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Nigeria Saves $20bn From Subsidy Removal -FG
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has announced that the country has saved $20 billion by abolishing the petrol subsidy and adopting market-based foreign exchange pricing.
Edun made this disclosure at an event in Abuja marking the first 100 days in office of Head of the Civil Service of the Federation, Esther Walso-Jack.
“An amount of five percent of GDP is what those two subsidies were costing,” Edun stated, adding “When there was a subsidy on PMS and on foreign exchange, they collectively cost five percent of GDP. Assuming GDP was $400 billion on average, five percent of that is $20 billion—funds that could now go into infrastructure, health, social services, and education.”
He further explained that the savings are being redirected into developmental projects: “The real change is that no one can wake up and target cheap funding or forex from the central bank to enrich themselves without adding value. Similarly, profiteering from the inefficient petrol subsidy regime is no longer possible.”
Recall that President Bola Tinubu officially ended the petrol subsidy regime on May 29, last year, the day he was sworn in.
Despite this, on August 19, the Nigerian National Petroleum Company (NNPC) Limited disclosed that the Federal Government owed ?7.8 trillion for under-recovery, contradicting earlier denials of any subsidy reintroduction.
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S’South Group Writes Tinubu, Seeks Executive Order On 13% Derivation Fund
A socio-political group in the South-South, the Niger Delta Civil Society Forum, has written an open letter to President Bola Tinubu, raising constitutional concerns over what it described as the illegal and unconstitutional implementation of the 13 per cent Derivation Fund in the country.
In the open letter, signed by its Coordinator, Ezekiel Kagbala, copies of which were made available to journalists in Warri, yesterday, the forum warned that “the prevailing practice undermines the supremacy of the 1999 Constitution (as amended) and continues to shortchange oil-producing communities of the Niger Delta.”
While noting that it was “compelled to speak out in the spirit of patriotism, constitutionalism, and justice,” the forum maintained that “oil and gas matters are expressly listed under Item 39 of the Exclusive Legislative List in Part I of the Second Schedule to the Constitution, covering mines and minerals, including oilfields, oil mining, geological surveys, and natural gas.”
The forum appealed to Tinubu to, “without further delay, issue an Executive Order to correct the alleged anomalies by ensuring lawful administration of the 13% Derivation Fund.”
This, it stated, should include the establishment of a 13% Derivation Fund Board in each oil- and gas-producing state and the constitution of a Presidential Monitoring Committee to guarantee transparency, accountability, and strict constitutional compliance.
“This appeal is not political; it is constitutional. It is not adversarial; it is corrective,” the forum said, reiterating that “continued unconstitutional handling of the Derivation Fund undermines the rule of law and deprives host communities of the justice the Constitution guarantees them.”
The open letter added, “By the doctrine of separation of powers, only the Federal Government, acting through the President, has jurisdiction over matters on the Exclusive Legislative List.
“State governors and state assemblies lack constitutional authority to legislate on, administer, or appropriate funds derived from oil and gas resources.
“Yet, for over thirty years, governors of oil- and gas-producing states and their state assemblies have exercised control over derivation funds.”
The forum described the ongoing practice as “persistent constitutional overreach and illegality.”
It cited Section 162(2) of the 1999 Constitution, which provides that the principle of derivation shall be “not less than thirteen per cent of the revenue accruing to the Federation Account from any natural resources.”
The forum argued that under the derivation principle, the 13% Derivation Fund is a first-line charge on the Federation Account, constitutionally set aside before the remaining 87 per cent is shared among the Federal, State, and Local Governments.
“In law and practice, first-line charges are paid directly to beneficiaries. The Federal Government is a second-line charge, states third-line, and local governments fourth-line,” the forum explained.
It added, “The current practice of handing the 13% Derivation Fund to state governors to administer has no constitutional foundation and undermines transparency, accountability, and the intent of the Constitution.”
The forum recalled that when Chief Wellington Okrika, popularly known as “Mr. 13 Per Cent,” spearheaded the historic struggle for the derivation principle, state governors were not part of that agitation.
According to the NDCSF, no compensation or formal recognition was ever accorded to Chief Okrika, despite his central role in advancing the derivation principle from which oil-producing states now benefit.
“The present mindless abuse of the derivation principle by political actors who neither fought for it nor respect its constitutional foundations is unjust, morally troubling, and capable of attracting international intervention if allowed to continue unchecked,” the forum posited.
To further support its position, the NDCSF referenced constitutional precedents. It recalled that under President Shehu Shagari, when derivation stood at 1.5 per cent, the funds were not disbursed to governors but managed through presidential oversight and monitoring structures.
Similarly, the forum noted that when General Ibrahim Babangida increased derivation to 3 per cent, he established OMPADEC to centrally administer the funds, in recognition of oil and gas being on the Exclusive Legislative List.
“These actions respected constitutional boundaries and provided clear models for lawful and transparent administration,” the letter stated.
The NDCSF expressed concern over what it described as persistent silence by federal authorities despite repeated submissions of documents and constitutional references on the matter.
