Business
DMO Reveals How Petrol Subsidy Raised 2022 Borrowing By N1trn
Published
3 years agoon
By
Editor
The nation’s public debt stock is being increased by the petrol subsidy as the government had to borrow N1 trillion to subsidise petrol this year, the Director-General of the Debt Management Office, DMO, Ms. Patience Oniha has said.
In a presentation at the Executive Course on Budgeting and Fiscal Transparency at the Army Resource Centre in Abuja, yesterday, she attributed the current debt stock to budget deficit, noting that the borrowing plan for 2022 was increased by N1 trillion to enable the government to pay the extra cost of petrol subsidy.
Despite the public debt stock of $42.8 billion, Ms. Oniha said remained within acceptable limits and sustainable,
Speaking on the topic, Debt Sustainability Challenges and Strategic Revenue Mobilisation Initiative, the D-G said that the federal government had to resort to borrowing to fund the budget due to revenue challenges.
READ ALSO: Debt Servicing Gulps N13.17tn Under Buhari, Education Suffers
She said that the DMO was deploying World Bank and International Monetary Fund tools to ensure the sustainability of Nigeria’s public debt.
According to her, “These tools include an annual Debt Sustainability Analysis (DSA) and a Medium Term Debt Management Strategy (MTDS) every four years.”
In addition, she said, “Maturities in the Public Debt Portfolio are well spread to avoid bunching of maturities and to ease repayments of maturing obligations. The Domestic Debt portfolio has securities with tenors ranging from 91 days to 30 years, while the External Debt Portfolio has securities ranging between 5 years to 30 years.”
She explained that despite criticisms of the government’s borrowing, Nigeria’s debt to GDP ratio remains among the lowest globally.
She pointed out that while Nigeria’s debt to GDP ratio was 23.06 percent, countries such as Angola (136.54%), South Africa (69.45%), Ghana (78.92%), United States (133.92%) and United Kingdom (104.47%) have higher ratios.
She however stressed that Nigeria was not alone in rising levels of public debts, pointing out that across the globe, governments were borrowing more to meet with economic and social challenges posed by the Covid-19 pandemic and the Russia-Ukraine war.
“Governments across the world borrow. Globally, debt levels are growing, but it is not a new trend. Debt levels were already rising prior to Covid-19 crisis when compared to 2014. Globally, sovereign debt grew from 49 percent of GDP in 2014 to 57.9 percent in 2019 and in sub-Saharan Africa, from 35 percent of GDP in 2014 to 55 percent in 2019. In Nigeria, this ratio rose from 13 percent in 2014 to 19 percent in 2019”, she stated.
The DG also explained that the government was not just borrowing for borrowing sake, emphasizing that the loans would enable the government to finance critical infrastructure with multiplier benefits (job creation, movement of persons and goods) and overall GDP growth.
She noted that the country was facing a revenue crisis, adding that it has become very important for the government at all levels to pay more attention on how to increase revenue generation as a means of reducing borrowing.
The DMO boss noted that Nigeria was performing poorly in terms of revenue, as she said that the country had a far lower revenue record than it could generate.
READ ALSO: Nigeria’s Debt Hits N42.8trillion
She said that the federal government has taken a number of measures to grow its revenue, while urging citizens and corporate bodies to pay their taxes in order to make funds available for the government to finance the various much-needed infrastructural facilities, across the country.
The D-G added that the issuance of federal government securities had several benefits for both the citizens and corporate organisations.
They included being safe investment opportunities with regular returns and being the vehicle for mobilizing large pools of funds from domestic and international sources for investments in capital projects
She added that the development of the domestic financial sector; Liquid assets for banks and other institutions who need to hold such assets; attracting foreign investors into the domestic markets; and providing sovereign yield curves in the domestic and international markets, against which other issuers such as State Governments, private sector entities and multilaterals can issue securities to raise capital were major advantages of the exercise.
VANGUARD
You may like
12 States Vote N102bn For Official Lodge Upgrade, SUVs
Nigeria’s Public Debt Rises To N149trn
-
13 States To Borrow Fresh N380bn In 2025 [SEE LIST]
-
20 Governors Borrow Fresh N446bn As Revenues Tumble
-
JUST IN: Nigeria’s Public Debt Rose By N24.33tn In Three Months – DMO
-
Hajj: Five States With $383m Debt Budget N9bn For Pilgrims
Business
NNPCL Reduces Fuel Price After Dangote Refinery’s Adjustment
Published
2 weeks agoon
August 14, 2025By
Editor
The Nigerian National Petroleum Company Limited has reduced its premium motor spirit pump price on Thursday, according to DAILY POST.
It was confirmed that NNPCL retail outlets in the Federal Capital Territory, Abuja, have reduced their pump price to N890 per litre from N945.
This new fuel price has been reflected in NNPCL retail outlets such as mega station Danziyal Plaza, Central Area, Wuse Zone 4, Wuse Zone 6, and other of its filling stations in the nation’s capital.
READ ALSO:N5bn Damage: NNPCL Secures Appeal Court Victory Against Ararume
The latest downward review of fuel price in NNPCL outlets represents an N55 reduction in fuel pump price.
“It was reduced to N890 per litre this afternoon, down from N945,” an NNPCL fuel attendant told DAILY POST anonymously on Thursday.
