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FG Drops N169.4 Billion for Subsidy in August What You Need to Know!”

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Despite President Bola Ahmed Tinubu’s assurances that the subsidy had been abolished, revelations surrounding the Federal Government’s payment of N169.4 billion in subsidy in August have ignited controversy and skepticism. This development challenges the narrative of subsidy removal and prompts further inquiry into its implications.

 

Government Subsidy Under Scrutiny

Daily Trust’s investigation uncovered that the Federal Government disbursed N169.4 billion in August to maintain the pump price of Premium Motor Spirit (PMS) at N620 per litre. The payment was allegedly orchestrated by the Federal Account Allocation Committee (FAAC), which utilized dividends of $275 million from the Nigerian Liquefied Natural Gas (NLNG) to offset the subsidy. The move suggests that subsidies on PMS may have resurfaced, raising questions about the government’s commitment to subsidy removal.

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A Return to Subsidy?

The revelation has led to concerns among Nigerians, especially given the challenging economic climate. The depreciation of the Naira against the US Dollar and rising international crude oil prices, exceeding $95 per barrel, have fueled doubts about the sustainability of subsidy removal.

 

Economic and Market Dynamics

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Analysis indicates that despite rising global crude oil prices and exchange rate fluctuations, the Federal Government has kept the domestic PMS price steady at N617 per litre. Notably, the price of PMS at the international market has surged, posing challenges for Nigerian marketers. With increased landing costs, PMS now stands at approximately N728.64 per litre, significantly higher than the N529 rate observed in July.

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Government’s Strategy and Loan Dilemma

The Nigerian National Petroleum Corporation (NNPC) Limited’s announcement of a $3 billion crude repayment loan from the African Export-Import (Afrexim) Bank aimed at stabilizing the Naira has faced obstacles as other lenders withdrew from the syndicated transaction. The loan’s impact on fuel costs remains uncertain.

 

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Behind Closed Doors

Daily Trust’s investigation reveals that high-level government approval facilitated the controversial N169.4 billion subsidy payment. A delicate agreement with oil marketers reportedly helped maintain the current PMS price, averting a potential crisis.

 

Expert Perspectives

Experts have voiced concerns about the sustainability of subsidy removal without a functional refinery and FX stability. They emphasize that fluctuations in crude oil prices and foreign exchange rates directly affect PMS prices. Stabilizing the Naira is seen as critical to fulfilling the government’s promise of subsidy removal.
As questions linger and the subsidy debate continues, Nigerians await clarity on the government’s stance and its implications for the economy and their daily lives.

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Youths reject Akeredolu’s choice of LCDA chairman, deputy

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The youths of the Araromi Obu community in Odigbo Local Government Area of Ondo State have appealed to the state governor, Rotimi Akeredolu, to change the caretaker chairman and vice-chairman nominated for the newly created Ifesowapo Local Council Development Area of the state.

On Thursday, the state House of Assembly screened and approved 51 nominees for the Interim Management Committee of the 18 local governments and the LCDAs in the state.

The nominees whose names were sent to the Assembly by the state governor, were to manage the affairs of the councils till the LG elections in February 2024.

The Araromi-Obu youths said the two nominees for their LCDAs were non-indigenes of the area and were also not acceptable to the community’s people.

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The Youths President in the community, Mr. Dayo Akinro, who spoke on Friday about the agitation, in Akure, the state capital, said the appointment of the duo did not reflect the spirit of fairness to the people of Araromi-Obu.

Akinro said, “We respectively express our outright displeasure and rejection of the nomination of two individuals (chairman and vice-chairman) because their nomination and appointment does not reflect the spirit of fairness to Araromi-Obu as the host community and the indigenes of the town.

“This appointment is considered an embarrassment on the face of an average indigene of Araromi-Obu because the council is newly created thus having a non-indigene as the pioneer head in the administration of the council negates the spirit of fairness and sense of belonging as indigenes of a community like ours should enjoy.”

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He noted that the nominations of the duo for the community may deepen the conspiracy against the interest of their LCDA.

“Their appointment is considered an insult to the collective sensibility and it is set to deepen the age-long conspiracy against the interest of our community if not rescinded. To this extent, we reject them, also, the gods of our land reject them.

