Business
Subsidy: Stakeholders, Experts Convene National Dialogue, Proffer Short, Long Term Solutions
By Adeola Ajiboye
A group of civil society organisations (CSOs) and other relevant stakeholders have met in Abuja to explore ways out of the file prices hike crisis after the fuel subsidy removal by the federal government.
The stakeholders under the banner of ‘National Dialogue on Subsidy Removal’, facilitated by United States Agency for International Development (USAID) and Palladium, reviewed the policy which took effect on May 29th, 2023 and concluded that more proactive actions were required on the part of government and the citizens to ameliorate its effects.
Speaking at the event, Executive Director of Centre for Transparency Advocacy (CTA) Faith Nwadishi, urged politicians and government at all levels to urgently engage Nigerians to find workable solutions that would mitigate the hardships trailing the removal of subsidy.
She argued that besides it’s disruption to lots of development in the country, the hasty removal of subsidy has led to some deaths due to the suffering and inability of many people to meet up with the high increase in transportation, goods, services and other basic needs needed for survival.
She said that in the spirit of transparency, accountability and citizen participation, it has become critical for government and the political class to engage the people whom they have vowed to serve, to find out their specific problems, needs and how best they could be addressed, as the voices of those directly affected by the subsidy removal must be heard and considered.
“The decision to remove fuel subsidy have had significant implications on the lives of our fellow citizens. It has resulted in increased costs of living, affecting transportation, essential goods, and services. As we gather here today, it is imperative that we recognize the urgency of coming up with sustainable recommendations to mitigate the hardships faced by vulnerable groups in our society,” Nwadishi said.
Also, one of the participants at the event, Dr Micheal Uzoigwe, said that it was of strategic importance for government to cushion the socio-economic effects of the subsidy removal on citizens.
He noted that fuel subsidy failed to achieve its aim in Nigeria because its administration was flawed and characterized by lack of transparency, mismanagement and corruption.
Dr Uzoigwe also said that it is important to recognise that the essence of fuel subsidy removal was not to make more revenue available to government, which will be subjected to the same systemic inefficiency that drained government revenues and denied the poor the full benefits of fuel subsidy.
“The figure has been quoted to be as high as 68m litres per day. The Nigeria Extractives Industry Transparency Initiative (NEITI) shares the same concern about the bogus consumption figures and is currently seeking to conduct a study that could provide a more accurate estimate.
“Without a strong signal on fighting corruption, there is no guarantee that the potential savings from subsidy removal would be safe or appropriately utilized. Government should disclose plans for repositioning critical accountability institutions for improved performance and delivery of their mandates.
“The sacrifice required to salvage the country’s struggling economy cannot be made only by the poor and vulnerable. The annual salary and benefits of a Nigerian senator come to about N350m while those of a minimum wage earner are less than N400,000,” Uzoigwe said.
Nigeria’s public debt rose by 48.5 per cent year-on-year (YoY) to N144.67 trillion ($94.23 billion) in 2024 from N97.34 trillion ($108.23 billion) in 2023.
The Debt Management Office (DMO) disclosed this in its latest public debt profile report.
The debt stock consists of external debt of N70.29 trillion ($45.78 billion) serviced with $4.66 million and domestic debt of N74.38 trillion ($48.44 billion).
The report showed that the country’s external debt increased by 83.89 per cent YoY from N38.22 trillion ($42.5 billion) in 2023.
Domestic debt also grew by 25.7 per cent YoY from N59.12 trillion ($65.73 billion) in 2023.
The report further indicated that the Federal Government’s domestic debt component rose by 32 per cent YoY to N70.41 trillion from N53.26 trillion in 2023.
But the domestic debt of states and the Federal Capital Territory declined YoY by 32 per cent to N3.97 trillion in 2024 from N5.86 trillion in 2023.
The rise in public debt can be attributed to fluctuating trends in exchange rates amidst changes in global economic conditions.
The sharp increase, particularly in external debt, highlights the nation’s vulnerability to exchange rate volatility and changes in global economic conditions.
With the continued depreciation of the naira, the cost of servicing foreign debt could escalate, adding pressure on the country’s financial resources.
The Nigerian National Petroleum Company Limited (NNPCL) has announced the appointment of a new eight -man Senior Management Team.
The appointment followed the recent announcement followed the appointment of the Group Chief Executive Officer (GCEO) and Board of Directors.
Disclosing this in a statement on Friday, NNPCL Chief Corporate Communications Officer, Olufemi Soneye, said the appointments all take immediate effect.
“Following the appointment of the Group Chief Executive Officer and Board of Directors, the Nigerian National Petroleum Company Limited (NNPC Ltd) has announced the appointment of a new 8-man Senior Management Team on Friday,” he stated.
“The team which will be headed by the GCEO, Mr Bashir Bayo Ojulari, has Rowland Ewubare as Group Chief Operating Officer; Adedapo Segun as Group Chief Financial Officer; and Olalekan Ogunleye as Executive Vice President Gas, Power & New Energy.
“Other members of the team are: Udy Ntia as Executive Vice President Upstream; Mumuni Dangazau as Executive Vice President Downstream; Sophia Mbakwe as Executive Vice President Business Services; and Adesua Dozie, as Company Secretary & Chief Legal Officer. All appointments are with immediate effect.”
Ngozi Okonjo-Iweala, the director-generaI of the World Trade Organisation (WTO), says the recent tariffs announced by the United States (US) will have significant implications for global trade and economic growth prospects.
On April 2, President Donald Trump announced sweeping global tariffs on all imports into the US, imposing 14 percent on Nigeria.
In a statement on Thursday, Okonjo-Iweala said the WTO secretariat is closely monitoring and analysing the measures announced by the nation.
The WTO DG said many members have “reached out to us”, adding that the secretariat is actively engaging with them in response to their questions about the potential effect on their economies and the global trading system.
“The recent announcements will have substantial implications for global trade and economic growth prospects,” the economist said.
“While the situation is rapidly evolving, our initial estimates suggest that these measures, coupled with those introduced since the beginning of the year, could lead to an overall contraction of around 1% in global merchandise trade volumes this year, representing a downward revision of nearly four percentage points from previous projections.”
Okonjo-Iweala expressed concern over the decline and the potential for escalation into a tariff war with a cycle of retaliatory measures that could lead to further declines in trade.
“It is important to remember that, despite these new measures, the vast majority of global trade still flows under the WTO’s Most-Favored-Nation (MFN) terms,” she said.
“Our estimates now indicate that this share currently stands at 74%, down from around 80% at the beginning of the year. WTO members must stand together to safeguard these gains.”
According to the WTO DG, trade measures of this size have the potential to create significant trade diversion effects.
Therefore, she called on members to “manage the resulting pressures responsibly to prevent trade tensions from proliferating”.
“The WTO was established to serve precisely in moments like this — as a platform for dialogue, to prevent trade conflicts from escalating, and to support an open and predictable trading environment,” Okonjo-Iweala said.
She encouraged members to utilise the forum to engage constructively and seek cooperative solutions.