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Governors kick over fuel subsidy, only 8 States are benefitting, alleges fraud in Consumption, distribution Figures

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4 years ago

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State Governors under the aegis of the Nigeria Governors Forum, NGF have kicked against the proposed  fuel subsidy removal, saying that it must not be carried out  until the challenge of what the Nigerian National Petroleum Corporation, NNPC  is telling the country is confronted frontally. Speaking in Abuja during a meeting with the leadership of the Nigeria Labour Congress, NLC, led by its president Comrade Ayuba Waba, Chairman, NGF and Ekiti State Governor, Dr. Kayode Fayemi said that the nation’s economy is presently at a  Precipice and stressed that if there must be removal of Petroleum subsidy, the people must benefit and not a few wealthy Individuals.

According to Fayemi,  it has become necessary for the Governors and the NLC  to carefully verify all of NNPC’s estimates to ensure that whatever action is taken on subsidy, it would be the people that get direct benefits and not a few wealthy individuals and their cronies in the country. Fayemi who noted that  only about eight states are presently  benefitting directly from  the subsidy while all the others have to contend with the situation on their own, however raised  the alarm that there is a lot of fraud in the Consumption, distribution figures Nigeria is getting, adding that the  Lacuna in the Subsidy removal agenda is  hidden in the untruths by the Administrators. Dr Fayemi told the Labour leaderships that subsidy removal has remained an on-gong conversation not just among governors but the country at large and emphasised that Governors cannot but be part of the solution providers in this onerous task that is confronting the nation.

Fayemi further said that “there are raging questions of accountability associated with subsidy removal in the country and observed that the NGF and the NLC can jointly work together to proffer solutions that heal the economy and provide succour to the Nigerian people.” A statement signed by the NGF, Head of Media and Public Affairs, Adbulrazaque Barkindo read, “The meeting which was held at the NGF secretariat in Maitama Abuja, brokered a partnership between the NGF and the NLC, as both parties agreed that the lacuna in the subsidy removal agenda was hidden in the untruths bandied by the administrators of the subsidy, particularly the Nigerian National Petroleum Corporation, NNPC, which both groups identify to be at the fore front of the mismanagement of the proceeds accrued therein. Delivering his opening remarks at the meeting also attended by the TUC president and a host of other leaders of organised Labour in the country, the Chairman of the Nigeria Governors Forum and Governor of Ekiti State, Dr John Kayode Fayemi argued that the nation’s economy is at the precipice and that it has become necessary for the two groups to carefully verify all of NNPC’s estimates to ensure that whatever action is taken on subsidy, it would be the people that get direct benefits and not a few wealthy individuals and their cronies in the country.

“The NGF chairman who led a delegation of Governors Simon Bako Lalong of Plateau State and chairman of the Northern Governors Forum and Governor Godwin Obaseki of Edo State, to the meeting stressed that governors cannot ignore the economics of petroleum, arguing that all the countries surrounding Nigeria including Niger, Mali, Cameroun and Ghana have their fuel pump price at the equivalent of a US dollar, arguing that Nigeria has a pump price that is far less than a dollar and is uncomfortable with the removal of subsidy until the challenge of what the NNPC is telling the country is confronted frontally. We need a partnership with the NLC to confront the challenges of what the NNPC is about, because there is a lot of fraud in the consumption and distribution figures that the country is getting and we can only move forward if the NLC engages all those who are knowledgeable in the field like PENGASSAN to conduct a thorough research into the sector before any further action is taken on subsidy,” Dr Fayemi declared.

“On the part of the states, Dr Fayemi stated that only about eight states are benefitting directly from  the subsidy while all the others have to contend with the situation on their own. The Governor of Ekiti State also insisted that the partnership with the NLC must confront the perennial issue of palliatives for the common man towards cushioning the effects of subsidy removal on the citizenry stating that “not tackling the problem now is tantamount to postponing the evil day”. Finding succour for the ordinary Nigerian at this time is absolutely imperative and necessary now more than ever,” the NGF Chairman emphasised. “One of the asks, which formed the terms of convening the meeting was to also plead with Labour to jettison their decision to embark on what they referred to as a mega-strike and join hands with Governors to consider the dimensions at play on the subsidy removal palaver because Governors through their internal mechanisms had already found out that what is paid is egregiously higher than what is actually being declared by the country’s petroleum industry managers.”

According to the statement,  the Governor of Edo State, Mr Godwin Obaseki in his remarks  on economic issues, warned that we have a choice of continuing to behave like Father Christmas (Santa Claus) or take concrete actions on a problem that is permanently with us rather than throwing away N3tr on subsidy. Barkindo said, “Governor Obaseki suggested that the nation can, in the interim, increase productivity to reduce imports and create jobs. He also emphasised that the country would do well to revamp the power sector, which is virtually comatose because without power, we will continue to throw millions of our people into unemployment, and ultimately, poverty, reminding all present that we should know that we have a country to manage. “The Governor of Plateau state, Rt. Hon Simon Bako Lalong who like Governor Obaseki also joined the meeting virtually recalled that the NGF had spent three years on this matter because we cannot continue with subsidising petroleum products. He stated that we must find options and create opportunities that address the hardships that stare our people in the face.

“Lalong volunteered that the painstaking work that led to the solutions that the NGF was highlighting took a year to script together and warned therefore that the fact that we are sitting here with Labour to resolve this contending issue does not mean that as we leave the table we should go to sleep. Instead, Governor Lalong said the teams from the two groups should immediately set out to work to find the light at the end of the tunnel. This meeting took place barely an hour before the NLC announced the suspension of its mega-strike, as he disclosed to the governors that their committee had consulted widely and decided to call it off before arriving at the NGF secretariat. Both Comrade Ayuba Waba and the TUC president stressed their lack of appreciation of the trust deficit that characterised previous negotiations and wondered why the subsidy issue had always been shrouded in lack of transparency on the part of government. The unionists argued that the conflicting figures that always came from the managers of the petroleum sector had always tended towards inefficiency which have remained, to the people and to Labour, completely objectionable.”

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Economy

Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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3 days ago

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December 5, 2025

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The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.

The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.

He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.

“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”

Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”

The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.

With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.

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Economy

FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

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4 days ago

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December 4, 2025

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Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.

The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.

He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.

Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.

The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.

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Economy

CBN hikes interest on treasury Bills above inflation rate

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4 days ago

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December 4, 2025

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The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%. 

The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.

Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.

The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.

Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.

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