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Governors, Fuel Marketers Back Tinubu On Subsidy Removal

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All Governors of the 36 states of the federation, and oil marketers, on Wednesday, backed President Tinubu’s decision to end fuel subsidy payments in the country and other early policy initiatives of the administration.

The governors, under the umbrella of the Nigerian Governors Forum (NGF), expressed their support to President Tinubu during the first meeting the President had with them at the Presidential Villa in Abuja.

The state chief executives, who took turns to speak at the meeting were led by the NGF Chairman and governor of Kwara State, AbdulRahman AbdulRazaq, who expressed happiness with the President’s subsidy-removal decision, all-inclusive leadership, and statesmanship.

They congratulated President Tinubu on tackling the fuel subsidy behemoth, promising to work with him to ameliorate the short-term impact of the decision.

Tinubu had earlier called on the governors to collaborate with the Federal Government in tackling the menace of poverty in the country, saying the level of impoverishment was unacceptable.

The President advised the political leaders to downplay their differences and jointly focus on alleviating the sufferings and pains of the people.

“We can see the effects of poverty on the faces of our people. Poverty is not hereditary, it is from society. Our position is to eliminate poverty. Set aside partisan politics, we are here to deliberate about Nigeria and nation-building,” he said.

President Tinubu stated that the nation should be seen as one big family.

“We are a family occupying one house, and sleeping in different rooms. If we see it that way and push forward, we will get our people out of poverty. A determined mind is a fertile ground for delivering results,” he added.

The President said good governance would safeguard the future of democracy.

“Present in this room is our diversity in culture and politics, but we are one nation. The unity and stability of the country rest upon us.

“We are in a democracy and we have to nurture the democracy. It is a hard-earned system and not easy to manage. If anyone thinks it is easy, look at other nations that are over a hundred years in democracy.

“We have managed ourselves very well to have a democracy. We have campaigned and arrived at our present destination. We must work for our people,’’ President Tinubu told the governors while assuring them that he would maintain an open-door policy.

The President said he was prepared to share ideas, strengthen institutions, and create bottom-up frameworks that will improve the livelihood of Nigerians.

“What do we do in the face of crushing poverty? What do we do with our development goals? We took the bull by the horns by removing the elephant in the room before the nation sinks.

“We need synergy to fight other vices like corruption. We are trying to get smugglers out of the way. How do we work together to galvanise the economy, and put resources in place? We must think and perform. After removing subsidy, there must be savings accruing to the Federation Account,” he noted.

Tinubu said the education sector must be improved as part of efforts to reduce poverty and penury:

“How do we address the unacceptable level of poverty? How much are we investing in education, which is the only tool against poverty? I am ready to collaborate with you,” he added.

The President also drew attention to the security problems in some states, admonishing the governors that all efforts should be put in place to tackle the security situation, without thinking it’s only for those facing it.

Speaking, AbdulRahma thanked the President for the invitation to deliberate on the challenges of poverty and security, promising that the governors would support the Federal Government in meeting the targets of human development.

“The NGF will follow the tradition of working constitutionally and harmoniously with you,” he said.

The meeting, which was attended by Vice President Kashim Shettima and new Secretary to the Government of the Federation, George Akume, had 22 governors and two deputy governors from Edo and Niger states, in attendance.

The governors made suggestions highlighting the plight of citizens in their states, assuring the President of their support in proffering solutions through the National Economic Council.

Oil marketers backs subsidy removal, as Shettima-led NEC begins to work on palliatives.

Meanwhile, the President has directed the National Economic Council (NEC) led by Vice President Kashim Shettima to devise an approach and begin the process of working on interventions to mitigate the impact of subsidy removal on the Nigerians.

Governor of Ogun State, Dapo Abiodun, stated this after leading some major oil marketers under the aegis of the Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) on a courtesy visit to the president at the State house.

Addressing correspondents after the meeting, Governor Abiodun who was a former chairman of the oil marketers association, stated that the marketers expressed solidarity with the President for removing the N4trn subsidy burden, a move that can enhance the FAAC allocation to states.

The association pledged its support for the Federal Government’s removal of fuel subsidies.

The association’s chairperson, Winifred Akpani, said this at the end of a meeting with Tinubu.

She said the association would also support the government’s palliative measures by providing between 50 and 100 mass transit buses.

Akpani said the buses would be locally manufactured and would use Compressed Natural Gas as fuel.

“We pledge our support for President Tinubu in the bold decision of removing petrol subsidy. It is an idea that was long overdue. Removal of subsidy is not about making fuel costly and taking it out of the reach of Nigerians. It is about getting it right on the real issue of petroleum product subsidy.

“Who are those enjoying the subsidy? The subsidy ends up being enjoyed by those it was not meant for. We also spoke to the president about substitutes to petrol as well as creating an environment conducive for investments to thrive in the oil sector,” Akpani said.