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“On this basis, considering the afore-stated reasons and in order to have a peaceful take-off of the new local council and subsequent symbolic working relationship with the community, we demand as a matter of saliency, necessity and urgency the withdrawal of the nomination and replacement with the indigenes of Araromi-Obu in the interest of fairness and justice and considering Governor Akeredolu’s indelible antecedents in the fight against injustice in our national life,” the youths president appealed.

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JUST IN: Ganduje inaugurates Rivers APC caretaker committee

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The National Working Committee of the ruling All Progressives Congress on Friday inaugurated members of the caretaker committee for the Rivers State chapter of the party.

The inauguration, which took place at the national headquarters of the APC in Abuja around 12.30 pm, had the party’s National Chairman, Dr Abdullahi Ganduje; Vice Chairman for South-South, Victor Giadom and members of the NWC in attendance.

The event took place two days after the APC NWC dissolved the former state excos to pave the way for the ad hoc committee that will oversee the conduct of a congress to elect new state executive members.

The dissolution was announced at the party secretariat by the National Publicity Secretary, Felix Morka, on Wednesday.

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Morka disclosed that Chief Tony Okocha was chosen as chairman and Eric Nwibani Secretary of the seven-man caretaker committee.

Other members include Chibuike Ikenga, Stephen Abolo, Silvester Vidin, Senibo Karibi Dan-Jumbo, and Miss Darling Amadi.

Addressing the newly sworn-in officers after the oath-taking, Ganduje asked them to prepare themselves for the arduous task of reconciling factions and members who had left the party.

The APC national chairman also charged them to use the six-month duration to create an enabling environment for the congress that will usher in leadership at all levels.

He said, “I want to congratulate the newly sworn-in members of the caretaker committee. I am sure you are fully aware that since 2015, the APC has been suffering some setbacks in the areas of conflicts, litigations, and counter-litigations that finally resulted in the loss of our great party in Rivers State.

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“So, this new NWC has taken a look at the issues pertaining to the party both at national and individual state levels and decided to reform the party. There is no doubt we have members who have been with APC since inception. Some left the party. Some prominent chieftains who left the party even contested against us in another political party. They now wish to come back. Those who left to form factions are also ready to come back.

“You can see that there is no better time to rejig the party than now especially under a new state party leadership and we have confidence in you. Part of the reform system we have introduced includes electronic registration of our members and we request that you pay attention to the electronic registration of our members and do some work to spearhead the exercise.

“We expect you to constitute various committees to get more members into the party. That is the work you should do and we expect you to create an enabling environment so congresses could be conducted for the emergence of leadership at local government, state, and even senatorial levels.

There should be no discrimination because you are a product of unity.”

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Lagos didn’t fund Sanwo-Olu’s election legal dispute – Commissioner

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The Lagos State Government on Monday denied an allegation by the Labour Party candidate, Gbadebo Rhodes-Vivour, that the state funded Governor Babajide Sanwo-Olu’s post-election legal dispute.

Commissioner of Information, Gbenga Omotoso, in a statement reacting to the allegation, stated it was not true but a ploy to deceive the public.

Omotoso noted that though a payment request was made, it was turned down by the governor after the Attorney General noticed its irregularity.

The commissioner urged those scrutinising the finances of the state to base such inquiry on verified facts.

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The statement read, “A post on ‘X’ by Labour Party (LP) candidate Mr. Gbadebo Rhodes-Vivour, on November 19, 2023, alleged – without any proof whatsoever – that the Lagos State Government funded Governor Babajide Sanwo-Olu’s legal dispute after the March 18, 2023 election. This is not true.

“The allegation was supported by a document that neither carried the logo of the Lagos State Government nor the endorsement of any of its officials. It was simply another ploy to deceive the public about a non-existent payment of N50,000,000 to four lawyers.

“While it is worthwhile for patriotic individuals to scrutinise the finances of the Lagos State Government, the outcome of such inquiry must always be based on verified facts and nothing but the truth.

“The transaction referenced by Mr. Rhodes-Vivour never took place. There was a payment request, which was not approved by Mr. Governor when the Honourable Attorney-General and Commissioner for Justice drew his attention to it because it was irregular.

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“For the avoidance of doubt, Governor Babajide Sanwo-Olu will never misappropriate public funds in defiance of his Oath of Office”.

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