Economy

Fuel Subsidy is Back, Marketers Insist, Counter FG

Published

2 years ago

October 11, 2023

Eric

Oil marketers has countered the position of the Federal Government, as they insist that the current pump price of Premium Motor Spirit, popularly called petrol, should not be less than N800/litre if there was no subsidy on the commodity.

Petrol currently sells at between N580/litre and N617/litre depending on the area of purchase, as the Federal Government, through its Nigerian National Petroleum Company Limited, had denied reintroducing PMS subsidy.

On Monday, the Group Chief Executive Officer, NNPCL, Mele Kyari, denied the reintroduction of petrol subsidy and claimed that the pockets of queues by motorists observed in petrol stations across the country stemmed from hiccups in products’ distribution from the South to the North and not a lack of supply.

“No subsidy whatsoever. We are recovering our full cost from the products that we import. We sell to the market, and we understand why the marketers are unable to import. We hope that they do it very quickly and these are some of the interventions the government is doing. There is no subsidy,” Kyari had stated.

He had made the claim barely 48 hours after the Petroleum and Natural Gas Senior Staff Association of Nigeria confirmed the return of fuel subsidy.

Also, oil marketers had earlier stated repeatedly that fuel subsidy had returned, as they explained that the landing cost of petrol as of last week was N720/litre.

On Tuesday, they lambasted the NNPCL boss for coming out to state that the government was not subsidising PMS, as they explained why subsidy on PMS had returned.

“I don’t know why the government keeps peddling lies. When they removed the PMS subsidy, a dollar was about N700 and they made us believe that the removal of subsidy would make the supply of products play according to the dictates of demand and supply, looking at forex as the benchmark.

“Now, this is just simple arithmetic, if you removed the subsidy when a dollar was about N700 and today the dollar is more than N1,000, and you are still supplying and giving products at almost the same rate, what is the magic? They are subsidising products as we speak.

“They are spending billions of naira to subsidise products, and because they know that this country may go on fire if Nigerians buy products at about N1, 000/litre, they keep twisting facts. Why can’t they come out and tell the world the truth?” the National Secretary, Independent Petroleum Marketers Association of Nigeria, Chief John Kekeocha, stated.

He said the government went ahead to remove the subsidy without looking at the nitty gritty involved before implementing the decision.

“You cannot wake up overnight and remove subsidy without considering the pros and cons, only for you to wake up again and start putting back the subsidy into play secretly, and you think Nigerians will not know,” he stated.

Asked to state the implications of these concerns in the downstream sector, Kekeocha replied, “I am telling you that in a very short time there will be no product anywhere in this country, apart from the tank farms that have access to diesel.

“This is because many marketers cannot even function well with the cost of diesel. Check the cost of diesel and the cost of supply and distribution. How many marketers can do it and sell at about N600/litre? The cost of landing PMS is over N700/litre.”

Explaining the effect of the cost of diesel on the operations of filling stations, the IPMAN official stated that “when you compute the cost of bringing PMS from Warri to Abuja or other Northern states by an independent marketer, it will land here (North) at more than N700/litre.

“The cost of diesel is now very high and many marketers can’t afford it, and still sell to compete with the tank farm owners who sell at about N617/litre. Consumers cannot see where the product is sold cheap and go to where it is costly.”

Kekeocha, however, noted that tank farm owners involved in retailing of petrol were few, stressing that such category of dealers were very limited when compared to independent marketers.

Independent marketers control about 80 per cent of filling stations across the country, as a reduction in their operations is going to lead to scarcity in many locations, particularly areas that lack major operators that have tank farms.

“So independent marketers cannot compete right now due to the high cost of diesel and the inability to import due to forex issue, which is why you see that the number of functional filling stations nationwide have been reducing on a daily basis,” the IPMAN official stated.

On whether stabilising forex would help the situation, Kekeocha replied, “The government cannot address forex because it is not within their control. If the government has to address forex, it means it still has to make it clear that they have decided to bring back subsidy.

“It is only subsidy that can keep the price of fuel at the rate that it is now at about N600 plus. Otherwise any moment from now, the cost of a litre of fuel will be about N800/litre or more. The government didn’t do what they are supposed to do ab-initio.”

