Connect with us


After $800m Palliative, FG Suspends Subsidy, Cites Wrong Timing




• New government may spend N3.5 trillion in supplementary subsidy budget
• MOMAN says incoming government best to plan, implement subsidy removal
• Lawal, others laud suspension of subsidy removal
• We’ll study it first before taking position, says Oyo TUC

Despite spending over N10 trillion in less than two years and opting for a loan of $800 million as palliative, the Federal Government, in a volte-face, made a joke of its initial plan to remove petrol subsidy when it yesterday, put the plan on hold barely a month to the proposed June take-off.

The National Economic Council (NEC), presided over by Vice President Yemi Osinbajo, on Thursday, said the timing of the subsidy removal should not be now, adding that the new administration will address the contentious matter when it comes on stream May 29.

Briefing newsmen after their valedictory session in the State House, Abuja, Minister of Finance, Budget and National Planning, Zainab Ahmed, said: “council agreed that the fuel subsidy must be removed earlier rather than later because it is not sustainable. We cannot afford it anymore, but we have to do it in such a way that the impact of the subsidy is, as much as possible, mitigated on the lives of ordinary Nigerians.

“So, this will require looking at alternatives to the post-subsidy that needs to be planned for and subsequently put in place and also what needs to be done to support the people that would be most affected as a result of the removal.

“Find in your mind that the budget for 2023 has provision for subsidy only up to June and the Petroleum Industry Act has a provision that requires that all petroleum products must be deregulated 18 months after the effective date of the PMS removal.

“We agreed to form an expanded committee looking at the process for the removal including determining the exact time and the measures that need to be taken to provide support to the poor and the vulnerable and then also the alternatives that will be put in place, including ensuring that there is sufficient supply of petroleum products in the country.

“So, this is a decision that has been taken to expand the committee that is currently working with representatives of the states and it will have to be engaging with Labour and with petroleum marketers. The immediate committee comprises the Finance Ministry, the NNPC, the regulator and the downstream upstream regulator.
“We will be working together with representatives of the state, we will have a plan that we will start working on putting the building blocks towards the eventual removal of the fuel subsidy.”
Recall that the Minister of State for Budget and National Planning, Clem Agba, had last month, disclosed that the Federal Government was yet to harmonise its efforts with states to provide palliatives to cushion the effect of subsidy removal.
According to him, a committee led by the Vice President and NEC, comprising governors, the governor of Central Bank of Nigeria (CBN) and other co-opted government officials, had been working to resolve the issue for over 12 months with no clear roadmap on the issue.
With yesterday’s suspension, the country may require another N3.5 trillion to finance the Premium Motor Spirit (PMS) subsidy scheme, which was initially outlawed by the Petroleum Industry Act (PIA) but reinstated by President Muhammadu Buhari.
Executive Secretary of the Major Oil Marketers of Nigeria (MOMAN), Clement Isong, said the incoming government, which had promised to remove subsidy, is in the best position to plan and implement the removal.
“It is a reasonable thing to do. We know that the new government has said they will remove subsidies. The removal has to be done properly and the new government is in the best position to plan it for accountability and transparency,” Isong said.

He urged the new administration to embark on proper consultation to avoid a flop in the implementation. Director of the Centre for Promotion of Private Enterprises (CPPE), Dr. Muda Yusuf, in his reaction, said: “My view is that all matters relating to petrol subsidy removal should be left for the incoming administration to handle. This should be the default position since the current government has announced a budgetary provision for fuel subsidy up till June 2023. This is also the position of the PIA as amended. 
“Rather than stir another round of controversy and confusion, the matter ought to be left for the new administration. The NEC announcement was really unnecessary.
“My expectation is that the new administration should have its strategy of managing the policy transition. This should not be preempted by the current administration. The NEC should avoid making policy pronouncements that may create problems for the new administration. I also expect that some level of informal consultation should have commenced between the transition team of the incoming administration and key stakeholders on the matter. The ruling All Progressives Congress (APC) had categorically stated that it would remove petrol subsidy on assumption of office though it has not unveiled its strategy of doing so.”
The Guardian had on Thursday reported that the current administration, which had set a date for subsidy removal and had already taken a loan for palliative measures, had no proper plan on how it expects to deal with the market and the import side of the new markets.
Energy expert, Henry Adigun, had said the country would experience serious economic catastrophe and challenge if the new government adheres to removing subsidy on petrol as planned by the ongoing administration.
“I do not think the subsidy removal will be immediate on handover. That would cause a significant economic crisis and social disruption. The challenge will not be limited to supply. There will also be potential for extortion of Nigerians.
“The best approach for Bola Tinubu is to set up a transition process. Supported by a phased withdrawal and good stakeholders’ engagement,” Adigun said. Energy Economist, Prof Wunmi Iledare told The Guardian that the suspension did not come as a shock.
“I am not surprised. Petroleum subsidy removal decision is a transferable problem like kicking a soccer ball. It is foolish to expect a government who did nothing about subsidies since 2015, to suddenly wake up with less than forty days to go act on subsidy,” Iledare said.
According to him, the Buhari government ranks the highest when it comes to making political expediency to trump economic efficiency in nearly every judgment and value-added decisions.
He advised the incoming administration to begin with a partial deregulation through a periodic price modulation framework for government assisted and designated retail stations and market-based pricing for all others for six months before full deregulation.

