COVER
Dwindling Allocation: Salaries, Other Recurrent Items to Suffer – NGF

By Joseph Amah, Abuja
The Nigeria Governors’ Forum has lamented that the subsidy on Premium Motor Spirit (petrol), has placed a huge financial burden on the states.
The NGF, which is the umbrella body for the 36 governors of the federation across party lines, made this known in a memo forwarded to the House of Representatives.
The memo is in response to the call for memoranda by the House’ Ad Hoc Committee on the Volume of Fuel Consumed Daily in Nigeria, which is investigating the actual amount of PMS the country consumes daily.
The memo, which was signed by the Head, Legislative Liaison, Peace and Security, NGF, Fatima Usman Katsina, for Chairman of the Forum, was titled ‘Findings on the Volume of Fuel Consumed Daily in Nigeria,’ dated July 1, 2022, and addressed to committee’s Chairman, Abdulkadir Abdullahi.
“Fiscal pressures are growing unsustainably with the PMS subsidy significantly reducing the flow of revenues into the Federation Account. Thirty-five out of 36 states are likely to see transfers from the federation fall (in nominal terms) between 2021 and 2022, with the average decline projected to be about 11 per cent. Most states are already experiencing fiscal stress, with 30 out of 36 states recording fiscal deficits in 2020, including Lagos and every oil-producing state except Akwa Ibom.
“With the projected decline in gross distributable federation revenues in 2022, fiscal deficits and debt burdens will grow even larger and faster. This will mean that transfers from the federation will not be enough to cover even salaries, and certainly not recurrent costs, which are growing in nominal terms.”
The governors referred the House to a November 2021 report by its National Executive Council’s ad hoc committee interfacing with the Nigeria National Petroleum Corporation on the appropriate pricing of PMS in Nigeria, which was chaired by Governor of Kaduna State, Nasir el-Rufai, and had governors of Edo, Jigawa, Ebonyi, Akwa Ibom and Ekiti, as well as the Governor of the Central Bank of Nigeria; Minister of Finance, Budget and National Planning; Accountant-General of the Federation, Group Managing Director of the NNPC and the Permanent Secretary, MBNP.
The memo partly read, “Although the operating environment has significantly worsened since the report was released, with NNPC now consistently reporting zero remittance to the Federation Accountant as profit from joint venture, production sharing contract and miscellaneous operations, the position of the forum remains generally the same.”
The NGF recalled how the report noted that the “federation (FAAC) net oil & gas revenues have been declining since 2019 and are projected to decline significantly in 2022 by between N3bn and up to N4.4bn unless action is taken now.” The memo read, “The following are some of the major findings relating to the volume of fuel consumed in the country:
“Remittances to the Federation Account Allocation Committee have continued to shrink as NNPC recovers shortfall quite arbitrarily from the Federation’s crude oil sales revenue. FAAC deductions for PMS subsidy are above 2019 levels, even without adjusting for reduced purchasing power of the naira due to inflation and FX rate deterioration.
“An analysis of the average monthly PMS consumption by states showed that a third of the country accounts for over 65 per cent consumption of PMS. The analysis showed that the following States of Lagos, Oyo, Ogun, Abuja, Delta, Kano, Kwara, Edo, Rivers, Kaduna, Kebbi and Adamawa accounted for 65 per cent of PMS consumption in the country. Most states with high PMS consumption either have borders with neighbouring countries or are in close proximity, this has been an avenue for smugglers to benefit from profitable arbitrage opportunities in PMS pricing.
“Households directly consume only about 25 per cent of the PMS that is consumed nationally, with the remaining three-quarters being consumed by firms, MDAs, transport operators or smuggled to neighbouring countries where the PMS price is nearly three times what it is in Nigeria; and of the PMS consumed by households, the richest 40 per cent of households account for over three-quarters of the PMS purchased by households, while the poorest 40 per cent of households purchased less than three percent of all PMS sold in Nigeria.
“In the current fiscal regime, remittances to FAAC would continue to shrink as NNPC recovers this shortfall from the Federation as a result of crude oil price recovery.
