Economy
Subsidy Removal: Fuel May Sell For N230 Per Litre
The federal government on Thursday said spending over N100 billion to subsidise petrol every month is not sustainable.
PMS
The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari, said petrol is currently being subsidised at between N100 billion and N120 billion on a monthly basis.
Kyari disclosed this while fielding questions from State House correspondents at the fifth edition of the Special Ministerial Briefings coordinated by the Presidential Communication Team.
This is even as he said the cost of importation and handling charges now amounts to N234 per litre.
The contention surrounding government intervention in the procurement and distribution of petrol for local consumption attracted different names from 2015, including under recovery.
Analysts believe that while the interventions were plagued by secrecy, Nigeria will never get it right until its refineries become functional to channel generated revenues to other critical sectors.
What Kyari said
The NNPC GMD said the corporation could no longer bear the burden of the product currently being sold at N162 per litre.
He spoke after the Minister of State for Petroleum Resources, Timipre Sylva, had briefed on the efforts to ensure the passage of the Petroleum Industry Bill (PIB).
Kyari, who said NNPC currently absorbs the cost differential which is recorded in its financial books, revealed that while the actual cost of importation and handling charges amounts to N234 per litre, the government is selling at N162 per litre.
He said market forces must be allowed to determine the pump price of petrol in the country but was silent on when the regime will take off.
He, however, added that the government was being considerate of the actual impact of the price increase on Nigerians.
While speaking on the exact amount the NNPC is subsidizing fuel monthly, he said: “Our current consumption is about N600 million litres per day; we are selling at N162 per litre and the current market price is N234; actual market price today.
“The difference between the two multiplied by 60 million times 30 will give you per month.
“I don’t have the numbers now, this is simple arithmetic we can do; but if you want the exact figures from our books, I do not have it this moment, but it is anywhere between N100 billion to N120 billion per month. I don’t have the exact number.”
Kyari added: “Today, NNPC is the sole importer of fuel. We are importing at market price and we are selling at N162. Looking at the current price situation, the market price could have been between N211 to around N234 per litre.
“The meaning of this is that the consumers are not paying for the full value of the PMS (petrol) that we are consuming and therefore the NNPC is bearing that cost.
“That is why early last year, you will recall the full deregulation of PMS and we have followed this through until September when the price shifted above N145.
“Disputes came up between us and the trade unions and the civil societies leading to an engagement between us and organised labour which prevented the implementation of the actual price of the petroleum product as at that time.
“These engagements continued and the objective of the engagement is actually not to prevent the implementation, but to make sure there is sufficient framework on the ground to ensure that consumers pay the actual price of this product and that they are not exploited.
“Secondly, (it is) to also put some relief such that the potential effects of the fuel price increase are not transferred to the ordinary people. Part of this is to deepen the auto-gas programme.
“With the auto-gas programme, we will be able to deliver alternative fuel for vehicles, including Keke Napep, so that the price per litre equivalent will probably be half of the PMS at its current price.”
Nigerian fuel in neighbouring countries
Engr. Kyari said petrol remains cheapest in Nigeria on the ground that it sells above N200 across our borders and in some places about N500 a litre.
“In some countries, the Nigerian fuel is their territory’s fuel and we are supplying almost everybody in the West African region.
“We cannot continue to afford this because we have our own issues.
“That is why the eventual exit from this is completely inevitable. When that will happen, I don’t know.
“But I know that some engagements are going on; the government is concerned about the natural impact of price increase on our transportation and other consumer aspects of our society.”
Labour set for mass action
Organised Labour has charged Nigerians to join forces with the Nigeria Labour Congress, Trade Union Congress and all its affiliates for mass action if government tampers with the current pump price which is already at N162.
President of NLC Ayuba Wabba, in an interview with Daily Trust, maintained that Nigerians can no longer bear any increase in pump price because of geometric increase of unemployment and inflation rate.
