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The Central Bank of Nigeria has auctioned $876.26m to end users whose bids were submitted by 26 commercial banks in the apex bank’s latest attempt to strengthen the ailing naira.
The policy impacted the foreign exchange market on Wednesday as the naira appreciated against the United States Dollar, trading at N1,596.52/$ from N1,601/$ it traded on Tuesday.
The auction process was conducted on August 6, 2024, to enhance foreign exchange liquidity in the market, alleviate demand pressure, and support price discovery in alignment with the apex bank’s objectives.
The CBN said this in a statement posted on its website on Wednesday and signed by the Director of the Financial Markets Department, Omolara Omofunde Duke.
The naira has traded within the range of N1,450 and N1,600 in recent months. However, the bank approved a cut-off rate of N1495/$ for the Retail Dutch Auction.
The statement read in part, “The Central Bank of Nigeria undertook the sale of foreign exchange to end users through a Retail Dutch Auction System to reduce the demand pressure in the FX market and promote price discovery on Tuesday, August 06, 2024.
“A total bid valued at $1.18bn was received from 32 Authorized Dealers Banks, of which, bids valued at $876.26m from 26 banks qualified, while bids valued at $313.69m from six banks were disqualified.
“In line with the objective of the CBN to boost FX liquidity to the market as well as promote price discovery, the bank approved a cut-off rate of N1495/$ for the Retail Dutch Auction where bids valued at $876.26m from 26 banks qualified.”
It noted that all end-user accounts will be funded with the naira equivalent of their bids by Wednesday, August 7, 2024, while settlement for the successful bids is scheduled for Thursday, August 8, 2024.
Explaining the auction process, the director said a total bid valued at $1.18bn was received from 32 authorised dealers banks while bids valued at $313.69m from six banks were disqualified.
Of the disqualified bids, four banks submitted their bids after the cut-off time of 3:00 pm, while two banks did not provide bids in the template submitted.
Also, all bids with Form Q, and unverifiable Form A and Form M on the Trade Portal were disqualified.
The statement added that “Authorised Dealer Banks were required to submit a comprehensive template that contains the details of Forms A and M of all the outstanding trade-backed unmet FX demand of their customers via email on Tuesday, August 06, 2024, between 9:00 am and 3:00 pm.
“The templates were all password protected with the passwords submitted to the CBN after the deadline for the submission of the bids. Thereafter, the bids were opened and collated.”
It further stated, “To ensure the transparency of the process, the total bids submitted by banks and all qualified bids for payment will be published on the website of the Central Bank of Nigeria for the information of the general public.”
Last week, the CBN unveiled plans to implement a Retail Dutch Auction System to address the mounting unmet foreign exchange demand from end users.
It said the aim was to alleviate the growing pressure in the FX market and stabilize the naira’s exchange rate.
The sale follows “growing unmet foreign exchange demand” which has “continued to increase the demand pressure in the foreign exchange market, with adverse impact on the exchange rate of the naira,” the Abuja-based Central Bank of Nigeria said in a circular to lenders last week.
The naira has come under pressure through seasonal demand from summer tourism as well as businesses seeking the greenback to bring in goods in the import-dependent nation.
Commenting, the Chief Executive Officer of Cowry Treasurers Limited, Charles Sanni, stated that the intervention to improve liquidity in the foreign exchange market will shore up the naira against the United States dollar but constitute a potential loss for speculators.
Sanni said the intervention was important but not sustainable as the apex bank may not possess the required war chest due to low foreign reserves.
He also said the gain would be short-lived if the government fails to take advantage and implement strategic fiscal policies to boost economic productivity.
He said, “What CBN has done is improved liquidity by the way of supply to the market. So its expected impact, which we are already seeing, is that the naira will begin to firm up, meaning that it would trade at a better exchange rate.
“Two things it creates immediately is that for the guys who are speculating, it is a loss position for them so they may have to come to the market to sell. So, you are likely to see some level of panic trading on those who are speculating on the naira which will massively drop the rate.
