Connect with us

Business

Fuel Subsidy Stifles Competition, Private Investment – Envoy

Published

14 years ago

on

Nigeria’s Ambassador to the United States, Prof. Adebowale Adefuye, says fuel subsidy discourages competition and stifles private investment in the downstream sector.

“Due to the lack of deregulation, investors have shied away from investing in the development of refineries, petro-chemicals and fertiliser plants,’’ Adefuye said at a special town hall meeting with Nigerians in Chicago on Saturday.

Our North America Correspondent reports that the meeting was convened to discuss issues relating to the fundamentalist, Boko Haram sect and fuel subsidy removal.

Adefuye noted that subsidy encouraged smuggling of petroleum products across the borders to neighbouring countries where prices were higher.

“Continuing with the fuel subsidy system will pose a serious danger to the economic survival of the country.

“With 72 per cent of the country’s budget being spent on recurrent expenditure, there will come a time when there will be no money available for capital projects.

“We would then have to say goodbye to plans to improve power supply, repair our roads, rebuild our railways, improve the quality of our education and attain the objectives of our Vision 20:2020.’’

The envoy noted that in 2011, fuel subsidy was more than the aggregate sectoral allocation for education, health, power, agriculture and rural development as well as water resources.

He equally observed that from 2006 to 2011, more than N3.7 trillion was spent on subsidy and in 2011, N1.348 trillion was spent between January and October while N1.436 trillion was spent at the end of the year.

“This represents 30 per cent of total Federal Government’s expenditure, 118 per cent of the capital budget and 4.18 per cent of the Gross Domestic Product.’’

Adefuye said the government had to borrow N52 billion in 2011 to finance its deficit.

He said that subsidy was no longer economically sustainable as it was increasing in leaps and bounds, fuelled by corruption.

“In 1999, N600 billion went into subsidy; in 2010, it was N800 billion and in 2011, N1.3 trillion. This means that it would reach a stage when nearly the entire federal budget would be diverted to fuel subsidy alone.

“What is even more annoying is that the subsidy regime has been captured by the ‘fat cats’ in the oil cartel of about hundred oil companies owned by some of the richest Nigerians.

“These are some of the people suspected to be encouraging and sponsoring some elements in the current civil strife.’’

The ambassador added that removal of fuel subsidy would mean right pricing of fuel in Nigeria and would attract foreign investment in the downstream sector of the oil and gas industry.

“It will attract foreign investments for the establishment of private sector refineries, petrochemical plants and it will enable companies issued licences to establish projects and create job opportunities for the youth and ensure technology transfer.

“In fact, the estimate is that in a few years, not less than 750,000 direct and related jobs would be created on account of this.

“With fuel subsidy removed, three Green Refineries already in the pipeline with a total production capacity of 300,000 barrels per day will be speedily established.

“There will be more money to effect turnaround maintenance of the existing refineries in Kaduna, Warri and Port Harcourt to ensure maximum production.’’

Related Topics:
Continue Reading

Business

Agency Gives Insight Into Its Inspection, Monitoring Operations

Published

5 days ago

on

January 12, 2026

By

The Director, South South Zone National Agency for Food Drug Administration and Control (NAFDAC), Pharmacist Chujwuma P.Oligbu has said its  thorough implementation of its core mandate of monitoring has no link with witch-hunting or fault finding as perceived at some quarters.
 Oligbu, made this known when he spoke as as guest at the maiden Rivers state Supermarkets stakeholders’ Seminar/Workshop in Port Harcourt recently.
Rather, he said they were mere opportunities for education, correction and continuous improvement.
The Agency’s South South Boss, noted that  Supermarket operators who maintain transparent records, cooperate during inspections, and promptly address identified gaps demonstrate professionalism and commitment to public health standard.
He listed the deserving essence of supermarket operation to include the key aspects of supermarket operation that deserves emphasis is product sourcing.
“Supermarkets must ensure that all regulated products stocked on their shelves are duly registered with NAFDAC and sourced from legitimate manufacturers or distributors”, he said .
According to him, the presence of unregistered, expired, counterfeit, or improper labelled products undermines consumer confidence and poses serious health risks.
He pointed out that such has the likelihood of  exposeing supermarket operators to legal sanctions that could damage their reputation and financial stability.
The NAFDAC Operator, further enlightened the participants that mere registration of a particular product with the Federal agency do not guarantee absolute consumption safety.
“Temperature control, cleanliness, pest control, stock rotation, and proper shelving are not optional practice; they are essential components of compliance”, he said.
The South South zonal director also told the operators of supermarket that their employees rotine training on the basis of the product they display for sale is of utmost importance.
In her presentation a Breast Milk Nutrition Expert , Professor Alice Nte of University of Port Harcourt Teaching Hospital (UPTH), was against the body’s prime attention to breast milk substitute or baby milk in supermarkets as well as its advertisement or promotion.
Nye jerked up  the importance of mothers breast milk to the newborn baby and added that it  help in fighting against childhood diseases, infections and combating cancer in breastfeeding mothers.
Meanwhile, NAFDAC Deputy Director, South – South Zone , Mrs. Riter Chujwuma educated the participants on the guidelines for global listing, and the need to adhere strictly to rules guiding global listing to avoid confiscation of their imported products.
By: King Onunwor
Continue Reading