Asked to state what the government should have done earlier, he said, “There is nothing we can do now than to do what we would have done before – make the refineries work. If refineries are working and they are producing at Warri and Port Harcourt, it will reduce the pressure on importation.

“This is also going to reduce the cost of the product locally, because the cost of fuel and diesel at this moment is due to the fact that we have to import them and this is at the current forex rate. You cannot manipulate forex. So we didn’t do what we ought to have done initially.”

On claims by NNPCL that it had enough product, the IPMAN secretary said this was not entirely correct.

“The situation in the downstream oil sector is very painful. How can Kyari go to the open and be telling people that he is not subsidising the product? He also said they have billions of litres of fuel and that nothing is going to happen, let him come out and watch what is happening in town right now.

“You can’t get taxis because most of them cannot get fuel, and their cost is now very high. Many people have packed their vehicles. How many stations are selling? For the few ones that are selling, the queues are endless here in Abuja.”

On his part, the National President, Natural Oil and Gas Suppliers Association of Nigeria, Benneth Korie, said filling stations were closing, as he insisted that fuel subsidy had been gradually reintroduced.

“NOGASA is seriously worried, between now and December this year, there is need for urgent government intervention to stop the shutting down of our filling stations and parking of our petroleum tankers, all due to the high cost of importation, distribution of products, etc,” he stated.

Korie also stated that the high cost of diesel was killing businesses in the downstream oil sector, stressing that concerns around subsidy on PMS had not helped matters lately.

“Among our recommendations to the government include the declaration of a state of emergency on our refineries, provision of palliatives to marketers for importation of diesel for 120 days before the commencement of operations by the refineries, since the government said refineries will start in December,” he declared.

Earlier, another dealer explained that the last private marketer, PETROCAM, that imported petrol into Nigeria recently, could not sell it due to the reintroduction of subsidy on PMS and the insistence of NNPCL not to raise its pump price.

The marketer stated that before the last one month, whenever they (marketers) brought in products, they would convince the NNPCL to raise the price in accordance with the landing cost.

“The depots are dried up. That’s a statement of fact. For more than a month now no other importer has brought in product except NNPC,” the oil dealer, who spoke on condition of anonymity due to lack of authorisation, stated.

“Since over a month now, I don’t think marketers have been able to influence NNPC to change its price. So that is why you hear that the landing cost currently is about N720/litre, but NNPC is still selling at between N580 to N617, depending on your location.”

The source explained that the current price of petrol had lingered because the government was subsidising the commodity.

“It (government) has said the price should not be more than that amount. So since over a month no marketer has brought in product due to the reintroduction of subsidy.”

On whether NNPC has enough products to keep the country wet, since marketers have stopped PMS imports, the source replied, “NNPC also has its challenges too

“The NNPC you have now is different from the one of before. If it was before, even if they bring in 10 million litres, they can give close to seven million litres to other marketers and use the rest.

“But now, even some of their retail outlets don’t have products because they are so much currently. So you cannot bring in products and be supplying third parties, leaving your own.”

Subsidy gulps N4.8tn annually

Meanwhile, the government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, stated on Tuesday that fuel subsidy was gulping about N4.8tn from its purse.

The Chief Executive Officer, NMDPRA, Farouk Ahmed, disclosed this at the ongoing Energy and Labour Summit organised by PENGASSAN in Abuja.

“The financial implication of PMS subsidy rose to over N400bn monthly which translates to over N4.8tn ($6bn) annually, making it unsustainable in the short to medium term.

“Subsidy on PMS hugely impacted government revenues available to all tiers of government leading to inability of the government to meet their obligations.

“Last year alone, Nigeria imported a total of about 23.5 billion litres of PMS. Our average daily truck out over a period of eight years stood at over 55 million litres per day, with a peak of 66.7 million litres recorded for the year 2022.

“In the year 2022, Nigerian government expended more than N4tn on PMS subsidy. This amounted to about 20 per cent of fiscal budget for the year, presented a strain on the fiscal viability of the government, and became a major obstacle to inclusive participation in downstream petroleum sector,” Ahmed stated.

