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NEITI Backs Tinubu On Subsidy Removal, Says N13.69 Trillion Wasted In 16 Years

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1 year ago

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The Nigeria Extractive Industries Transparency Initiative (NEITI) has said the removal of petrol subsidy by President Bola Tinubu was a bold step required to block leakages, grow revenues, and advance the ongoing reforms in the oil, gas, and mining industries.

NEITI said this while commending Tinubu over the removal of fuel subsidy in a statement issued on Tuesday in Abuja.

According to NEITI, the move was also a positive move by the administration to decisively implement the findings and recommendations contained in the NEITI reports.

The statement, signed by Mrs. Obiageli Onuorah, the Deputy Director/Head Communications and Stakeholders Management, was in reaction to assertion by Tinubu, in his inaugural speech on Monday that fuel subsidy regime had ended with the commencement of his administration.

Onuorah recalled that NEITI had recommended the removal of fuel subsidies persistently since 2006 based on its concerns about the huge financial burden that the subsidy regime imposed on the growth of the Nigerian economy over the years.

She explained that from the NEITI reports, between 2005 and 2021, the country spent $74.39 billion which translated to N13.69 trillion on subsidy.

According to the NEITI report, a breakdown of these figures showed that in 2005, the government paid $2.6 billion dollars (N351 billion) as subsidy. In 2006 and 2007, it paid $1.99 billion and $2.18 billion (N257 billion and N272 billion) respectively.

The report further pointed out that subsidy payments more than doubled in 2008 and 2010 and witnessed the highest increase ever in 2011 to $13.52 billion (N2.11 trillion).

She said a sharp decline was witnessed in the years 2012, 2013, 2014 and 2015 when it dropped to $3.34 billion (N654 billion) in 2012.

Onuorah said the decline in subsidy expenditure continued in 2016 and 2017 to as low as $473 million dollars (N154 billion) in 2017.

“The reduction was short-lived as the payments skyrocketed to over $3.88 billion (N1.19 trillion) in 2018 and 2021 to $3.58 billion (N1.43 trillion).

“By these figures, Nigeria expended an average of N805.7 billion annually, N67.1 billion monthly or N2.2 billion daily,” she said.

She said the NEITI data also showed that the amount expended on subsidies from 2005 to 2021 was equivalent to the entire budget for health, education, agriculture, and defense in the last five years.

Onuorah added the sum equals the capital expenditure for 10 years between 2011 to 2020.

The deputy director explained that it was during this time (2011) that fuel subsidies dwarfed allocations to all critical areas of the economy.

“NEITI ‘s persistent calls for the removal of petroleum subsidies were informed by the fact that the ways of funding the expenditure over these years relied more on federation accounts funds, the Federal Government, and sometimes from external borrowing with negative consequences on government overall revenue profiles.

“NEITI was also concerned that the consequences of funding subsidies have resulted in poor development of the downstream sector, declining GDP growth, rise in product theft, pipeline vandalism, environmental pollution, and undue pressure on foreign exchange.

“Other challenges imposed on the economy were naira depreciation, low employment generation, the declining balance of payments, and worsening national debt,” she said.

Onuorah said in a policy advisory released by NEITI in late 2022 to drive home the urgency to remove subsidy and resubmitted earlier in the year 2023, NEITI recommended eight steps to manage subsidy removal.

She listed the steps to include the urgency to strengthen the implementation of the Petroleum Industry Act (PIA) as a whole and not in parts.

NEITI also underlined the importance of unveiling the implementation of people-oriented welfare programs to provide relief for the poor and vulnerable and advised priority attention to be paid to the rehabilitation of the nation’s four refineries currently ongoing.

On other policy considerations, she said the government should commission a special report on actual PMS consumption in Nigeria, enforce stringent sanctions for criminal activities in the sector and conduct appropriate stakeholders’ consultations, engagements, and enlightenment.

“While the details of the implementation of the policy are being awaited, NEITI is set to commission a special research on the actual consumption of PMS in Nigeria.

“The study is to establish precisely what the nation is consuming. NEITI’s view remains that the data on the country’s actual consumption is unknown resulting in huge revenue losses to the nation through subsidy payments based on estimates.

“NEITI particularly welcomed President Bola Tinubu’s position that the revenues saved from subsidy should be channeled to education, health, roads, and other critical infrastructure,” she said

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BIG STORY

Laffmattazz: Lagos 3rd Coming Features Star-Studded Lineup with D’Banj, Queen Salawa Abeni, Reminisce, And More

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October 19, 2024

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Legendary comedian Gbenga Adeyinka is set to host the much-anticipated third edition of his comedy show, Laffmattazz: Lagos 3rd Coming, on November 17, 2024.

The event will take place at the prestigious Balmoral Convention Center, Victoria Island, Lagos, promising an unforgettable night of laughter and entertainment.

The lineup features a mix of iconic comedians and musicians, including Omobaba No.1, Gandoki, Dr. Smile, Bash, Queen Salawa Abeni, Reminisce, and a host of surprise acts, with D’Banj headlining the show.

Gbenga Adeyinka remarked, “Laffmattazz: Lagos 3rd Coming will be the biggest comedy show of the year! We’ve curated an incredible roster of iconic headliners, and I’m excited to bring this level of entertainment to Lagos.”

