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FG Spends N18bn Daily on Petrol Subsidy, Finance Minister Reveals

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FG Spends N18bn Daily on Petrol Subsidy, Finance Minister Reveals

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed on Thursday disclosed that the federal government spends an estimated N18.397 billion daily on petrol subsidy.

Ahmed, who revealed this to the House of Representatives ad-hoc Committee investigating subsidy payments regime from 2013 to 2022, said a total sum of N6.210 trillion had been paid as fuel subsidy to independent oil marketers from 2013 to 2021.

The Minister who made the disclosure while addressing the lawmakers at the resumed hearing, said the ministry paid the sum of N1.774 trillion from 2013 to 2016, while the remaining N4.436 trillion, came under PMS under-recovery by the Nigerian National Petroleum Company (NNPC) Limited.
On the funding of subsidy payments, Ahmed explained that payments that have been made to oil marketers were directly from the domestic excess crude account through the deduction of Sovereign Debts Instruments (SDI).

She further explained that the instrument which was approved by the then President in 2010, also had instances where funds were transferred from the consolidated revenue fund to the domestic excess crude account for subsidy payments.
She informed the lawmakers that the ministry was not in the position to provide statement of account of the NNPC and its affiliates on the transfer of funds to the treasury single account.
Speaking further, the minister lamented the burden of petrol subsidy on the government, hence she recommended a stakeholders’ meeting on the way forward.

“When we engage the leadership of the National Assembly, we recommended a national stakeholders’ forum that will bring all major stakeholders together, including all the political parties.
“We submitted that to the Federal Executive Council and it gave its approval and the government is working on that. It is important so that if all stakeholders agree, we know what exactly we are dealing with.
“I do hope that is done very soon because we cannot continue to carry the burden. So, the petrol subsidy we are carrying today in the nation is around N283 per litre, that is what we are carrying; so it is the difference between the pump price and the landing cost of petroleum products in the country,” Ahmed added

Reacting, a member of the Committee, Hon. Ibrahim Isiaka questioned the rationale behind NNPC’s deduction from source, the sum of N1.66 trillion against the sum of N1.15 trillion paid to oil marketers in 2021, leaving an excess of N500 billion.
Also, the Chairman of the Committee, Hon. Ibrahim Aliyu faulted the formula for the computation of the subsidy payments.
He ruled that documentary evidence of the beneficiaries of the N500 billion should be provided.
He said, “The N6.7 trillion required for 2022, why I’m disturbed is because the 2023 financial year is approaching by September, we will be expecting Mr. President’s budget submission, and the MTEF is already before the National Assembly.

“You see, if you look at the average daily truck-out quantity latest, 64,964,400, in 2012 there was a report and the total consumption was put at 31,500, so it’s very difficult to imagine how you can have a near 100 per cent increment in consumption within a period of 10 years.”
He also faulted the fact that even during public holidays as well as the period of the COVID-19 when there was lockdown and limited movement the petrol consumption rate remained same.

Meanwhile, the Federal Inland Revenue Service (FIRS) told the House of Representatives special adhoc Committee that it was not in its place to utilise funds of the government.
The Executive Chairman of FIRS, Muhammad Nami who was represented by the agency’s Coordinating Director, Compliance Support Group, Dr. Dick Irri at the resumed investigative hearing stated that their statutory mandate was to collect taxes and also enforce same to be paid to the federal government.

According to Nami, the role of the Service as provided by its Establishment Act was confined to the assessment of taxpayers, collection of taxes, accounting for and enforcement of taxes that were due to the government of the Federation.

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China Introduces Instant Tax Refunds for Foreign Tourists to Boost Shopping Experience

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China Introduces Instant Tax Refunds for Foreign Tourists to Boost Shopping Experience

China has revamped its tax refund policy for foreign tourists, shifting from a refund-upon-departure model to a more convenient refund-upon-purchase system, according to the State Taxation Administration (STA).

The STA announced on Tuesday that under the new system, foreign visitors can now claim Value Added Tax (VAT) rebates instantly at designated tax-free stores. This change allows tourists to use their refunded amount immediately for additional shopping, enhancing their overall experience in China.

Previously, VAT rebates could only be withdrawn upon departure, but with the new policy, tourists will be able to access their refunds in real-time during their stay. The policy, which was initially tested in cities like Shanghai, Beijing, and Guangdong, has now passed all operational requirements and will be rolled out nationwide.