He pointed out that fuel subsidies had been in Nigeria since the 1970s when government routinely sold petrol to Nigerians at below cost, but stressed that it had to be stopped.

The Punch

Economy

Tinubu Seeks World Bank Support to Boost Agriculture, Economic Reforms

Published

3 weeks ago

February 4, 2026

Eric

President Bola Tinubu has called on the World Bank to support Nigeria’s ongoing economic reforms, with a focus on agriculture, youth employment, and private sector growth, as part of his administration’s strategy to strengthen the economy and expand opportunities for the citizens.

The president made the remarks on Tuesday while receiving a delegation from the World Bank led by Anna Bjerde, Managing Director of Operations, at the State House, Abuja.

“Since we went into this tunnel of reform, we have our hands on the power and we’re never going to look back. Initially, it was painful and difficult, but those who win are not the ones who give up in difficult times,” Tinubu said.

The president highlighted the importance of mechanization and modernization of agriculture to increase productivity and create opportunities for Nigeria’s large young population.

“We have mechanization centers to help farmers with improved seedlings and fertilizers to enhance their programs. The goal is to move farmers from small-scale holders to large cooperatives that can create opportunities for Nigerians,” he explained.

Tinubu also pointed to the petrochemical sector and other domestic industries as areas where the government is working to improve outputs and strengthen local markets. He stressed that reforms are continuous and must be grounded in transparency, accountability, and stability.

“The first reaction to reforms was high inflation, but it has come down dramatically, and the Naira is now stable. We want to help investors operate with ease, reduce bureaucracy, and develop the skills of our people,” he said.

Anna Bjerde commended Tinubu’s administration for its consistent and steady approach to reforms over the past two years. She highlighted that Nigeria has become a global example of reform implementation, giving confidence to investors and policymakers worldwide. “The results achieved in the last two years are commendable. Your steady communication of the importance of reforms has given confidence and clarity, and there is no turning back,” Bjerde said.

She emphasized the importance of job creation, particularly for Nigeria’s youth, noting that Africa’s young population is growing rapidly and that SMEs are central to employment generation.

“Agriculture is a huge part of the economy and a major employer. Innovations in mechanization, cooperatives, value-chain development, and infrastructure can be scaled to create more opportunities,” Bjerde said.

She also highlighted the World Bank’s financial support for Nigeria, including public sector financing of $17 billion, private sector support of $5 billion through the IFC, and investment guarantees exceeding $500 million. These instruments are aligned with Nigeria’s reforms, including trade, digital initiatives, and inflation management, to stimulate private sector growth and human development.

“We want to work with Nigeria to accelerate growth, improve access to finance for SMEs, and support early childhood development as part of a comprehensive human development strategy,” she added.

The meeting underscored Nigeria’s push to attract foreign support for strategic reforms, particularly in sectors that directly affect youth employment, food security, and overall economic growth.

Economy

New Tax Laws: Presidential Committee Tackles KPMG over Criticisms of ‘Gaps’, ‘Errors’ and ‘Omissions’

Published

2 months ago

January 11, 2026

Eric

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has pushed back strongly against observations by KPMG on Nigeria’s new tax laws, saying the firm largely misunderstood the policy intent and misrepresented deliberate reform choices.

In a detailed statement shared on Saturday on X, Oyedele said the committee welcomed constructive feedback but argued that most of KPMG’s claims were flawed. “We welcome all perspectives that contribute to a shared understanding and successful implementation of the new tax laws,” he said. However, he added that “the majority of the publication reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices, and, in several instances, repetitions and presentation of opinion and preferences as facts.”

According to Oyedele, several issues described by KPMG as errors or gaps were either based on “the firm’s own errors and invalid conclusions” or stemmed from “issues not properly understood by the firm.” He stressed that policy disagreements should not be framed as technical mistakes.

Addressing concerns about the taxation of shares and potential stock market sell offs, Oyedele said such fears were unfounded. “The fact is that the applicable tax rate on share gains is not a flat 30%,” he said, noting that “a significant majority of investors (99%) are entitled to unconditional exemption.” He added that market performance at an all time high showed investors understood the reforms.

