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The Pros And Cons As President Tinubu Approves 15 percent Import Duty On Fuel

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By Yusuf Danjuma Yunusa

President Bola Tinubu has approved a 15 per cent import duty on petrol and diesel, a controversial move in which the government described as a tool to supporting local refining and boosting energy security, but which critics say could lead to an increase in fuel price.

The president’s approval was contained in a letter with reference no: PRES8197/HAGF/100/71/FIRS/40/88-2/NMDPRA/2, dated 21 October. The letter was addressed to the Attorney General of the Federation and Minister of Justice, Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The tariff allows for a 30-day window and adds to the controversy around petrol import and production in Africa’s largest oil producer.

The letter, titled ‘Re: introduction of a market-responsive import tariff framework on Premium Motor Spirit (PMS) & Diesel,’ was signed by Damilotun Aderemi, the Private Secretary of the President.

The president’s approval followed a request by FIRS Chairman, Zacch Adedeji, for the government to apply the tariff to align import costs with domestic realities.

Mr Adedeji said the duty, applied to the Cost, Insurance, and Freight (CIF) value, is expected to increase petrol prices by approximately N99.72 per litre. Despite this, Lagos pump prices are projected to remain around N964.72 per litre ($0.62), which is still lower than in neighbouring countries like Senegal, Côte d’Ivoire, and Ghana, he said.

He added that the tariff is not revenue-driven but corrective, aimed at aligning import costs with domestic realities while preserving affordability, noting that the implementation would commence after a 30-day transition window, allowing importers to adjust cargoes already in transit and ensuring a smooth rollout without market disruption.

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“The core objective of this initiative is to operationalise crude transactions in local currency, strengthen local refining capacity, and ensure a stable, affordable supply of petroleum products across Nigeria aligning with Your Excellency’s Renewed Hope Agenda for security and fiscal sustainability,” the FIRS chief wrote to the president.

Nigeria currently has no publicly functioning refinery, with the Dangote refinery producing almost all of the West African giant’s locally refined petroleum products.

Although Dangote refinery insists it can produce all of Nigeria’s local petrol needs, problems with regulators and other players in the downstream oil sector have ensured that the country continues to import about 15 per cent of its petrol needs.

President Tinubu’s directive is basically to ensure that imported petrol is not significantly cheaper than that produced by Dangote refinery.

Conversely, major marketers of petroleum products yesterday warned that the introduction of the 15 per cent import duty on petrol and diesel could signal another round of fuel price increase.

The approval of the duty by President Bola Ahmed Tinubu is causing division in the downstream sector of the oil and gas industry with some economic experts applauding the move as a welcome development aimed at discouraging importation of petroleum products and supporting local refineries, while others express worry over likely hike in prices of petroleum products.

“The issue around capacity that Dangote Refinery talked about is contestable and I don’t think the capacity is there yet. So if you are imposing this duty, it means we should be prepared for a new regime of fuel price increase.

“The truth is we are not getting enough from the refinery and we know that when we order from Dangote Refinery, we don’t get it on time,” one of the major marketers who spoke in confidence said.

Speaking with journalists, the Managing Director of 11PLC (formerly Mobil), Otunba Tunji Oyebanji said, “15 per cent to the government is a lot of revenue to the government but higher prices for Nigerians.”

The president of the Independent Marketers’ Association of Nigeria (IPMAN), Alhaji Abubakar Maigandi, in a chat with the correspondent of Daily Trust said the association would make its position known on Monday.

However, a former General Secretary of IPMAN, Mike Osatuyi, welcomed the move which he stated would support investment by the local refineries.

“The purpose is mainly to protect our local refineries. For decades, Nigeria has been known for importation of petroleum products and we are used to it. We are providing employment for the foreign countries at the expense of the economy of Nigeria.

“So Dangote wants to go to 1.4m barrels per day which is going to be the biggest in the whole world. By the time it comes up, then other refineries too are coming up, BUA Refinery too is coming up, all these local refineries need to be protected.

