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Nigeria saved ₦1 trillion from 2 months of fuel subsidy removal— President Tinubu

Published

1 year ago

August 1, 2023

President Tinubu of Nigeria, during a nationwide address Monday, revealed that the government had saved ₦1 trillion in the two months since the removal of petrol subsidy.

Tinubu said the money which would have been squandered by those he called “smugglers and fraudsters” would now be channeled into intervention programmes targeting families nationwide.

“In a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters,” Tinubu said.

Tinubu had during his inauguration speech on May 29 declared, “subsidy is gone”, although the previous administration of Muhammadu Buhari delayed the removal of the subsidy but made budgetary provisions for the subsidy to end by June 2023.

He said the funds so far saved from the subsidy removal “will now be used more directly and more beneficially for you and your families.”

According to government data, Nigeria spent 4.39 trillion Naira ($9.7 billion) on fuel subsidies in 2022, with over ₦1.15 trillion reportedly being spent in just 2021.

Nigeria is one of the top oil producers in the world, but it doesn’t refine crude oil at home. Four refineries are run by the state-owned Nigerian National Petroleum Corporation (NNPC): two in Port Harcourt (PHRC), one in Kaduna (KRPC), and one in Warri (WRPC). Despite having received numerous upgrades, none of them have run at full capacity for many years.

Although Tinubu was silent on the issues around the moribund refineries in his address, he however unveiled ₦500bn palliative for small businesses and farmers, and plans to increase salaries and acquire 3,000 mass transit buses, release of 200,000 Metric tonnes of grains for households, among others.

Related Topics:Featured Fuel subsidy Nigeria President Bola Tinubu

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”