“There is also the neutral position where people will say they are not going to sell immediately because it is still unsure if CBN has the war chest to continue to intervene looking at their reserve. How well they can sustain it is the critical issue which is a function of the supply. If you look at our reserves, this auction system doesn’t look sustainable.”
On his part, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, applauded the intervention by the apex bank, stressing that the naira volatility has negatively impacted the economy and business and reduced investors’ confidence.
He said, “The intervention is welcome because the CBN is the custodian of our major FX inflows, especially from the oil sector. To ensure stability and reduce volatility in the foreign exchange market. The CBN must intervene from time to time at an exchange which the CBN thinks is sustainable. This is what we have advised all along, and it is good that the CBN is doing that.
“Volatility is very bad for the economy, for business and investors confidence. So what the CBN is doing is to see how it can ensure some stability in the exchange rate.
“The Dutch option perhaps is trying out different models or intervention because we are still contending with volatility, so maybe it is a question of looking at another model that may work better to ensure stability.”
Meanwhile, the impact of this policy was immediately felt at the foreign exchange market on Wednesday as the naira appreciated against the United States dollar, trading at N1,596.52 per dollar from N1,601 per dollar it traded on Tuesday, data from the FMDQ Securities Exchange Limited showed.
This means a marginal appreciation of 0.3 per cent or N5. The naira traded at an intra-day high of N1,628 and a low of N1,520 to a dollar.
Dollar supply between willing sellers and willing buyers also increased to $93.92m from $61.90m recorded on Tuesday, which was the lowest since January.
The Police Command in Osun has warned against the setting aside of Aug. 8 to celebrate cultism in the state, saying any unlawful gathering would not be tolerated.
The command issued the warning in a statement by its spokesperson, SP Yemisi Opalola, in Osogbo on Wednesday.
According to the statement, the command received credible intelligence that some cultism groups were planning to celebrate cultism on Thursday, known as ‘8/8’.
“In view of this, the command, therefore, warns cultists and other unscrupulous elements in the state to jettison the plan or any of such action(s) forthwith as the command is earnestly monitoring their activities.
“Consequently, the command, in collaboration with other security agents and Civilian JTF, will not tolerate any unlawful gathering or assembly that will endanger the peaceful atmosphere of the state, as the plan to mark 8/8 may lead to bloodshedding and destruction of properties,” it said.
It reminded parents and guardians to closely monitor and warn their children and wards to eschew any act likely to contravene provisions of the law.
“The command will not spare anyone who constitutes any threat to law and order.
“Finally, the Osun State Police Command further appeals to members of the public to be vigilant and give prompt and actionable information in case of any infraction of the law,” it read.
According to the statement, the command has also arranged adequate security mechanisms ahead of the Osun-Osogbo festival, climaxing on Friday.
It, therefore, urged residents and participants to be security conscious and enjoy a safe festival
The Senate has raised concerns over 1.5 billion dollars approved in 2021 for the turn-around maintenance of the Port Harcourt Refinery with little or no result.
Senator Opeyemi Bamidele, Chairman of the Senate Ad Hoc Committee to Investigate the Alleged Economic Sabotage in the Nigerian Petroleum Industry, raised the concern during an interactive session with stakeholders on Wednesday, in Abuja.
Bamidele, who is also the Senate Leader, said it was unfair and wrong to treat public companies shabbily while private businesses were flourishing and thriving.
He recalled that the Federal Executive Council (FEC) had approved the plan by the Ministry of Petroleum Resources to rehabilitate and turn around the Port Harcourt Refinery with 1.5 billion dollars.
Bamidele expressed concerns about the dysfunctional state of government-owned refineries despite billions of dollars spent on turn-around maintenance.
“The federation is undergoing a truly challenging period. The distribution and supply of refined petroleum products have been irregular and problematic in the recent history of our fatherland.
“The long queues at filling stations are obviously a testament to this challenge.