The STA emphasized its dedication to improving policy guidance and simplifying refund procedures to better serve international visitors.

Li Xuhong, Vice-President and Professor at the Beijing National Accounting Institute, welcomed the change, stating that the nationwide implementation would raise China’s tourism service standards. “It will foster a friendly, efficient, and convenient tourism environment,” Xuhong added.

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Nigeria Reaffirms Commitment to One-China Policy Amid Taiwan’s Trade Office Claims

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Nigeria Reaffirms Commitment to One-China Policy Amid Taiwan's Trade Office Claims

Rep. Jaafaru Yakubu, Chairman of the House of Representatives Committee on China-Nigeria Parliamentary Relations, has reiterated Nigeria’s firm commitment to the One-China Policy, following recent comments by Taiwan’s Trade Mission Head in Nigeria, Andy Yih-Ping Liu.

Speaking in Abuja on Tuesday, Yakubu firmly declared that Nigeria continues to recognize Taiwan as an integral part of the People’s Republic of China. He rejected Liu’s claim that Taiwan was not part of China, labelling it as “propaganda” aimed at undermining the strong diplomatic ties between Nigeria and China.

“For the record, United Nations General Assembly Resolution 2758, adopted in 1971, recognised the People’s Republic of China as the sole legitimate representative of all of China, including Taiwan,” Yakubu stated. “The One-China Policy remains the cornerstone of China-Nigeria relations.”

He emphasized that since Nigeria and China established diplomatic ties in 1971, the country has consistently upheld this principle. “Efforts by Taiwan’s trade office to challenge this stance are futile and will not succeed,” Yakubu added.

Yakubu criticized Liu’s comments as an attempt to draw Nigeria into China’s internal matters, accusing the Taiwanese official of deliberately sowing discord and provoking a diplomatic rift. “Nigeria’s relationship with China is built on mutual respect and non-interference in each other’s political matters,” he said.

In response to Liu’s claim that China acted as a bully, Yakubu pointed to the positive trajectory of Nigeria-China relations. “Contrary to these baseless assertions, Nigeria has enjoyed a mutually beneficial partnership with China, yielding tangible results for both nations. Since 1971, our ties have grown significantly.”

He highlighted the strategic nature of the partnership, referencing the elevation of the relationship to a Comprehensive Strategic Partnership during the 2024 FOCAC Summit in Beijing. “Today, Nigeria stands as China’s second-largest trading partner in Africa, with bilateral trade surpassing 20 billion dollars,” Yakubu noted.

Furthermore, Yakubu praised China’s role in Nigeria’s infrastructural development, with investments in sectors such as rail networks, roads, ports, power stations, and water treatment facilities.

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Shettima Warns Media Against Romanticising National Challenges

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Shettima Warns Media Against Romanticising National Challenges

Vice President Kashim Shettima has cautioned Nigerian media practitioners against the growing tendency to romanticise serious national issues, describing the trend as a dangerous departure from the media’s constitutional duty of promoting truth and accountability.

Represented by his Special Adviser on Special Duties, Modibbo Umar, the Vice President issued the warning on Tuesday while delivering a speech at the 17th LEADERSHIP Conference and Awards held at the Old Banquet Hall of the State House, Abuja.

“We must resist the temptation to romanticise serious national issues or frame them in ways that distort public understanding,” Shettima said. “Doing so only weakens the fabric of our democracy and derails our collective efforts at nation-building.”

The Vice President’s remarks came as stakeholders in governance, business, and civil society gathered to reflect on the theme of the event, “Challenges and Opportunities in Nigeria’s Fiscal Federalism.” The conference provided a platform for thoughtful engagement on some of the country’s most pressing issues, with a focus on the responsibilities of leadership at all levels.

Shettima also used the occasion to commend LEADERSHIP Newspapers Group for its consistent contributions to national discourse and its commitment to celebrating excellence in leadership.

“I commend LEADERSHIP Newspaper for the vision to convene this vital discourse and for shining the light on those who have chosen to lead with courage and competence. May we never tire of striving for a better Nigeria,” he said.

The annual LEADERSHIP Conference and Awards continues to be a major event that brings together influential voices to deliberate on national progress and honour individuals and institutions making meaningful impact in society.

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