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Subsidy: FAAC Meets Today As NNPC Deductions Threaten States’ Allocations

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The planned deduction of N242.53bn fuel subsidy from the Federation Account this month by the Nigerian National Petroleum Company Limited is raising uncertainty among states as the Federation Accounts Allocation Committee is scheduled to meet on Tuesday (today).

It was gathered that commissioners for finance from the 36 states would meet today for the usual monthly allocation sharing meeting by the three tiers of government.

Already, the NNPC had made it known to the states that it would deduct a total of N242.53bn in March (this month) as the amount spent on the subsidy of Premium Motor Spirit, popularly called petrol.

Subsidy deductions by the NNPC had often reduced the amount being shared by FAAC, piling pressure on the finances of state governments as they battle to meet their obligations especially payment of salaries.

When contacted to tell the efforts which states were making to meet their obligations and pay salaries, the Chairman of the Forum of Finance Commissioners, David Olofu, declined comment but stated that this month’s FAAC meeting would hold on Tuesday.

“You are trying to squeeze water from the rock,” he told one of our correspondents.

When probed further on the date of this month’s FAAC meeting, Olofu, who is also Benue State Commissioner for Finance, replied, “Tomorrow (being today, Tuesday).”

States had kicked against the poor remittances by the NNPC to FAAC, which had been due to fuel subsidy deductions by the oil company.

Although it described the proposed N242.53bn subsidy deduction for this month as a value shortfall, the oil firm stated that the fund would be recovered from February 2022 proceeds due for sharing in the March 2022 FAAC meeting.

It said, “The December 2021 value shortfall recovery on the importation of PMS amounted to N210.38bn.

“The recovery consists of December 2021 value shortfall of N176.48bn plus the outstanding value shortfall recovery of N33.9bn accrued over the 2021 year. The November 2021 spot arrears of N98.81bn is also outstanding.

“The estimated value shortfall of N242.53bn (consisting of N143.72bn for January 2022 recovery plus November spot arrears of N98.81bn) is to be recovered from February 2022 proceed due for sharing at the March 2022 FAAC meeting.”

Recall that in February this year, the NNPC had remitted no money to FAAC due to its huge fuel subsidy spending and subsequent deduction from the Federation Account.

On March 3, 2022, state governors lambasted the NNPC for not remitting any funds at last month’s FAAC meeting.

The Chairman of the Nigeria Governors’ Forum and Governor of Ekiti State, Kayode Fayemi, had also wondered how the oil firm was bold enough to declare profit when it had not been meeting its FAAC obligations.

Fayemi had disclosed this alongside other governors during the Nigerian Governors’ Forum session on natural resources at the Nigeria International Energy Summit 2022 in Abuja.

He specifically pointed out that in the last Federation Accounts Allocation Committee meeting in February, the NNPC made zero remittance to the federation.

“We’ve just had the Federation Accounts Allocation Committee meeting a couple of days ago and the NNPC contributed zero to the Federation Accounts this month,” the governor had stated.

Several states were reported to have found it difficult to pay salaries in February following the zero remittance from the NNPC in that month.

Going by media reports, the Kano State Government which had approved the minimum wage of N30,000 was reported to have reverted to the old minimum wage of  N18,000 for its workers.

The State Commissioner for Information, Muhammadu Garba, reportedly said, “Given the present financial situation, the government would find it difficult to implement the consolidated salary for March, which is though a temporary measure.”

Also in Kogi State, the state government which had also approved the new minimum wage for its workers was reported to have resulted in percentage payment.

In Benue, the State Chairman of the Nigeria Labour Congress, Godwin Anya, said the state had for some time resulted in a staggered payment of salaries to its workers.

Various oil industry operators told our correspondent that unless the fuel subsidy regime was halted, the deductions by the NNPC might continue, as the company had been the sole importer of petrol into Nigeria for more than four years running.

The oil firm had also been shouldering the cost of subsidy on petrol all these years. The actual cost of the commodity is far higher than the approved N162-N165/liter pump price.