“A situation whereby we now depend almost entirely on the importation of these products even when we daily supply the global oil market about two per cent of its crude oil requirements is worrisome,” he said.
He said also of serious concern was the importation of hazardous petroleum products and dumping of substandard diesel into the country.
Under different administrations since 1999, Bamidele observed that the federal government “has invested billions of dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt and Warri. But the refineries are not functioning.
The Central Bank of Nigeria, CBN said it sold a total of $876.26 million to end users from 26 successful banks at a cut-off rate of a cut-off rate of N1495 per dollar.
This is as the bank commenced its latest Retail Dutch Auction System.
The apex bank disclosed this in a statement on Wednesday signed by Omolara Duke, its
Director, Financial Markets Department.
CBN noted that total bids came to US$1.18 billion which was received from 32 authorized dealer banks.
The apex stressed that while 26 banks successfully submitted bids for FX, six banks were disqualified for not meeting with deadline and other requirements.
“The Bank approved a cut-off rate of N1495/US$ for the Retail Dutch Auction where bids valued at US$876.26 million from 26 banks qualified.
“While bids valued at US$313.69 million from 6 (six) banks were disqualified. Of the disqualified bids, 4 (four) banks submitted their bids after the cut-off time of 3:00 pm, while 2 (two) banks did not provide bids in the template submitted. All bids with Form Q. and unverifiable Form A and Form M on the Trade Portal were disqualified”, the statement partly reads.
Recall that on Wednesday, CBN announced the commencement of the Retail Dutch Auction System amid the Dollar demand spike.
On Tuesday, the Naira recorded two consecutive appreciations against the Dollar closed at N1601.
The Chief Executive Officer of the Nigerian National Petroleum Company Limited, NNPCL, Mele Kyari, says the oil industry has nothing to do with the importation of sub-standard products into the country.
Kyari made the statement on Wednesday while appearing before a Senate ad-hoc committee investigating alleged economic sabotage in the Nigeria Petroleum industry.
The committee is led by Senate Leader, Senator Opeyemi Bamidele.
Kyari said he, as the CEO of the NNPCL, had faced undue media attacks from persons doing everything to create the impression that NNPCL is sabotaging the nation’s economy, adding that the company is “faithful and will not lie” to the country.
He said, “We are not criminals and we are not thieves. We will protect our dignity so we can serve this country.”
Kyari further disclosed that the oil and gas industry is bleeding and that there were things they knew but could not talk about in public until the right time comes, urging that the committee sessions be televised live going forward.
The Department of State Services (DSS) has announced its intention to identify and reveal the names of individuals funding foreign-flag-waving protesters to incite insurrection.
DSS spokesman Peter Afunanya stated that the identities of the sponsors will be made public soon.
Speaking at a joint press conference in Abuja, Afunanya urged Nigerians to be patient with the Federal Government.
He explained that the DSS is investigating the display of foreign flags during the protest and will reveal more information about the sponsors in due course.
He said, “Now, people have started exhibiting behaviors that are detrimental to the security, welfare, and orderliness of society. We won’t remain passive. We have arrested those behind the flag display. It’s not just about children waving flags; there’s more to it.
“There are aspects of our operations that we may not disclose publicly due to their sensitivity, the ongoing nature of investigations, or because revealing them might jeopardize the investigations.
“We will see it through to the end, and you may be surprised if and when we do make the information public.”
Some protesters in the North had displayed Russian flags during the #EndBadGovernanceInNigeria protest.
The protest is directed against President Bola Tinubu’s administration and the levels of hunger and suffering in the country.
A former federal lawmaker, Senator Shehu Sani has revealed that the northern part of the country needs urgent help.
He said the region is in dire need of urgent implementable master plan.
He said governors, political, business, religious, traditional leaders and the intellectuals of the region must converge and urgently come out with an implementable master plan to tackle the decades of endemic poverty and destitution, Illiteracy, Chronic underdevelopment, abject neglect, religious extremism and terrorism that has demonised the region and impoverished its people.
