However, it is important that we approach this topical subsidy issue from the same page, so that such a discourse is predicated on facts and informed knowledge. In its simplest meaning the term subsidy stands for an incentive, usually in the form of financial assistance by government, to lower the price of goods and services for the citizenry.

In sharp contrast is the term TAXATION which refers to government legally collecting mandatory money from individuals and businesses for public goods and services. Subsidy can also be applied to taxation in the form of TAX WAIVERS for certain goods and services. With this basic knowledge we must come to the understanding that subsidy can be applied in varying forms and purposes. In the US for example, farmers are known to have been granted subsidies by government. In the UK, health services have received subsidies from the government for the benefit of the citizens. Here in Nigeria, the term subsidy is in a Siamese-twin relationship with PETROLEUM PRODUCTS PRICING. This write-up is therefore targeted at x-raying subsidy regimes in Nigeria with regard to petroleum products management and marketing. Prior to the discovery and production of petroleum oil and gas in the late 50s in Nigeria and the establishment of the first local refinery in 1965 in Alasa Eleme, [Port Harcourt], by Shell BP, petroleum products were imported and market forces determined the pricing.

In the late 70s and early 80s the Nigeria government had established its own three refineries [Port Harcourt, Warri and Kaduna] in addition to acquiring the earlier 1965 refinery. This became the genesis of a revised petroleum products management and marketing system in Nigeria. It was believed, and rightly so, that with our rich endowment in petroleum resources, Nigerians should enjoy this status by way of having lower prices of petroleum products than the less endowed nations of the world. Government then began to fix the prices of products and enforced national uniform price regime, which was reviewed from time to time based on the international crude pricing and refining process costs.

This was how the government introduced the PETROLEUM EQUALISATION FUND [PEF] to absorb the cost differential in moving products to all parts of the country. This is SUBSIDY. Again, when crude oil was going for $18 per barrel as at about 1998/1999, the NNPC was being supplied at $9 a barrel [50% of international cost], so as to reduce the price of products for the citizens. This is SUBSIDY. When the crisscrossing pipeline networks for the distribution of petroleum products came under incessant vandalism and the government resorted to products movement via land transportation with trucks, known as BRIDGING, the government was equally paying per liter of product so transported to the NNPC depots. This is SUBSIDY. I can recall that by 2000, when the civilian regime had settled down, the 50% concession granted to the NNPC in crude oil supply costs was withdrawn and the NNPC began to pay international price. This reflected in the increase in the cost of products, naturally. Gradually, our poor maintenance culture of facilities led to the comatose status of the 4 refineries and the reliance on petroleum products importation.

The landing costs of the products became huge and the government weighed in to offer affordable prices to the citizenry, which created a large gaping hole in the national economy: EFFECT OF SUBSIDY, which culminated in the quest for SUBSIDY REMOVAL, and a dreaded NO-GO area by any government in power. But truth must be told: APPOINTED PETROLEUM PRODUCTS IMPORTERS SAW A HUGE OPPORTUNITY TO INFLATE VOLUMES AND COSTS, thereby impacting more damage to the national economy and the subsidy regimen. It is therefore obvious that mismanagement of products importation and the moribund nature of all 4 refineries must be held accountable for SUBSIDY ABUSE. Therefore, any government that can fix our 4 refineries will succeed in ENSURING AFFORDABLE and AVAILABLE petroleum products for the citizenry, and extra for export, irrespective of the presence of private refineries in the country. SUBSIDY IS NOT A CURSE-WORD, Nigerians must reap the benefits of being endowed with petroleum resources by mother-nature. Just my view. Thank you.

Jonas Odocha.

Abuja. August 24, 2026.

Adedeji disclosed this during an interview with Channels Television, where he defended the removal of the petrol subsidy by President Bola Tinubu in May 2023.

According to him, retaining the subsidy would have placed enormous pressure on the government’s finances and the foreign exchange market, particularly amid changes in global economic conditions.