The Director of the Centre for Petroleum, Energy Economics and Law (CPEEL) at the University of Ibadan, Prof. Olusanya Olubusoye, and the convener of All Workers’ Convergence (AWC), Andrew Emelieze, yesterday, supported the suspension the implementation of fuel subsidy by the Federal Government.
Speaking with The Guardian in Ibadan, Olubusoye and Emelieze maintained that the decision is better left for the incoming administration to take. The CPEEL director said: ‘’It is the right thing to do. This is coming at the tail end of this administration. The administration will not be able to contain the fallout of the policy. The burden will be transferred to the incoming administration.  It can destabilize the inauguration if it is not well managed.
“It is best for the administration to decide the strategies to be adopted. Whoever is going to implement subsidy removal must be prepared for it. There must be something to cushion its effects. There is a need to assess the security and risks associated with subsidy removal.”
Emelieze, a labour leader, said the outgoing government could not take decisions for the incoming government, saying it should be better handled by the incoming administration.
Meanwhile, the Oyo State chairman of Trade Union Congress (TUC), Olatunbosun Olabiyi, in his reaction, said: ‘’We are going to study it and come out with a statement on it. The government is winding down and they are leaving it for the incoming administration.”


Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *






My Fellow Citizens,

I stand before you honoured to assume the sacred mandate you have given me. My love for this nation is abiding. My confidence in its people, unwavering. And my faith in God Almighty, absolute. I know that His hand shall provide the needed moral strength and clarity of purpose in those instances when we seem to have reached the limits of our human capacity.

This day is bold and majestic yet bright and full of spirit, as is our precious nation.

As a nation, we have long ago decided to march beyond the dimness of night into the open day of renewed national hope.

The question we now ask ourselves is whether to remain faithful to the work inherent in building a better society or retreat into the shadows of our unmet potential. 

For me, there is but one answer. We are too great a nation and too grounded as a people to rob ourselves of our finest destiny.

This nation’s journey has been shaped by the prayers of millions, and the collective sacrifices of us all.

Tinubu Speech
Tinubu at Eagles Square for during his Inauguaration

We have endured hardships that would have made other societies crumble.

Yet, we have shouldered the heavy burden to arrive at this SUBLIME moment where the prospect of a better future merges with our improved capacity to create that future.

To the surprise of many but not to ourselves, we have more firmly established this land as a democracy in both word and deed.

The peaceful transition from one government to another is now our political tradition. This handover symbolizes our trust in God, our enduring faith in representative governance and our belief in our ability to reshape this nation into the society it was always meant to be.

Here, permit me to say a few words to my predecessor, President Muhammadu Buhari. Mr President, you have been an honest, patriotic leader who has done his best for the nation you love. On a more personal note, you are a worthy partner and friend. May History be kind to you.

For many years, Nigeria’s critics have trafficked the rumour that our nation will break apart, even perish.

Yet here we are. We have stumbled at times, but our resilience and diversity have kept us going. 

Our burdens may make us bend at times, but they shall never break us.

Instead, we stand forth as Africa’s most populous nation and as the best hope and strongest champion of the Black Race.

As citizens, we declare as one unified people devoted to one unified national cause, that as long as this world exists, NIGERIA SHALL EXIST.

