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NNPC Can’t Keep Paying Petrol Price Differential Without Going Bankrupt — Onanuga

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Bayo Onanuga, special adviser on information and strategy to President Bola Ahmed Tinubu, says the Nigerian National Petroleum Company (NNPC) Limited admitted to having financial constraints because it can no longer subsidise petrol.

In an X post (formerly known as Twitter) on Tuesday, Onanuga said if NNPC continues to pay the differences in landing cost and petrol price, the national oil company will go bankrupt.

NNPC had earlier increased the price of petrol to N855 per litre. However, the premium motor spirit (PMS) landing cost is around N1,200.

Earlier reports on Sunday showed that the lingering petrol scarcity in many parts of the country was worsened by a $6 billion debt NNPC owed suppliers.

Hours later, NNPC admitted to owing suppliers of premium motor spirit (PMS), also known as petrol, adding that it was facing financial strain due to the petrol supply costs, and this is affecting the company’s ability to sustain PMS supply.

Prior to acknowledging the debt, NNPC had denied subsidising petrol after TheCable reported that the president approved a request by the company to utilise the 2023 final dividends due the federation to pay for the subsidy.

Speaking on the subsidy and the impact on NNPC’s finances, Onanuga said NNPC’s debt was a result of the company’s efforts to absorb rising petrol costs and protect Nigerian consumers, rather than any government deception.

“NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent,” he said.

“The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government.

“There are no easy choices. Something must be done to make NNPC survive, and keep the engines of government running and petrol flowing at the pumps.

“That is the scenario that is unfolding, and the game changer and big relief giver may well be the Dangote refinery and other local refineries, which will become the fuel suppliers to the local market.

“When Dangote Refinery and other refineries, including government-owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts. There will be many good paying jobs that will be created along the value chain.”

Also, Onanuga said there will also be a drop in the huge demand for foreign exchange to import petroleum products.

  • ‘FG Never Lied About Removing Subsidy’

Onanuga said the federal government did not lie about the removal of the subsidy.

According to the spokesperson, the federal government has been faithful to its policy of deregulating the petroleum sector.

He added that the government’s decision to remove the petrol subsidy was reflected in the 2023 supplementary budget, 2024 budget, and amended 2024 budget, where provisions for subsidy payments were absent.

“I have read a series of articles attacking the Federal Government for not telling the truth about fuel subsidy payments, following NNPC Limited’s admittance it was owing suppliers some $6 billion,” Onanuga said.

“Some of the stories have been written with relish, as the authors believed they have uncovered some scoops.

“The truth is that there is no discovery. No lie uncovered. The government has been faithful to its policy that it was no longer going to pay fuel subsidies since President Tinubu announced the deregulation of the PMS sector on 29 May 2023. Since then, subsidy provisions have disappeared from the budget.

“It was not in the Supplementary budget of 2023, not in the 2024 budget and the amended 2024 budget.

“So the giddy headlines about the so-called unraveling of the Tinubu government’s subsidy payment; and return of subsidy were not justifiable.

“Rather what has unravelled was the commendable disposition of the oil company owned by all the tiers of government to absorb the rising costs of petrol at the pump and protect the Nigerian consumer.”

Onanuga said the generous disposition of NNPC, backed by the president’s unwillingness to let the people suffer, has been under threat for months, because of the rising cost of crude and the devalued naira.

BIG STORY

Adeleke Accuses FG Of Withholding Osun LG Funds For Political Reasons

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Osun State Governor Ademola Adeleke has accused the federal government of deliberately withholding local government allocations meant for the state due to political differences.

Speaking through his deputy, Kola Adeusi, at a two-day Southwest Summit on Democracy and Federalism in Ondo State, Adeleke said Osun has been subjected to “politically-motivated marginalisation” by the federal authorities since he assumed office in 2022.

He alleged that funds designated for local government administration in the state were seized without legal justification, describing the situation as a violation of constitutional provisions on financial autonomy and inter-governmental cooperation.

“There is an ongoing wilful breach of the constitution to deprive a sub-national entity of its due rights simply because it does not belong to the same party with the ruling party at the centre,” Adeleke said.

The governor claimed that several federal programmes and projects intended for Osun have been rerouted through political party structures rather than official state institutions, adding that the development has weakened governance delivery at the grassroots level.

Adeleke further alleged that some political actors in Abuja have frustrated efforts to rehabilitate federal roads and revive abandoned federal projects within the state. He also accused federal security agencies of shielding members of the ruling party in cases of alleged misconduct, while using security institutions to intimidate officials of the state government.

“In Osun today, federal party officials boast of powers to deploy security apparatus to witch-hunt state officials,” he said.

Despite the challenges, the governor said his administration has recorded improvements across key sectors including health, education, and debt management. According to him, Osun now ranks highest in the Southwest in access to primary healthcare and has reduced its debt burden by more than 40 percent.

He called on leaders in the Southwest to prioritise regional development over partisan rivalry, advocating for a circular cargo railway, development of dry ports, and stronger support for the regional security outfit, Amotekun.