“The subsidy today would have been N53 trillion if Mr President had not removed it, given what is happening in Iran, given what is happening globally,” Adedeji said.

He also projected that continued government support for petrol prices could have pushed the exchange rate to about N3,500 per dollar.

Adedeji argued that the subsidy was financially unsustainable because the government was effectively borrowing to maintain a regulated petrol price below its market-related cost.

“Subsidy is not an income. It is like you are borrowing money to buy a product and that product is N10, and you are selling it at N3,” he said.

Tinubu announced the removal of the petrol subsidy shortly after assuming office in May 2023. The decision led to a significant increase in petrol prices and shifted a larger share of fuel costs from government finances to consumers.

The NRS chairman also linked the subsidy removal to the government’s broader foreign exchange reforms, arguing that the previous exchange-rate system failed to adequately reflect the naira’s market value and discouraged investment.

He said the reforms had contributed to improved conditions in the foreign exchange market and strengthened incentives for investment in domestic refining.

However, the N53 trillion figure and the projected N3,500 to the dollar exchange rate are hypothetical estimates of what could have happened if the subsidy had remained in place, rather than actual costs incurred by the government.

Adedeji did not disclose the assumptions or methodology used to arrive at the estimates.

The potential cost of maintaining the subsidy would depend on factors including global crude oil prices, petrol consumption, exchange rate movements, domestic refining capacity and the level of subsidy per litre.

The projections come amid continued debate over the economic impact of subsidy removal, with the government maintaining that the reform was necessary to improve fiscal sustainability and reduce pressure on public finances.

The directive was contained in a circular issued on June 15, 2026, and signed by the Director of the Payments System Supervision Department, Dr. Rakiya Yusuf.

The circular was addressed to Deposit Money Banks, Microfinance Banks, Mobile Money Operators, switching companies, Payment Terminal Service Providers, Payment Solution Service Providers, Super Agents and other licensed participants in the payments ecosystem.

According to the apex bank, the rapid growth of electronic payments and digital financial services has improved innovation and financial inclusion but has also raised concerns over market concentration, ownership transparency, operational dependence and the handling of critical payment data.

To address these concerns, the CBN introduced a new framework designed to improve transparency, strengthen regulatory oversight and promote a more competitive and resilient payments sector.

Under the framework, all regulated financial institutions engaged in digital payment operations are required to disclose the Ultimate Beneficial Ownership (UBO) of significant shareholders.

The regulator also directed affected institutions to maintain accurate and updated records of beneficial ownership and make such information available whenever requested by the CBN.

According to the bank, the requirement aligns with existing Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing regulations aimed at improving transparency within the financial sector.

In addition, the CBN introduced a mandatory data localisation policy requiring all payment transaction data generated within Nigeria to be stored and managed locally.

The apex bank directed all affected institutions to comply fully with the data localisation requirement on or before January 1, 2027.

The policy is expected to strengthen regulatory oversight, improve data security and ensure compliance with Nigeria’s data protection framework.

The CBN also unveiled new market structure rules aimed at preventing excessive dominance by individual operators across key segments of the payments industry.

Under the new guidelines, any institution controlling more than 25 per cent of the consumer issuing market over a rolling 12-month period will not be allowed to hold more than 15 per cent market share in merchant acquiring activities during the same period.

Likewise, institutions with more than 25 per cent market share in merchant acquiring will be restricted from holding more than 15 per cent market share in consumer issuing.

The restrictions will apply to activities conducted directly by an institution or through affiliated entities within the same corporate group.

According to the CBN, the measures are intended to reduce concentration risks, promote healthy competition and prevent dominant players from exercising excessive influence across multiple segments of the payments value chain.

To support effective monitoring, regulated entities have also been directed to submit monthly market share reports in line with prescribed reporting templates and timelines.

The apex bank gave operators until December 31, 2026, to fully comply with the new market structure requirements.

CBN stated that the measures were introduced to safeguard the integrity of the Nigerian payments system while ensuring the continued growth of digital financial services without creating risks capable of undermining financial stability.