Today, Fate and Destiny join together to place the torch of human progress in our very hands. We dare not let it slip.

We lift high this torch so that it might shine on every household and in every heart that calls itself Nigerian. We hold this beam aloft because it lights our path with compassion, brotherhood, and peace. May this great light never EXTINGUISH.    

Our administration shall govern on your behalf but never rule over you. We shall consult and dialogue but never dictate. We shall reach out to all but never put down a single person for holding views contrary to our own.

We are here to further mend and heal this nation, not tear and injure it.

In this vein, may I offer a few comments regarding the election that brought us to this juncture. It was a hard fought contest. And it was also fairly won. Since the advent of the Fourth Republic, Nigeria has not held an election of better quality.

The outcome reflected the will of the people. However, my victory does not render me any more Nigerian than my opponents. Nor does it render them any less patriotic.

They shall forever be my fellow compatriots. And I will treat them as such. They represent important constituencies and concerns that wisdom dare not ignore.

They have taken their concerns to court. Seeking legal redress is their right and I fully defend their exercise of this right. This is the essence of the rule of law.

Over six decades ago, our founding fathers gave bravely of themselves to place Nigeria on the map as an independent nation.

We must never allow the labor of those who came before us to wither in vain but to blossom and bring forth a better reality.

Let us take the next great step in the journey they began and believed in.

Today, let us recommit our very selves to placing Nigeria in our hearts as the indispensable home for each and every one of us regardless of creed, ethnicity, or place of birth.

My supporters, I thank you. To those who voted otherwise, I extend my hand across the political divide. I ask you to grasp it in national affinity and brotherhood. For me, political coloration has faded away. All I see are Nigerians. 

May we uphold these fitting and excellent notions as the new Nigerian ideal. 

My fellow compatriots,

The Nigerian ideal which I speak of is more than just an improvement in economic and other statistics. These things are important; but they can never convey the fullness of our story.

Our mission is to improve our way of life in a manner that nurtures our humanity, encourages compassion toward one another, and duly rewards our collective effort to resolve the social ills that seek to divide us.

Our constitution and laws give us a nation on paper. We must work harder at bringing these noble documents to life by strengthening the bonds of economic collaboration, social cohesion, and cultural understanding. Let us develop a shared sense of fairness and equity.

The South must not only seek good for itself but must understand that its interests are served when good comes to the North. The North must see the South likewise.

Whether from the winding creeks of the Niger Delta, the vastness of the northern savannah, the boardrooms of Lagos, the bustling capital of Abuja, or the busy markets of Onitsha, you are all my people. As your president, I shall serve with prejudice toward none but compassion and amity towards all. 

In the coming days and weeks, my team will publicly detail key aspects of our programme. Today, permit me to outline in broad terms a few initiatives that define our concept of progressive good governance in furtherance of the Nigerian ideal:

The principles that will guide our administration are simple: 

1. Nigeria will be impartially governed according to the constitution and the rule of law.

2. We shall defend the nation from terror and all forms of criminality that threaten the peace and stability of our country and our subregion.

3. We shall remodel our economy to bring about growth and development through job creation, food security and an end of extreme poverty.

4. In our administration, Women and youth will feature prominently.

5. Our government will continue to take proactive steps such as championing a credit culture to discourage corruption while strengthening the effectiveness and efficiency of the various anti-corruption agencies.


Security shall be the top priority of our administration because neither prosperity nor justice can prevail amidst insecurity and violence.

To effectively tackle this menace, we shall reform both our security DOCTRINE and its ARCHITECTURE.

We shall invest more in our security personnel, and this means more than an increase in number. We shall provide, better training, equipment, pay and firepower.


On the economy, we target a higher GDP growth and to significantly reduce unemployment. 

We intend to accomplish this by taking the following steps:

First, budgetary reform stimulating the economy without engendering inflation will be instituted.

Second, industrial policy will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency.

Third, electricity will become more accessible and affordable to businesses and homes alike. Power generation should nearly double and transmission and distribution networks improved. We will encourage states to develop local sources as well.

I have a message for our investors, local and foreign: our government shall review all their complaints about multiple taxation and various anti-investment inhibitions.

We shall ensure that investors and foreign businesses repatriate their hard earned dividends and profits home.