The report recommended a PMS pricing structure that addresses regional arbitrage and smuggling of PMS and provides additional revenue to the Federation Account. There is a significant market opportunity for additional export revenue streams for Nigeria to be had given the price parity with our neighbouring countries.
“Privatisation of the three government refineries as is, or after their full rehabilitation if affordable and viable, and expediting the licensing procedure for modular refineries will reduce the recurring government expenditure on refinery maintenance and increase the country’s refining capacity.”
The governors also noted that there were also economic risks highlighted in the report. “Fiscal pressures are threatening Nigeria’s recovery, as rising prices continue to push millions into poverty,” they stated.
The memo further read, “Rising prices are pushing millions of Nigerians into poverty. Rising inflation between 2020 and 2021 is expected to have pushed an additional 5-6 million Nigerians into poverty. Food insecurity is increasing in both poor and non-poor households, with some adults skipping meals. Because inflation is high, even if it remains stable, it will continue to push many more Nigerians into poverty.
“With the coming into effect of the Petroleum Industry Act, gross oil & gas revenues could be (much) lower than currently projected because of the new fiscal terms and the earmarking of deductible revenues specified in the PIA, and that could reduce net oil & gas revenues even further.”
The NGF stated that greater accountability and transparency around oil and gas revenues “are the only immediate options for easing the pressure on government finances and maximising socially responsible profit gain.”
N175 Per Litre, Marketers Plan Strike, Queues Worsen
Meanwhile several petrol stations are now dispensing petrol at over N175/litre, higher than the government-approved N165/litre price. This is as oil marketers insist on embarking on strike from next week if the government fails to pay them.
Some outlets in Lagos that sold the commodity at N169/litre last week had to adjust their pumps on Wednesday, as they dispensed PMS to motorists at N175/litre.
Also, queues by motorists at filling stations, which have persisted in Abuja and environs since February this year, gradually resurfaced in parts of Lagos on Wednesday.
Our correspondent also observed that many fuel stations, particularly those belonging to members of the Independent Petroleum Marketers Association of Nigeria, (IPMAN) were shut due to a lack of products to sell to customers.
Gegu Oil, Eterna and Oando stations at the Dutse end of the Kubwa-Zuba Expressway in Abuja, for instance, had remained shut for days for lack of products to sell, despite the heavy queues of motorists in a nearby NNPC retail outlet.
Amidst these concerns, oil marketers under the aegis of Abuja-Suleja IPMAN, stated on Wednesday that their proposed strike would go ahead next week if the government fails to substantially clear the bridging claims for transportation of petrol being owed marketers.
Last week, oil marketers warned that Nigeria could witness “the mother of all queues” soon if the Federal Government fails to pay the 12 months bridging claims being owed operators in the downstream oil sector.
They had also denied being paid N74bn by the Federal Government as bridging claims for the transportation of petroleum products.
The Federal Government through its Nigeria Midstream and Downstream Petroleum Regulatory Authority had said last week that it paid N74bn as bridging claims to oil marketers for the transportation of petroleum products across the country in seven months.
But the Secretary, Abuja-Suleja IPMAN, Mohammed Shuaibu, whose unit covers Abuja, Kogi, Niger and parts of Nasarawa and Kaduna, told our correspondent on Wednesday that though some members had confirmed the receipt of payments, a host of others had yet to receive theirs.
“Few of our members have confirmed receiving alerts, but the majority have not been paid and so the decision to embark on the mother of all strike still stands, except we get our payments,” he stated.
Shuaibu added, “Many independent marketers are closing shop and because of these debts. We cannot continue to fold our hands. We are sorry about the hardship, but the government has to pay us, otherwise we will withdraw our services.”
Reacting to the concerns, the spokesperson, NMDPRA, Kimchi Apollo, earlier told our correspondent that the petrol price had not changed from the approved N165/litre price, as he also stated that efforts were on to settle to bridging claims being owed the marketers.
Meanwhile, there were indications that long queues were beginning to resurface in Lagos State and its environs on Wednesday, as findings showed that filling stations were beginning to sell petrol above N175 per litre.
