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Fuel Subsidy: How Govs Spent $50bn Excess Crude Funds – NESG

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The Nigerian Economic Summit Group has explained how state governors spent the country’s $50 billion Excess Crude Account in 2010, which would have served as a buffer for petrol subsidy challenges.

The Chief Executive Officer of NESG, Dr Tayo Aduloju, disclosed this in a statement on Wednesday.

He recalled that the global financial crisis of 2007 and 2008 had minimal pressure on Nigerian firms because the country had a substantial fiscal buffer in the ECA, which greatly shielded it from external economic shocks.

However, in 2010, the state governors approached the Supreme Court to declare the ECA illegal, giving them the basis to share the funds domiciled in the account.

According to him, the federal government disbursed the $50 billion fund to the 36 state governors between when late President Umaru Musa Yar’Adua died and when former President Goodluck Jonathan took charge.

He stressed that Nigeria’s fuel subsidy problem came when the country moved from a savings-based subsidy model to a revenue base.

Aduloju added that the recurring problem of fuel subsidy operation historically in Nigeria is the mismanagement of the resources by successive administrations.

“Between 1999 and 2010, we operated a savings-based subsidy operation. In other words, we were paying for the subsidy from savings. We were not borrowing to pay the subsidy.

“We were simply paying from the Excess Crude Account because we managed our first boom well. I think when former President Obasanjo left office, the Excess Crude Account had over $60bn.

“Without answering these questions, the policy choice—such as balancing the current account, of which subsidy removal is one option—becomes a facade. And therein lies the problem.

“The subsidy removal that Tinubu inherited is not the same as the subsidy removal that Buhari inherited, and it’s also not the same as what Jonathan faced. They are different operations.

“But the consistent issue is that each mismanagement of our fiscal resources by previous governments compounded the problem for the next government,” he stated.

This comes amid the recent hike in the pump price of Premium Motor Spirit (Petrol) to N897 from N617 by Nigerian National Petroleum Company Limited retail outlets, which has worsened the pains of Nigerians.

Recall that in May 2023, the Tinubu administration also announced fuel subsidy removal, which saw petrol prices increase to over N500 per liter from N238.

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Opposition Coalition Hardens Stance Against INEC Following Massive Abuja Demonstration

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Following an anti-INEC protest in Abuja, leaders of the African Democratic Congress (ADC) held a closed-door meeting with top figures from the Peoples Democratic Party (PDP) to discuss the electoral body’s recent refusal to recognize the ADC’s new leadership.

Among those present at the meeting are Senator David Mark, National Chairman of the ADC, former Vice President Atiku Abubakar, former Kano Governor Rabiu Musa Kwankwaso, Presidential candidate of Labour Party, (LP) in the last election, Peter Obi.

Others are former Attorney-General of the Federation, Abubakar Malami, former Secretary to the Government of the Federation, Babachir Lawal, Former Rivers State Governor Rotimi Amaechi and Senator Aminu Tambuwal among others.

On the side of the PDP, are Oyo State Governor Seyi Makinde, factional National Chairman Turaki, Professor Jerry Gana, former Senate President Adolphus Wabara, former Niger State Governor, Babangida Aliyu, and other members of the National Working Committee, of the PDP.

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Akpabio Represents Tinubu At Commissioning Of Landmark Lagos Projects

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Senate President Godswill Akpabio has inaugurated the new Opebi-Mende-Ojota Link Bridge Project and the Multi-agency complex, Alausa, now known as Bola Ahmed Administrative Complex in Lagos State.

Akbabio represented President Bola Tinubu, who has been in Lagos for the past few days and is scheduled to embark on a two-day working visit to inaugurate about six key projects executed by Governor Babajide Sanwo-Olu.

In a video shared on X by Sanwo-Olu’s aide, Jubril Gawat, on Wednesday, the Senate President unveiled the project alongside Imo State Governor, Hope Uzodimma; the senator representing Lagos East District, Tokunbo Abiru; Sanwo-Olu, and some other dignitaries.

While cutting the ribbon, he said, “On behalf of President Bola Ahmed Tinubu, I commission these projects.”

Recall that the Special Adviser to Sanwo-Olu on Media and Publicity, Gboyega Akosile, in a post on X recently had said that the President would commission “iconic, transformative and legacy projects” delivered by his principal.

According to him, the projects include the Ojota-Opebi Link Bridge, the Lagos State Geographic Information Service building in Alausa, the Lagos State Multi-Agency Complex, the Tolu Schools Complex in Ajegunle, the Maracana Stadium, and the Lagos Food Logistics Hub in Abijo.

“Please join the Lagos State Governor, Mr Babajide Sanwo-Olu, to welcome President Bola Ahmed Tinubu to a two-day working visit to our dear State. While here, the President will commission some of our iconic, transformative, and legacy projects,” Akosile stated.

This development led the state government to announce partial road closures across key parts of the state for the commissioning of critical infrastructure projects scheduled for Wednesday and Thursday.

In a statement issued on Tuesday, the State Commissioner for Transportation, Mr. Oluwaseun Osiyemi, said the temporary closures were necessary to ensure safety and the smooth conduct of the events.

The government advised motorists to plan their movements and avoid affected corridors during the specified periods to minimise traffic disruptions and delays.

According to the statement, the Opebi-Mende Link Bridge will be commissioned on Wednesday, April 8, between 9:00 a.m. and 1:00 p.m., affecting traffic in the Opebi-Allen, Ikeja, and Ojota areas.

“All motorists transiting this corridor during the specified hours should seek alternative routes to avoid congestion and ensure timely arrival at their destinations,” the statement said.

On Thursday, April 9, two commissioning events are scheduled between 9:00 a.m. and 1:00 p.m. The first is the commissioning of the Tolu Schools Complex, which will affect traffic in the Olodi Apapa and Ajegunle areas.

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Dangote Refinery Denies Fuel Price Hike, Maintains Current Rates

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Dangote Petroleum Refinery & Petrochemicals has officially denied reports of a new fuel price hike, affirming that its current pricing structure remains stable.

A company source confirmed that the refinery is maintaining its existing rates to ensure market stability and steady product availability.

The company confirmed that its pricing structure remains intact, with the gantry price at N1,200 per litre and the coastal price at N1,153 per litre.

“We are maintaining our existing price and have not implemented any new pricing for our customers,” the source said.

The source added that the refinery remains focused on ensuring the steady availability of refined petroleum products across Nigeria and the wider African market, reinforcing its role in supporting supply stability.

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