He stated: “At this point in time, Nigerians cannot accommodate any price increase or fluctuation because already, many Nigerians have been impoverished occasioned by COVID-19 and economic downturn. We just came out of recession.
“Importantly, we have seen the statistics on unemployment and inflation. It means those statistics will be doubled if we go in that direction.
“The primary purpose of government is to continue to make sure that citizens don’t suffer the consequences of what they have not bargained for.
“As we speak, with the increment in tariff, energy is still being subsidized. We have shared that document very widely – a commission report by the NLC.”
When asked about the labour’s next line of action if the government goes ahead to actualise its plan, Wabba said, “Our position is very clear, once that happens, certainly we are going to consult our people to know the next line of action.
“Once it reaches the level of going for a showdown, we will consult our organs and roll out what we need to engage them on.”
Responding to a question about Nigerians’ expectation from the labour, the union leader said, “Nigerians should also come out and join labour to resist it. We, the labour leaders are part of Nigerian society.”
FG must come out clean on deregulation – Experts
Speaking on the back and forth over fuel subsidy, the Managing Director of Kairos Capital, Sam Chidoka, said, “I think the challenge is lack of clarity arising from some form of opaqueness in the pricing of PMS.
“At some point, they told us that they had completely removed subsidy; at another time, they told us that not all of it was removed.
“If we fully implement complete subsidy removal, then petroleum products will be priced differently across the nation when you factor the cost of haulage but this government is still funding equalization, so there is a lot to be explained.”
Chidoka further argued that with the recent increment in electricity tariff and the devaluation of the naira to the dollar, and inflation trending at 17 per cent, any upward movement in the price of petrol will further impoverish the masses.
The Director-General of Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf, said, “The increasing burden of petroleum subsidy is an offshoot of the deregulation conundrum which is a major cause for concern.
He noted that the deregulation of the petroleum downstream sector was inevitable if the economy must progress and put an end to the corruption that comes with the subsidy regime.
Talking on the way forward, he said, “There could be a social pricing window in the interim where petroleum products could be sold at a subsidized price.”
“The NNPC stations could be so designated since they exist in all parts of the country. The government will have to provide a limited budget for this.
“The other players in the sector should thereafter be allowed to buy and sell according to the dictates of the market. We need to free the sector from the current repressive and suffocating regulatory framework.
“The economy has suffered major setbacks as a result of the over regulation of the sector.”
An Abuja-based economic expert, Simon Samson Galadima, said it was good that NNPC admitted it had been paying subsidy long after the FG said it had deregulated the sector.
“The FG saying subsidy has been removed is just a ruse. We have said it before, that the claim of deregulation is just a ploy.
“That the GMD was conceding it publicly is the right thing to do; to accept you have a problem before you can fix it.
“The billions spent on subsidy are better used to tackle insecurity, build schools, boost science/technology, equip hospitals and better invested in infrastructure and innovation,” he said.
He maintained that the government-owned refineries should be sold off or commercialised. On his part, an energy expert, Michael John, said Nigeria was paying a huge price for not being responsive.
“Had our leaders made good use of our oil fortune, we wouldn’t have been in this mess; we wouldn’t have been talking about subsidy if we have our refineries.
“The so-called subsidy money would have been used to provide basic necessities for people like water and good roads.
“That said, the federal government should find a way of refining the oil at home in order to free funds for critical infrastructure because, at present, Nigerians do not have the purchasing power to live because, without fuel subsidy, prices of everything will skyrocket,” he said.
N120bn enough to fund many projects
Daily Trust reports that the N120bn monthly subsidy on petrol is higher than the 2021 budget of Yobe (N106.9bn) or the N109bn budget for Osun, or the N109.6bn earmarked by Ekiti State.
On what the N120bn subsidy fund can do every month, it is estimated that at N22 million for a unit of a primary healthcare centre (PHC) provided by the National Primary Healthcare Development Agency (NPHDA) as of 2017, the fund can build 5,500 units of such facilities with the 36 states and the Federal Capital Territory (FCT) getting 151 units each.
