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FG Spends N10 Trillion on Petrol Subsidy in 14 Years – NNPC

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Petrol - Investors King

NNPC Says FG Has Spent N10 Trillion on Petrol Subsidy in the Last 14 years

The Nigerian National Petroleum Corporation said the Federal Government spent a total sum of N10 trillion on petrol subsidy between 2006 and 2020.

This was disclosed on Saturday by Mele Kyari, the Group Managing Director, NNPC, during an interview on Liberty FM, Kaduna.

According to the NNPC boss, the federal government removed petrol subsidy because of the fraud perpetrated by some cabals in the oil industry.

He said the beneficiaries of petrol subsidies were marketers who smuggled federal government subsidised product into neighbouring countries for bigger gains.

The NNPC boss said these marketers made more profits by producing fake documents to collect subsidy for fuel they never imported or sold.

He said, “The crude oil is a global commodity and its price is not hidden. Everyone can calculate and know how much the cost of every final product from the crude at international market is.

“Since the inception of the country, the government has been paying subsidy on petrol to make it cheaper for Nigerians to buy below the cost price.

“This subsidy is designed to assist the masses of Nigeria; that is the intention, but in reality, the masses are not the beneficiaries. First, the masses are not the owners of the exotic cars buying fuel, owning the filling stations and doing the oil business.

“This subsidy that the government has been paying over the years is the root of all the atrocities and fraud committed in this country.

“If you look at it from 2006 till 2020, we have spent over N10tn on fuel subsidy. Apart from that, there is also subsidy on foreign currencies. Everybody knows how much is dollar in the market, but government is also subsidising it. So, this and the fuel subsidy within this period is around N14tn to N15tn.

“What was happening with the subsidy is that, some marketers were smuggling fuel to other neighbouring countries because it was cheaper in Nigeria due to the subsidy.

“Another one is those who use fake documents and bring to government to collect subsidy for fuel they never imported and the previous government was paying them.

“So, it was not the masses of Nigeria that were enjoying this subsidy except some cabals, who are rich and powerful.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Foreign Sponsors Drives Infrastructure Projects In Nigeria – World Bank

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World Bank

Projects with foreign sponsors have played an important role in developing sizable infrastructure projects in Nigeria, the World Bank said on Thursday.

The World Bank said this in its report titled ‘Private participation in infrastructure 2020 annual report’.

It said sizable 2020 PPI investment commitments in Nigeria were mainly due to a big-ticket natural gas pipeline project.

The report said, “Nigeria has managed to report PPI investment commitments for five consecutive years since 2015. Sizable 2020 PPI investment commitments in Nigeria were mainly due to a big-ticket natural gas pipeline project.

“The $2.6bn pipelines will transport up to 3,500 million cubic feet of gas a day from various gas gathering projects in southern Nigeria.

“Projects with foreign sponsors, especially from China, have played an important role in developing sizable infrastructure projects in Nigeria.”

According to the report, there are four natural gas projects in some countries with $6.9bn in investment commitments in 2020.

It stated that one of them was the Ajaokuta–Kaduna–Kano pipeline, which was being developed by the Nigerian National Petroleum Corporation to transport natural gas from southern Nigeria to central Nigeria.

“The $2.8bn pipeline project represents phase one of the 1,300-kilometer Trans-Nigerian Gas Pipeline project, which is being developed as part of Nigeria’s Gas Master Plan to utilise the country’s surplus gas resources for power generation as well as for consumption by domestic customers,” it stated.

It said Mexico’s $4bn natural gas pipeline, storage, and corridor project was another one.

The report said it would be the largest natural gas storage facility in North America.

“The pipelines will provide a faster, more economical means of delivering natural gas to locations around the world,” it stated.

According to the report, investment commitments in 2020 stood at $45.7bn across 252 projects, marking a 52 percent decline from 2019 levels.

Private investment commitments had not fallen to these levels since 2004 when investment totaled $31.3bn, it stated.

Nevertheless, it added that despite the ongoing COVID-19 pandemic, investments in the second half of the year increased by 15 percent from the first half of the year.

It stated that private investment commitments in 2020 fell in all regions except for Sub-Saharan Africa and the Middle East and North Africa.

According to the report, the impact of COVID-19 was most severe in East Asia and the Pacific, followed by Latin America and the Caribbean, Europe and Central Asia, and South Asia.