My administration must create meaningful opportunities for our youth. We shall honour our campaign commitment of one million new jobs in the digital economy. 

Our government also shall work with the National Assembly to fashion an omnibus Jobs and Prosperity bill. This bill will give our administration the policy space to embark on labour-intensive infrastructural improvements, encourage light industry and provide improved social services for the poor, elderly and vulnerable.


Rural incomes shall be secured by commodity exchange boards guaranteeing minimal prices for certain crops and animal products. A nationwide programme for storage and other facilities to reduce spoilage and waste will be undertaken.

Agricultural hubs will be created throughout the nation to increase production and engage in value-added processing. The livestock sector will be introduced to best modern practices and steps taken to minimize the perennial conflict over land and water resources in this sector.

Through these actions, food shall be made more abundant yet less costly. Farmers shall earn more while the average Nigerian pays less.


We shall continue the efforts of the Buhari administration on infrastructure. Progress toward national networks of roads, rail and ports shall get priority attention.


We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.


Monetary policy needs thorough housecleaning. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.

Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.

Whatever merits it had in concept, the currency swap was too harshly applied by the CBN given the number of unbanked Nigerians. The policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender.


Given the world in which we reside, please permit a few comments regarding foreign policy.

The crisis in Sudan and the turn from democracy by several nations in our immediate neighbourhood are of pressing concern.

As such, my primary foreign policy objective must be the peace and stability of the West African subregion and the African continent. We shall work with ECOWAS, the AU and willing partners in the international community to end extant conflicts and to resolve new ones.

As we contain threats to peace, we shall also retool our foreign policy to more actively lead the regional and continental quest for collective prosperity.


This is the proudest day of my life. But this day does not belong to me. It belongs to you, the people of Nigeria.

On this day, Nigeria affirms its rightful place among the world’s great democracies. There, Nigeria shall reside forever. 

The course of our past and the promise of the future have brought us to this exceptional moment.

In this spirit, I ask you to join me in making Nigeria a more perfect nation and democracy such that the Nigerian ideal becomes and forever remains the Nigerian reality.  

With full confidence in our ability, I declare that these things are within our proximate reach because my name is Bola Ahmed Tinubu, and I am the President of the Federal Republic of Nigeria. 

May God bless you and

Continue Reading


TRENDING VIDEO: Soludo Breaks Silence On Entry Denial At Tinubu’s Inauguration



Governor of Anambra State, Professor Chukwuma Soludo, has broken his silence on the viral video which shows him being denied entry into the area where he initially attempted to seat during the Monday, May 29, 2023 inauguration of Asiwaju Bola Ahmed Tinubu as Nigeria’s new President.

In the about 30 second video, Governor Soludo can be seen trying unsuccessfully to convince security and protocol officials to grant him entry, following which he moves to the area to which he is redirected.

However, speaking through his Press Secretary, Mr Christian Aburime, Prof. Soludo said in a statement on Monday afternoon that what happened has been mischievously misinterpreted by his detractors.

The statement said: “The video shows Governor Chukwuma Charles Soludo arriving the Eagle Square for the Presidential swearing-in ceremony in Abuja and was subsequently being re-directed courteously by protocol officials to the rightful position reserved for him at the other side of the VVIPs sitting positions.

“Redirecting invited guests to their rightful sitting position is neither an issue nor a condescending act.

“For the records, Governor Soludo remains one of the few Governors that was respectfully honoured and invited officially to attend the presidential swearing-in ceremony.

“Consequently, we call on the general public to disregard the trending video. It is pure mischief and deliberate act to mis-inform the public.”

Continue Reading


BREAKING: As SSS Blocks EFCC Officials From Accessing Lagos Office



“They even placed an armoured tank just to scare us away,” one EFCC official told this newspaper.

Officials of the State Security Service (SSS) Tuesday morning prevented officials of the anti-graft agency, EFCC, from gaining access to their office in Ikoyi, Lagos.

As of the time of this report, all the EFCC officials at the office in Awolowo Road, Ikoyi, were prevented from accessing the building by SSS officials, PREMIUM TIMES learnt.

“They even placed an armoured tank just to scare us away,” one EFCC official told this newspaper.

Sources in both agencies said there has been an ongoing rivalry between both agencies over the ownership of the building.

Details later…

Premium Times

Continue Reading


Copyright © Estreet On TV 2023