Economy
NLC Tells FG to Ignore World Bank’s N750 Per Litre Fuel Proposal
By Aduragbemi Omiyale
The federal government has been advised to ignore the position of the World Bank that premium motor spirit (PMS), popularly known as petrol, should be selling at N750 per litre and not about N568 per litre or N620 per litre it is currently selling.
In an interview with The Punch on Thursday, the Head of Information at the Nigeria Labour Congress (NLC), Mr Benson Upah, said any attempt by the government to raise the current pump price would be resisted.
The labour union described the global lender as a hypocritical organisation, which does not mean well for the country, noting that the current pump price had put Nigerians under untold hardship.
“The World Bank is globalist north in thoughts and actions and has little or no consideration for the global south. It is a predatory institution that the global north uses to justify its crimes against the south.
“It is almost single-handedly responsible for the ruination of the economies of countries of the global south for which it prescribes one solution for all ailments.
“It does not care what happens to Nigeria or Nigerians so it could from its perch in Washington say whatever it likes or push around our leaders like house helps.
“The truth, however, remains that the present regime of the pump price of PMS has all but destroyed the country. To now ask the government to raise it to N750/litre is to invite anarchy upon the land.
“The World Bank is so hypocritical it fails to see the nexus between price and capacity. The minimum wage in Nigeria for a privileged few is N30,000. The same minimum wage in the United States where the law is enforced is N1.5 million.
“In light of this, if the government knows what is good for it, it should ignore the World Bank but must remain committed to fighting inherent corruption in the downstream sector of the petroleum industry. It must also cut down the high cost of governance,” Mr Upah said.
Recall that on Wednesday in Abuja, the Lead Economist of the World Bank for Nigeria, Mr Alex Sienaert, at the unveiling of Nigeria Development Update for December 2023 Edition, said the government is probably still subsidising fuel at N620 per litre, stressing that if not, Nigerians should be buying the product at about N750 per litre.
“It does seem like petrol prices are not fully adjusting to market conditions. So, that hints at the partial return of the subsidy if we estimate what is the cost reflective of the retail PMS price of the would-be and assume that importation is done at the official FX rate.
“Of course, the liberalisation is happening with the parallel rates, which is the main supplier, the price would be even higher. These are just estimates to give you a sense of what cost-reflective pricing most likely looks like.
“We think the price of petrol should be around N750/litre more than the N650/litre currently paid by Nigerians,” he stated.
But the federal government denied paying subsidies on petrol, noting that the era of fuel subsidy was totally gone as declared by President Bola Tinubu.
“Subsidy is gone, and the President told Nigerians from his first day in office that there won’t be subsidy (on petrol). It is because subsidy has gone that we have so much money available for the government to do so many things. Of course, it’s never enough, but fuel subsidy is gone and it’s gone for good,” the Minister of Information and National Orientation, Mr Mohammed Idris, said during an interview on Channels Television on Thursday.
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Limited, Mr Jude Chiemeka, has emphasised the importance of non-interest finance in the economy and the nation’s capital market.
Speaking at the 7th African International Conference on Islamic Finance (AICIF) in Lagos recently, he said non-interest finance drives sustainable economic transformation and enhances market inclusion.
According to him, this was why the stock exchange created a special board for the sub-market segment to attract ethical investors.
“At NGX, our Non-Interest Finance Board represents more than a platform, it embodies our commitment to unlocking ethical capital, diversifying investment opportunities, and driving sustainable development.
“By leveraging innovation and strategic partnerships, we are creating pathways for inclusive growth and positioning Nigeria at the forefront of Islamic finance in Africa,” Mr Chiemeka stated at the event organised by The Metropolitan Skills Limited in collaboration with the Securities and Exchange Commission (SEC).
Business Post reports that Nigeria’s non-interest capital market has recorded significant expansion in recent years, with sovereign Sukuk issuances at over N1.4 trillion for multiple projects nationwide.