“If we didn’t do what the president has done we would kill the local refineries. So it is a good policy.”

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Idiaye Emerges Edo Assembly Speaker, Alleges Corruption, Poor Leadership Under Ousted Predecessor

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By Yusuf Danjuma Yunusa

The newly elected Speaker of the Edo State House of Assembly, Yekini Idiaye, has said his predecessor, Blessing Agbebaku, was removed by lawmakers over alleged poor leadership and corruption.

Idiaye, who represents Akoko-Edo Constituency I and is a third-term lawmaker, emerged as Speaker on Monday following Agbebaku’s resignation amid moves by lawmakers to impeach him.

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Addressing journalists after Monday’s plenary, Idiaye accused Agbebaku of poor leadership, alleging that his tenure was characterised by corruption and prolonged adjournments.

He said, “The House was inaugurated on the 16th of June, 2023 under the leadership of Agbebaku, and since then we have been passing through a lot of challenges, corruption here and there, adjournment here and there, sometimes for 30 days without a cause. We are not happy with his leadership style. His leadership is poor, and it has been drawing the work of the government backwards.”

Idiaye added, “That is why we removed him. We must encourage our performing governor. He is doing well, anything that will derail or stop our performing governor, we must stop it. That is why we changed him. I can assure all of you that we will do everything possible to support Governor Monday Okpebholo to move this state forward.”

Idiaye’s emergence was also said to have followed the Assembly’s zoning arrangement, which provides that when the governor is from Edo Central Senatorial District, the Speaker should come from Edo North.

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Kano Government Reports ₦996bn Project Portfolio, 867 Completed Across 44 LGAs

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The Kano State Government says it has committed nearly ₦1 trillion to development projects across the state, with more than half of its 1,557 clearly classified projects already completed.

The figures were contained in an international press briefing, by Comrade Nura Maaji Sumaila, Commissioner for Public Procurement, Projects Monitoring and Evaluation. The briefing provided an update on project implementation, geographical distribution, procurement compliance and financial performance under the administration of Governor Abba Kabir Yusuf.

According to the ministry’s project database, the cumulative contract value stands at ₦996.29 billion, while ₦695.20 billion has received No Objection Certificate (NOC) approval and ₦444.75 billion represents payment certificates vetted by the ministry.

Of the 1,557 projects classified by the ministry, 867 projects, representing 55.68 per cent, have been completed. Another 654 projects, or 42 per cent, are ongoing, while 26 projects are at the award stage and 10 are planned and ready for award.

The ministry said some high-value projects are still awaiting the establishment of relevant due-process procedures. They include an approximately ₦113.19 billion mass-housing project at Dawakin Kudu and a ₦22 billion Rural Model City housing project covering the state’s 36 rural local government areas.

According to Maaji the geographical spread of the projects, stressing that government investment is not concentrated in Kano metropolis.

For its analysis, the ministry classified projects into single-LGA, cross-cutting and statewide/other interventions to avoid double-counting projects that serve several local government areas.

The eight metropolitan LGAs account for 598 projects valued at ₦299.36 billion, representing 30.01 per cent of the total contract value. The 36 rural LGAs account for 653 projects valued at ₦287.90 billion, or 28.90 per cent. Cross-cutting projects account for ₦159.50 billion, while statewide and other interventions represent ₦249.54 billion.

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The government said the figures demonstrate substantial investment beyond the state capital, covering rural roads, healthcare facilities, schools, housing, feeder roads and other infrastructure.

 

According to the commissioner Cross-cutting projects account for approximately ₦159.50 billion, or 16.01 per cent of the cumulative contract value. The projects include solar-powered street lighting, wireless solar traffic lights, traffic-management systems, major road expansions, pedestrian bridges, metropolitan road corridors and inter-LGA roads and bridges.

