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FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA

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FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA

By: Victor Emejuiwe

No sane government should watch its citizens suffer untold hardship and live in poverty. The primary responsibility of government is to protect the life’s and to secure the welfare of the people. President Ahmed Bola Tinubu spontaneously announced the removal of fuel subsidy on the day of its inauguration without considering the attendant consequences of such a decision. In fairness to the removal, the amount of money claimed to be payment of subsidy in Nigeria was quite humongous from N300 billion during the Good Luck Jonathan administration in 2012, to N2.7 trillion in 2022. However, beyond the doubt as to the authenticity of the real value paid on subsidy, the secrecy and corruption associated with the entire subsidy regime was very un-palatable. It was as a result of this, that many Nigerians canvassed for the removal of subsidy. Nevertheless, there are some other school of thought who believes that the government was not sincere on its own part due to the lack of transparency and accountability in petrol consumption and subsidy payment. Also, even where several reports indicting subsidy saboteurs were released, the federal government did nothing to investigate and prosecute those who were accused of corruptly enriching themselves from the subsidy payments. Therefore, the payment of subsidy on its own was not the problem but the willingness of government to come clean with its transaction on subsidy payment and muster the political will to pervert corruption amongst the stakeholders was the major problem. The view on re-introduction of subsidy becomes necessary given the fact that payment of subsidy is a common global practice by governments all over the world. It is taken to ameliorate hardship faced by majority of citizens in the purchase of very expensive commodities. In this case, Nigeria being a mono-economy driven by sales of crude oil, has made the price of every other commodities reflective in the rise or fall in the price of crude oil. The subsidy regime cushioned a lot of hardship amongst Nigerian in the past and with its removal today, Nigerians have not been able to recover from the effect, as we can witness the continuous increase in the prices of all commodities in Nigeria. Most workers do not report to work on a daily basis, some business closed shops and the general standard of living has reduced. Couple with this fact, is government inactiveness in controlling the hike in the prices of locally produced commodities. The lack of a price stabilization and mechanization control which was hitherto implemented in the 70’s have made it possible for middle men to determine the prices of commodities in the market. The practice of the middle men is to acquire these goods from the dealers and hoard them so as to create scarcity and speculate a market price before they sell, with wide profit margin. If government enforce the price control Act as ordered recently by the federal high court on goods and commodities that are locally produced in Nigeria, the hoarders and speculators would run out of business and food items and other commodities would be available at the normal rate. The lack of a price control mechanism is what led to the failure of most government policies on agriculture. It is so unfortunate that the past government of President Muhammed Buhari, made efforts to encourage local production of food commodities such as rice and even provided subsidies to farmers to embark on local rice production, but instead of having the price of rice reduced, it rather led to more than 200 percent increase in the price of rice. Rice which was sold for N9600 before the ban on imported rice, skyrocket to N19,800, at a point, it rose to N36,000 and the government could not do anything to stop the hike. Under this present administration, a bag of rice sells for N77,000. It is an anomaly for government to provide incentives to local producers of commodities and at the same time, do not have control of the market price.
In light of the above, in the interim, the Federal Government should re-introduce subsidy on petrol and diesel under a more transparent regime and deal with saboteurs who divert the products to other countries and in the long run, the Federal government should get our refineries working at optimum capacity so that any attempt to remove subsidy on petrol and diesel will not have much impact on the price on petrol. Also, a list of commodities and items produced locally should be established and the market price should be determined under a price control, stabilization and mechanization regime. The government should enforce the laws and policy on price control. Finally, for resource mobilization, the government should stop oil theft so that more resources can be generated from crude oil and this would help us pay for the subsidy on petrol and also pay for the functionality of our refineries.

*Victor Emejuiwe
Monitoring and Evaluation/Strategic Communication Manager
Centre for Social Justice.
Abuja
08068262366

FUEL SUBSIDY AND PRICE CONTROL- SOLUTION TO ECONOMIC HARDSHIP IN NIGERIA

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Nigeria Reaffirms Commitment to Regional Security at MNJTF Meeting in Chad

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Nigeria Reaffirms Commitment to Regional Security at MNJTF Meeting in Chad

By: Zagazola Makama

Nigeria has reaffirmed its commitment to regional cooperation and collective security efforts aimed at combating terrorism, insurgency and transnational crimes across the Lake Chad Basin.

Gen. Christopher Musa, Minister of Defense stated this during the Multinational Joint Task Force (MNJTF) meeting held on Tuesday in N’Djamena, Republic of Chad.

Musa, who attended the meeting alongside the joined defence ministers and senior military chiefs from Chad, Cameroon and Benin to review ongoing military operations and strengthen collaborative strategies for regional peace and stability.

According to the CDS, terrorism and insurgency within the Lake Chad region can only be effectively addressed through sustained regional cooperation, intelligence sharing and operational synergy among member states.

“Terrorism, insurgency and transnational threats can only be confronted through regional cooperation, intelligence fusion, synergy and sustained commitment among states,” he said.

He noted that the meeting provided an opportunity for participating countries to assess the progress of ongoing joint military operations under the MNJTF framework and identify areas requiring stronger collaboration.

Musa reaffirmed Nigeria’s resolve to continue supporting collective security initiatives aimed at restoring lasting peace and stability across the region.

“Nigeria remains steadfast in its commitment to collective security and the restoration of lasting peace across the Lake Chad Basin,” he said.

The CDS further stressed the importance of coordinated border security operations, intelligence-driven missions and enhanced military cooperation among member countries in addressing evolving security threats within the region.

The MNJTF, established by countries of the Lake Chad Basin Commission, coordinates multinational military operations against Boko Haram, ISWAP and other transnational criminal networks operating around the Lake Chad region.