40,000 housing units
The Federal Mortgage Bank of Nigeria (FMBN) in 2019 said Nigeria has a 22 million housing deficit.
The Low-Cost Housing being developed across the states by the Federal Ministry of Works and Housing goes for N3m per block of a two-bedroom flat. The N120bn subsidy fund can build 40,000 units of these houses.
Cut classrooms deficit by 15.5%
The Universal Basic Education Commission (UBEC) can vote N120bn of this fund to build 8,500 blocks of four classrooms which will make available, a record 35,000 classrooms.
UBEC places the cost of building a block of four classrooms at N13.5m.
By Muideen Olaniyi, Zakariyya Adaramola, Simon E. Sunday, Idowu Isamotu, Faruk Shuaib (Abuja) & Sunday M. Ogwu (Lagos)
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Tier-one Lender, Fidelity Bank Plc., has announced the resumption of international transactions on its Naira Debit Cards.
This recommencement gives customers the freedom to make seamless payments abroad, online, and at ATMs outside the country.
The Divisional Head of eBanking, Fidelity Bank, Ifeoma Onibuje, shed light on the development.
Onibuje said: “We are delighted to inform the public that Fidelity Naira Cards are now enabled for global use.
“This means that our travelling customers can now utilize their Naira Debit cards outside the country to shop, spend and withdraw internationally without hassles.”
“Consequently, our customers can now spend up to $1,000 quarterly for international POS and online transactions; and withdraw up to $500 quarterly on international ATMs.”
The announcement offers Fidelity Bank customers another way to complete international transactions, in addition to the Bank’s existing foreign currency debit and credit cards.
The bank stated that it further reinforces its commitment to delivering solutions that fit seamlessly into customers’ lifestyles.
With Fidelity Bank’s VISA and Mastercard Naira Debit Cards, Nigerians can now enjoy effortless global access.
Beyond payments, Fidelity VISA cardholders, one of the variants of the bank’s card offerings, also enjoy premium travel and lifestyle benefits.
The benefits range from airport lounge and spa access via the Visa Airport Companion App, to fast-track immigration lanes and 20% discounts on SIXT car rentals worldwide.
This move, the bank said, also reflects its commitment to provide secure, convenient, and reliable banking services that empower customers in Nigeria and beyond.
The bank noted that it has deliberately made the process of getting a Fidelity Naira card seamless.
It stressed that customers can easily apply for their Fidelity VISA or Mastercard Naira Debit card via the Fidelity Mobile App or simply visit the nearest Fidelity bank branch to request for one and they can start transacting globally with ease.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine.
Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
A Nigerian TikTok sensation known as “Geh Geh” has stunned the internet after pulling in over $30,000 from a single live session that attracted more than 177,000 viewers.
The young entertainer, who calls his platform the “University of Wisdom and Understanding,” has quickly built a cult following with his raw and unfiltered lectures about women, money, and survival in Nigeria.
During the live broadcast on Thursday, August 21, viewers showered him with virtual gifts that he later calculated to be worth over $30,000.
The milestone instantly pushed him into the spotlight as one of Nigeria’s fastest-rising online personalities.
Reacting in disbelief after the stream, Geh Geh said:
“More than 177,000 people watch my lectures today. Jesus! University of wisdom and understanding, the only university where once you graduate, woman go fear to ask you for money.”
Despite not having a formal education, Geh Geh proudly calls himself “the first illiterate to find a university in the history of Nigeria.” In a video after the viral live, he reminded fans of his humble background:
“I no be graduate too, but by the grace of God, I don find school. I be orphan, but now Nigerians don show me love.”
The TikTok star admitted he was overwhelmed by the generosity of his supporters.
“See gift I made over… more gift when they give me today is worth about $30,000. I no go take this love for granted, because I no really do anything for am.”
