• Latest
  • Trending
  • All
  • LATEST NEWS
  • SPONSORED POSTS
  • BANKING
  • Cryptocurrency
  • Job Past Questions
  • PRICE WATCH
  • VIEW POINT
  • ECONOMY
  • Careers
  • Press Release
  • Breaking News
  • education news
  • Personal Finance
  • Networth
Naira dollar rates3

Naira devaluation will shoot fuel subsidy to N7.1b per day

August 7, 2021
A Comprehensive Guide to the European Union Blue Card

Unlocking Opportunities: A Comprehensive Guide to the European Union Blue Card

August 31, 2024
Naira Redesign Policy Causes Banks' Deposits with CBN to Plummet by 95.82%

Currency in Circulation hits all-time-high Fueling Inflationary Pressures

August 29, 2024
Ecobank Nigeria Launches Oja Oge Pop up Marketplace to Empower SMEs

Ecobank Nigeria Launches Oja Oge Pop-up Marketplace to Empower SMEs

August 28, 2024
inflation Push Over 31 Million Nigerians into Acute Food Shortage

Insecurity and Economic Woes Push Millions of Nigerians into Acute Food Crisis

August 28, 2024
NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

August 27, 2024
Food Prices in Nigeria Soar in July 2024

Food Prices in Nigeria Soar in July 2024: Beans, Eggs, and Yam Lead the Surge

August 27, 2024
Fed Rate Cuts Could Offer Respite for Nigeria’s Naira and Economy

Fed Rate Cuts Could Offer Respite for Nigeria’s Naira and Economy

August 27, 2024
Nigeria's Manufacturing Sector Struggles in Q2 2024

Nigeria’s Manufacturing Sector Struggles in Q2 2024: Growth Slows Amid Economic Challenges

August 27, 2024
Nigeria's Agricultural Sector Shows Modest Growth in Q2 2024

Nigeria’s Agricultural Sector Shows Modest Growth in Q2 2024: Crop Production Remains Key Driver

August 27, 2024
Nigeria's Economy Grows by 3.19% in Q2 2024

Nigeria’s Economy Grows by 3.19% in Q2 2024: Services and Industry Lead the Charge

August 27, 2024
States Share $71 Billion in Seven Years, But Poverty Persists

States Share $71 Billion in Seven Years, But Poverty Persists: What’s Going Wrong in Nigeria?

August 26, 2024
Interest Rate Hikes, Inflation Squeeze Profit Margins for Nigerian Paint Manufacturers

Interest Rate Hikes, Inflation Squeeze Profit Margins for Nigerian Paint Manufacturers

August 26, 2024
  • About
  • Privacy Policy
  • Terms of Use
  • Feedback
  • Advertise
Sunday, July 20, 2025
  • Login
Financial Watch
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH
No Result
View All Result
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH
No Result
View All Result
Financial Watch
No Result
View All Result
Home ECONOMY

Naira devaluation will shoot fuel subsidy to N7.1b per day

by Tosan Olajide
August 7, 2021
in ECONOMY
0
Naira dollar rates3

Naira dollar rates

492
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

Naira devaluation will shoot fuel subsidy to N7.1b per day – The devaluation of the naira from N379/$ to N411/$ will push the daily subsidy on petrol to N7.1 billion as it will raise the product’s landing cost.

According to an economic report released at the weekend, Managing Director, Financial Derivatives Company (FDC) Limited, Mr. Bismarck Rewane, said the landing cost of petrol has increased by 61.6 per cent to N231.98 per litre from an average of N143.6 per litre in December last year.

He explained that with the rise in local consumption of petrol from 57.8 million (last year) to 93 million litres (about 60.9 per cent) subsidy payments could rise to N7.1 billion daily from N5.5 billion in June.

According to him, this was largely due to the rally in global oil prices, at $76 per barrel and currency adjustment of between N410 and N411 at the Investors and Exporters Forex Window (IEFX) from previous N379/$, leading to an increase in landing costs for imported refined products.

“Based on this new template, the expected price of Premium Motor Spirit (PMS) will increase to N254.90/litre from N239/litre estimated in April. Meanwhile, the NNPC has said that the price of petrol will remain at N162-N165/litre in July,” Rewane stated.

He noted that the daily consumption of petrol previously stood at an average of 57.8 million in the first quarter of 2020 with N5.5 billion daily subsidy payment in June.

