Economy
Senate Moves to Investigate Fuel Subsidy Regime
By Adedapo Adesanya
The Senate has constituted an ad hoc committee to investigate the fuel subsidy regime of the Nigerian National Petroleum Company (NNPC) Limited, which cost about N4.3 trillion alone in 2022.
This followed the adoption of a motion tagged Need to Investigate the Controversial Huge Expenditure on Premium Motor Spirit (PMS) under the Subsidy/Under Recovery Regime by the Nigerian National Petroleum Company Limited (NNPCL) by Senator Patrick Chinwuba during plenary on Tuesday.
Moving the motion, Mr Chinwuba said that the federal government, on May 11, 2016, announced an increase in fuel pump price from N87 to between N135 and N145 per litre.
“This was in its fight against corruption and in order to plug the presumed highly proliferated leakages, wastages, and slippages surrounding the fuel subsidy as well as in an attempt to end the controversial subsidy regime.
“At the inauguration of the present government on May 29, the President took a bold step to announce the total removal of fuel subsidy, noting that the scheme has increasingly favoured the rich more than the poor,” he said.
He said that the government’s interest in exiting the subsidy regime was in line with the policy of reducing the cost of governance and the desire to eliminate corrupt practices surrounding the scheme.
“The NNPCL, within the period of subsidy exit attempt, substituted the term subsidy with under recovery without any recourse to the National Assembly or supervision by any other arm of the government.
“While NNPCL within 10 years, 2006 and 2015, claimed about N170 billion as under-recovery, the same NNPCL within 13 months, January 2018 to January 2019 claimed a whopping sum of N843.121 billion as under-recovery,” he said.
The lawmaker expressed worry that the uninvestigated and alarming cost of under-recovery/direct deductions by NNPCL without necessary checks had led to a great misunderstanding of the government’s good intention on subsidy removal.
Supporting the motion, Senator Jibrin Isa said that the utilisation of the savings arising from the removal of the subsidy was very important.
“This is where our oversight function comes to play.
“These monies that are going to be recovered from the discontinuance of fuel subsidy should be used to revive some of the ailing companies in particular; the Ajaokuta Steel Complex, Itakpe Iron Ore Mining Company in Kogi and Oshogbo Iron and Steel Rolling Mills in Osun.
“Those projects can create a lot of employment opportunities, create a lot of revenue for the government,” he said.
Also, Senator Osita Izunaso said “we need to look at the palliatives to cushion the effects of subsidy removal.
“Much as we are going to make a lot of gains from subsidy removal, we have to look at the suffering of our people.”
On his part, Senator Mohammed Monguno said that the previous government did not have the political will to withdraw the subsidy.
“We thank this government for taking the bull by the horn and gathering all the political will to withdraw the subsidy in the interest of Nigerians.
“We are now saving a lot of money, which we can use to deploy for revamping our infrastructure.
“In view of the hardship unleashed on Nigerians as a result of the subsidy, there is the need for government to take responsibility in cushioning the effect of the removal,” he said.
By Adedapo Adesanya
The Abuja Chamber of Commerce and Industry (ACCI) has expressed optimism for significant business growth and economic development in 2025.
In his New Year’s message, the ACCI President, Mr Emeka Obegolu, lauded the resilience of the business community in overcoming the economic challenges of 2024.
He commended the business community in the Federal Capital Territory (FCT) and its environs, for their commitment to innovation and growth, while expressing hope for renewed opportunities in the New Year.
He called on governments at all levels to harmonise tax policies and address the challenges of multiple taxation and high operational costs.
He also urged the administration of President Bola Tinubu to prioritise improving the ease of doing business and Nigeria’s global competitiveness.
“Streamlining regulations, eliminating administrative bottlenecks, and implementing business-friendly policies are crucial steps.
“The government should also improve access to financing and establish a reliable database of active businesses to support Micro, Small, and Medium Enterprises (MSMEs), which play a vital role in the Nigerian economy,” Mr Obegolu said.
He also commended the N4.06 trillion allocation for infrastructure in the 2025 budget.
He noted its potential to boost productivity, create jobs, and foster economic growth in sectors such as transport, energy, and housing.
He welcomed the government’s macroeconomic stabilisation goals, including reducing inflation and stabilising the exchange rate, as crucial steps toward improving the business environment and attracting investment.
Mr Obegolu emphasised the importance of effective budget implementation, advising the government to adhere to timelines, ensure transparency, and adopt a results-driven approach to maximise the impact of allocated funds.
He also called for cautious revenue projections, improved collection mechanisms to reduce leakages and the adoption of balanced tax policies that supported businesses.
The ACCI president reaffirmed the Chamber’s commitment to collaborating with the government to align policies with business realities and promote private-sector-led growth.
