Subsidy Removal: Northern group calls for Kyari’s resignation, plans mass protest

The Arewa Citizens Watch for Good Governance (ACWGG), a watchdog group advocating good governance, has announced plans for massive protests on August 3rd to express dissatisfaction with the leadership of Mr. Mele Kyari, the Group Managing Director of the Nigeria National Petroleum Company Limited (NNPCL). The group is calling for Kyari’s immediate sack in response to the recent increase in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, which has exacerbated widespread hunger in the Northern part of the country. The ACWGG also highlighted the 2022 and early 2023 artificial fuel scarcity that resulted in long queues at filling stations.  “Miraculously, the queues disappeared immediately after the 2023 general elections. “The endemic and systemic corruption that the corporation is known for encouraged the racketeering in the defunct subsidy administration which ended up lining the pockets of major marketers with petro-dollars. He said this further reduced resources available for the usage of the common people,” he said. Abbas explained that most Nigerians believed that the forces behind the scarcity and unwarranted increase in the price of PMS were working against the interest of President Bola Tinubu, saying such notion ended up boomeranging. “The dark forces took the fight to another dimension by persuading the then President-elect to announce the removal of the subsidy without carrying out a proper situation analysis. “This, we believe was done to punish poor Nigerians who willingly voted for President Tinubu. Indeed, Nigerians are serving the artificial punishment which is reminiscent of the hard training our armed forces undergo. “We are afraid that should the tribunal and Supreme Court Justices order for a rerun election today, we doubt if the president can survive it,” he said. The Publicity Secretary perceived the termination of the subsidy regime, where the NNPCL was planning to re-award the Pipeline Surveillance Contract to the Tompolo-owned Tantita Security Company. According to him, it was a deliberate way of passing a vote of no confidence on the Armed Forces, who are working tirelessly to ensure that Nigerians are able to sleep with their two eyes closed. Abbas, therefore, noted that on that premise, the group was mobilising its members to converge at the NNPCL Headquarters in Abuja on Thursday, “to commence mass civil action that will force the NNPCL supreme ruler to either step aside or be sacked by President Tinubu.” “We understand that things are very tough for our compatriots. They either come out to protest their way to freedom or stay home to acquire stomach ulcer which might lead to their ultimate end,” he said. He called on security agencies to mobilise their men to give the group the necessary protection, noting that “we will only exercise our inalienable rights to peaceful protest.

Subsidy Removal/FX Reforms: Harder times await Nigerians, PwC predicts

A new report by Pricewaterhouse Coopers Nigeria (PwC) says there are likely to be more difficulties for Nigerians due to the removal of fuel subsidy and floating of the foreign exchange market by the federal government. In its Nigeria Economic Outlook report for August 2023, the professional services conglomerate stated that Nigeria’s business environment would be tough as a result of higher costs of operation and lower revenue as the impact of fuel subsidy removal and floating of the forex market takes a toll on consumer spending. “Consumer spending may be adversely impacted by the elevated inflation rate (food 25.3% and core inflation 20.3% rates) and fuel price (140% increase after subsidy removal), the report said. “Business revenues may decline in the short-term mainly due to direct impact input costs and reduction in disposable incomes. “Rise in energy, food, transportation, and import costs may dampen consumer spending on non-discretionary items.” The report further stated that it impacts other sectors of the economy as transportation costs are expected to rise just as the floating of the naira will drive up the costs of imported raw materials. “Finance costs [are] to increase due to exchange rate losses from higher interest payments incurred on exposure to foreign currency denominated loans,” the report said. “These losses are on account of the currency devaluation.” PwC noted that although the increases may have a negative impact, they could provide incentives to corporates to explore local sourcing or backward integration in the medium term. The report said that economic reforms, including FX market liberalization, have the potential to attract foreign investments and drive capital inflows in the long term. “However, in the short run, investors may take a cautious “wait-and-see” stance, possibly due to the lack of additional reforms aimed at bolstering business and economic fundamentals” adding that “an increase in inflation could lead to a reduction in real yields or returns on investments.”