Sani, who represented Kaduna Central between 2015 and 2019, added that President Bola Tinubu is neither the problem or solution to the crisis bedevilling the region.
He cautioned that the use of guns and tanks can suppress the flame sparked by the ongoing protest but not extinguish the fire.
The raging hardship protest has led to deaths, looting and destruction of properties in many states in the North. Protesters were seen waving Russian flags and calling for the return of military rule.
Although some governors have declared curfew in their states, protesters have continued to come out in defiance.
Concerned about the deteriorating situation, Sani, on his X handle said, “Northern leaders must take lessons from the recent violent uprising in the region. The President must be held to account, but he is not the Problem or the Solution to the Problem.The Governors, political, Business, religious, traditional leaders and the intellectuals of the region must converge and urgently come out with an implementable master plan to tackle the decades of endemic poverty and destitution, Illiteracy, Chronic underdevelopment, abject neglect, religious extremism and terrorism that has demonised the region and impoverished its people.
“Guns and tanks can suppress the flame but not extinguish the fire. The monster in our homes was not created in a day.
The North should look at the mirror and not the telescope. We have the cattle to build our wealth, we shouldn’t be looking for a scapegoat,” he said.
The Federal Government has said it is not the plan of the President to subject Nigerians to hardship.
The claim was made by Minister of Information and National Orientation, Mohammed Idris while addressing members of the diplomatic community.
He said the President has come to office with bold solutions to historical problems.
He said the President is determined to correct many of the poor policies and dysfunctional choices that have held the nation back for decades.
“It is important to kick off on this note: that President Tinubu did not come to office to cause hardship or make life difficult for Nigerians.
“He has come to office with bold solutions to historical problems; with the determination to correct many of the poor policies and dysfunctional choices that have held us back as a nation for decades.
“The President assumed office during one of Nigeria’s most challenging periods in its history, where the country was spending 97% of all its revenue on debt service; coupled with widespread poverty, rising unemployment, dilapidated infrastructure, and insecurity.
“Faced with these daunting realities, the administration took decisive action and implemented long-overdue reforms to save the economy from collapse.
“For decades, the costly, wasteful and unsustainable fuel subsidy regime had denied Nigeria the opportunity to invest in critical infrastructure, social service, and the welfare of its citizens.
“The President, therefore, had to take a very painful decision to abolish the fuel subsidy and redirect the funds towards critical sectors such as healthcare, education, infrastructure, and security, which directly impact citizens’ well-being and the development of the country,” he said.
The minister added, “The President was not under any illusion that the withdrawal of fuel subsidy and the harmonization of foreign exchange rates would not come with some transitional pains.
“This informed the decision of the Federal Government to design comprehensive intervention programmes to cushion the transitional pains.
“We have been very determined about ensuring that these interventions are fully implemented, and bring the intended relief to Nigerians.”
Akwa Ibom State governor Umo Eno has promised 5,000 jobs to hardship and hunger protesters in the state.
This comes after he summoned leaders of the #EndBadGovernance protests to a breakfast meeting at the Government House in Uyo, the state capital.
He calmed their frayed nerves by offering them 5,000 jobs so that they could sheathe their swords.
The youths drawn from across the 31 local government areas also included the representatives of some other ethnic nationalities including the Arewa, Yoruba, Igbo, and other Niger Delta communities.
Amidst dinning and winning, the governor announced plans to hold an engagement forum in the next few weeks to specifically thank them for their peaceful conduct during the protest, as well as unveil plans to create over 5,000 jobs for the youths across party lines.
Besides, he announced plans to engage no fewer than 200 youths from each LGAs, 50 from each of the four non-indigene groups, and others where he will engage in meaningful ventures to improve their living conditions and solicited their continuous cooperation and support for his administration to be able to deliver the dividends of democracy in an atmosphere devoid of violence.
He said: “I am indeed very pleased and thankful to the Akwa Ibom youths. What you have done is to energize us more. The responsibility you have placed on our shoulders is huge and we will rise to it because that’s what you elected us to do.