It was gathered that the two-day AICIF attracted policymakers, regulators, development partners, and market participants, who explored policy reforms, product innovation, and strategies to unlock liquidity across Africa’s Islamic finance markets.
Also speaking, the chairman of NGX Group Plc, Mr Umaru Kwairanga, said NGX’s Non-Interest Finance Board has become a central platform for expanding access to Sharia-compliant financial instruments and attracting investors seeking transparency, inclusivity, and sustainability.
“Through the Non-Interest Finance Board, NGX is building a dedicated platform for Sukuk, Islamic collective investment schemes, and non-interest exchange-traded funds. Our goal is to broaden market participation while channelling capital towards productive sectors of the economy,” he said.
On his part, the Vice President of Nigeria, Mr Kashim Shettima, represented by the Special Adviser to the President on Economic Matters, Mr Tope Fasua, described Islamic finance as a credible mechanism for fostering equitable prosperity and sustainable development, urging broader adoption across African economies.
By Adedapo Adesanya
The Nigeria Employers’ Consultative Association (NECA) has backed the proposed 15 per cent fuel import tariff introduced by the President Bola Tinubu-led government.
According to NECA Director General, Mr Wale Smatt Oyerinde, the move will enhance local production of the commodity.
“We support the policy of a 15 per cent tariff on imported petroleum products — not on locally produced ones.
“If the 15 per cent tariff is the ‘punishment’ we must bear collectively for our recklessness in allowing our four refineries to collapse, then so be it,” he said when he was interviewed on Channels Television on Friday.
“Even developed nations like the US are introducing protectionist policies to protect their local industries. We don’t have much excuse not to do the same,” the NECA boss said.
Recall that President Tinubu had approved the 15 percent tariff increase in a letter sent to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, mandating its enforcement.
Critics have faulted the move, arguing it will lead to an increase in the landing cost of the product, with petrol and diesel expected to see further increment.
However, support for the programme has come from many quarters including energy businessman, Mr Femi Otedola, who backed move recently.
The NECA chief also believes the policy is a step in the right direction, adding that a similar actions should be extended to other areas.
“The president gave approval about two weeks ago, and the OPS has done its analysis. We’re also looking beyond petrol and diesel.
“To ramp up production in the manufacturing and real sectors, this kind of policy should extend there too. Why do we import things we can produce locally? It affects forex and other aspects of the economy,” Mr Oyerinde said.
“We’ve said that everything we can produce locally should attract import duties, provided we have made sufficient arrangements for local production to meet our needs. If we have to give businesses a one- or two-year moratorium to integrate backward, then fine, but let’s reduce the tendency to import,” he added.
By Adedapo Adesanya
Shell Nigeria Exploration and Production Company has given US-based Halliburton an integrated drilling contract to work on the oil major’s $2 billion shallow-water HI offshore gas project in Nigeria.
According to reports, the financial terms of the deal, awarded by Shell, were not disclosed.
Halliburton, based in Houston, said it will deploy remote operations and automated technologies for the work.
In October, Shell announced HI, located in Nigeria’s Oil Mining Licence (OML) 144. The UK major operates the HI project with a 40 per cent working interest alongside its local partner, Sunlink Energies and Resources, which owns a 60 per cent stake.
The project, when completed, will supply 350 million standard cubic feet (approximately 60 thousand barrels of oil equivalent) of gas per day at peak production to Nigeria LNG (NLNG; Shell interest 25.6 per cent), which produces and exports liquefied natural gas (LNG) to global markets.
According to a statement, production is expected to begin before the end of this decade.
At the time of the announcement, Mr Peter Costello, Shell’s Upstream President, said that “This Upstream project will help Shell grow our leading Integrated Gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market.”
The gas will be sent to the delayed Train 7 of the Nigeria Liquefied Natural Gas (NLNG) plant, currently being built by a Saipem-led consortium.
The increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, is in line with Shell’s plans to grow its global LNG volumes by an average of 4-5 per cent per year until 2030.
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