Economy
Inflation, Fuel Subsidy Draining Nigeria’s Fiscal Revenues—IMF
By Aduragbemi Omiyale
The International Monetary Fund (IMF) has said Nigeria’s fiscal revenues, which are mainly earnings from taxes, duties, and others, are being drained by rising inflation and fuel subsidy costs, especially when the government is not increasing its streams of income.
Despite signing the long-awaited Petroleum Industry Act (PIA) into law in 2021, the federal government under President Muhammadu Buhari has refused to stop the payment of subsidies for premium motor spirit (PMS), otherwise known as petrol.
In the 2022 budget, the central government had planned to stop the payments, which are made to make fuel cheaper for consumers, by June 30, but after the organised labour kicked against this, the government said it would remove the subsidy by mid-2023, after the expiration of the present administration.
Trillions of Naira are budgeted to pay subsidies for petrol, which some observers have faulted, stressing that the avenue has been used by some corrupt officials to steal public funds.
In a statement issued on Friday by the IMF at the conclusion of its 2022 Article IV Mission in Nigeria, the global lender said for Nigeria to make progress and address its fiscal revenue issues, it must let go of the subsidy monster but advised that crude oil theft must also be looked into to increase earnings from the sale of the commodity.
“As a near-term priority, the mission highlighted the urgent need to remove fuel subsidies fully and permanently, which disproportionately benefit the well-off, by mid-2023 as planned.
“The government should also prioritise addressing oil thefts and governance issues in the oil sector to restore production to pre-pandemic levels,” the IMF said.
Despite the price of crude oil rising in the global market, Nigeria is not earning much from the commodity because a significant amount of the black gold is stolen.
Recently, the group chief executive of the Nigerian National Petroleum Company (NNPC) Limited, Mr Mele Kyari, said a 4-kilometre pipeline from the Forcados export terminal had been used to steal oil for nine years, resulting in the theft of hundreds of thousands of barrels of oil per day.
This sparked outrage, but after a few weeks, the issue seems to have been swept under the carpet with no update on those found culpable.
In the statement released today by the IMF, the government was also advised to take steps to address the rising inflation in the country.
This week, the National Bureau of Statistics (NBS) said inflation rose by 21.09 per cent in October 2022 from 20.77 per cent in September 2022. This was triggered by rising food and energy costs.
The IMF wonders why food prices are rising despite Nigeria having limited direct exposure to the war in Ukraine by Russia, warning that “high food insecurity is compounding the pandemic’s scarring effects on the vulnerable.”
However, it said “headline inflation is expected to moderate at end-2022 as the start of the harvest season more than counters the projected increase in rice prices caused by recent flooding.”
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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