Red on red on red 📈
This week’s edition includes highlights from last week.
In this week's edition
Petrol subsidy struggles in Nigeria (where's the World Bank fund?)
Dangote Refinery as sole oil importer - false
Is the FG getting 114% salary increase?
Electricity tariff hike
Terrorist attacks in Kaduna
Wordcount: (1,970 words, 6 mins read)
Petrol subsidy struggles
The current price of petrol (between N490 and 510) is understandably still causing anxiety across Nigeria.
Two weeks ago, the National Labor Congress (NLC) threatened to go on strike if the pump price doesn't go down, or at least some kind of support plan isn't communicated.
One of the NLC’s suggestions, championed by the Trade Union, was to create a N702 billion fund to accommodate civil servant salary adjustments. The Trade Union also suggested increasing the minimum wage to N200,000.
In Anambra, the Nigerian Union of Journalists in the state have asked the FG and state government to reduce the cost of government-owned transportation to cushion the effects of the new cost of travel.
The FG and National Economic Council are considering some of the NLC’s suggested compensation schemes and to do this, they formed a committee consisting of governors from different regions, representatives from government agencies and labour union members. They have been given two weeks to come up with recommendations to alleviate the effects of the subsidy removal.
You’d think these plans would have been made before the chaos, but here we are.
There’s also no discussion on how the FG intends to distribute the $800 million the world bank has allocated to support limiting the effects of the subsidy removal. But there are conversations to collect more money from the WB.
Dangote Refinery as sole oil importer - false
There were reports that the Dangote refinery has been given sole licence to import petrol. According to the Nigerian National Petroleum Company Limited (NNPCL), these rumours are false.
Backstory: there were claims on social media that the NNPCL had given sole access to petrol importation to Dangote. These rumours were further propelled by Honorable Ghali Tijani, a member of the House of Reps who presented the motion to suspend Dangote’s license.
The NNPCL, however, said they couldn’t have given a licence because they don’t have the power to, according to the Petroleum Industry Act, the licence is issued by regulatory bodies - the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The companies that do have given import permits to six companies. Although the companies were not identified, two news outlets identify NNPCL Exploration and Production Ltd, and Belema Sweet Export Terminal as two of the six.
Benefits of the petrol situation
Experts:
Experts in the business and energy sectors have highlighted the long-term benefits of the removal of the petrol subsidy in Nigeria. - Guardian NG
The experts (Head of Department of Economics at the University of Ibadan, Prof. Adeola Adenikinju; Founder and Chief Consultant, B. Adedipe Associates Limited, Biodun Adedipe; Partner and Chief Economist, KPMG Nigeria, Dr Yemi Kale; and co-founder, Falcon Corporation Ltd., Audrey Joe-Ezigbo) at a conference held by Chartered Institute of Bankers of Nigeria, argued that the short-term difficulties will lead to long-term gains.
They believe that eliminating the subsidy encourages efficient use of resources and promotes the exploration of alternative and sustainable, cheaper energy sources.
They said removing the subsidy could lead to greater efficiency in fuel consumption, a shift towards green energy, and the possibility of selling government-controlled refineries to the private sector.
It would also reduce dependence on fuel tankers, eliminate fuel smuggling to neighbouring countries, and provide support for the poor while allowing the market to determine fuel prices more accurately.
House of Reps new appointments
10th Assembly Senate president and House of Reps speaker
Hon Tajudeen Abbas, a member of the All Progressives Congress (APC) from Kaduna, has been elected as the Speaker of the 10th session of the House of Representatives.
Godswill Akpabio, a Senator in Akwa Ibom South-West, is the elected president of the 15th Senate.
Femi Gbajabiamila leaves the HOR
Former House Speaker Femi Gbajabiamila has announced that he is resigning from his position in the House of Representatives.
Gbajabiamila is resigning to take up a new role as the Chief of Staff to President Bola Ahmed Tinubu.
Gbajabiamila has served as a member of the House of Representatives since 2003, representing Surulere I, Lagos.
Speaking of new appointments
President Tinubu has chosen 8 people to be his Special Advisers.
Dele Alake will be the special adviser for special duties, communications, and strategy.
Nuhu Ribadu, the former chairman of the EFCC, was appointed as the special adviser on security.
Wale Edun will serve as the special adviser for monetary policies.
The other Special Advisers are Yau Darazo for Political and Intergovernmental Affairs, Zachaeus Adedeji for Revenue, John Ugochukwu Uwajumogu for Industry, Trade, and Investment, Olu Verheijen for Energy, and Salma Ibrahim Anas for Health.
Finance policies
114% salary (?)
Recently, an official from the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) said that Tinubu has approved a 114% salary increase for political and judicial office holders, according to Dele Alake special adviser for communication, this is untrue.
Alake didn’t deny that the RMAFC made this recommendation, he said it could not come into effect unless approved by the president. And the president did not approve it.
The proposal needs to be approved by 2/3 of state assemblies before it can be presented to the President and become law, it's still in the proposal phase. (see how bills and laws work).