“If there is leadership, there must be followership and by what you have done, you have exhibited followership and we are deeply grateful.”
Announcing implementation modalities, the governor assured that a committee to be steered by Team Leads across the 31 LGAs, who will each select 200 youths in their respective councils for the planned engagement would be set up.
Secretary to the State Government (SSG), Prince Enobong Uwah, said government would undertake the responsibility of ensuring effective implementation of the youths’ empowerment initiative.
“I expect the Team Leads to lead a very transparent process. I also expect them to come up with a database of unemployed Akwa Ibom youths, so we may engage investors and others who desire to do business with our state and to inform them of the availability of trained manpower across professions and other ranks of artisans.
“We want to touch the lives of our youths, the great Akwa Ibom youths who have remained dedicated and supportive of our determined and avowed efforts to continuously work to improve their welfare.
“This process is to be carried out across party lines. The youths who listened to our plea not to join the protest are not just members of a particular political party but Akwa Ibom youths, and we appreciate them,” he explained.
Mr Bola Tinubu, the President of Nigeria, has begged Nigerians to be patient with his administration, assuring that the country is about to enter a new dawn.
Tinubu made this appeal on Wednesday, acknowledging the hardship Nigerians are going through as a result of fuel subsidy removal.
He also admitted that an avoidable lag between subsidy removal and his good and helpful plans compounded Nigerians’ pains.
“Fellow Nigerians, this period may be hard on us and there’s no doubt that it is tough on us but I urge you all to look beyond the present temporary pains and aim at the larger picture. All our good and helpful plans are in the works. More importantly, I know that they will work. Sadly, there was an avoidable lag between subsidy removal and these plans coming fully online,” he said.
The president assured that the measures his government has taken would get the country out of the lingering economic crisis, urging Nigerians to have faith in his administration.
“I plead with you, please, have faith in our ability to deliver and in our concern for your well-being. We will get out of this turbulence and due to the measures we have taken, Nigeria will be better equipped and able to take advantage of the future that awaits her.
“For example, we shall fulfill our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian students will have to abandon the higher education system because of lack of money.
“Our commitment is to promote the greatest good for the greatest number of our people. On principle, we shall never falter, I assure you, my fellow countrymen and women, that we are exiting the darkness to enter a new and glorious dawn. Now, I must get back to work to make this vision come true," he added
This marks the second time the President would address Nigerians amid the lingering tension in some parts of the country.
Media
A passionate plea from President Bola Ahmed Tinubu @officialABAT to all Nigerians.
— Presidency Nigeria (@NGRPresident) August 7, 2024
“Nigeria will enter a new dawn” pic.twitter.com/ECZOARk4B1
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Wale Edun, minister of finance and coordinating minister of the economy, says Nigeria currently spends $600 million on petrol importation monthly.
Edun spoke on Tuesday during an interview on AIT’s Moneyline programme.
The minister, however, reiterated that there is no petrol subsidy in the 2024 budget.
“The fuel subsidy was removed May 29, 2023, by Mr President, and at that time, the poorest of 40 percent was only getting four percent of the value, and basically, they were not benefitting at all. So it was going to be just a few,” he said.
“Another point that I think is important is that nobody knows the consumption in Nigeria of petroleum. We know we spend $600 million every month on importation but the issue here is that all the neighbouring countries are benefitting.
“So we are buying not for just for Nigeria, we are buying for countries to the east, almost as far as Central Africa, north and west.
“And so we have to ask ourselves as Nigerians, how long do we want to do that for and that is the key issue regarding the issue of petroleum pricing.”
Edun said the nation must take a decisive step to tackle the problem as it impedes economic growth.
‘IMPORT DUTIES SUSPENSION WILL NOT UNDERMINE LOCAL FARMERS’
While speaking on the welfare of Nigerians, Edun said the current administration’s key priority is to ensure food availability and affordability, hence the recent suspension of tax and duties on the importation of food commodities.