 The President, Petroleum Products Retail Outlets owners Association of Nigeria, Billy Gillis-Harry, explained that the actual cost of petrol without subsidy was usually a little higher than that of diesel.

He stated that if not for the subsidy, PMS would be selling around N550 to N600/liter going by the rise in crude price.

The approved subsidized pump price of PMS in Nigeria is between N162 to N165/liter, but oil marketers stated that the actual cost should be a little higher or about the same price of diesel had it been PMS was deregulated.

The PETROAN president further stated that the N3tn that was projected by the government as subsidy spending in 2022 might double before the end of the year if the crude oil price continues to rise.

BIG STORY

Kano Government Declares Two-Week Sallah Break For Schools

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The Kano State Government has declared a mid-term holiday for all primary and secondary schools within the state in celebration of the upcoming Eid-el-Kabir festivities.

As per a formal statement from the state’s Ministry of Education, the holiday will begin on Wednesday, June 4, 2025, with schools expected to resume academic sessions on Sunday, June 15, 2025.

This directive covers both day and boarding institutions. The ministry also advised parents and guardians of boarding students to pick up their children early on June 4.

The ministry clarified that this decision aligns with the existing 2024/2025 academic calendar, which remains unchanged despite the holiday, emphasizing that both academic and holiday plans will be followed as scheduled.

In the announcement, the Commissioner of Education, Ali Makoda, encouraged parents to ensure that students return to school promptly after the break.

“We also urge parents and guardians to ensure their children comply with the official resumption date for a smooth continuation of the academic term,” Makoda stated.

He also offered good wishes to the students and school staff, saying, “We wish our students and pupils a peaceful and successful Sallah break.”

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BIG STORY

The Man Who Carried A City: Lanre Alfred Celebrates Sanwo-Olu At 60 With Landmark Book

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Renowned author and biographer, Dr. Lanre Alfred, has unveiled a significant new title, “The Man Who Carried a City”, an in-depth literary biography of Lagos State Governor, Mr. Babajide Olusola Sanwo-Olu. The launch of the book serves as a heartfelt celebration of the governor’s upcoming 60th birthday on June 25, 2025.

Recognized for his elegant prose and detailed chronicling of modern Nigerian leadership, Alfred, popularly known as the “Doctor of Letters”, presents another impactful narrative of resilience shaped by vision. This latest release is his eighth publication, adding to his impressive catalogue which includes The Titans…The Amazing Exploits of Nigeria’s Greatest Achievers, Pacemaker – Triumphs of Igho Sanomi at 40, and Dapo Abiodun: The State House As His Pulpit.

Nigeria At 60’, Highlife – Amazing Lifestyles of Nigeria’s Rich and Famous, The Lion of Afia Nsit -Triumphs of Scott Tommey at 45; and Julius Rone…The Jewel of the Delta. Nigeria @ 65 etc.

In “The Man Who Carried a City,” Alfred offers a detailed portrayal of Sanwo-Olu’s career in public service, tracking his journey from early influences to his current role as the leader of Nigeria’s most dynamic state. The coffee table book, published by Old English Partners, features fourteen chapters spread across more than 250 glossy, full-color pages, brought to life with striking photography and Alfred’s signature poetic writing style.

The opening chapter, “The Clockmaker’s Spawn,” explores Sanwo-Olu’s background and the early forces that shaped him, creatively linking the discipline of timekeeping to his methodical and structured approach to leadership. Another notable section, “Lagos in His Lungs,” delves into Sanwo-Olu’s deep connection with the city, illustrating how his personal and professional life is intricately aligned with the rhythm of Lagos.

In “The Politics of Listening,” Alfred portrays Sanwo-Olu not just as a leader issuing orders, but as a servant of the people, in tune with public needs and translating those into governance. Other insightful chapters include “His Tailored Creed”, which connects his fashion choices to his administrative philosophy; “2020… The Year Lagos Trembled”, which examines his leadership during the pandemic and #EndSARS protests; and “Legacy as a Living Covenant,” a reflection on the future of Lagos under his watch.