Forex reform
The CBN, following a directive from the FG has made changes to the country's foreign exchange system. Explained here:
Previously, there were multiple exchange rate windows (e.g. official market rate and parallel (black) market rates were significantly different), but now all segments have been collapsed into the Investors and Exporters (I&E) window — the free float market exchange rate.
This means that all eligible transactions will access foreign exchange through this window and everything will be more or less the same. The CBN has also ended the subsidisation of forex through certain programs.
The decision to adopt a free float exchange rate means that the value of the Naira will be determined by market forces of supply and demand.
This can lead to fluctuations in the exchange rate and may affect the prices of imported goods and services.
The floating of the naira will impact various aspects, including personal travel allowance, business travel allowance, applications for medicals and school fees. Also, banks will determine their own exchange rates.
The decision to float the naira is aimed at reducing the country's reliance on imports and promoting exports. This could potentially benefit small and medium-sized enterprises (SMEs) by creating incentives for them to produce goods for export.
However, it will also require the implementation of appropriate trade policies to support this shift.
More new policies (you’re not going to like this one)
The cost of electricity in Nigeria might increase by over 40% from July 1 2023.
This tariff hike is due to Nigeria’s forex policy and high inflation rates, which have disrupted the pricing system of the Nigerian Electricity Regulatory Commission (NERC).
The government has already removed subsidies on fuel and allowed the currency to float freely, complicating the electricity tariff system.
The increase in tariffs is expected to put a burden on households and small businesses, potentially leading to a significant increase in energy costs.
In Addition to increasing the cost, the electricity might not even be able to provide enough electricity for everyone to have decent power supply. The sector is facing challenges in meeting the demand for power, as well as issues related to metering, gas prices, and losses.
Foreign funds: is this good news?
CBN has lifted the restrictions on domiciliary accounts, which are accounts that hold foreign currency.
Now, people can withdraw up to $10,000 from their accounts every day.
The CBN made this decision to improve transparency and stability in the foreign exchange market.
EFCC
Bawa’s suspension
Tinubu has suspended Abdulrasheed Bawa, the chairman of the EFCC, from his position indefinitely. - Premium Times
The suspension statement mentioned that Mr Bawa is facing serious allegations of abusing his power while in office. The purpose of the suspension is to allow for a proper investigation into these allegations.
During this time, the Director of Operations in the Commission will oversee the responsibilities of the chairman.
The suspension comes after the former governor of Zamfara State, Bello Matawalle accused Mr Bawa of requesting a bribe of $2 million.
At the time, the EFCC denied these allegations.
This is not EFCC’s first issue. In 2021, Bawa took over the position following the suspension of his predecessor, Ibrahim Magu, also due to corruption allegations.
Insecurity and safety
Kaduna
On the night of Friday, 16th of June, a group of terrorists attacked Ungwan Maaji a new Millennium City in the Chikun Local Government Area of Kaduna - Daily Post
They broke into houses and kidnapped six people. They also shot and injured one resident.
Two other people managed to escape while being taken away.
The Imam of the community, who was one of those who escaped, said the abductors were “young boys”, the oldest among them he estimated is around 20 years old
Kaduna
Last week Saturday, a day after the attack in Ungwan Maaji, another terrorist attack occurred in Kaduna. This time in Dorayi village, Zaria Local Government - Premium Times
Witnesses say this happened at about 1 pm. The attackers killed a traditioner ruler, the Ardo of Birni and his four children.
They also stole 100 cows that belonged to the Ardo. Ardo’s wife said that the criminals shot her husband in the head before killing the children. Only one of their children survived the attack.
The criminals also shot two other people while leaving the village.
The witnesses believe Ardo was targeted. The police have not yet been informed about the incident.
Chibok abduction
Parents of the 92 Chibok school children (Chibok Girls) still missing have written to Tinubu to please pay attention to their issue and help get their daughters back.
276 girls were abducted from their school in Chibok in 2014. So far the military retrieved some of the girls, and others have escaped but 92 are still in captivity.
Other news
The Ondo State House of Assembly has confirmed the deputy governor, Hon. Lucky Orimisan Aiyedatiwa as the new acting governor, stepping in for Rotimi Akeredolu who is on medical leave - Guardian Ng
The Federal Government says it is working out modalities to begin students’ loans between September and October 2023 - Leadership
ECOWAS disclosed that the commission is working on the implementation of ECOVISA, a single visa system similar to the Schengen model, for migrants from third countries - Guardian Ng
President Tinubu has replaced Nigeria's Service Chiefs and Inspector General of Police, prompting mixed reactions. The maritime industry welcomes the removal of the Customs CG and calls for an investigation. Security experts and scholars laud the appointments while emphasizing the need for accountability and reforms. - Guardian Ng
The Federal Government of Nigeria is working on opening the Seme border, according to the Director of Road Transport in the Ministry of Transportation, Ibrahim Musa - Guardian ng
The Nigerian National Petroleum Company Limited (NNPCL) has issued a fresh directive to oil marketers on how to go about getting their refunds and the new prices of petroleum products - Guardian Ng
Former President of the Court of Appeal, Zainab Bulkachuwa, has broken her silence on her husband’s recent confession of compromising her decisions to the advantage of his senator colleagues while she was in office - Premium Times