Tinubu Approves Fuel Subsidy Payment – Report
 |
Tinubu Approves Fuel Subsidy Payment – Report |
President Bola Tinubu has given the green light to the Nigerian National Petroleum Company Limited (NNPCL) to utilize the 2023 dividends owed to the federation for petrol subsidy payments, according to TheCable.
Additionally, the president has approved the suspension of the 2024 interim dividend payments to the federation to boost the oil company's cash flow.
Despite Tinubu's announcement of the fuel subsidy removal during his inaugural address on May 29, 2023, there are strong indications that the government continues to spend billions on subsidies.
Recently, when some Nigerians took to the streets to protest nationwide hardship, one of their demands was the reinstatement of the subsidy.
However, in a national broadcast, Tinubu ruled out the return of the subsidy, describing the decision to remove it as painful but necessary.
He stated that the subsidy had been a “noose around the economic jugular of our Nation” and had impeded economic development and progress.
In a report on Monday, the online newspaper stated that Tinubu approved NNPCL's request to pay for the subsidy after the company reported that it had exhausted all strategies to ensure a stable gasoline supply in the country.
These strategies included improving oil production by combating theft and vandalism; debt rescheduling/forward sales; payment deferrals to suppliers and contractors; deferrals of non-critical projects; and debt recovery, among others.
“These strategies, the government oil company informed the president, have failed to ameliorate the problem, stating that going forward, the company would no longer be able to remit funds into the Federation Account.”
“President Tinubu has therefore directed the company to use the taxes, royalties, and other funds that are supposed to be remitted to the Federation Account to cover the fuel subsidy cost,” the report said.
The approval was reportedly given on June 6, 2024.
A forecast from NNPCL, obtained by the newspaper, indicated that the total petrol subsidy expenses from August 2023 to December 2024 would amount to N6.884 trillion, leaving the company unable to remit N3.987 trillion in taxes and royalties to the federation account.
The exact amount of dividends that would be withheld or put on hold could not be verified.
Source News
.jpg)
Leave Comments
Post a Comment