Labour walks out of meeting with FG over subsidy removal palliatives

In a significant turn of events, representatives of organized labour on Friday walked out of a crucial meeting with the Federal Government’s team on palliatives. The meeting was convened to address the issue of providing relief measures to offset the impact of fuel subsidy removal in the country.The labour team, led by the President of the Nigeria Labour Congress (NLC), Joe Ajaero, left the meeting without addressing the press as they exited the venue.The discussions were meant to continue the deliberations on the palliative measures that could alleviate the burden of the subsidy removal on the general populace.Earlier, the representatives from both the government and labour had met on Wednesday, and the initial reports indicated a positive outcome from those discussions. The expectation was that the government would provide feedback on the demands put forth by the labor representatives when they resumed the meeting on Friday.However, to the disappointment of those present, the meeting could not proceed as planned because the government’s representatives were reportedly absent. This no-show led the labour officials to take the decision to walk out in protest.Adding to the frustrations, members of the labour teams faced delays at the entrance gate of the State House as they awaited clearance before being allowed into the meeting venue.These circumstances only furthered the tensions and impeded progress during the scheduled discussions.The issue of fuel subsidy removal has been a contentious one, with labour advocating for measures to mitigate its impact on the citizens. As the situation stands, the unresolved negotiations between the government and labour have led to a standstill in finding viable palliative solutions.The hope now lies in the willingness of both parties to reconvene and engage in meaningful dialogue, finding common ground to address the concerns of the populace and ensure the smooth implementation of any subsidy removal palliatives in the future.In the meantime, it is presumed that the proposed nationwide strike for August 2 next could still go on.

Subsidy Removal: Reps approve Tinubu’s N500bn palliative

A bill for an Act to authorise the issuance of N500 billion from the 2022 Supplementary Appropriations for the provision of palliatives to Nigerians to cushion the effect of fuel subsidy removal, has passed second reading in the House of Representatives. The bill, sponsored by the Executive, was presented on the floor of the house by the Majority Leader, Rep. Julius Ihonvbere at Thursday’s plenary. Leading the debate, Ihonvbere said that at a certain point, each nation took time out to reflect on its programmes and policies. He said that many members of the parliament had moved motion for the provision of palliatives to cushion the effects of subsidy removal. The rep said that the request of the executive was a clear indication that “we have a government that listens”. Ihonvbere saith that the bill, when passed into law, would provide support for Nigerians to weather the effect. He urged members to support the passage of the request in the spirit of collaboration with the executive. Ihonvbere said that everyone was feeling the effect of subsidy removal, saying that Nigerians were waiting to see how the matter would be handled and if the parliament had the interest of the people at heart. Rep. Ahmed Jaha (APC-Borno) commended the executive for taking the bull by the horns and for taking a painful decision to remove the subsidy in the interest of Nigerians. The lawmaker said that it was one to provide funds and another for the funds to be used for the purpose it was meant. He said that budget and supplementary budget were passed yearly but it was not often used for the purpose intended. Jaha said that as soon as it e passed, the house should ensure the money was used and implemented accordingly, saying that all 360 constituencies should no longer feel the effect of the subsidy removal. Rep. Akin Adeyemi (APC-Oyo) said that government had done the needful and that the monster subsidy was gone. “We should not only be supporting this initiative but also be looking at providing additional funds to cushion the effect of the removal.” He commended labour unions and opposition parties for understanding with the government on the matter. Rep. Beni Lar (PDP-Plateau) said it was not in doubt that Nigerians were going through unbearing hardship and commended the president for the initiative. “But what is the nature of the palliatives, how will the 500 billion be spent. “I move we set up an ad hoc committee to recommend the nature of the palliative and how it should be implemented,” she said. Rep. Olumide Osoba (APC-Oyo) said that the parliament should do its job and ensure proper oversight when the funds were released. Also, Rep. Regina Akume (APC-Benue) said that there was need for the house to form an ad hoc committee to oversight it.  “I have confidence in Presidnet Bola Tinubu, he has demonstrated capacity over time.” Rep. Sani Madaki (APC-Kano State) commended President Bola Tinubu for the initiative. He said he had called for palliatives and the president had acted, urging the parliament to do the needful for constituents to enjoy the outcome. The Minority Leader, Rep. Kingsley Chinda, said the yardstick to measure any government was its responsiveness. He commended the president for being responsive, saying that the house would want to see a palliative that would make a possible impact. “We want living wage, not minimum wage; do not suffocate us, school fees are high, the electricity bill is high, and so on. “We do not want to see N5,000 handout to Nigerians on the street; this is a fast case for the administration and we do not want them to fail,” he said. He, however, urged the house to pass the bill with the speed of light. Speaker of the House, Rt. Hon. Tajudeen Abbas, called for voice votes on the bill and members unanimously voted and the bill was passed.

