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Fuel price hike: Governors recommend N380 per litre of petrol

Published

3 years ago

May 20, 2021

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A committee of the Nigeria Governors Forum has recommended a petrol price of between N408.5 per litre and N380 per litre.

The committee, which is headed by Governor Nasir El-Rufai called for the immediate removal of fuel subsidy.

El-Rufai, in presenting the report of the committee explained that the current subsidy regime was unsustainable because smugglers and illegal markets in neighbouring African countries were the beneficiaries.

He noted that Nigeria, like other Organisation of the Petroleum Exporting Countries member countries, agreed to a cut in production to keep the prices high but that Nigeria could not fully benefit from the regime because of subsidies.

“Between N70bn and N210bn is estimated to be spent every month to keep gasoline price at N162 per litre. This is below the cost price and the remittance to the federation account will shrink to less than N50bn per month or even zero if threats persist.

“We are already at zero. I understand for tomorrow, so this scenario has occurred.

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“Why are we keeping the price at N162? We are keeping the price because the Federal Government and trade unions met and agreed to the suspension of some industrial action months back.

“Even though we all supported deregulation of petroleum products prices last year, this agreement was suspended by the Federal Government because of a threat of industrial action by unions.

“This is the root of the problem and now we are back to losing between N70bn to N210bn per month.”

He further explained that in the 2021 budget the Nigerian National Petroleum Corporation had committed to remitting a minimum of N120bn per month to the federation account, but it had been unable to do so.

While presenting the recommendation of the committee about the price of petrol, he further explained that only about 12 states consumed two-thirds of the petrol, which was heavily subsidised.

The committee recommended N408.5 litre as the appropriate price in the circumstance but that with concessions to labour unions, N380 per litre could be the minimum.

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El-Rufai stated, “The committee recommends PMS pump price increment from the current N162per litre to N408.5 per litre (negotiations with organized labour unions). N380per litre (settlement with organized labour).”

This, he said, was necessary to free funds for critical projects and payment of other obligations.

Other governors who contributed to the debate included Governor Dapo Abiodun of Ogun State who said the 93 million litres which the NNPC claimed was consumed in Nigeria daily was unacceptable.

News

UPDATED: Tinubu appoints Jim Ovia as chairman of education loan fund

Published

56 mins ago

April 26, 2024

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President Bola Tinubu has appointed Jim Ovia as the chairman of the Nigerian Education Loan Fund (NELFUND).

Ajuri Ngelale, presidential spokesperson, announced the appointment of Ovia, chairman of Zenith Bank, in a statement on Friday.

Ngelale said Tinubu believes that Ovia will bring his immense wealth of experience to ensure that no Nigerian student suffers a paucity of funds in the quest for tertiary education.

On April 3, Tinubu signed the student loans amendment bill into law to provide Nigerians with quality and accessible education.

The law will allow Nigerian students in tertiary institutions to access low-interest loans for tuition and other academic needs.

Subsequently, the president appointed Akintunde Sawyerr as the managing director and chief executive officer (CEO) of the fund.

Tinubu also appointed Frederick Oluwafemi Akinfala as the executive director of finance and administration, while Mustapha Iyal will serve as the executive director of operations of NELFUND.

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JUST IN: Tinubu appoints Jim Ovia as chairman of education loan fund

Published

3 hours ago

April 26, 2024

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President Bola Tinubu has appointed Jim Ovia as the chairman of the Nigerian Education Loan Fund (NELFUND).

Ajuri Ngelale, presidential spokesperson, announced the appointment of Ovia, chairman of Zenith Bank, in a statement on Friday.

More to follow…

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ICPC detains TETFund boss ‘over questionable N7.6bn project’

Published

7 hours ago

April 26, 2024

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The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has detained Sonny Echono, executive secretary of the Tertiary Education Trust Fund (TETFund).

Demola Bakare, ICPC spokesperson, confirmed the development on Friday.

Bakare said that Echono was invited by the anti-graft agency on Thursday.

“The executive secretary of TETFund is here with us. He has been invited for questioning. He is still in custody. He was invited yesterday.” Bakare said.

“He was invited on Thursday. He has not been released. He’s still with us. Investigation is still ongoing.”

It was earlier reported that TETfund awarded two contracts to Fides Et Ratio Academy and Pole Global Marketing (PGM) within two months at the cost of N3.8 billion respectively without the approval of the federal executive council (FEC), which is required for the contract size.

The contract was to provide capacity building course and learning management systems to about 2 million students across higher institutions in the country.

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In a rejoinder, TETFund said it did not award N7.6 billion contracts to two companies without due process.

The agency said it was wrong to say they were contracts, whereas they were ICT projects implemented under a memorandum of understanding (MoU) which doesn’t require competitive bidding in public procurement.

TETFund further said its disbursement guidelines were approved by the president on the recommendation of the “Fund’s Board of Trustees and concurrence of the Honourable Minister of Education in line with the TETFund Act 2011″.

In an interview with TheCable, Echono said there was no form of irregularity in the N7.6 billion project.