 was $641.70m, recorded in July.
The trend in foreign debt servicing by the CBN highlights the rising cost of debt obligations by Nigeria.
Further breakdown of international debt figures showed that in January 2024, debt servicing costs surged by 398.89 per cent, rising to $560.52m from $112.35m in January 2023. February, however, saw a slight decline of 1.84 per cent, with payments reducing from $288.54m in 2023 to $283.22m in 2024.
March recorded a 31.04 per cent drop in payments, falling to $276.17m from $400.47m in the same period last year. April saw a significant rise of 131.77 per cent, with $215.20m paid in 2024 compared to $92.85m in 2023.
The highest debt servicing payment occurred in May 2024, when $854.37m was spent, reflecting a 286.52 per cent increase compared to $221.05m in May 2023. June, on the other hand, saw a 6.51 per cent decline, with $50.82m paid in 2024, down from $54.36m in 2023.
July 2024 recorded a 15.48 per cent reduction, with payments dropping to $542.50m from $641.70m in July 2023. In August, there was another decline of 9.69 per cent, as $279.95m was paid compared to $309.96m in 2023. However, September 2024 saw a 17.49 per cent increase, with payments rising to $515.81m from $439.06m in the same month last year.
Given rising exchange rates, the data raises concerns about the growing pressure of Nigeria’s foreign debt obligations.
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