The Federal Government and oil marketers are yet to come to a compromise on how much a litre of petrol should be sold, and marketers are beginning to sell products at prices not approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Marketers, however, said they could no longer bank on the Federal Government’s promise to pay the claims, while they continue to run at a loss for selling petrol at N165 per litre.
Marketers had held a similar meeting with the NMDPRA two weeks ago, where they aired their grievances on the high costs of running their petrol stations.
Also, the Depots and Petroleum Products Marketers Association of Nigeria had hinted that it would be impossible for its members to keep prices at N165/litre when the landing costs to their stations were already on the high side.
NLC President Wabba Calls for Fixing of Refineries, Subsidy Removal
As a solution, the President of Nigeria Labour Congress (NLC), Ayuba Wabba has told the federal government to fix the nation’s refineries and get rid of subsidy payments.
He also advocated the participation of private investors in building refineries adding that importation of fuel poses threats to the country.
Wabba revealed these in a presentation made to the House of Representatives ad hoc committee investigating daily PMS consumption in the country.
According to the Labour leader: “We do believe that even if there is subsidy, it cannot be at the level quoted by authorities in the sector. In our document on the oil sector, we have outlined conditions precedent for removing subsidies, if any, including fixing the refineries, creating conditions for private sector participation in the building of refineries, even if they are modular.
“Sadly, we are not aware if any of the terms and conditions we have recommended have been met, several years after. We are nonetheless conscious of the fact that the continuous opaque importation of PMS holds clear and present danger to the country.
“On the other hand, the transparent operation of the importation of PMS has two major advantages. The first advantage is that, knowing the exact volume of PMS the country needs and publicising it will deter further falsification of imports, hopefully,” Wabba said.
COVER
Atiku Re-echoes Coalition Move Towards 2027, Confident of Success

By David Torough, Abuja
Former Vice President Atiku Abubakar has revealed plans for a major political coalition involving the All Progressives Congress (APC), the Peoples Democratic Party (PDP), and the Labour Party (LP) to confront what he described as the ‘incompetent and inefficient’ government of President Bola Tinubu.
Atiku made the announcement, while addressing a delegation of stakeholders from the Kogi East Senatorial Zone, led by former Deputy Governor of Kogi State, Simon Achuba, in Abuja. He said he was deeply concerned over the country’s worsening security crisis, blaming the Tinubu administration for its lack of political will to address the issue.Atiku recounted his experience as Vice President during the early days of the Boko Haram insurgency, highlighting how decisive leadership under his administration had temporarily quelled the threat.He stated, “How can leaders remain indifferent while their citizens are being killed? Such apathy is the height of irresponsibility for any political leader, anywhere.“I hold our current leadership accountable for the widespread insecurity plaguing our nation. There is a lack of political will.“Let me remind you of when Boko Haram first emerged in 2002, during our time in office. The president summoned me and asked, ‘Mr Vice President, what should we do about this?’ It began in Yobe. I advised him to call the service chiefs and set a clear deadline: if they couldn’t quell the insurgency, they should resign.“The president summoned the service chiefs, I was present, and issued firm orders. Within weeks, the insurgents in Yobe were subdued, and the threat did not resurface until after we left office.”Atiku also criticized the government’s under-policing strategy, suggesting that unemployed graduates be recruited into the police force to address the security manpower deficit.“We are under-policed. There are not enough police officers in this country, while many educated individuals remain unemployed. Why not recruit them into the police force?” he asked.He emphasized the need for a united front against the current administration, stating, “We are forming a coalition, all major political parties, including the APC, the PDP, and the Labour Party, are involved. This is the only way forward to confront such an incompetent and inefficient government. I assure you of my understanding and full support.”Simon Achuba, who led the delegation, echoed Atiku’s concerns, lamenting the rampant violence, kidnappings, and destruction of communities in the North.He accused the federal government of failing in its constitutional duty to ensure peace and security, urging northern leaders to step up and foster unity within the region.“Unfortunately, the government is doing little to alleviate this crisis, and it is their responsibility, sir. It is the government’s duty to ensure peace and order in our communities.“Yet, in a situation where the government fails to take adequate action, I believe, we believe, that northern leadership must step up,” Achuba said, calling for internal healing and brotherhood among northerners.COVER
National Census Long Overdue, Now Embarrassment, says Akpabio

By Eze Okechukwu, Abuja
Senate President, Godswill Akpabio has said that Nigeria was long overdue for a national census, adding that the exercise would assist the country in national planning.Akpabio made the remarks while playing host to members and management of the National Population Commission(NPC) who visited him in his office to update him on the preparation for the next Census for the country.