Concluding, the group said it trusts in Tinubu’s commitment to constitutionalism and reform and expressed hope for decisive action that will finally align the implementation of the 13% Derivation Fund with the letter and spirit of the Constitution.
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Labour Issues Ultimatum To FG Over Wage Arrears
Organised labour in the Federal public service has issued a Friday deadline to the Federal Government, demanding the immediate release of funds to settle three months’ outstanding wage awards and other pending allowances owed to workers across Ministries, Departments and Agencies.
The leadership of the Joint National Public Service Negotiating Council (Trade Union Side) conveyed the ultimatum in a letter addressed to the Federal Ministry of Labour and Employment, warning that failure to meet the February 27, 2026, deadline would compel the eight unions in the civil service to take decisive action.
The unions accused the government of withholding funds meant for workers, alleging that relevant agencies were prepared to process payments once the Ministry of Finance released the required funds.
The wage award dispute, which has persisted for over two years, followed the Federal Government’s approval of a N70,000 minimum wage after the removal of fuel subsidy.
Labour leaders stated that although partial payments were made after sustained pressure, three months remain unpaid since July 2024, heightening tension within the federal workforce.
In a letter addressed to the Minister of Finance and Coordinating Minister of the Economy, the union stated: “This wage award has dragged on for over two years now since the implementation of the N70,000 minimum wage payment was approved.”
The unions recalled that “the wage award was approved as a cushioning measure following fuel subsidy removal and was to run until the commencement of the new minimum wage implementation in July 2024.
“It is beyond the imagination and expectations of federal workers that the Federal Government left five months unpaid ab initio; not until there was much pressure did the Federal Government effect the staggered payment of two months, leaving the balance of three months since July 2024 unpaid.”
The JNPSNC further alleged that “all relevant government agencies responsible for effecting payment are prepared to do so but are constrained by the non-release of funds by the Ministry of Finance.
“Available information revealed that all government agencies responsible for the payment of the wage award are ready to pay, but this is subject to the release of funds by the Honourable Minister of Finance, who is deliberately holding back the money.”
Beyond the wage award arrears, the unions listed other outstanding obligations requiring urgent attention, including promotion arrears for workers elevated more than three years ago, salary arrears for employees recruited between 2015 and 2024, and the proper implementation of a 40 per cent peculiar allowance based on the N70,000 minimum wage.
Warning of possible industrial action, the unions declared: “If the money meant for the payment of the wage award is not released on or before Friday, 27th February, 2026, the national leadership will take the bull by the horn and ensure appropriate actions are taken.”
They insisted that workers’ entitlements must not be treated with levity and that employees should not be subjected to undue hardship over delayed payments.
Copies of the letter were also forwarded to the Federal Ministry of Labour and Employment, the Office of the Head of the Civil Service of the Federation, the Nigeria Labour Congress, the Trade Union Congress, security agencies and affiliate unions for urgent attention.
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PDP Kicks As APC Wins FCT Council Polls
The Peoples Democratic Party (PDP) has inaugurated a special legal team to handle election petitions arising from last Saturday’s Area Council elections in the Federal Capital Territory.
This comes as the All Progressives Congress (APC) won in Abaji, Kwali, AMAC, and Bwari Area Councils, while the PDP secured victory only in Gwagwalada.
The Tide reports that the council elections were held on Saturday, February 21, 2026, across all six FCT area councils, including Abaji, AMAC, Bwari, Gwagwalada, Kuje, and Kwali.
Results announced so far by the Independent National Electoral Commission (INEC) show that the All Progressives Congress (APC) won in Abaji, Kwali, AMAC, and Bwari Area Councils, while the PDP secured victory only in Gwagwalada.
In a statement issued yesterday by PDP’s National Publicity Secretary, Ini Ememobong, the party congratulated its candidates, who emerged winners in the chairmanship and councilor elections.
The opposition party acknowledged the victories, noting that the number of wins was lower than expected but significant given the alleged irregularities during the polls.
“We specifically congratulate the Chairman-elect of Gwagwalada Area Council, Mohammed Kasim, and the councillors who have been declared successful by the Independent National Electoral Commission (INEC).
“This victory, though less in number than we anticipated, is particularly gladdening because it is against the background of unprecedented intimidation, high-powered money politics, and brazen executive brigandage,” the statement read.
Ememobong claimed that there are reports and video evidence indicating voter intimidation and unlawful conduct that influenced the outcome of the elections.
“Reports and video evidence abound where armed security personnel were used to cart away result sheets in polling units, intimidate voters, and unduly influence the outcome of the elections.”
To address complaints and litigations arising from the polls, he said the party has set up a legal team headed by its National Legal Adviser, Shafi Bara’u, Esq.
The statement urged candidates with legitimate grievances to contact the Legal Adviser promptly, as delays could jeopardise their chances in election petition cases.
“The incredible voter apathy in these polls is a direct response to the anti-people Electoral Act 2026, where the people have completely lost faith in the electoral outcomes from elections conducted under this Act.
“These Local Council polls may just be a foreshadowing of the forthcoming general elections in 2027 if changes are not urgently made,” the statement added.
The PDP called on the National Assembly and the President to take corrective action to safeguard the integrity of Nigeria’s democracy.
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