President Bola Tinubu’s government is still paying N1 trillion in subsidy monthly.
This is according to the Chief Executive Officer, CEO, and Managing Director of Pinnacle Oil and Gas Limited, Robert Dickerman.
Dickerman made the revelation months after the federal government denied paying subsidy for petrol.
Recall that President Bola Tinubu had last year removed fuel subsidy.
Pinnacle Oil has recently revealed that Nigeria presently spends nearly N1 trillion every month on petrol subsidies.
Dickerman shared this information at a panel discussion during session six of Nigeria’s Downstream Forum at the recently ended Nigeria International Energy Summit (NIES) in Abuja.
He stated that a considerable subsidy is still in existence, which has contributed to the product’s low pricing and may be driving smuggling operations in neighbouring countries.
“Foreign investors, foreign lenders and government-run DFIs have been very clear about what they want to see: Conservative fiscal policy, tackling corruption, enabling competitive markets, and enforcement of fairness in markets through policy, regulation and the ability to enforce contracts. Keeping that context in mind, I want to point out that there is still a massive subsidy in PMS, albeit in the FX portion of PMS Price, not the global price in dollars.
“The consequences of this subsidy are: The cost of gasoline in Nigeria is the lowest in Africa by far, which encourages smuggling out, further depriving Nigeria of value.
“Smuggling causes Nigeria to subsidize neighboring countries even while our economy struggles. The cost is hurting the entire budget, Federal and State, as critical programs cannot be funded to pay this subsidy. It is currently calculated to be about 1 trillion Naira/month.
“Also, with this subsidy in place, ceasing subsidy payments would result in no petrol supply, if there are no refineries producing gasoline. All supplies come from the international market which will only sell at market prices.”
In other news, Nigerian singer, Jawyon has thrown shade at junior colleague, Odumodublvck.
In a recent social media exchange, singer Jaywon replied to Odumodublvck’s comments.
Responding to Odumodu’s statement that he had not prepared the path for anyone, he added that he would understand if Burna Boy was ranting, but not Odumodu.
He also stated that artists should learn to give credit to those who came before them since doing so would not diminish their greatness.
He also added that, in his opinion, Odumodu was just as arrogant as the rest of them, and that everyone knew his music was nothing special, but they just respected his hustle.
He advised Odumodu to learn to listen to counsel rather than constantly practicing “gra-gra.” He also said that all he wanted to do during the interview was be courteous.
“Is not going to take anything from you to give shoutout to those that came before you… It won’t stop your greatness.
If you know you know!
As far as l’m concerned, odumodu is just as arrogant as the rest of them, and everybody knows the music is not all that but you know, I respect your hustle still bro…… keep crying! The people supporting you too know the truth.
No be everything be gra gra. Sometimes calm down to listen to small advise.
If burna bom boys dey rant, I go understand why but no be odumodu lol. In that interview I talk my mind and also give kudos where need be but y’all too quick to chats it about my career wey don last pass una whole life.
Keep crying!”
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