The regulator added that it would closely monitor compliance and apply appropriate supervisory measures where necessary

CBN

The position of the forum was contained in a communiqué issued on Sunday following a meeting and opinion poll held on Saturday to deliberate on the issues of hardship and insecurity across the country.

The communiqué was jointly signed by the National Coordinator of the forum, Andrew Emelieze; National Secretary, Ayo Ogundele; and National Mobilisation Officer, Aminu Yerima.

According to the forum, federal workers continue to face worsening living conditions, poor wages, unpaid entitlements, and rising insecurity despite repeated assurances by government regarding workers’ welfare.

The forum stated that the implementation of the N70,000 national minimum wage has failed to meet expectations and has not significantly improved workers’ purchasing power.

It alleged that only N40,000 was added uniformly to salaries across grade levels, while deductions further reduced the actual benefits received by workers.

The workers also expressed concern over the non-implementation of the 40 per cent peculiar allowance as well as outstanding wage award arrears earlier promised by government officials.

“Federal workers nationwide are living daily in fear and uncertainty. We are constantly confronted with the challenges of survival and safety,” the communiqué stated.

“Workers have continued to face severe economic hardship arising from inflation, high living costs, fuel subsidy removal and declining value of the naira.

“Many federal workers are still being owed promotion arrears, wage awards, Duty Tour Allowances and other entitlements accumulated over several years,” the forum said.

Reacting to the proposed N100,000 minimum wage reportedly being canvassed by state governors, the forum maintained that the amount falls far below what can be regarded as a living wage.

“To us, this is the height of hypocrisy. These same governors, most of whom said they could not afford the N70,000 minimum wage, are now proposing N100,000,” it said.

The forum described the proposal as a “Greek gift” and urged relevant authorities to follow due process in negotiating a wage structure that reflects prevailing economic realities.

“The N100,000 proposal is not a living wage. We condemn and reject this proposal in all its forms and entirety,” the forum stated.

The workers’ body also raised concerns about the deteriorating security situation across the country, noting that workers and ordinary Nigerians are increasingly vulnerable to kidnappings, killings and other violent crimes.

According to the forum, schools have become major targets of criminal attacks, while many victims, including children, remain in captivity in different parts of the country.

“The fear is real, as many federal workers and indeed many more Nigerians are daily falling victims of the system’s failure to guarantee safety,” it stated.

The forum called on government to take urgent steps to improve security, secure the release of kidnapped victims and halt the wave of killings recorded across the country.

It also urged the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to declare an indefinite nationwide strike over the hardship and insecurity facing Nigerians.

“The poll’s position is to mandate the NLC/TUC to immediately call out workers to proceed on an indefinite strike action,” the forum stated.

In addition, the workers expressed support for proposed nationwide protests and rallies beginning June 1, pending improvements in security and living conditions.

The refinery disclosed the development in a statement, describing the adjustment as part of its commitment to making refined petroleum products more affordable and supporting economic activities across the country.

Under the new pricing structure, the ex-depot price of petrol was reduced from ₦1,275 per litre to ₦1,250 per litre, while diesel dropped from ₦1,800 per litre to ₦1,700 per litre.

According to the company, the latest price review reflects ongoing efforts to improve supply efficiency, strengthen domestic refining capacity and provide cost relief for consumers and businesses that rely heavily on petroleum products for transportation, power generation and industrial activities.

The refinery stated that the reduction aligns with its broader objective of ensuring a steady supply of refined petroleum products to the domestic market while easing the financial burden on end users.

It added that since commencing operations, the refinery has continued to increase the supply of refined products within Nigeria as part of efforts to reduce dependence on fuel imports and boost local refining.

The 650,000-barrels-per-day refinery noted that expanding domestic refining remains critical to enhancing energy security and supporting economic growth in the country.

channels

This was disclosed in a statement released by the Office of the Accountant General of the Federation and signed by its Director of Press and Public Relations, Bawa Mokwa, following the FAAC meeting held in Abuja.