Among the projects identified are the Dakata–Yadakunya Road, Airport Gate–Triumph–Murtala Muhammad corridor, Katsina Road expansion, Airport Junction–Ashton/Club Road corridor, Kura–Kubarachi–Madobi road and bridges, and the Janguza–Durum–Kabo–Karaye road.

The ministry said such projects should not be assessed solely according to the local government in which they are located because their benefits extend across administrative boundaries.

The briefing identified several high-value investments contributing significantly to the state’s overall project portfolio.

These include the approximately ₦113.19 billion mass-housing scheme at Rijiyar Gwangwan in Dawakin Kudu, the ₦24.77 billion Katsina Road expansion covering Fagge and Dala, and about ₦21.90 billion for the Modern Cities infrastructure programme across Dawakin Kudu, Dawakin Tofa and Kumbotso.

The ministry also identified approximately ₦27.74 billion for the Madobi–Yako–Kafin Maiyaki/Kiru Road intervention and about ₦22 billion for prototype mass-housing units under the Rural Model City Project covering all 36 rural LGAs.

 

Beyond project delivery, the ministry said its mandate includes ensuring that public procurement and implementation are subject to appropriate review, monitoring and financial controls.

The ₦996.294 billion cumulative contract sum represents 100 per cent of the portfolio. Of this amount, ₦695.196 billion, or 69.78 per cent, has received NOC approval, while ₦444.747 billion, equivalent to 44.64 per cent of the contract value, represents vetted payments. Vetted payments amount to approximately 63.97 per cent of the NOC-approved figure.

The ministry said the figures reflect the fact that the portfolio includes completed, ongoing, recently awarded and planned projects, making continued monitoring, certification, cash-flow planning and prioritisation necessary.

 

The government said it would continue monitoring ongoing projects, addressing implementation bottlenecks, strengthening certification processes and ensuring that public resources are deployed responsibly and with value for money.

It also reaffirmed commitments to transparency in procurement, monitoring projects from procurement through completion, linking payment certification to verified implementation, and providing objective information to citizens, development partners and the international community.

Nura Iro Maaji said the project portfolio demonstrates interventions across all 44 local government areas, covering urban and rural infrastructure, mass housing, roads, bridges, healthcare, education, climate-resilient infrastructure and traffic management.

 

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BREAKING: INEC Declares Adeleke Winner of Osun Guber Election

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By Yusuf Danjuma Yunusa

The Independent National Electoral Commission (INEC) has declared incumbent Governor Ademola Adeleke the winner of the Osun State governorship election, defeating his closest rival, Bola Oyebamiji of the All Progressives Congress (APC).

Mr Adeleke, the Accord Party candidate, was announced winner by the state returning officer in the early hours of Sunday after a fiercely contested poll across the state’s 30 local government areas.

Mr Oyebamiji, the state’s former finance commissioner, came second, while the African Democratic Congress (ADC) candidate, Najeem Salaam, emerged as the second runner-up.

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A total of 15 political parties contested the election, with 1,906,390 permanent voter cards collected, according to the electoral umpire.

Mr Adeleke, who defected from the Peoples Democratic Party (PDP), under which he won his first election in 2022, had touted his achievements in the state’s economy, infrastructure, pension payments, the health sector, and digital transformation.

INEC announced on Sunday that Mr Adeleke won in local councils, including Oriade, Osogbo, Orolu, Ife Central, Ilesha-West, Ife-North, Ede South, Ifedayo, Boluwaduro, Iwo and Ifelodun.

Mr Oyebamiji won in Ilesha South, Boripe, Irepodun, Obokun, and Atakumosa West.

“Osun is no longer offline. Osun is awake—digitally and economically,” the governor said while highlighting his achievements recently. “We pay what is owed. We respect those who served. This is not politics. This is performance. This is leadership with results. Osun is rising—and we are not turning back.”

Before the election, he repeatedly alleged attempts to disrupt it. He had also vowed to constitute an independent commission of inquiry after Saturday’s governorship election to investigate all reported killings and acts of violence connected with the electioneering.

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