This comes a Nigerian filling station, MRS Empire Energy, on Thursday adjusted their fuel pump price to N885 and N946 per litre, down from N910 and N955 per litre.
The latest fuel price reduction trend is unconnected to Dangote Refinery’s ex-depot petrol price adjustment by N30 to N820 per litre from N850 and the price of crude oil in the international market.
Dangote Petroleum Refinery has announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit, PMS, commonly known as petrol, by N30, from N850 to N820 per litre, effective from August 12, 2025.
This was disclosed in a statement by the company’s spokesman, Anthony Chijiena, on Tuesday.
The 650,000-barrel-per-day plant said the move is part of its unwavering commitment to national development, assuring the public of a consistent and uninterrupted supply of petroleum products.
READ ALSO:Dangote Refinery Gets New CEO
“In line with our dedication to operational excellence and sustainable energy solutions, Dangote Petroleum Refinery will commence the phased deployment of 4,000 CNG-powered trucks for fuel distribution across Nigeria, effective August 15, 2025,” said Chijiena.
The announcement comes as the refinery prepares to commence direct fuel distribution nationwide. The development is expected to lead petroleum product marketers to reduce their pump prices in the coming days.
In Abuja, the retail fuel price stood between N885 and N970 per litre as of Tuesday evening.
Business
Indian Refiners Abandon Russia For Nigerian Crude, As Dangote Refinery Relies On US
Published
2 weeks agoon
August 11, 2025By
Editor
India Refineries have abandoned Russian crude for Nigerian crude, while domestic refiner Dangote Refinery relies heavily on West Texas Intermediate crude from the United States of America.
This followed a recent sanction threat by US president Donald Trump on India over continued patronage of Russian crude.
According to Reuters, industry sources said that Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September 2025 delivery in a tender awarded to global trader Trafigura.
Also included are one million barrels of Angola Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian oil, according to Reuters.
READ ALSO:‘My Eyes Dey Your Body’: Drama As Portable Professes Love For Regina Daniels
The report noted that the purchase is part of a broader sourcing spree that has seen Indian refiners secure millions of barrels from non-Russian sources post July 2025.
Meanwhile, Indian refiners secured purchases of Nigerian crude grades; the $20bn Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, is relying on around 60 percent on US and other imoorts to feed its processing units.
Data showed that the refinery imported an average of 10 million barrels in July 2025, saying it was increasingly relying on the US for its feedstock despite the naira-for-crude deal with the Federal Government, which kicked off in October last year.
According to Reuters, the Indian Oil Corp and Bharat Petroleum have bought a million barrels of non-Russian crude billed for delivery in September and October after the US pressured India to halt purchases from Russia.
READ ALSO:
Indian state refiners had been largely absent from the Nigerian crude market spotlight since 2022; they have in the past concentrated on Russian crude amid the Russian-Ukrainian war. However, the Indian refiners paused Russian purchases in late July 2025 after pressure from US President Donald Trump.
On the part of Dangote Refinery, data from commodities analytics firm Kpler showed that in July, US barrels accounted for about 60 percent of Dangote’s 590,000 barrels per day of crude intake, with Nigerian grades making up the remaining 40 percent.
In July, the Dangote refinery’s crude imports surged to a record 590 kbd—driven largely by US barrels overtaking Nigerian supply for the first time—amid ongoing domestic sourcing challenges, Kpler reports.
“While WTI has held a significant share in Dangote’s import slate since March, this is the first time US crude has overtaken Nigerian supply—a shift driven by several factors,” Kpler stated.
- Edo Sports Commission Boss Celebrates Okpehbolo On Birthday
- Oba Of Benin Suspends Palace Chiefs
- Lawyers Fault EFCC Statement, Say It’s Misleading
- Tricycle Riders Sentenced To Five Years Over WhatsApp Group Mobilising Protest Against Nigerian Gov
- Ebonyi Raises Minimum Wage From N70,000 To N90,000
- Trump Administration Proposes New Rule Limiting Nigerians, Others
- Police Arrest Ex-Soldier, Four Others Over Armed Robbery, Kidnapping In Anambra
- Police Arrest Ex-Soldier, Four Others Over Armed Robbery, Kidnapping In Anambra
- Enugu Vigilantes Beat Young Man To Death Over Alleged Stealing Of Woman’s Clothes
- BREAKING: Former Customs Comptroller-General, Ahmed Aliyu Mustapha, Is Dead
Trending
- News5 days ago
DSS Issues Warning, Arrests Man For Circulating Fake Recruitment Materials
- Politics4 days ago
[BREAKING] Edo: APC Suspends Ex-senatorial Aspirant Of Party
- Politics5 days ago
2027: You Will Lose 80% Of Northern Muslim Votes If…, APC Forum Warns Tinubu
- News3 days ago
NAFDAC Warns Of Fake Postinor-2 In Circulation
- Politics5 days ago
Primate Ayodele Releases Fresh Prophecies On FIRS, FAAN, Others
Headline4 days agoUS Comedian Reggie Carroll Shot Dead In Mississippi
- Metro4 days ago
UNIZIK Suspends Doctors, Nurses, Security Personnel Over 100-level Student’s Death
- News5 days ago
‘Na Only People You Gave Work Love You,’ Singer Speed Darlington Tells Tinubu
- Headline4 days ago
US Defends New Social Media Vetting For Nigerian Visa Applicants
- Politics3 days ago
PDP Zones 2027 Presidential Ticket To South