According to the statement, the total revenue shared stood at N2.036 trillion, which was allocated among the Federal Government, state governments, and local government councils.

A breakdown of the distributable revenue shows that N1.32 trillion came from statutory revenue, N515.39 billion was generated from Value Added Tax (VAT), while N200 billion was added as augmentation.

From the total allocation, the Federal Government received N789.16 billion, states were allocated N657.60 billion, and local government councils got N468.83 billion. In addition, oil-producing states received N120.76 billion as derivation revenue.

The committee also revealed that total gross revenue for March stood at N2.364 trillion. From this amount, N81.08 billion was deducted as cost of collection, while N246.87 billion was used for transfers, refunds, and savings.

Further analysis showed that from the statutory revenue portion, the Federal Government received N632.26 billion, states got N320.69 billion, and local governments received N247.24 billion, while derivation payments accounted for N120.76 billion.

From the VAT pool of N515.39 billion, the Federal Government received N51.54 billion, states got N283.47 billion, and local governments received N180.39 billion, highlighting the growing role of VAT in supporting subnational revenues.

Meanwhile, the N200 billion augmentation was shared with the Federal Government receiving N105.36 billion, states N53.44 billion, and local governments N41.20 billion.

On revenue performance, FAAC noted that gross statutory revenue rose to N1.699 trillion in March, an increase of N137.91 billion compared to February. This growth played a key role in boosting the total allocation for the month.

However, VAT revenue declined slightly, with N664.43 billion recorded in March, down from N668.45 billion in February.

The report also indicated strong growth in non-oil taxes, including Companies Income Tax, Capital Gains Tax, Stamp Duties, and Excise Duty.

In contrast, revenues from Petroleum Profit Tax, Hydrocarbon Tax, oil and gas royalties, import duties, and the Common External Tariff recorded significant declines, reflecting ongoing fluctuations in oil and trade-related income.

Overall, the FAAC report shows that while Nigeria is seeing improvements in non-oil revenue generation, instability in oil revenues continues to impact the consistency of monthly allocations.

The strike, which started on Monday, was a protest against the Dangote Group’s alleged anti-union practices and a refusal to allow its workers to join the union.

The industrial action caused significant disruption, leading to the shutdown of fuel loading depots across the country. NUPENG President, Williams Akporeha, had stated the strike was to fight against the “enslavement” of workers. 

The Dangote Group, however, had reassured the public that the strike would not result in fuel scarcity.

A resolution was found during a meeting in Abuja on Tuesday, which was facilitated by government officials and other key stakeholders. Both parties signed a Memorandum of Understanding (MoU), and NUPENG immediately instructed its members to resume work, thereby averting a potential economic crisis.

“Following the threat to embark on industrial action by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) over the refusal of the management of Dangote Refinery and Petrochemical Limited to allow their employees to be unionized by registered labour unions, a conciliation meeting was held at the instance of the Honourable Minister of Labour and Employment. 

“It was revealed during the meeting that the management agreed with this fact and responded that they are not averse to the unionization of their employees by labour unions in tandem with the provisions of the extant labour laws.

“After exhaustive deliberations, the following resolutions were reached by both parties: That since workers’ unionisation is a right in line with the provisions of the extant laws, the management of “Dangote Refinery and Petrochemicals agreed to the unionization of employees of Dangote Refinery and unionisation of employees of Petrochemicals, who are willing to unionise.

“That the process of unionisation shall commence immediately and be completed within two weeks (9th to 22nd September, 2025), and it was agreed that the employer will not set up any other union. Arising from the strike notice, no worker or employee of Dangote Refinery and Petrochemical will be victimized. Parties will revert to the Honourable Minister of Labour a week after the conclusion of the engagement. Based on the MoU, NUPENG agreed to suspend the industrial action with immediate effect.”

The agreement was formally sealed with the signatures of key representatives from both sides and other stakeholders.

This marks a significant 40.5% increase from the N14.6 trillion recorded during the same period in 2024.

