•Stock market gains N1.51tn, naira appreciates as Eurobonds rally •NLC, TUC express outrage, describe pronouncement as insensitive •Shettima: We must end fuel subsidy now else it will end Nigeria •NNPC,
•NLC, TUC express outrage, describe pronouncement as insensitive•Kyari: FG owes national oil company N2.8tn subsidy fund•Declares licences to be issued soon to marketers to import fuel•Lawmakers, MOMAN, DAPPMAN, IPMAN hail presidentDeji Elumoye, Onyebuchi Ezigbo, Emmanuel Addeh, Emameh Gabriel, Udora Orizu in Abuja, Nume Ekeghe, Peter Uzoho and Kayode Tokede in Lagos
However, it is not certain how the talks with the two labour unions went or when further talks and expected to hold. “Effectively, this means that by the end of June, the federal government will be without funds to continue the subsidy regime, translating to its termination. The panic-buying that has ensued as a result of the communication is needless; it will not take immediate effect.”
Emphasising reasons to support the move to eliminate petrol subsidy, the Group Chief Executive Officer , NNPCL, Mele Kyari, disclosed that the federal government was indebted to the national oil company to the tune of N2.8 trillion in fuel subsidy payments. Commuters were also stranded at various bus stops, as they waited to board commercial vehicles which had hiked fares from between 50 and 100 per cent.Investors in both the equities and money market yesterday responded positively to the pronouncements by President Bola Tinubu in his inaugural speech.
He added that, “The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy. Access Corporation added 8.33per cent to close at N12.35 per share, becoming the most actively traded stock with about 200 million units of shares worth about N2.4 billion.
In addition, NGX Oil and Gas Index increased by 4.04per cent, due to the bullish trend observed in ETERNA , CONOIL and Total . Prof. Uche Uwaleke of Nasarawa State University, in chat with THISDAY backed the move by this present administration to remove petrol subsidy. In a statement issued in response to Monday’s announcement on withdrawal of fuel subsidy by the president during his inaugural speech, NLC, Joe Ajaero, advised Tinubu to reconsider the move instead of daring the people, adding that it could be a costly gamble.
“By his insensitive decision, President Tinubu on his inauguration day brought tears and sorrow to millions of Nigerians instead of hope. He equally devalued the quality of their lives by over 300 per cent and counting.” The NLC stated that what the government claimed to be economic decisions were essentially political ones.
“If he is expecting a medal for taking this decision, he would certainly be disappointed to receive curses for the people of Nigeria consider this decision not only a slight, but a big betrayal. For their part, the TUC also rejected Tinubu’s declaration that federal government has removed subsidy on petroleum products.
“But we were subsequently taken aback, even horrified, when he announced the withdrawal of subsidy on petroleum products, if by this, he means increases in pump price and the exploitation of the people by unregulated and exploitative deregulated prices, then it’s a joke taken too far. The statement said the labour movement was open and ready to dialogue with the Tinubu administration on the fuel subsidy issue, adding that it was in the interest of the people that such a matter is resolved peacefully
Shettima, who made this known while speaking with newsmen on his first day in office at the State House, Abuja, stressed that Nigeria needs to get rid of fuel subsidy, otherwise the subsidy would get rid of the Nigerian nation. “In 2022, we spent $10 billion subsidising the ostentatious lifestyle of the upper class of the society because you and I benefit 90 per cent from oil subsidy. The poor 40 per cent of Nigerians benefit very little and we know the consequences of unveiling a masquerade.
He further stated that before long, Tinubu would unfold the agenda of the new administration that would benefit all Nigerians. Shettima said the president was poised to redefine the meaning of modern governance, saying he would provide the needed leadership, but also requested Nigerians to give him and his administration the needed support.
Kyari stated that the NNPC would ensure continuous and sufficient supply of petroleum products, particularly Premium Motor Spirit , noting that the company was monitoring all its distribution networks to ensure compliance. “We welcome the decision of Mr. President to announce that the subsidy on PMS is over and this has really been a major challenge for the NNPC’s continued operation. We have been funding the subsidy from the cash flow of the NNPC.
“The Authority assures that there is ample supply of PMS to meet demand as we have taken necessary steps to ensure distribution channels remain uninterrupted and fuel is readily available at all filling stations across the country. A statement in Abuja signed by the Deputy Director/Head Communications & Stakeholders Management, Obiageli Onuorah, described the move as a positive statement by the new administration to decisively implement the findings and recommendations contained in NEITI reports.
“Subsidy payments more than doubled in 2008 and 2010 and witnessed the highest increase ever in 2011 to $13.52 billion . A sharp decline was witnessed in the years 2012, 2013, 2014 and 2015 when it dropped to $3.336 billion in 2012. The decline in subsidy expenditure continued in 2016 and 2017 to as low as $473 million in 2017.
NEITI pointed out that the situation was even worse because it relied more on federation accounts funds, the federal government and sometimes from external borrowing with negative consequences on government overall revenue profiles. “Other policy considerations are that government should commission a special report on actual PMS consumption in Nigeria, enforce stringent sanctions for criminal activities in the oil and gas sector and conduct appropriate stakeholders’ consultations, engagements and enlightenment.
“The policy advisory also conducted a survey of the pump price of petrol across the country outside the major cities of Lagos & Abuja during the era of petroleum subsidy. NEITI, therefore, called on the regulatory institutions to stand firm and tackle artificial scarcity, hoarding and other man-made obstacles being created at the moment to frustrate the implementation of subsidy removal.Meanwhile, the Major Oil Marketers Association of Nigeria as well as the Depot and Petroleum Marketers Association of Nigeria , yesterday endorsed the pronouncement by Tinubu, on the phase-out of the petrol subsidy regime.
The decision to phase out the fuel subsidy regime, they argued was not merely a fiscal reform, but a significant stride toward social justice. They also urged suppliers to continue supplying products to all legitimate marketers and called on all stations to remain open and avoid hoarding products. Osatuyi said Tinubu had promised to remove fuel subsidy right from the first day of his administration, noting that the pronouncement was part of his campaign promises. He said the money used on subsidy would be diverted to develop other sectors, saying, “That means Tinubu has begun to fulfil his campaign promises.”
The resolutions followed the adoption of a motion of urgent national importance sponsored by Hon. Jimoh Olajide . The party lamented that it had been confronted with the stark reality that less than 24 hours after Tinubu took over the reins of power, Nigerians woke up to see the pump price of petrol shot up to N600 per litre and N750 per litre in the black market, calling on Nigerians to be ready for more anti-people policies by the government of the ruling All Progressive Congress .
“As expected commercial transporters have hiked their trip fares across the country in response to the developments. While product hawkers are once more the king of the jungle.
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