In a statement signed by NANS President Comrade Lucky Emonefe and President of the Senate Akinteye Afeez Babatunde on Tuesday, the association emphasized the importance of investing in these sectors to secure a brighter future for Nigeria and empower the next generation.

“Following the removal of the fuel subsidy, allocations to state governments have notably increased. We appeal to the Federal Government to channel more of these funds towards education and youth development,” the statement read.

NANS highlighted the need for citizens to hold state governments accountable for the increased allocations and bailout funds provided by the Federal Government.

They urged Nigerians to ensure transparency and accountability in the utilization of these funds.

“It is imperative for citizens to question how these funds are being used for the benefit of the populace. Focus should not only be directed at the Federal Government but also at state governments,” NANS stated.

The association also encouraged students and the general public to disregard any negative propaganda against the current administration, asserting that the subsidy removal is a necessary step for sustainable economic growth.

“The current global economic climate is challenging, but the government is committed to finding ways to alleviate the suffering of Nigerians,” the statement concluded.

The report highlighted that the removal of petrol subsidy and the unification of foreign exchange rates had intensified the cost of living pressures, leading to an increase in the number of Nigerians living in poverty.

Despite acknowledging the Federal Government’s “bold reforms” as necessary to rescue Nigeria from a fiscal cliff, the World Bank noted that the current hardships were temporary.

The report emphasized that Nigeria is on the path to recovery but not yet out of the woods due to ongoing policies implemented by both fiscal and monetary authorities.

The World Bank urged the Nigerian National Petroleum Company Limited (NNPCL) to publicly disclose its statement of accounts and transparently reveal its revenue inflows.

The report specifically called for detailed financial statements and revenue flows from NPPC to safeguard fiscal savings from subsidy reform and ensure that oil revenues contribute to the Federation Account.

Shubham Chaudhuri, World Bank Country Director for Nigeria, highlighted that between N300 billion and N400 billion were spent monthly on fuel subsidy.

He expressed the expectation that NNPCL should have been contributing such amounts to the Federation Account, which has not been the case.

Chaudhuri emphasized that the petrol subsidy and forex management reforms are crucial steps in improving Nigeria’s economic outlook, calling for coordinated fiscal and monetary policy actions in the short to medium term.

The Minister of Finance and National Planning, Zainab Ahmed, stated this on Thursday when she appeared before the House of Representatives ad hoc Committee investigating oil subsidies.

The Minister claimed Nigeria consumes 64 million litres per day and that the figure could have been influenced by smuggling.

Ahmed said the executive is also concerned about the increment in daily consumption.

She noted that some of the products are being smuggled outside the country, adding that during COVID-19 locked down, daily consumption dropped significantly.

She stated that the president alone cannot take the decision on removing subsidy, insisting that there must be a multi-stakeholder approach, including all political parties, who must sit to make the decision.

The minister disclosed that the landing cost of petroleum is N448 per litre and that the NNPC takes care of the rest through under recovery.

She further said the Federal Executive Council has also expressed worry about the figure presented by the NNPC.

Adding that as the Minister of Finance, she has no access to the bank statement of the NNPC.

The Chairman of the Committee, Ibrahim Aliyu questioned the figure provided by the Minister.

Aliyu said even during the COVID19 locked down, Nigeria was still consuming high volume, which according to him was not logical.

He claimed the daily petroleum consumption was about 32 million litres.

But the Minister responded that she is not sure whether daily consumption has doubled and not also sure if the total number of vehicles in the country has doubled in the past 10 years.

The government said it cannot afford the payment of subsidies on diesel.

The Chief Executive Officer (CEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, disclosed this in Abuja on Tuesday, while appearing before the House of Representatives Committee on Downstream, alongside the CEO of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, among others.

The lawmakers had summoned stakeholders in the oil and gas sector, including Kyari and Ahmed, to an investigative hearing over the scarcity and the rising cost of Premium Motor Spirit (also known as petrol), diesel, and Liquefied Petroleum Gas, LPG (also known as cooking gas) in the country.

In his presentation, the NMDPRA chief suggested three measures to be taken to address the challenges with the supply and distribution chain.

He said the “required amount of forex for importation of the petroleum products (should) be made available to the genuine importers at CBN official rate.”

Ahmed also asked the government to “encourage the establishment of more local refineries and LPG processing facilities to meet domestic demands,” adding that “an increase in the LPG supply from major domestic producers, including NLNG, BRT processing, CNL, LPG, FSO,” would resolve some of the issues.

The NMDPRA boss stated that in addition to the three suggested solutions, “an extensive consultation is required among key stakeholders towards lessening the present tension being generated by the global high oil prices.”

“Presently, Nigeria is a net importer of refined petroleum products, including AGO, as the country imports about 100 per cent of AGO consumed locally,” he said. “An average of 12 million litres is also being consumed daily based on average truck-out quantity.

“The upswing in international price, combined with the prevailing naira/US dollar exchange rate, contributes about 80 per cent of the product price at the pump. While the official naira/US dollar exchange rate has remained relatively stable at about N415/US dollar since the beginning of the (Russia-Ukraine) war to date, the parallel rate on the other hand has increased considerably.

“The challenge with this is that petroleum products importers are unable to access the required amount of forex at the official rate and, therefore, rely on the parallel market to complement their forex US dollar requirements. In addition, the monitored price of AGO currently ranges between N710/litre and N750/litre in the coastal areas, while the LPG price is about N800/kg.”