The Presidency has hailed this as a historic shift in the country’s fiscal landscape, attributing the surge to a strong performance in non-oil revenue. Of the total revenue, an impressive N15.69 trillion was generated from non-oil sources, meaning that for the first time in decades, non-oil receipts now account for three out of every four naira collected by the government.

President Bola Tinubu, while addressing a delegation of The Buhari Organisation (TBO), noted that the government has not needed to borrow from local banks since the beginning of the year, a clear sign of improved fiscal health. 

The statement highlighted that the revenue growth is a direct result of his administration’s reforms aimed at strengthening tax compliance, digitizing tax administration, and broadening the nation’s fiscal base.

The impact of this fiscal turnaround is already being felt, with unprecedented disbursements from the Federation Account Allocation Committee (FAAC). 

“For the first time in history, monthly allocations to states and local governments crossed ₦2 trillion in July 2025, providing subnational governments with greater fiscal space to fund food security, infrastructure, and social services.”

Customs collections also over-performed, with N3.68 trillion realized in the first half of the year, which is N390 billion above the target and represents 56% of the full-year goal. This success is attributed to systemic changes, including the automation of filings and tighter enforcement.

Commenting on the figures, Bayo Onanuga, Spokesperson to President Bola Tinubu, stated, “Nigeria’s fiscal foundations are being reshaped. For the first time in decades, oil is no longer the dominant driver of government revenue. The combination of reforms, compliance, and digitisation powers a more resilient economy. The task ahead is to ensure that these gains are felt in the lives of our citizens and in better schools, hospitals, roads, and jobs.”

While the Presidency is pleased with the progress, it also acknowledged that the current revenue figures still fall short of the government’s ambitious spending plans for education, healthcare, and infrastructure. 

“Notwithstanding, these increases in revenues do not yet match the President’s ambitions for expenditures on education, health, and infrastructure; therefore, all efforts are being made to address these gaps,” the statement read.

It noted that efforts are still ongoing to close these gaps and ensure the benefits are translated into tangible improvements in the lives of Nigerians.

Read the full statement below:

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) announced the development in a statement released on Tuesday by its Chairman, Mr. Gbenga Adebayo, and Publicity Secretary, Mr. Damian Udeh.

According to ALTON, the disruption is linked to NIMC’s recent directive mandating a switch to a new identity verification platform. The transition, while aimed at improving the integrity and efficiency of national identity management, has led to unforeseen technical difficulties, impacting the smooth delivery of SIM services nationwide.

“The migration has temporarily affected operators’ ability to process SIM swaps, replacements, activations, and other related services,” Adebayo explained.

He noted that ALTON and its member companies are actively collaborating with the Nigerian Communications Commission (NCC), NIMC, and other stakeholders to resolve the integration issues.

“We understand the inconvenience this may cause and advise subscribers to postpone any SIM-related requests until further notice,” he said.

Adebayo assured users of the industry’s commitment to secure, high-quality telecommunications services and promised timely updates as the situation develops.

According to the NCAA, smoke was detected in both the aircraft’s cabin and flight deck, prompting the crew to initiate emergency procedures. The Directorate of Airworthiness reported that oxygen masks were deployed, and safety protocols were activated on the ground to facilitate a safe landing.

As a precaution, the NCAA has ordered that the aircraft remain grounded until a full investigation into the incident is completed. Engineers are currently inspecting the aircraft to determine the cause of the engine failure and the origin of the smoke.

In a statement, the agency emphasized its unwavering commitment to passenger safety, noting:

“The rescue aircraft intended to pick up passengers from Sokoto had already boarded those traveling from Abuja to Katsina. Offloading them would have created operational challenges, so the Sokoto flight was cancelled.”

The affected aircraft, 5N-BZY, remains on the ground with technical teams working to resolve the issue. The NCAA reiterated that safety remains its top priority, adding that flight cancellations in Nigeria are often triggered by even the slightest safety concerns—a practice it described as stricter than in many advanced countries.