Business

BVN Enrolments Rise 6% To 67.8m In 2025 — NIBSS

Published

5 days ago

on

January 12, 2026

By

The Nigeria Inter-Bank Settlement System (NIBSS) has said that Bank Verification Number (BVN) enrolments rose by 6.8 per cent year-on-year to 67.8 million as at December 2025, up from 63.5 million recorded in the corresponding period of 2024.

In a statement published on its website, NIBSS attributed the growth to stronger policy enforcement by the Central Bank of Nigeria (CBN) and the expansion of diaspora enrolment initiatives.

 According to the data, more than 4.3 million new BVNs were issued within the one-year period, underscoring the growing adoption of biometric identification as a prerequisite for accessing financial services in Nigeria.

NIBSS noted that the expansion reinforces the BVN system’s central role in Nigeria’s financial inclusion drive and digital identity framework.

Analysts linked the growth largely to regulatory measures by the CBN, particularly the directive to restrict or freeze bank accounts without both a BVN and National Identification Number (NIN), which took effect from April 2024.
The policy compelled many customers to regularise their biometric records to retain access to banking services.

Another major driver, the statement said, was the rollout of the Non-Resident Bank Verification Number (NRBVN) initiative, which allows Nigerians in the diaspora to obtain a BVN remotely without physical presence in the country.

The programme has been widely regarded as a milestone in integrating the diaspora into Nigeria’s formal financial system.

A five-year analysis by NIBSS showed consistent growth in BVN enrolments, rising from 51.9 million in 2021 to 56.0 million in 2022, 60.1 million in 2023, 63.5 million in 2024 and 67.8 million by December 2025. The steady increase reflects stronger compliance with biometric identity requirements and improved coverage of the national banking identity system.

However, NIBSS noted that BVN enrolments still lag the total number of active bank accounts, which exceeded 320 million as of March 2025.

The gap, it explained, is largely due to multiple bank accounts linked to single BVNs, as well as customers yet to complete enrolment, despite the progress recorded.

Continue Reading

Business

AFAN Unveils Plans To Boost Food Production In 2026

Published

1 week ago

on

January 9, 2026

By

The leadership of the All Farmers Association of Nigeria (AFAN) has set the tone for the new year with a renewed focus on food security, unity and long-term growth of the agricultural sector.
The association announced that its General Assembly of Farmers Congress will take place from January 15 to 17, 2026 at the Abuja Chamber of Commerce and Industries, along Lugbe Airport Road, in the Federal Capital Territory.
The gathering is expected to bring together farmers, policymakers, investors and development partners to shape a fresh direction for Nigerian agriculture.
In a New Year address to members and stakeholders, AFAN president, Dr Farouk Rabiu Mudi, said the congress would provide a strategic forum for reviewing past challenges and outlining practical solutions for the future.
He explained that the event would serve as a rallying point for innovation, collaboration and economic renewal within the sector.
Mudi commended farmers across the country for their determination and hard work, despite years of insecurity, climate-related pressures and economic uncertainty.
According to him, their resilience has kept food production alive and positioned agriculture as a stabilising force in the national economy.
He noted that AFAN intends to build on this strength by resetting agribusiness operations to improve productivity and sustainability.
The AFAN leader appealed to government institutions, private investors and development organisations to deepen their engagement with the association.
He stressed the need for collective action to confront persistent issues such as insecurity in farming communities, climate impacts and market instability.
He also urged members to put aside internal disputes and personal interests, encouraging cooperation and shared responsibility in pursuit of national development.
Mudi outlined key priorities that include increasing food output, expanding support for farmers at the grassroots and strengthening local manufacturing through partnerships with both domestic and international investors adding that reducing dependence on imports remains critical to protecting the economy and creating jobs.
He stated that the upcoming congress will feature the launch of AFAN’s twenty-five-year agricultural mechanisation roadmap, alongside the announcement of new partnerships designed to accelerate growth across the value chain.
Participants, he said wi also have opportunities for networking and knowledge exchange aimed at transforming agriculture into a more competitive and technology-driven sector.
As part of its modernisation drive, AFAN is further encouraging members nationwide to enrol for the newly introduced Digital ID Card.
Mudi said the initiative will improve transparency, ensure proper farmer identification and make it easier to access support programmes and services.
Reaffirming the association’s long-term goal, he said the vision of national food sufficiency by 2030 remains achievable if unity and collaboration are sustained.
He expressed optimism that with collective effort, Nigeria’s agricultural sector can overcome its challenges and deliver a more secure and prosperous future.
Lady Usendi
Continue Reading

Trending