Akpabio told his guests: “I don’t want to call it a national disgrace but can I say it’s a national embarrassment that even Nigerians who go outside to represent us in different fora do not know the number of Nigerians. ”Sometimes you will go to some places and they will say 250 million Nigerians. At another place, they will say you people are over 270 million. Some African countries think we are over 300 million.”If you go to places where they are holding retreat now, they are now shrinking from 250 million to 220 million. I think it’s time to bring that confusion to an end.”Any country that fails to know its population has already started to fail in its planning. You cannot truly plan for the future if you don’t know the number of mouths you want to feed. You do not know the number of children that you want to put in schools. You can’t know the number of classroom blocks you will build.”We must plan. Any country that does not plan for its future has already accepted failure. We will be failing the future generation of Nigerians if we do not begin to plan for the future and start the planning of this Census. This Census is important so that we know how many people we are planning for.”Akpabio assured members of the NPC that the National Assembly would support the Commission to succeed.”It is very important that we support you. The National Assembly will support you to succeed. I have no doubt, with the calibre of men and women that I have seen here, that the task that Mr President has given to you, once the proclamation is done, you will rise to the occasion. And I know that the National Assembly, the Senate in particular, will stand by you all the way,” he said.Earlier, the NPC chairman, Nasir Isa Kwarra who led the delegation said the visit was to keep the Senate President abreast of the stage of preparation and seek continued support of the National Assembly for the next Census.”We cannot conduct this Census without your support. So we will continue to count on your support and we want to make Nigerians proud by conducting a very thorough Census that will yield a lot of data that will assist in planning policy formulation and tracking our development,” Kwarra said.COVER
June 12: Pay Abiola Family N45bn Debt, Lamido Tells Tinubu

By David Torough, Abuja
Former Governor of Jigawa State, Alhaji Sule Lamido has called on President Bola Tinubu to show courage by closing the chapter of June 12 once and for all.According to him, the payment of the N45 billion debt owed to the family of the late presumed winner of the June 12, 1993, presidential election, Chief Moshood Kashimawo Olawale (MKO) Abiola, would serve as a symbolic and moral closure to the June 12 struggle and Abiola’s unjust treatment following the annulment of the election, widely believed to have been won by the late business mogul.
The former Minister of Foreign Affairs made the call while delivering his closing remarks at the launch of his autobiography, “Being True to Myself,” held yesterday in Abuja.“When (General) Murtala (Muhammed) died, Abiola came in with a claim that he was owed, I think, about N45bn for contracts executed by International Telephone and Telecommunication for the Ministry of Communications. The military high command at that time said no.“He went around the Emirs in the North to lobby, and the Emirs asked that they (the military) should please pay the money. They (the military) said they annulled the June 12 elections because if they made him President, he would take his money, and the country would become bankrupt. Those who were close to Abacha should know this because Abacha was then one of the big shots; they were all aware.”“Before I end my remarks, I want to appeal to President Tinubu to finally close the chapter of June 12. In his book, General Ibrahim Babangida acknowledged that Abiola won the election. When I visited him, he also confirmed that Abiola is owed N45 billion. He was doubly punished: first, denied the presidency; second, denied what is owed to him.”Lamido urged the Minister of Information and National Orientation, Muhammad Idris Malagi, who represented President Tinubu at the event, to deliver the message to the President.“Please tell the President to pay the Abiola family the N45 billion. Once this is done, the June 12 chapter will be closed. It is very important,” he stated.