Subsidy Removal: Zulum releases 80 vehicles to cushion effect

Governor Babagana Zulum of Borno on Tuesday released 80 vehicles to ease the high cost of transportation for farmers caused by the withdrawal of subsidy. A statement in Maiduguri by Special Adviser on Media and Strategy, Mallam Isa Gusau, said the vehicle compressed 50 buses and 30 pick-up vans to convey farmers to their farms for free. “To reduce the high cost of living caused by the withdrawal of fuel subsidy, Governor Babagana Umara Zulum, on Tuesday, released 80 buses and pick-up vans for free transportation of farmers. “The 80 means of transport will comprise 50 luxurious buses to be allocated from the fleet of the Borno Express Corporation, while the 30 pick-up vans will be hired by the state government. “Due to the removal of fuel subsidy which although has a long-term benefit, cost of transportation has increased. “Therefore, Borno State Government has decided to provide 50 buses and 30 pick-up vans to convey farmers to their farmlands this rainy season,” Gusau quoted Zulum as saying. The governor also addressed farmers along Maiduguri – Damboa Road, urging them to cooperate with the military and other security agencies deployed along the road to protect them. He also expressed gratitude to the military and other security agencies for their sacrifices in protecting the people. 

No plans to increase petrol price to N700/litre – IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said they have no intention of further increasing the pump price of petrol. According to the Chairman of IPMAN Southwest Zone, Alhaji Dele Tajudeen, Nigerians should disregard reports making the rounds that the Association plans to increase the price of petrol to N700 per litre. President Bola Ahmed Tinubu had on May 29, told Nigerians that the era of subsidy was gone. Speaking Friday in Ibadan, Tajudeen urged Nigerians to disregard the reports and stop engaging in panic buying insisting that there is no plan to increase the price above the price it is being sold at the moment.   “Even in the PIA, it has been clearly stated that the subsidy must be removed, so, I want to commend him for removing the subsidy and I want to say that we are in total support totally. This is because the subsidy was a scam.” He said the slight increase in pump price was because of the transportation cost and that Nigerians should be at rest as the commodity will not be out of reach for the masses. “I want to disabuse the mind of the people that they should not panic about it, there is no cause for alarm, we are in control and there is nothing like that. “So, people should be rest assured that there is no way they can buy petrol more than the price it is being sold now. “If we look at the price from NNPC retail limited, which is an integral part of NNPC limited, they have more advantages than independent marketers and major marketers. ”So, it was the retail price that they announced they had never given a specific price to the independent marketers. “However, I have read what somebody put into the paper, it is just speculation, it is not a reality. Nothing like that I want to assure the masses. “There is no way the price can go to N700 as we speak, because even if the FX is N700 or N800 that has not nothing to take the price of petroleum from N500 to N700,” Tajudeen said. He noted that the product had been deregulated, hence the differential in prices was due to transportation as it is related to location. ”If you are moving products within Lagos the price may not be more than N300,000 but if you are moving up to Ibadan or there about it could be as much as N500,000. ”And if you are going to Ilorin, it could be as high as N700,000 that would account for the difference in prices. “I want to say with all sense of authority that as of today within Lagos metropolis nobody should sell more than N515 to N520 per litre. ”Though NNPC has given us the price, the reality of it is that what we buy from the market; because NNPC limited is not the only source for our product, we get it from private depots. “So, whatever we buy is what we put on our own margin and sell. ”But as of today, the highest you can get anywhere should be around N550; Lagos N510 per litre; Ogun State between N500 and N520,” Tajudeen said.