His rise has been hailed as proof of how social media is transforming lives in Nigeria. With no degree, no rich background, and no industry connection, Geh Geh has managed to build a fanbase that now calls themselves “students” of his unusual university.
Still, his controversial views on women and relationships continue to spark heated debates. While some dismiss his advice as reckless, others insist his boldness speaks directly to Nigeria’s frustrated youth.
Reflecting on his sudden fame, Geh Geh compared himself to great thinkers:
“If Nigeria be country wey value great people, by now them suppose dey compare people like me with Aristotle, Wole Soyinka, Einstein… but I thank God say people dey see my head and my own difference.”
From an orphan with no prospects to a viral star earning in dollars, Geh Geh’s story has become one of digital empowerment.
His journey shows how platforms like TikTok are creating new forms of fame, money, and influence for Nigerians especially those once written off by society.
The United Kingdom has once again cemented its position as Nigeria’s leading source of foreign capital, accounting for more than N5.5 trillion in inflows during the first quarter of 2025, according to the latest data from the National Bureau of Statistics (NBS).
Figures from the Capital Importation Report show that capital from the UK rose to $3.68bn (N5.52tn) in Q1 2025, representing 65.26% of Nigeria’s total $5.64bn inflows for the quarter.
This marked a 29.2% rise from the $2.85bn recorded in Q4 2024 and more than double the $1.81bn inflows seen in Q1 2024.
This underscores Britain’s dominance in Nigeria’s external financing profile and highlights the strong bilateral financial ties between both nations.
Breakdown of Q1 2025 Capital Inflows by Country
United Kingdom: $3.68bn (65.26%)
South Africa: $501.29m (8.88%)
Mauritius: $394.51m (6.99%)
United States: $368.92m (6.54%)
United Arab Emirates: $301.72m (5.35%)
Together, these top five countries accounted for over 92% of Nigeria’s capital inflows, reflecting both the concentration of Nigeria’s foreign investments and the risks of over-dependence on limited markets.
Other contributors included:
Cayman Islands: $114.76m (up sharply from $0.64m in Q4 2024)
Belgium: $70.54m
France: $47.33m
Netherlands: $42.68m (down significantly from $425.61m in Q4 2024)
Singapore: $36.79m
Overall, capital importation into Nigeria stood at $5.64bn in Q1 2025, up 10.9% from Q4 2024’s $5.09bn, and a remarkable 67.1% higher than the $3.38bn recorded in Q1 2024.
The NBS noted:
“Capital Importation during the reference period originated largely from the United Kingdom with $3,681.96m, showing 65.26 per cent of the total capital imported.”
A separate survey by Strategy Management Partners (UK) reveals that British companies are increasingly targeting Africa as a strategic growth frontier.
50% of UK firms with annual turnover above £20m are already operational in Africa and planning expansions.
Another 28% of executives said they are interested but remain cautious about entry strategies.
Africa’s appeal lies in its resource wealth and demographic potential:
30% of the world’s mineral reserves
8% of natural gas reserves
12% of oil reserves
65% of the world’s arable land
Projected to host 25% of the global workforce by 2035
Seven key sectors remain magnets for foreign capital inflows into Nigeria and Africa at large:
1. Technology
2. Oil & Gas
3. Power and Renewable Energy
4. Agriculture
5. Manufacturing
6. Infrastructure
7. Strategic Minerals
Analysts warn that while Nigeria’s reliance on UK-driven inflows reflects strong global confidence, the concentration of sources exposes the economy to external shocks if investor sentiment shifts in these countries.
Diversification of investment partnerships particularly within Asi
a, the Americas, and intra-African trade will be crucial to ensuring long-term resilience in capital inflows.
The United States government has said that Nigeria’s new N70,000 minimum wage has lost real value due to the sharp fall of the naira, leaving millions of workers trapped in poverty.
According to the 2024 Country Reports on Human Rights Practices, released by the U.S. Department of State’s Bureau of Democracy, Human Rights, and Labour, the wage translates to just $47.90 per month.