Nigeria Reaffirms Commitment to Regional Security at MNJTF Meeting in Chad

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India Moves to Reset Africa Relations After 10-Year Gap, Targets Deeper Nigeria Partnership

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India Moves to Reset Africa Relations After 10-Year Gap, Targets Deeper Nigeria Partnership

By: Michael Mike

The Government of India is seeking to recalibrate its strategic engagement with Africa through the forthcoming 2026 India-Africa Forum Summit, with Nigeria positioned at the centre of New Delhi’s renewed diplomatic, economic and cultural outreach to the continent.

India’s High Commissioner to Nigeria, Abhishek Singh, disclosed this in Abuja while briefing journalists ahead of the fourth edition of the India-Africa Forum Summit scheduled to hold on May 31 in New Delhi.

The summit, which is returning after a decade-long break, is expected to bring together African heads of state, ministers, business leaders, investors, diplomats and cultural stakeholders as India seeks to strengthen its influence across Africa amid growing global competition for economic and strategic partnerships on the continent.

“This summit is not merely a diplomatic gathering. It is a platform to deepen political dialogue, security cooperation, trade relations, developmental partnerships, people-to-people exchanges and cultural collaboration between India and Africa,” Singh said.

The envoy noted that the last summit was held in 2015 and argued that both Africa and India had undergone major political and economic changes since then, making the upcoming meeting particularly significant.

According to him, the summit will begin with senior officials’ engagements on May 28, followed by a meeting of foreign ministers on May 29 before the main leaders’ summit on May 31.

He disclosed that President Bola Tinubu has been invited by Indian Prime Minister Narendra Modi to lead Nigeria’s delegation to the summit.

“We would be truly honoured to have the participation of His Excellency, the President,” Singh stated.

The High Commissioner described Nigeria as a strategic pillar in India’s Africa policy, citing the country’s democratic credentials, economic weight and regional influence.

“Nigeria is Africa’s largest democracy and one of the continent’s biggest economies. We see Nigeria as emblematic of India’s relationship with Africa,” he added.

Beyond diplomatic engagements, India is also using the summit to deepen commercial and cultural ties with African countries.

Singh revealed that business forums, cultural festivals, music and dance events, as well as Track Two diplomatic engagements involving academics and private sector players, would form part of the summit activities.

“One of the major components is economic dialogue. We have invited Nigerian businessmen, industrialists and chambers of commerce to participate and redefine how we engage economically,” he said.

India said bilateral trade between Nigeria and India currently stands at between eight and nine billion dollars annually, although both countries believe there is substantial room for expansion.

According to the envoy, discussions are ongoing on improving market access, reducing trade bottlenecks and unlocking new investment opportunities in sectors such as technology, manufacturing, digital infrastructure and education.

Singh also highlighted India’s growing interest in Nigeria’s creative and entertainment industries, particularly the rising global influence of Afrobeats music.

“The Afrobeats are becoming increasingly popular in India and names like Wizkid and Davido are not just famous in Nigeria but globally recognised and increasingly popular in India,” he said.

He further stressed India’s readiness to expand collaboration with Nigeria in information and communications technology, noting that India’s global strength in ICT and digital innovation presents major opportunities for partnership with African economies.

Analysts say the renewed India-Africa engagement reflects New Delhi’s broader geopolitical strategy to strengthen economic alliances, secure new markets and deepen influence in Africa amid intensifying competition from China, the United States, Europe and Gulf countries for strategic partnerships across the continent.

For Nigeria, the summit is expected to open fresh opportunities for trade expansion, investment inflows, educational cooperation, technology transfer and cultural exchange at a time the country is seeking stronger international economic partnerships to support growth and diversification.

India Moves to Reset Africa Relations After 10-Year Gap, Targets Deeper Nigeria Partnership

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Navy supports Adamawa community with classrooms, toilets

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Navy supports Adamawa community with classrooms, toilets

Vice Adm. Idi Abbas, the Chief of Naval Staff on Thursday inaugurated six blocks of renovated classrooms and newly constructed toilets at Central Primary School, Mayo-Belwa Local Government, Adamawa State.

Abbas, who was represented by the Rear Admiral Raheem Taofeek, said the project was a special intervention scheme and cooperate social responsibility of the Nigeria Navy to give back to the community.

According to him, the project is being executed by the Rear Adm. Abdulhamid Baba-Inna, the Navy Secretary in his hometown in line with the vision of President Bola Tinubu.

He encouraged the beneficiaries to use the facilities responsibly for maximum benefit.

In his remarks, Baba-Inna, said the project was to improve the learning environment to be conducive for the pupils and teachers.

“Ladies and Gentlemen, this project aligns squarely with the Nigeria Navy’s Civil-Military Cooperation and Relations framework.

“We recognise that our effectiveness is not measured solely by operational successes at sea or on the battlefield but also by the strength of our relationship with the people we serve.

“Projects such as this are deliberate efforts to build trust, foster goodwill and strengthen the bond between the military and civil society”, he said.

According to him, the classes and offices were provided with tables and chairs as well as the solar power light to enhance safety and security in the school.

Baba-Inna urged the pupils and teachers to take ownership of the project for maximum benefit.

In his remarks, Mr Adiyal Kurdah, Member I, Adamawa State Universal Basic Education Board (ADSUBEB), expressed gratitude to the Nigeria Navy for such a project.

He said the project would significantly improve enrollment, retention and quality education in the area.

Alhaji Ardo Bamanga, District Head of Mayo-Belwa, described the project as a good legacy that would help to shape the character of children to be responsible citizens in future.

The event featured presentation of learning materials to pupils, tree planting, cultural displays and awards presentations.

Navy supports Adamawa community with classrooms, toilets

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