He assured that the measure will not undermine local farmers, as importation will only be permitted after exhausting local supplies.
“There is a concerted effort to ensure that we have homegrown food available. In the short term, apart from what is being distributed from reserves, there is a window that has been opened for importation because the commitment of Mr. President is to drive down those prices now and make food available now,” he said.
“So, one of the conditions for this importation will be that everything available locally in the markets or with the millers and so forth has been taken up. We will have auditors that will check that.”
Edun said these interventions seek to reduce inflation, stabilise exchange rates, and lower interest rates, thereby creating a conducive environment for investment and job creation.
“With the kind of food production programme we have, inflation will come down as prices come down. When inflation comes down, exchange rate will stabilise. Interest rates will come down and the economy will have a chance,” he said.
“People will have a chance at reasonable rates to invest in various sectors of the economy, increase productivity, grow the economy and create jobs which is the key to reducing poverty.”
On the issue of the N570 billion recently released to state governments, Edun said it was a reimbursement under the COVID financing protocol.
“This actually refers to a reimbursement that they received from December last year onwards and it was a reimbursement I think under the COVID financing protocol,” he said.
“But the point is that the states have received more money. They have received more money. We have to do our research.”
‘WINDFALL TAX WILL REDISTRIBUTE UNEARNED INCOME’
Edun said the introduction of the 70 percent windfall tax in the banking industry will redistribute unearned income.
The minister said the windfall tax was not peculiar to Nigeria alone, adding that it is “done everywhere else in the world where you have, especially the energy sector as well as banking”.
“Where you have unearned income, where you have a section of the society or an industry or a set of companies that earn money through no dint of hard work of their own, the society deserves a chance to share some of that and it’s just a redistribution of that,” he said.
“So I think that takes care of the issue of the windfall levy.”
Speaking on the recent rise in the maximum borrowing percentage in the Ways and Means advances from 5 percent to 10 percent, Edun said the move does not imply that the federal government will rely on the Central Bank of Nigeria (CBN) financing.
Edun described the approval by the national assembly as a “fail-safe” measure.
He said the government had rather used market instruments to manage its debts.
“We have not gone to the central bank to say, please lend the government money to pay its debt, to pay its salaries. That’s Ways and Means,” he said.
“We have not gone. In fact, we have used market instruments to pay down what we owed, and that is a very, very germane aspect of having a strong economy.
“Sometimes it just gives that extra flexibility so that if a payment needs to be made and there’s a mistiming, there’s a gap between the time at which the revenue will come in and the expenses needed, you can just draw down briefly.”
The minister said the aim is to act within the law.
Bashir Adeniyi, the comptroller general (CG) of the Nigeria Customs Service (NCS), says the duty waiver on imported foods would be implemented within the next one week.
Adeniyi spoke on Tuesday in Abuja during a news conference by the heads of security agencies and service chiefs, convened by Christopher Musa, the chief of defence staff (CDS) at the Defence Headquarters.
On July 10, the federal government announced the suspension of duties, tariffs, and taxes on the importation of food commodities to reduce inflation.
The CG said the duty waiver has not been implemented because the ministry of finance is still working out the guidelines.
“But I also like to remind Nigerians that we need to be very, very careful in implementation of this and this is why the guidelines for implementation is being meticulously worked out at the Ministry of Finance,” he said.
Adeniyi said there is a need to understand what the intervention means for the local markets as most of the food items that enjoy duty waivers and concessions are also cultivated by Nigerian farmers.
He said the federal government is trying to address the interests of all stakeholders.
“There is the issue of striking a balance between the long-term interest of Nigerian farmers and stakeholders who are involved in the production of these items and the short-term interest of addressing food inflation,” Adeniyi said.
“So the guidelines are being worked out at the Ministry of Finance and I can assure you that within the next one week these guidelines will be ready and Nigeria customs will begin implementation of these particular fiscal policies.”