Laffmattazz has cemented its place as a leading comedy brand, showcasing Nigeria’s finest comedic talent. This year’s event is poised to outdo its predecessors, featuring performances from Akpororo, Forever, Seriki Dariya, Princephelar, Dee One, Taooma, Baba Alariya, Madiba of Comedy, ATM, and more.

The night will also include musical performances by Tee Famous, The Countryman, Dami Cruz, and others, with DJ Wiki spinning on the decks.

 

Event Details:

– Date: Sunday, November 17, 2024

– Time: Red Carpet (3:00 PM), Show Start (5:00 PM)

– Venue: Balmoral Convention Center, Victoria Island, Lagos

 

Ticket Information:

– Regular: ₦7,000

– VIP: ₦20,000

– Table of 8 Gold: ₦1.5 million

– Table of 8 Platinum: ₦3 million

 

Purchase Tickets at:

1. Ile Iyan by PODs, GRA Ikeja

2. Ofada Boy, Surulere

3. Prince Ebeano Supermarket, Lekki

 

Online Tickets Available at:

1. Ariiyatickets.com

2. Grandtickets.ng

3. Laffmattazz.ng

 

For ticket purchases, sponsorships, inquiries, and collaboration opportunities, please contact: (+234) 08156111111.

 

Brought to you by: Maltina, Goldberg, Ace Roots, Goldberg Black

Supported by: Parralex Bank, Enclave Green Homes, FIRS, Lagos State Government.

Media Partners: African Magic, Royal Roots Cinema, Hip TV, Views Channel, Vybz FM, Ibrand TV, Rapid Broadcasting Network, City FM, Jordan FM, Rainbow FM, Mainland FM, Boom Radio, TVC, Kennis FM, Beat FM

Outdoor Partners: Nimbus Media, FPL Media, Folham, Media Crush, Elev8 Media

 

Stay updated by following Laffmattazz on social media @laffmattazz_ga1st for the latest news and behind-the-scenes content.

Don’t miss this epic comedy event! Secure your tickets now and join the conversation online using #LaffmattazzLagos3rdComing #GbengaAdeyinka.

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BIG STORY

AfDB Approves $100m For Establishment Of Youth Entrepreneurship Investment Bank In Nigeria

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2 hours ago

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October 19, 2024

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The African Development Bank (AfDB) has approved $100 million for the establishment of the Youth Entrepreneurship Investment Bank in Nigeria.

Akinwunmi Adesina, president of the AfDB, made the announcement while delivering a keynote address at the 90th birthday lecture of former head of state, Yakubu Gowon, in Abuja.

“I am delighted to announce here today that just three days ago, the African Development Bank’s board of directors approved $100m for the establishment of the Youth Entrepreneurship Investment Bank for Nigeria,” Adesina said.

He emphasized that the initiative reflects the AfDB’s commitment to supporting Nigerian youths, who are vital to the country’s development.

The bank will provide technical assistance, business incubation, quasi-equity, and debt to youth businesses.

It will also offer guarantee instruments to de-risk lending to these businesses by financial institutions.

Adesina added, “It will be a new day and a new dawn for Nigeria.” He also stated that this initiative aligns with President Bola Tinubu’s vision and plans for the youth in Nigeria.

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BIG STORY

Court Threatens To Jail DSS DG Ajayi For Disobeying Order On Access To Nnamdi Kanu

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2 hours ago

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October 19, 2024

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A federal high court in Abuja has cautioned Adeola Ajayi, the director-general (DG) of the Department of State Services (DSS), against defying the court’s order for Nnamdi Kanu’s visitation rights.

Kanu, the leader of the Indigenous People of Biafra (IPOB), has been held in DSS custody since his re-arrest in Kenya and extradition to Nigeria in 2021.

He is facing trial on a seven-count charge, including treasonable felony.

Kanu’s legal team has repeatedly accused the DSS of denying its members access to their client.

The court had directed the DSS to allow Kanu’s legal team, with a maximum of five people, to visit him on designated days.

On Friday, the registrar of the federal high court in Abuja issued “form 48 notice of consequences of disobedience to the order of court” against DSS director-general.

The notice warned the DSS boss that he would be guilty of contempt of court and would be liable to imprisonment if he disobeyed the court-ordered visitations.

“Take notice that unless you obey the directions contained in this order (see overleaf), by allowing the applicant’s counsel to conduct the court-ordered visitations with the applicant on Mondays, Wednesdays, and Fridays, you will be guilty of contempt of court and will be liable to be committed to prison,” the notice reads.

  • Kanu’s Lawyers Threaten To Sue Ajayi

In a statement on Friday, Aloy Ejimakor, counsel to the IPOB leader, said if Ajayi disobeyed the court order, the defence team would file contempt charges against him.

“This notice is necessitated by the repeated disobedience of the court-ordered visitation of Mazi Kanu by the newly appointed Director-General of the State Security Services (Mr. Adeola Oluwatosin Ajayi), who has, for almost a month, not allowed Mazi Kanu’s lawyers to visit him,” the statement reads.

“To be clear, this notice is a quasi-criminal judicial process that forewarns any person disobeying a court order of the penal consequences of such misconduct.

“Therefore, if the Director-General of DSS persists on this ignoble path, he will leave us with no other option than to commence vigorous contempt proceedings against him.”

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