BIG STORY

JUST IN: CBN Resumes Forex Sale To BDCs At N1,021/$

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The Central Bank of Nigeria has resumed the sale of foreign exchange to Bureau De Change operators. In this latest move, the apex bank is selling to them at an exchange rate of N1,021 per dollar.

Additionally, the CBN has directed BDCs to limit their sales to an amount not exceeding 1.5 per cent above the purchase price.

This information was disclosed in a circular uploaded to the CBN’s website on Tuesday.

Details later…

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Again, Dangote Crashes Diesel, Aviation Fuel Prices Further To N940, N980 Respectively

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Dangote Petroleum Refinery has again announced a further reduction in the prices of both diesel and aviation fuel to N940, and N980 per litre respectively.

This is coming in the wake of its widely celebrated price reduction to N1,000 barely two weeks ago.

The price change of N940 applies to customers buying five million litres and above from the refinery, while the price of N970 is for customers buying one million litres and above.

Speaking on the new development, the Head of Communication, Mr Anthony Chiejina, explained that the new price is in consonance with the company’s commitment to cushion the effect of economic hardship in Nigeria.

“I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS Oil and Gas stations, to ensure that consumers get to buy fuel at affordable price, in all their stations be it Lagos or Maiduguri. You can buy as low as 1 litre of diesel at N1,050 and aviation fuel at N980 at all major airports where MRS operates.”

He further stated that the partnership will be extended to other major oil marketers. “The essence of this is to ensure that retail buyers do not buy at exorbitant prices.

“The Dangote Group is committed to ensuring that Nigerians have a better welfare and as such, we are happy to announce this new prices and hope that it would go a long way to cushion the effect of economic challenges in the country.

It would be recalled that the management of Dangote Petroleum Refinery announced a further reduction of the price of diesel from 1200 to 1,000 Naira per litre barely two weeks ago.

This marks the third major reduction in diesel price in less than three weeks when the product sold at N1,700 to N1,200 and also a further reduction to N1,000 and now N940 for diesel and N980 for aviation fuel per litre.

Nigerian President Bola Tinubu had also commended Mr Dangote for the initial price reduction, describing it as an “enterprising feat.”

Reacting to the latest development, The Director General of the Manufacturers Association of Nigeria (MAN), Mr. Ajayi Kadiri, said that “The decision of Dangote Refinery to first crash the price from about N1,750/litre to N1,200/litre, N1,000/litre and now N940 is an eloquent demonstration of the capacity of local industries to positively impact the fortunes of the national economy.”

He added that “The trickledown effect of this singular intervention promises to change the dynamics in the energy cost equation of the country, in the midst of inadequate and rising cost of electricity.

“The reduction will have far-reaching effects in critical sectors like industrial operations, transportation, logistics, and agriculture, contributing to easing the high inflation rate in the country; a lot of companies will be back in operation.”

 

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Power Sector Crisis Has Defied All Solutions, We Need To Clear All Debts —Minister Adelabu

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Adebayo Adelabu, minister of power, has described the power sector crisis as “historical”, stressing it has defied all solutions.

Adelabu spoke in Abuja on April 22 during a visit from the Senate committee on power.

The national electricity grid has suffered a total system collapse thrice in 2024, with the first being on February 4.

The country suffered another nationwide blackout on March 28, while the third collapse was experienced on April 15.

Adelabu blamed issues in the industry on uncompleted projects, urging the committee to approve funds for the completion of over 120 projects that litter across the country.

To boost electricity, he said there are plans to increase power generation from 4000 megawatts (MW) to 6000MW by the end of 2024.

The minister said the federal government plans to achieve this milestone using the hydro and solar plants to increase the supply of electricity to households and businesses.

“The infrastructure are lying there, without adequate maintenance, the turbines are getting rust,” Adelabu said.

”With proper investment put in place, we can generate 6000 megawatts before the end of 2024.”

‘NIGERIA’S POWER SECTOR NEEDS GAS’

Adelabu said gas suppliers have refused to supply more gas because of the debt the federal government owes.

He told the committee the federal government owes the generation companies over N1.3 trillion and also owes the gas suppliers $1.3 billion.

The minister urged the committee to address the debt matter.

In her presentation, Nafisat Ali, executive director of Independent System Operator (ISO), said gas has become a major constraint in the industry, adding that DisCos were still rejecting load despite the power shortage in the country.

“Today there is no gas. We need gas,” Ali said.

“The DisCos don’t abide by allocation. That is the challenge.”

Addressing the debt issue, Eyinaya Abaribe, the committee chairman, said the panel would interface with the federal government to settle the gas debt.

“Every option for us is on the table. If the option is for us to interface with the federal government to do their part, because it is a debt, so they have to pay their debt, we will do so,” Abaribe said.

He also said the committee will focus its oversight on the ministry and the Transmission Company of Nigeria (TCN) concerning the implementation of the World Bank project.

Furthermore, Abaribe said the committee has invited NERC and other stakeholders to answer some questions concerning the recently reviewed tariff on April 29.

Abaribe said the committee would review the penalties for power assets vandalization.

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