The report noted that currency devaluation and weak enforcement have undermined the wage increase.
The report also revealed that many states are yet to implement the new wage law. Several governors cited financial challenges as the main excuse.
Even where the law exists, compliance remains poor because of limited labor inspectors and weak oversight from authorities.
Wage Devaluation and Exclusion
The report highlighted that firms with fewer than 25 workers are excluded from the minimum wage law, leaving millions of employees without protection.
This also explained that about 70 to 80 percent of Nigeria’s workforce operates in the informal sector, where wage and labor rights are almost never enforced.
This means a majority of Nigerians continue to earn far below the national benchmark, despite the government’s approval of N70,000 as the new minimum wage.
The U.S. report stressed that the naira’s sharp decline, trading above N1,500 to the dollar, had worsened the wage erosion. This has left workers unable to afford basic needs, pushing many deeper into poverty.
Human Rights and Labor Challenges
The document pointed out that weak enforcement of labor laws contributes to worsening poverty levels in the country.
Workers in the informal sector, such as street vendors, artisans, and small traders, rarely benefit from labor protections.
The report also noted that Nigeria’s minimum wage is rarely sufficient to cover basic food, housing, and transport needs.
This has further exposed structural gaps in the government’s approach to economic reforms and poverty reduction.
Governors Push Investment Platform
Meanwhile, the Nigeria Governors’ Forum (NGF) has launched a new investment initiative called NGF Investopedia.
The platform seeks to attract capital flows into bankable projects across all 36 states, with the goal of tackling Nigeria’s annual $100 billion infrastructure financing deficit.
The launch event in Abuja gathered governors, international partners, and investors. The forum described the platform as a long-term strategy to unlock growth opportunities across states and strengthen Nigeria’s subnational economies.
NGF Chairman and Kwara State Governor, Abdulrahman AbdulRazaq, said Nigeria must urgently leverage its human and natural resources to address poverty and joblessness.
“Here is Africa’s largest economy, endowed with abundant human and natural resources,” he said, stressing that state governments must play a bigger role in attracting investments and supporting local industries.
A Widening Gap
The contrast between the U.S. report on wage decline and the governors’ push for investment highlights Nigeria’s economic paradox.
While authorities promote foreign capital inflow, millions of workers continue to survive on wages that have lost most of their value.
With inflation rising, food prices soaring, and the naira weakening, the gap between earnings and cost of living keeps widening.
Unless enforcement improves and the informal sector is integrated into wage protections, the N70,000 benchmark may remain symbolic rather than effective.
Fidelity Bank may have hit another milestone the Fidelity Naira Card is now accepted globally.
This was disclosed in a message sent to Diaspora Digital Media (DDM) via email on Monday.
According to the statement entitled “Your Fidelity Naira Card Now Works Globally; Shop, Pay and Withdraw with Ease!“, customers can buy favourite global brands online using their Fidelity Naira Card.
The band also stated that they can equally pay at POS terminals abroad and make cash withdrawals at ATMs as they travel.
The message reads:
“We’re excited to let you know that your Fidelity Naira Card is now enabled for global use — so you can shop, spend and withdraw internationally with confidence.
“Here’s what you now enjoy every quarter:
|
Channel |
Transaction Limit |
| ATM Withdrawal abroad | $500 |
| Online/Web & POS Payments | $ 1,000 |
“What does this mean for you?
- Shop your favourite global brands online
- Pay at POS terminals abroad with ease
- Withdraw cash at ATMs when you travel.”
The statement, however, noted that the $1,000 quarterly limit applies to all international transactions combined, including ATM withdrawals, online purchases, and POS payments.
The bank urged customers who may need assistance with setting card limits or activating their cards for global use, to contact the bank’s customers care “Centre Trueserve”, which is available round the clock, whether in Nigeria, or outside the country.
“Your world, your card — spend smart, spend globally with Fidelity,” the message concludes.
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