It stated, “Investment commitments in International Development Association countries in 2020 totaled $6.2bn across 30 projects in 16 countries.

“This compared to $8.4bn across 27 projects in 18 countries in 2019. It is notable that there were more projects in IDA countries despite the pandemic.”

Also, it added, 2020 investment commitments in IDA countries were 21 percent higher than the 2015-2019 average of $5.2bn.

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Economy

16,000 Jobs Will Be Created After National Theatre’s Renovation – Sunday Ododo

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The National Arts Theatre- investorsking

The National Theatre will have the capacity to employ about 16,000 Nigerians at the completion of its ongoing renovation. This was revealed by Prof. Sunday Ododo, the General Manager of National Theatre.

He said the 44-year-old complex will provide over 16,000 jobs during and after its ongoing renovation, according to a report by NAN. Mr.Ododo said on Thursday that most of the jobs would come from the fields of music, movies, fashion, and information technology.

“Some of the jobs will be direct. Others will be indirect. The National Theatre will definitely be a hub for lots of activities,” he said.

Recall that the Central Bank of Nigeria (CBN) and the Federal Government recently signed a Memorandum Of Understanding (MOU) for the renovation of the complex. Under the MOU, the CBN, through the Bankers Committee, will invest N21.894 billion to renovate the National Theatre, refurbish it and run it profitably.

CBN Governor Godwin Emefiele, at the signing of the MOU, said that revamping the complex would unlock a mass of creative talents of thousands of Nigerian youths in various fields. Information minister Lai Mohammed, who signed on behalf of the Federal Government, had also said that the Private-Public-Partnership arrangement would stimulate growth in various sectors of the economy.

Mr. Ododo, while assessing the progress of the project, said that work had begun with the contractors fully mobilised to the site. He said he was particularly excited at the prospects of many youths securing jobs at all stages of the renovation.

“The jobs will come directly and indirectly through the ongoing radical restoration, revamping and renovation of the edifice. When completed, the complex, which is 44 years old, will be a huge business centre. It will be the place to be. Food sellers and other petty businesses will not be left out. Those coming for events will be served.

“Administration after administrations have ensured the edifice stands. And I must salute our predecessors; I give them kudos. If not for their dedication and efforts, National Theatre would have collapsed long ago. It is capital intensive to maintain. So you can now imagine if a huge sum of 21.8 billion naira is being invested to restore the complex.

“If, for instance, we had maintenance support of a billion naira or even half a billion annually, we will not get to this point where so much is required to fix the edifice. That is why we are glad to inform Nigerians that with the new arrangement, there’s a component that says that once the work is finished, a company will be engaged to maintain the facility every day for the next five years.

“If its work is good, it will be re-engaged; if otherwise, another company will be brought on board. So, maintenance is part of the new arrangement so that we don’t go back to Egypt,” he explained.

He regretted that hospitality outfits had taken over the business of the centre. According to him, these outfits make huge profits that could have been taken by the National Theatre.

“When the National Theatre is up and running, some of these event centres will have to be more creative to be in business. Though we don’t want to send anybody out of business, our own prime target is international businesses because we have facilities that can host international events which many of these event centres don’t have.

“Also, we will be making available a media centre that can take care of multi-language interpretation and all that. We have a 5,000-capacity main bowl. That one can take any UN event, any World Bank event, and any international event. National Theatre will be the centre to beat,” he declared.

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Economy

Once Again The National Grid Collapsed

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power project

Nigeria’s electricity transmission system, also known as the National grid, has suffered another system collapse, plunging Lagos, the country’s commercial capital, Kano and other major cities into a blackout.

The collapse, which occurred about 11.00 am on Tuesday, was confirmed by two of the country’s electricity distribution companies in separate messages to their customers.

“We regret to inform you that the power outage being experienced across our franchise – Kaduna, Sokoto, Kebbi and Zamfara states – is as a result of the collapse of the national grid,” Kaduna Electric said on Twitter.

Eko Electricity Distribution Company Plc, in a text message to its customers, said: “Dear customer, there is a partial system collapse on the national grid. Our TCN partners are working to restore supply immediately. Please bear with us.”

The grid, which is being managed by the government-owned Transmission Company of Nigeria, has continued to suffer system collapse over the years amid a lack of spinning reserve that is meant to forestall such occurrences.

Spinning reserve is the generation capacity that is online but unloaded and that can respond within 10 minutes to compensate for generation or transmission outages.

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