Business

Fuel Subsidy Stifles Competition, Private Investment – Envoy

Published

14 years ago

January 18, 2012

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.’’

Business

Boat Mishap Kills Pastor, Wife And Church Members In Brass Water

Published

1 day ago

May 18, 2026

The Tide

A boat accident in Bayelsa state has killed a serving Pastor, Wife and other church members along Brass waterways

The sad incident happened at Odioama in Brass local government area of Bayelsa State when the Pastor, wife and members of his church were in a programme.

?Tide confirmed that the lifeless body of the Pastor’s wife has been found and deposited in a mortuary while the remains of her husband ,the Pastor is yet to be recovered

as search party are still ongoing.

Although the real cause of the boat Mishap is not yet known as at the time of this report, our Correspondent gathered that the identities of the Pastor, wife and church members were not disclosed to the public.

The mishap, Tide gathered occurred on Friday morning when the church members were on a boat transit

The Bayelsa State government and the state police command are yet to issue official statement’s on the sad accident

By: CHINEDU WOSU

Business

Rivers Workers Seek Scrapping Of Contributory Pension Scheme

Published

1 day ago

May 18, 2026

The Tide

The Rivers State Council of Nigeria Civil Service Union has called on the State Government to urgently scrap the contributory pension scheme, describing it as unfavourable to long-serving civil servants in the state.

Chairman of the union, Chukwuka Osuma, said this in an interview with newsmen in Port Harcourt, recently.

Osuma said the current pension structure has continued to worsen post-retirement hardship for workers.

He noted that the contributory pension scheme had failed to provide adequate retirement security for workers who had spent many years in service, especially those approaching retirement age.

According to him, civil servants who had served for more than 20 years were among the worst affected under the scheme, insisting that many retirees could no longer cope with prevailing economic realities.

He also informed that the Union has made moves to showcase their concerns, pleading with Governor Siminalayi Fubara to abolish the pension policy and introduce a more favourable arrangement for affected workers.

“The union was not opposed to pension reforms, the contributory scheme should only apply to newly employed workers or those with fewer years in service”, he said.

Osuma explained that workers who had already spent decades in the civil service ought to remain under a more secure pension structure capable of guaranteeing stability after retirement.

The labour leader further noted that inflation and the rising cost of living had continued to erode the value of retirement savings, thereby increasing the suffering of pensioners across the country.

He also appealed to the state government to consider extending the years of service in the civil service from 35 to 40 years and the retirement age from 60 to 65 years.

Osuma argued that such adjustment had become necessary in view of present-day economic realities and changing conditions in the workplace.

The unionist also reviewed that similar policies had already been adopted in some sectors and jurisdictions, expressing optimism that the State could also implement the reforms for the benefit of workers.

He however, commended Governor Fubara for approving an N85,000 minimum wage for workers in the state, noting that the amount was above the national benchmark of N70,000.

Osuma also acknowledged the government’s efforts in the area of workers’ promotions and bonuses, but insisted that pension reforms and extension of years of service remained critical to the long-term welfare and stability of civil servants in Rivers State.

By: King Onunwor

Business

FG Begins South-West Tour To Promote New Cooperative Bank

Published

6 days ago

May 13, 2026

The Tide

The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.

Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.

According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.

Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.

Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.

“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.

The minister noted the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.

According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.

Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.

He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.

“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.

He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.

“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.

Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.

“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.

“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.

Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.

She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.

Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).

“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.

“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.