On the commencement date of the new laws, Oyedele dismissed KPMG’s suggestion of aligning reforms strictly with accounting periods, describing it as “a narrow view of the complex transition issues” involved in wholesale tax reform.

He also defended provisions on indirect transfer of shares, saying they were aligned with global best practices. “The assertion that it may affect the country’s economic stability is disingenuous,” he said, explaining that the measure was designed to block long exploited tax loopholes.

Responding to claims of gaps in VAT exemptions, Oyedele said a specific exemption for insurance premiums was unnecessary. “If it is not broken, don’t fix it,” he stated, arguing that insurance premiums were not taxable supplies under existing law.

Oyedele further criticised proposals he said would undermine reform objectives, including calls to exempt foreign insurance companies from tax and allow deductions tied to parallel market foreign exchange. He said disallowing such deductions was “a critical fiscal policy choice designed to complement monetary policy, strengthen, and stabilise the Naira.”

On personal income tax, Oyedele rejected claims that higher rates would harm growth. He said the top marginal rate was competitive globally and ensured fairness without discouraging investment.

He also accused KPMG of factual errors, including references to the Police Trust Fund, noting that its taxing provisions expired in June 2025. “KPMG’s point that the new tax law should be amended to repeal the taxing section of the Police Trust Fund Act is needless,” he said.

While acknowledging clerical issues may arise in any major reform, Oyedele said these were already being addressed internally. He urged stakeholders to engage constructively. “We urge all stakeholders to pivot from a static critique to a dynamic engagement model,” he said, stressing that the reforms marked “a bold step toward a self sustaining and competitive Nigeria.”

Economy

NANS Makes U-turn, Cancels Planned Nationwide Protest over Implementation of New Tax Laws

Published

2 months ago

January 6, 2026

Eric

The National Association of Nigerian Students (NANS) has expressed support for the recently enacted Tax Reform Laws, describing it as a well-intentioned fiscal policy aimed at strengthening Nigeria’s economy and protecting low-income earners.

Reports said the endorsement followed extensive deliberations at the maiden Expanded National Executive Council (ENEC) meeting of NANS under the theme; “National Executive Council and Structural Stakeholders’ Forum 2026 on the Tax Reform Act”, which brought together student leaders, policy experts, and key stakeholders from across the country.

The meeting, held amid public debate and controversy over the new tax law, was attended by members of the NANS National Executive Council, leaders of NAUS, NAPS, and NANCES, zonal coordinators, joint campus council chairpersons, female student associations, and other stakeholders.

Earlier concerns had prompted NANS to issue a 14-day ultimatum, threatening nationwide protests if implementation of the law was not suspended pending further investigations and public enlightenment.

However, following engagements with the National Assembly, the Department of State Services (DSS), and the Federal Inland Revenue Service (FIRS), as well as the publication of the National Assembly’s investigation report, student leaders reported being better briefed on the objectives and safeguards embedded in the law.

Chairman of the Communiqué Drafting Committee and NANS President, Comr. Olushola Oladoja, said students were satisfied with the explanations provided by the government. Tax experts from FIRS used the forum to clarify grey areas and respond to concerns raised by Nigerians, giving student leaders a clearer understanding of the reform’s intent and framework.

At the end of the meeting, ENEC resolved that the Tax Reform Law is designed to improve revenue generation, ensure fairness in taxation, and strengthen social protection for vulnerable citizens, while requiring higher-income earners to contribute more equitably. The council affirmed the authenticity of the law as released by the National Assembly and announced the cancellation of the nationwide protest that had been scheduled for January 14, 2025.

NANS also pledged to serve as ambassadors of public enlightenment, committing to educate Nigerians on the purpose and benefits of the reform to boost public confidence during its implementation.

The meeting further passed a vote of confidence in the former FIRS Chairman, Zacch Adedeji and commended President Bola Tinubu for his fiscal reforms and the NELFUND initiative, reaffirming support for his administration’s economic transformation agenda.