Subsidy: Court reaffirms order restraining NLC, TUC from embarking on strike

The National Industrial Court on Monday declared that the order restraining the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) from embarking on their planned industrial action subsists. Justice Olufunke Anuwe stated that the order as granted on June 5 subsists pending the hearing and determination of the motion on notice. The court in addition, ordered that parties maintain the status quo and adjourned the matter until July 20, for a hearing. Earlier, when the case was called, the Federal Government’s counsel, Mr Ochum Emmanuel informed the court that the matter was slated for Monday for the claimant to take its motion on notice for an interlocutory injunction to restrain the defendants from embarking on strike. He added that he was ready to proceed with his application as the defendants had been served. Mr Marshall Abubakar, the defendants’ counsel on his part however replied that they had filed an application praying the court to set aside its order granted on June 5, restraining his clients from embarking on strike. Abubakar further submitted that the claimant was served the application on June 8, only for them to turn around and serve on them a counter-affidavit on Monday in court. He added that the claimant filed the counter-affidavit on June 16 and instructed the bailiff not to serve them until on Monday in court. The court enquired if defence was properly before the court, Abubakar responded that he was not certain, but that he will find out and do the needful. He also prayed for a short adjournment in order to look at the counter-affidavit and respond. Emmanuel in response opposed Abubakar’s application for adjournment and urged the court to allow him take his motion on notice which was slated for hearing. The counsel also reiterated that the federal government will never a file process and instruct any bailiff not to serve the other party. He argued that it was probably due to the fact that he filed the processes late on June 16 that made the bailiff to serve defence counsel in court on Monday. Emmanuel in his submission equally averred that the defendants were not properly before the court as they had not filed their memorandum of appearance, but only came to urge the court to vacate the order it granted on June 5. He stated that the defendants being not properly before the court cannot seek for an adjournment. In addition, he submitted that if the court should deem it fit to grant Abubakar’s application for an adjournment, the court should equally declare that the order restraining the defendants from embarking on strike granted on June 5 subsist. In his reply, Abubakar submitted that Emmanuel’s application was not necessary as the court had earlier stated that parties should maintain status quo pending the hearing and determination of the substantive suit. He also informed the court that parties were meeting later on Monday to try and resolve the issue. The court in its ruling granted the application for adjournment, directed the defendants to enter their memorandum of appearance and instructed parties to maintain status quo. From facts, he defendants had planned to embark on nationwide strike on June 7 to protest the fuel subsidy removal that brought about the new pump price for the Premium Motor Spirit. The federal government had therefore instituted the suit to stop the defendants, stating that the proposed strike may gravely affect the larger society and the well-being of the nation at large. The claimant in addition stated that the strike is capable of disrupting economic activities, that will affect especially the health and the educational sector.

Nigeria’s inflation rate rises to 22.41% in May

Nigeria’s headline inflation rate increased to 22.41 per cent in May 2023, relative to April 2023 headline inflation rate which was 22.22 per cent. According to the National Bureau of Statistics in its CPI and Inflation Report May 2023, it represents a 0.19% point when compared to April 2023 headline inflation rate. Similarly, on a year-on-year basis, the headline inflation rate was 4.70% points higher compared to the rate recorded in May 2022, which was (17.71%). More details later…