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Remove Petrol, Electricity Subsidies Once Inflation Subsides — IMF To FG

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The federal government has been advised by the International Monetary Fund (IMF) to eliminate subsidies for petrol and electricity when the social safety programme has been improved and inflation has decreased.

In a paper titled “Nigeria: 2024 Article IV Consultation,” the IMF made this revelation.

The proposal came after Nigeria’s inflation rate increased sharply, from 31.70 percent in February 2024 to 33.20 percent in March 2024.

According to the IMF, an improved social intervention programme that the federal government of Nigeria created with assistance from the World Bank may benefit roughly 15 million households, or 60 million Nigerians.

“The authorities have recently approved an enhanced social transfer mechanism developed with World Bank support, and some initial payments have been made,” IMF said.

“In response to governance concerns, the authorities automated and digitalized the system to build a robust mechanism that delivers swift and targeted support to vulnerable households, some 15 million households or 60 million Nigerians potentially benefit from the scheme.

“Once the safety net has been scaled up and inflation subsides, the government should tackle implicit fuel and electricity subsidies.”

According to the IMF, the subsidies are costly and poorly targeted, with higher-income groups benefiting more than the vulnerable.

IMF also said with pump prices and tariffs below cost-recovery, subsidy costs could increase to three percent of gross domestic product (GDP) in 2024, compared to one percent of GDP in 2023.

IMF said its staff projected a higher fiscal deficit than anticipated in the 2024 budget, adding that “higher implicit” fuel and electricity subsidies would drive the increase.

The federal government had projected N9 trillion budget deficit for this year.

Aside from the subsidies, IMF said other drivers are lower oil and gas revenue projections, continued suspension of excise measures included in the medium-term expenditure framework (MTEF), and higher interest costs.

“Staff factors in an under-execution of capital expenditure in line with past outcomes and estimates an FGN deficit of 4.5 percent of GDP relative to the 2024 budget target of 3.4 percent of GDP,” IMF said.

“For the consolidated government, this implies a projected deficit of 4.7 percent of GDP in 2024, compared to 4.8 percent of GDP in 2023 measured from the financing side, which is appropriate given the large social needs and factoring in a realistic pace of revenue mobilization.

“Over the medium-term, staff projects consolidation in the non-oil primary deficit. With rising interest costs, government debt stabilizes towards the end of the projection period.”

On April 3, the Nigerian Electricity Regulatory Commission (NERC) approved an increase in electricity tariff for customers under the Band A category to N225 per kilowatt-hour (kwh), from N66, to reduce electricity subsidy.

However, on May 6, electricity distribution companies (DisCos) said the tariff of Band A customers has been reduced to N206.80 per kwh.

On May 29, President Bola Tinubu announced petrol subsidy was gone, however, on August 15, 2023, TheCable reported the president was considering a “temporary subsidy” on petrol.

On April 15, Nasir el-Rufai, former governor of Kaduna state, said the federal government is spending more on petrol subsidy than before.

Also, Gabriel Ogbechie, chief executive officer (CEO) of Rainoil Limited, on April 17, said the federal government now spends N600 billion on petrol subsidy monthly.

BIG STORY

NSA Ribadu Tells Canada To “Go To Hell” For Denying Military Chiefs Visas

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In a significant diplomatic snub, Canada has refused to grant visas to Nigeria’s Chief of Defence Staff (CDS), Gen. Christopher Musa, and several other senior military officers for an official event. Speaking on Thursday, February 13, 2025, at the first annual lecture of the National Association of the Institute for Security Studies (AANISS) in Abuja, National Security Adviser (NSA) Nuhu Ribadu voiced his dissatisfaction, telling Canada “to go to hell.”

The officials were scheduled to participate in a ceremony in Canada honoring war veterans, but only a part of the delegation was granted visas, sparking strong reactions from Nigerian authorities.

Ribadu and Musa discussed the matter at the inaugural lecture of the Alumni Association of the National Institute for Security Studies (AANISS). The event, attended by security experts and government officials, highlighted national security and international collaboration.

Ribadu labeled the visa denial as disrespectful, while Musa stressed that Nigeria needs to assert itself internationally and no longer be taken lightly. Musa reflected on how his team had been invited to the veterans’ event, only to be hit with an unexpected setback when some members of the delegation were denied entry. He viewed the incident as a reminder for Nigeria to bolster its independence and strength.

He stated, “Every disappointment is a blessing. Yesterday, I was meant to be in Canada for an event to honor our veterans… half of us have gone, and half have been denied. It’s very disappointing. It’s a clear reminder that the country must stand on its own, stand strong as a nation, and should no longer be taken for granted.”

Ribadu commended Musa for his leadership in tackling security issues and underscored the importance of national advancement. He remarked, “Thank you for having the courage to say Canada denied you visas. They can go to hell. Even though it’s painful and disrespectful, we are peaceful and strong, and I agree with you that it is time to fix our country.”

The visa rejection raises concerns about Canada’s position on Nigerian military officials and its broader diplomatic relationship with Nigeria. While the exact reasons for the denial remain unclear, the incident has shed light on the bureaucratic and political obstacles Nigerian officials face in international dealings.

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Gbenga Adeyinka D’1st Gears Up For Laffmattazz “About Time World Tour”

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Iconic Nigerian comedian, Gbenga Adeyinka D’1st, is set to embark on a global comedy tour, bringing laughter and excitement to fans around the world.

The Laffmattazz tagged “About Time World Tour” promises to be an unforgettable experience, featuring Gbenga Adeyinka D’1st’s unique brand of comedy and other amazing comedians.

The tour will kick off in Nigeria, with shows in Ibadan, Akure, Abeokuta, and Lagos.

From there, Gbenga Adeyinka D’1st will take his comedy to the global stage, performing in the UK, Canada, and the USA.

“We are thrilled to announce the Laffmattazz World Tour, which promises to be an epic comedy experience,” said Gbenga Adeyinka D’1st.

When asked what his fans should expect, Gbenga Adeyinka D’1st said “We have an amazing lineup of shows planned, and we can’t wait to bring laughter and joy to our fans around the world.”

The Laffmattazz World Tour is set to be a hilarious and entertaining experience, featuring Gbenga Adeyinka D’1st’s signature comedy style, which blends humor, storytelling, and audience interaction.

For more information on the Laffmattazz World Tour, including tour dates, venues, and ticket information, follow us on social media @gbengaadeyinka1stgcon @Laffmattazz_ga1st

Join the conversation on social media using the hashtag #LaffmattazzWorldTour.

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Our Matriarch Has Returned To Her Creator

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With a heavy heart and complete submission to the will of Almighty Allah, we announce the passing of our beloved mother, Mrs Mojisola Norinatu Adebayo Nee Adelakun who departed this world on the evening of Tuesday, February 11, 2025.

Fondly known as Iya Wale, she lived a remarkable 68years filled with love, kindness, and wisdom. She was a pillar of strength who taught us patience, tolerance, and, above all, the true essence of love. Her presence touched many lives, and her legacy of compassion will forever remain in our hearts.

Though my siblings and I deeply mourn her loss, we take solace in the knowledge that she has returned to her Creator. In accordance with Islamic rites, she was laid to rest on Wednesday, February 12, 2025.

As we reflect on her impactful life, the family will hold the 8th Day Fidau prayers next week to honor her memory. We kindly ask for your prayers and support during this difficult time.

May Allah grant her eternal rest and admit her into Al-Jannah Firdaus.

 

Dr. Abiola Adebayo

For the Family

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