Latest Fuel Subsidy Payment News On Confirmation 2024

Latest Fuel Subsidy Payment News On Confirmation 2024

Fuel Subsidy Payment: The Nigerian government has confirmed that it will continue to pay the N35,000 fuel subsidy relief fund. Reactions When IMF Verifies tinubu’s Return of the Fuel Subsidy

Following the International Monetary Fund’s (IMF) announcement that the federal government has begun paying premium subsidies, there have been differing opinions.

The International Monetary Fund (IMF) confirmed that the federal government has begun subsidizing premium motor spirit (PMS), also known as gasoline, through the backdoor. This news has been met with conflicting responses.

Remember that President Bola Tinubu announced the elimination of fuel subsidies during his inauguration on May 29, 2023, which led to an increase in the cost of products and services throughout the nation.

A few weeks later, the value of the naira relative to the dollar declined as the Central Bank of Nigeria (CBN) combined the many exchange rate regimes into one. On Monday, the official window’s value of a dollar was N1,499, but the parallel market’s value was N1,515 per $1.

In a statement released earlier this week, the IMF discussed the results of its Executive Board’s Post Financing Assessment with Nigeria and voiced concerns over the government’s decision to control fuel prices at retail stations.

The international lender recommended that the Tinubu administration entirely cease fuel subsidy payments to free up finances for government operations.

According to Daily Trust, the price at the pump at NNPC fuelling stations increased from N185 to N400 to N568 per liter following the elimination of the gasoline subsidy in May 2023. Some fueling stations sold for more than N600.

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According to certain sources, the retail price of petrol could reach N1000 per liter, and the landing cost has increased.

The federal government provided an N169.4 billion subsidy to maintain the pump price at N620 per liter, according to a Daily Trust study.

According to a document obtained by one of our correspondents from the Federal Account Allocation Committee (FAAC), in August 2023 Nigerian Liquefied Natural Gas (NLNG) paid $275 million in dividends to Nigeria through NNPC Limited. Of the $275 million, NNPC Limited spent $220 million (N169.4 billion at N770/$) to cover the PMS subsidy. Subsequently, NNPC unlawfully withheld $55 million.

The Tinubu-led administration has allegedly “capped retail fuel and electricity prices” to “ease the impact of rapidly rising inflation on living conditions, thus partially reversing the fuel subsidy removal,” according to the IMF’s most recent statement.

Different Nigerians on X have responded in different ways to the IMF’s statement.

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