The foreword, written by Olawale Olaleye, Deputy Editor at ThisDay newspaper, affirms the depth of Alfred’s work. In a piece titled “His Burden of Grace”, Olaleye praises the biography as “probing and profound,” noting that “Dr. Alfred’s book has not only done justice to the leadership of Sanwo-Olu as he steps into the sixth floor on June 25th, 2025, it has also done so without taking anything away from the truth of the accounts of his stewardship thus far.”

Olaleye further reflects, “From one crisis to another, Governor Sanwo-Olu has experienced such hard-to-believe baptism of fire in the last seven years… Yet, he has taken his travails of leadership with equanimity and rare grace, a quality that sets him apart and establishes a different standard for whomever eventually succeeds him.”

Dr. Lanre Alfred explained that writing “The Man Who Carried a City” was more than a literary project; it was a personal homage to a leader whose approach stands in contrast to the usual noise of politics, offering steady and sincere service to the people. According to Alfred, “Governor Babajide Sanwo-Olu is not simply a public servant. He is a civic artisan, meticulous, selfless, and deeply humane. He governs with empathy, listening more than he speaks, and building more than he boasts.”

He added, “In today’s world where leadership is often reduced to spectacle, Sanwo-Olu exemplifies a different path — one of humility and substance. He has mastered the rare skill of being genuinely present for the people without seeking attention. This book aims to preserve that unique ethos of governance.”

Alfred pointed out Nigeria’s failure to preserve the legacies of genuine public servants, calling it a serious shortcoming in national consciousness. He said, “One of the great failings of our nation is our inability to document the journeys of those who have truly served. Nigeria is poor not for lack of heroes, but for lack of memory. We do not archive greatness when it blooms among us; we let it wither in silence. I wrote this book because Sanwo-Olu’s story—his sacrifices, his vision, his silent triumphs—must not be left to the mercy of rumour or forgetfulness.”

For Alfred, the legacy of the governor is more than physical infrastructure — it lies in the calm strength of a man who carried Lagos through intense trials, including the darkest periods of 2020, while also pushing for the city’s renewal. “It would be unjust to history,” he said, “to let such a profound burden of grace pass undocumented.”

To him, the book is not just a birthday memento; it represents a meaningful civic effort. He sees “The Man Who Carried a City” as a guiding document for both young people and current leaders in a time that desperately needs authentic role models.

The biography highlights Sanwo-Olu’s accomplishments in areas such as infrastructure, social welfare, crisis response, and cultural revival, while also painting a vivid picture of the man behind the political role. In the chapter “Ibijoke”, Alfred takes a closer look at the First Lady, emphasizing the strength and partnership between the couple as a foundational part of Sanwo-Olu’s life, portraying love as both support and legacy.

The book concludes with the section “Sixty Portraits in a Single Soul”, summarizing Sanwo-Olu’s six-decade-long journey of service and dedication into a visual and narrative tribute that echoes not only his personal story but the spirit of Lagos itself.

Looking ahead, “The Man Who Carried a City” serves as both a reflection of past leadership challenges and a guide for future city-bearers who aspire to lead with purpose and resilience.

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BIG STORY

FG Declares 6th, 9th June, 2025 Public Holiday To Mark Eid-Ul-Adha Celebration

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The Federal Government has announced Friday, 6th, and Monday, 9th June, 2025 as public holidays in observance of this year’s Eid-ul-Adha celebration.

Dr. Olubunmi Tunji-Ojo, the Minister of Interior, who made the announcement on behalf of the Federal Government, extended his congratulations to all Muslim Ummah within the country and abroad on the occasion.

He encouraged the Muslim Ummah to uphold the values of sacrifice and faith as demonstrated by Prophet Ibrahim (Peace be upon Him), and to take the time to offer prayers for a peaceful and prosperous Nigeria.

The Minister gave assurance to Nigerians that the people-focused reforms and policies being implemented as part of President Bola Tinubu’s Renewed Hope Agenda are intended to put the country back on a path of development.

In his message wishing the Muslim Ummah a joyful Eid-ul-Adha celebration, the Minister appealed to all Nigerians to support the current administration’s drive to return Nigeria to its esteemed position as a great nation.

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