“The south-west must elevate power applications beyond partisan considerations,” he said. “We must never deploy federal power against ourselves, no matter our political differences.”

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How DHQ Foiled Bloody Coup Targeting Nigeria’s Top Leaders

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Security sources have revealed that the Defence Headquarters (DHQ), under former Chief of Defence Staff General Christopher Musa, and its internal intelligence unit led by Chief of Defence Intelligence Major General Emmanuel Undiandeye, successfully uncovered and stopped an attempted coup aimed at overthrowing the Federal Government and attacking top national leaders.

According to PRNigeria findings, the alleged plot, considered one of the most serious coup threats in recent years, involved plans to launch coordinated assassinations of key political and military leaders.

Security insiders disclosed that the targets included senior officials in the Presidency, principal officers of the National Assembly, top military commanders and the National Security Adviser.

A source told PRNigeria that the planned coup was intended to be extremely violent, noting that the planning had been underway for a long time and was designed to cripple Nigeria’s leadership structure completely.

The information emerges amid ongoing investigations into the arrest of 16 military personnel accused of violating service regulations. While the Federal Government and DHQ had dismissed earlier reports of a coup as false, new intelligence obtained by PRNigeria confirms the existence of a sophisticated plot.

Sources added that the coup plan was detected solely through DHQ’s internal counter-intelligence system without involvement from other security agencies. The suspects allegedly acquired vehicles and tactical equipment for covert movement and had secretly accessed sensitive government locations in preparation.

Investigators are also probing possible civilian collaborators, with forensic tracking of financial and communication records underway. Billions of naira have reportedly been traced to accounts linked to suspected political financiers backing the plot.

Contrary to public speculation, security officials confirmed that none of the detained officers were connected to the Office of the National Security Adviser.

Military insiders described the arrested individuals as disgruntled officers who had failed promotion exams or remained in the same postings for long periods, adding that their frustrations were exploited by political actors.

Security analysts noted that the suspected conspirators came from different ethnic and religious backgrounds, describing the alliance as unusual and driven solely by a shared motive to disrupt the democratic system.

One analyst said the coalition behind the plot disregarded Nigeria’s traditional ethnic and religious divides and was solely united by a plan to undermine democratic institutions.

The DHQ reaffirmed its commitment to upholding Nigeria’s democracy, stressing that the Armed Forces remain loyal to the Constitution and the President.

Security experts have praised the military’s swift and covert response to the threat, warning that although the attempt has been foiled, underlying grievances within the system should be addressed to avoid future threats.

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Lagos Begins Compensation Payment To Owners Of Demolished Buildings In Oworonshoki

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The Lagos State Government, through the Lagos State Urban Renewal Agency (LASURA), has commenced payment of compensation to verified residents in Oworonshoki, Kosofe Local Government Area, whose homes were demolished during recent clearance exercises.

The disbursement exercise, which started on October 23 at the palace of the traditional ruler of Oworonshoki, was attended by community leaders, LASURA officials, representatives of the Lagos State Building Control Agency (LASBCA), and civil society groups.

LASURA Director-General, Oladimeji Animashaun, who supervised the process, said 80 beneficiaries had been identified and paid between Thursday and Friday.

He noted that the payments began on Thursday with several residents receiving their cheques, adding that the exercise fulfilled Governor Babajide Sanwo-Olu’s promise to affected residents.

Animashaun appreciated Governor Sanwo-Olu, the Special Adviser on e-GIS and Urban Development, Dr. Abiodun Babatunde, and Permanent Secretary, Ministry of Urban Development, Gbolahan Oki, for supporting the initiative and ensuring policy execution.

Reacting to claims that residents were not informed before the demolition, Animashaun said the area had been marked as a regeneration zone more than five years ago, and due notice was given.

He maintained that government followed proper procedures and that residents had long been aware of the redevelopment plan, though some chose to deny it.

According to him, compensation amounts ranged from ₦3 million to ₦5 million for permanent structures, while makeshift buildings such as kiosks and shanties received lower amounts.

He explained that compensation varied according to property type and value, adding that beneficiaries expressed satisfaction as they received their cheques.

Animashaun said the cleared area would be redeveloped into a modern, well-planned community with improved living standards in line with the state’s urban renewal policy.

Member of the Lagos State House of Assembly representing Kosofe Constituency I, Okanlawon Sanni, who witnessed the exercise, described the payment as a demonstration of Governor Sanwo-Olu’s commitment to humane urban renewal.

Sanni said the regeneration project would transform Oworonshoki into a modern and livable community.

He stressed that the exercise was not only about demolitions but about fair treatment of affected residents as promised by the government.

Sanni commended LASURA for conducting a transparent and humane compensation process, noting that the area would benefit from improved housing, drainage, potable water, and road networks.

He urged residents to remain calm and cooperate with the government, stating that the redevelopment is in the public interest and necessary for proper urban planning.

Two beneficiaries — Chioma Idoko and Taiwo Solola — confirmed receiving ₦200,000 each, saying the payment was appreciated even though modest.

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