He also advocated for increased investments in green initiatives and inclusive strategies to benefit rural and marginalised communities.
“On behalf of the Executive Council and members of ACCI, I wish Nigerians a prosperous and fulfilling 2025, filled with growth, innovation, and success,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange was pulled down by 0.70 per cent by profit-takers in the final trading session of 2024 on Tuesday, December 31.
As a result of this, the bourse’s investors lost N7.29 billion, leaving the market capitalisation at N1.029 trillion compared with the preceding day’s N1.036 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) went down by 21.25 points at the close of business to 3,002.68 points from the 3,023.93 points recorded at the previous session.
Business Post the alternative stock exchange recorded five price losers, with Acorn Petroleum Plc declining by 14 Kobo to trade at N1.40 per share, in contrast to Monday’s closing value of N1.54 per share.
Further, UBN Property Plc lost 16 Kobo to end at N1.82 per unit compared with the previous session’s N1.98 per unit, Central Securities Clearing System (CSCS) Plc weakened by 90 Kobo to N21.00 per share from N21.90 per share, 11 Plc lost N4.00 to close at N211.00 per unit versus the previous day’s N215.00 per unit, and FrieslandCampina Wamco Nigeria Plc crashed by 39 Kobo to finish at N40.61 per share, in contrast to the preceding session’s N41.00 per share.
Conversely, Industrial and General Insurance (IGI) Plc appreciated by 2 Kobo to end the session at 17 Kobo per unit compared with Monday’s closing price of 15 Kobo per unit, Air Liquide Plc improved by 80 Kobo to N8.80 per share from the preceding closing rate of N8.00 per share and Geo-Fluids Plc rose by 29 Kobo to sell at N3.34 per unit versus N3.05 per unit.
Yesterday, the volume of securities traded in the final session of the year depreciated by 0.64 per cent to 2.68 million units from 2.70 million units, and the value of shares traded yesterday went down by 37.50 per cent to N9.2 million from N14.7 million, while the number of deals increased by 59.1 per cent to 35 deals from 22 deals.
Aradel Holdings Plc, which exited the market a few months ago, remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, trailed by Okitipupa Plc with 752.4 million units valued at N7.8 billion, and Afriland Properties Plc with 297.7 million units sold for N5.3 billion.
Also, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units worth N4.0 billion, trailed by Okitipupa Plc with 752.4 million units valued at N7.8 billion, and Afriland Properties Plc with 297.7 million units sold for N5.3 million.
By Dipo Olowookere
The last trading session of 2024 on the floor of the Nigerian Exchange (NGX) Limited ended on a bearish note on Tuesday with a 0.22 per cent loss.
The decline occurred despite the bourse closing with 36 appreciating stocks and 27 depreciating stocks, implying a positive market breadth index and strong investor sentiment.
Eterna and Union Dicon Salt topped the losers’ chart after they shed 10.00 per cent each to settle at N24.30 and N7.20 apiece, Champion Breweries lost 8.19 per cent to trade at N3.81, PZ Cussons depreciated by 6.90 per cent to N24.30 and Cadbury Nigeria tumbled by 6.52 per cent to N21.50.
On the flip side, Prestige Assurance, Beta Glass, and Universal Insurance gained 10.00 per cent each to quote at N1.21, N64.90, and 66 Kobo, respectively, as Okomu Oil grew by 9.98 per cent to N444.00, and Thomas Wyatt increased by 9.88 per cent to N1.89.
Yesterday, the insurance space gained 4.93 per cent, the energy index rose by 0.43 per cent, and the industrial goods counter appreciated by 0.17 per cent.
However, the banking sector depreciated by 0.34 per cent and the consumer goods industry went down by 0.29 per cent.
At the close of transactions, the All-Share Index (ASI) shrank by 222.95 points to 102,926.40 points from 103,149.35 points and the market capitalisation decreased by N136 billion to N62.763 trillion from N62.899 trillion.
During the session, investors transacted 437.8 million shares valued at N40.3 billion in 8,830 deals, in contrast to the 641.1 million shares worth N15.5 billion traded in 13,778 deals in the preceding day, representing a jump in the trading value by 160.00 per cent, and a slip in the trading volume and number of deals by 31.71 per cent and 35.91 per cent, respectively.
Access Holdings finished the day as the busiest equity with 30.3 million units sold for N723.9 million, Universal Insurance traded 24.6 million units worth N16.1 million, Prestige Assurance exchanged 24.3 million units valued at N29.3 million, SAHCO transacted 22.2 million units worth N662.2 million, and Aradel Holdings traded 21.7 million units valued at N13.0 billion.
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