‘FG MAKING EFFORTS TO MEET PROTESTERS DEMANDS’
Adeniyi said the demands of the protesters, especially those relating to food inflation and cost of living, are being addressed.
“I like to let Nigerians know that there has been a lot that is going on to address these issues that are related to ameliorating this situation.
“This is through a mixture of fiscal policies of government and a number of strategic interventions from the government.
“The federal government’s effort as part of intervention is the distribution of strategic food items which was released from the national grain reserves about a month ago.
“This was released to all states of the federation. We also recall that a number of the food items that are consumed in Nigeria are imported.
“Better parts of the components are imported and importations are not done of the shelf, it takes some time before they are done.
“So, one of the things that the president has done is to reduce the cost, to push on the effects of the cost inflation by suspending customs duties and taxes on imported food items for a period of time.”
Adeniyi said the implementation of the tax waiver will reduce the price of food items in the market.
The Chief of Defence Staff, General Christopher Gwabin Musa on Wednesday, hosted the ECOWAS Chief of Defence Staff Meeting at the Defence Headquarters Abuja.
The meeting was necessitated by insurgencies, coups, proliferation of arms, proxy wars amongst others which have threatened the peace and existence of African countries.
However, the ECOWAS commissioner for political affairs and security, Ambassador Abdel-Fatau Mussah, disclosed that the 42nd ordinary meeting of the ECOWAS committee of chief of defence staff was inevitably delayed due to the buildup of crisis in most African countries including coups that disrupted the democratic system of these countries.
“The 42nd ordinary meeting of The ECOWAS committee of chief of defence staff was inevitably delayed as a result of coups, security upheavals in the region and the announced withdrawal of the alliance of the Sehalian states from our community which requires special interventions,” the commissioner said.
The meeting is expected these critical issues by providing lasting solutions for the safety and wellbeing of Africans
During the first session of the meeting, the Chief of Defence Staff, General Christopher Musa implored security operatives to initiate ideas and strategies to be employed during the course of the meeting
“As we embark on today’s discussions,I encourage everyone to exchange ideas and strategies for the benefit of all” General Christopher said.
Minister of Finance and Coordinator of the Economy, Wale Edun, has said the actual quantity of petrol consumption in Nigeria is not known.
Wale Edun said the federal government did not make provision for fuel subsidy in the 2024 budget.
The Minister of Finance stated this while speaking on AIT Money Line with Nancy programme on Tuesday, monitored by our reporter.
Speaking on how the cost difference between the landing price and the selling price is covered, he said subsidy has gone technically.
He disclosed that some organizations are ensuring fuel availability at a lower cost than what the normal cost should have been for security reasons.
Edun said at the time the administration of President Bola Tinubu took over, fuel imported for Nigerians using subsidy was moved to other African countries. He explained that if Nigeria pays for fuel import at 40 percent, the country only gets 4 percent.
He said, “The fuel subsidy was removed on May 29, 2023 by Mr President. At that time, the poorest 40 percent, we were only getting 4 percent of the value. So basically we were not benefitting at all. It was going to just a few. Another important point to make is that nobody knows the consumption of petrol in Nigeria. We know we spend 600 million dollars every month on importation.
“The issue here is that all the neighbouring countries are benefitting. So we were buying not just for Nigeria, we were buying for the countries to the east, as far as Central Africa Republic, we are buying to the West and for the North. So we have to ask ourselves as Nigerians, how long do we want that to do that for, that is the key issue regarding this issue of petrol pricing.
“There is no fuel subsidy in the budget. That is the truth. That is the technical fact. There are organizations that have the responsibility to make sure for security reasons that there is fuel, but that doesn’t mean there is fuel subsidy in the budget. The real issue is how can we be subsidizing all our neighbours and expect the people of our own country to progress.”
When asked why government did not take action to stop fuel bought on subsidy from going to other African countries, the Minister of Finance said that would require closing the border.
“What it means is that we should block our borders. That is really it. We should block our borders,” Edun said.