Tag: CS News Economy

President Tinubu Welcomes World Bank Report Confirming Poverty Stabilization and 4.2 Percent Growth

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President Bola Ahmed Tinubu has welcomed the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities. The President stated that the independent report validates his administration’s economic reforms, proving that fiscal policies are placing the national economy on a firm path toward sustainable growth. The World Bank report revealed that Nigeria’s poverty rate has stabilized for the first time since 2019, with projections indicating a steady decline as economic growth outpaces population expansion. Gross Domestic Product expanded by 4.2 percent in the first half of 2026, up from 3.9 percent in the same period of 2025, with long-term growth projected to average 4.4 percent through 2028. Macroeconomic indicators showed headline inflation dropping from 27.6 percent in January 2025 to 15.2 percent by December 2025, alongside a current account surplus rising to $12.0 billion. Gross external reserves increased to $53.8 billion by August 2026, while federation revenues grew by 69 percent in real terms, enabling state governments to boost capital infrastructure spending by 151 percent. President Tinubu emphasized that key policy choices—including petrol subsidy removal, foreign exchange unification, and fiscal discipline—have expanded revenue allocations across all tiers of government. He urged state governors to utilize increased revenues prudently while reaffirming the federal government’s commitment to expanding cash transfers, CNG rollouts, and agricultural productivity under the Renewed Hope Agenda 2.0. By: Asiwaju Adekunle Saheed

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Federal Government Rejects Subsidy Return, Proposes N1,350 Price Ceiling and NNPC Discount

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Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has addressed the nation regarding the rising cost of Premium Motor Spirit, firmly ruling out a return to broad fuel subsidies while unveiling key targeted relief measures. Speaking at a press briefing in Abuja, Oyedele acknowledged the severe financial strain on Nigerian households, commuters, and businesses due to elevated pump prices averaging N1,400 per liter nationwide. The Finance Minister attributed the current price surge directly to external global shocks, specifically an ongoing eight-month conflict in the Gulf that has restricted oil shipping through the Strait of Hormuz to 13 percent of normal levels. With Brent crude trading above $100 per barrel and global middle-distillate exports down sharply, Oyedele emphasized that petroleum product inflation is a worldwide crisis affecting both developed and developing economies. Addressing calls from political figures and civil society groups to reinstate fuel subsidies, Oyedele presented data demonstrating that returning to a consumption subsidy would bankrupt public finances and collapse the economy. He revealed that restoring petrol prices to pre-reform levels would cost over N20 trillion annually, an amount exceeding the entire Federation Account allocation shared among all three tiers of government in 2025. Oyedele warned that artificial price suppression would force massive foreign exchange subsidization, weakening the naira toward N3,000 to the dollar and ultimately driving pump prices above N2,000 per liter. He added that legacy crude commitments from the previous subsidy era continue to absorb significant fiscal gains, reinforcing why the government must protect its newly earned economic stability and sovereign credit ratings. To cushion the immediate burden on vulnerable citizens, the Federal Government announced a temporary 30-day price discount on petrol dispensed across all NNPC Limited retail stations nationwide, with priority access granted to commercial public transporters. The minister clarified that the temporary discount operates as a cost-price mechanism rather than a restored blanket subsidy. Concurrently, the government introduced a price modulation framework aimed at smoothing market volatility, establishing a proposed ex-gantry and landing cost ceiling of N1,350 per liter. Under this arrangement, refiners and importers will absorb short-term cost spikes above the ceiling and recover them during market dips, preventing frequent, disruptive price spikes at local pumps. The minister highlighted existing government interventions, including full tax and duty waivers on fuel that save consumers between N400 and N600 per liter, alongside the naira-for-crude sale agreement with domestic refiners. He noted that Nigeria’s current foreign exchange reserves stand at an eighteen-year high of $55 billion, providing critical structural stability for the national currency. Looking ahead, the Federal Government outlined additional measures, including increased cash transfers for low-income households, accelerated CNG vehicle rollouts, the establishment of a National Strategic Fuel Reserve, and the potential implementation of an excess profit tax on predatory energy operators. Oyedele reiterated President Bola Ahmed Tinubu’s commitment to driving long-term fiscal stability and lowering inflation without jeopardizing national growth. By: Asiwaju Adekunle Saheed

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