PPPRA silent as petrol price rises between N150 and N157 per litre
Naira devaluation will shoot fuel subsidy to N7.1b per day

Rewane warned that new subsidy regime target will also be worsened by the impact of smuggling as an increase in subsidy payments diverts funds from critical capital projects.

“This will lead to a further increase in petrol prices. Furthermore, higher energy costs coupled with rising food prices will continue to erode consumer disposable income,” Rewane stated.

The economist stated that the oil and gas industry in Nigeria last week received some respite as the National Assembly broke a 14-year jinx to pass the petroleum industry bill (PIB), a bold move that is expected to help recoup revenue losses, stop subsidy payments and encourage investments in the down- stream petroleum sector.

Rewane pointed out that Brent crude is trading at its highest level in over a year at $75 per barrel as global demand continues to pick up in the United States (U.S.) and Asia.

On the other hand, Nigeria’s oil output fell by 2.82 per cent to 1.38mbpd in May from 1.46mbpd recorded in April despite the ease in the Organisation of Petroleum Exporting Countries (OPEC) output cuts.

The fall in the local crude production can be attributed to disruptions from pipeline vandalism and force majeure imposed by the international oil companies.  But the good news is that OPEC and its allies are looking to further in- crease supply as from August.

Rewane said: “This implies a further increase in Nigeria’s production quota from 1.58mbpd in the near term. A rise in production coupled with higher oil prices would boost government revenue and increase the states’ ability to meet its obligations. It could also lead to an increase in the Federal Accounts Allocation Committee (FAAC) allocations that fell by 1.8 per cent to N605.96 billion in June.”

Share197Tweet123
Previous Post

How bomb concealed in bottle kill kid, injure two in Kaduna

Next Post

UBA granted N178b business loan in Q1 2021

Tosan Olajide

Tosan Olajide

Next Post
UBA's Stellar Half-Year Performance: Setting the Gold Standard in African Banking

UBA granted N178b business loan in Q1 2021

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Stanbic IBTC launches Africa-China Agent Value Proposition

List of Stanbic IBTC bank Routing Number, sort codes and branches in Nigeria

May 2, 2023
Banks Employ More Contract Staff as full staff continue to dwindle

Nigerian bank employee grades and levels

June 14, 2021
N-power Portal Login npvn.npower.gov.ng/login 2020/2021 – Update Your Account

N-power Portal Login npvn.npower.gov.ng/login 2020/2021 – Update Your Account

November 17, 2020
Zenith Bank2

List of Zenith bank Routing Number, sort codes and branches in Nigeria

May 2, 2023
Union Bank2

List of Union bank Routing Number, sort codes and branches in Nigeria

May 2, 2023
How buy 2019 JAMB 2019 UTME form/ registration PIN online

UTME result: How to Check JAMB Result 2022 – Jamb Result Checker

1333
JAMB Result checker 2020 out | www jamb org ng result checker

Utme 2021: Check JAMB Results Using JAMB Registration Number

1146
List of JAMB Approved CBT Centres In Abia State 2020/2021 | Abia State Jamb Cbt Centres

Jamb Portal 2021: How to check Jamb Results – jamb.org.ng/efacility

523
P Yes registration

www.p-yes.gov.ng – Register For P-YES Progeamme Portal – Apply Now

436
Breaking: JAMB releases more 15,490 UTME results

JAMB Results 2021 Online Checking Steps | www.jamb.org.ng Result

316
A Comprehensive Guide to the European Union Blue Card

Unlocking Opportunities: A Comprehensive Guide to the European Union Blue Card

August 31, 2024
Naira Redesign Policy Causes Banks' Deposits with CBN to Plummet by 95.82%

Currency in Circulation hits all-time-high Fueling Inflationary Pressures

August 29, 2024
Ecobank Nigeria Launches Oja Oge Pop up Marketplace to Empower SMEs

Ecobank Nigeria Launches Oja Oge Pop-up Marketplace to Empower SMEs

August 28, 2024
inflation Push Over 31 Million Nigerians into Acute Food Shortage

Insecurity and Economic Woes Push Millions of Nigerians into Acute Food Crisis

August 28, 2024
NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

NAFDAC Cracks Down on Use of Unapproved Saccharine in Bread Production

August 27, 2024
Financial Watch

Copyright © 2023 Financial Watch.

Navigate Site

  • About
  • Privacy Policy
  • Terms of Use
  • Feedback
  • Advertise

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • HOME
  • Banking
  • ECONOMY
  • VIEW POINT
  • PRICE WATCH
  • CRYPTO WATCH

Copyright © 2023 Financial Watch.