Connect with us

Government/Policies

15 Northern States May Collapse If Petrol Subsidy Returns, Professor Warns

Published

on

A professor at Obafemi Awolowo University, Tunji Ogunyemi, has warned that restoring petrol subsidy could push more than 15 states in Northern Nigeria into severe financial crisis within three months.

Ogunyemi issued the warning while speaking on Open Forum 360, a podcast hosted by Dare Adekanmbi, on Friday.

He was reacting to the proposal by the African Democratic Congress presidential candidate, Atiku Abubakar, to introduce a form of petrol subsidy if elected president in 2027.

The university don argued that bringing back subsidy would reduce the amount of money available for distribution through the Federation Account, a major source of revenue for most state governments.

According to him, any significant reduction in Federation Account allocations could leave many states unable to meet their financial obligations.

“I think it is calamitous, to say the least, if we reverse the subsidy regime in Nigeria in favour of returning the subsidies,” Ogunyemi said.

He described the Federation Account as the financial lifeline of more than 30 states, arguing that only a handful of states could operate without depending heavily on federal allocations.

“The Federation Account is the jugular of more than 30 states in the federation. Only about four states in Nigeria can survive without the Federation Account,” he stated.

Ogunyemi cited Lagos, Delta and Rivers among states he said had stronger internally generated revenues and could cope better with reduced federal allocations.

He contrasted them with states such as Taraba, which he said rely significantly on Federation Account revenue.

“So if you now say reduce the accrual from the account, I tell you more than about 15 states in the north will collapse. They will collapse within three months,” he warned.

Salary, Pension Payments at Risk
The professor also cautioned that a reduction in government revenue could make it difficult for states to pay workers and pensioners.

He said states could return to the period when governments struggled to meet monthly salary obligations, while pension payments could also become increasingly difficult.

“The second is that states will return to a regime of incapacity to pay salaries, let alone pensions,” he said.

Ogunyemi further warned that the Federal Government could also experience financial difficulties if its share of national revenue declined.

He noted that between 60 and 70 per cent of federal government expenditure goes towards recurrent spending, describing the spending as largely consumption-related.

According to him, reduced revenue would leave the government struggling to finance even essential recurrent obligations, while funding for infrastructure and other capital projects could suffer.

Debt Servicing Concerns
The don also raised concerns about Nigeria’s ability to service its debts if government revenue falls significantly.

He warned that difficulties in meeting debt obligations could negatively affect the country’s financial standing and creditworthiness.

Ogunyemi also questioned the political implications of Atiku’s subsidy proposal, suggesting that the promise could be aimed at winning public support ahead of the 2027 presidential election.

He argued that Atiku, having served as Vice-President, should provide Nigerians with clearer explanations of the potential fiscal consequences of restoring subsidy.

Atiku Clarifies Subsidy Proposal
Atiku had initially promised to restore petrol subsidy, arguing that Nigerians had not benefited sufficiently from its removal and questioning how the savings from the policy had been utilised.

He later clarified that his proposal was not a return to the previous import-subsidy arrangement.

The former Vice-President said he favoured a targeted and capped intervention designed to support domestic refining and production, with transparency and auditing mechanisms to prevent abuse.

President Bola Tinubu removed the petrol subsidy on May 29, 2023, during his inauguration, declaring that “fuel subsidy is gone.”

The announcement was followed by a sharp increase in petrol prices, contributing to higher transportation and living costs across the country.

The Federal Government has continued to defend the policy, arguing that subsidy removal was necessary to reduce fiscal pressure and free up resources for governments at federal, state and local levels.

The Ministry of Finance said the reforms generated an estimated N15.8 trillion in resources for the Federation between June 2023 and December 2025.

Government/Policies

2027: Shettima Seeks Cross River Support for Tinubu, Says Reforms Yielding Results

Published

on

Vice-President Kashim Shettima has urged voters in Cross River State to support President Bola Tinubu and other All Progressives Congress (APC) candidates in the 2027 general elections, defending the administration’s economic reforms despite the hardship they have caused Nigerians.

Shettima spoke on Monday at the APC presidential campaign rally held at the U.J. Esuene Stadium in Calabar, the Cross River State capital.

He acknowledged that the reforms had brought economic difficulties but maintained that they were beginning to produce positive results, insisting that difficult decisions were necessary to transform the country.

The Vice-President compared Tinubu’s leadership approach to that of Singapore’s founding Prime Minister, Lee Kuan Yew, who led the transformation of the country from a struggling colony into a major global financial hub.

“President Bola Tinubu’s economic reforms is something we have seen, though painful, you can agree with me that they are beginning to yield positive results,” Shettima said.

He urged Nigerians to assess the administration’s performance by comparing the country’s economic situation in 2023, when Tinubu assumed office, with its present condition.

Shettima also described Cross River as politically strategic to the APC, calling on residents to renew the party’s mandate in 2027.

He urged voters to support Tinubu, Cross River State Governor Bassey Otu, Deputy Governor Peter Odey and other APC candidates, while promising that the state deserved greater federal attention.

In his remarks, Governor Otu highlighted ongoing and proposed federal infrastructure projects, which he said would expand the state’s economic opportunities.

Among the projects he listed were the Lagos-Calabar Coastal Highway, the proposed Bakassi Deep Seaport and the proposed location of the Gulf of Guinea Commission Secretariat in Calabar.

According to Otu, the coastal highway would improve connectivity, facilitate trade, promote tourism and attract investment to the state.

He added that the proposed deep seaport would position Cross River as an international maritime gateway, creating employment opportunities and stimulating economic activities.

The governor also said the proposed Gulf of Guinea Commission Secretariat would strengthen international engagements and boost hospitality and commercial activities in the state.

Otu further cited the Nigerian Education Loan Fund as one of the Federal Government’s interventions aimed at improving access to tertiary education.

He maintained that Cross River must translate its political relevance into tangible development benefits by supporting the APC across all levels of government.

The rally attracted Senate President Godswill Akpabio, members of the National Assembly, APC governors, party leaders and supporters from different parts of the state.

Continue Reading

Government/Policies

Reps Propose Real Estate Regulator to Curb Fraud, Boost Housing Investment

Published

on

The House of Representatives has called for the establishment of a comprehensive regulatory framework for Nigeria’s real estate sector to tackle fraudulent practices, strengthen consumer protection and attract investment into the country’s housing market.

The proposed National Real Estate Regulatory Authority is expected to address institutional gaps, eliminate overlapping responsibilities and establish standards for property developers and other stakeholders operating within the sector.

The Chairman of the House Committee on Housing and Habitat, Abdulmumini Jibrin, made the call on Monday in Abuja during a stakeholder conference on the proposed authority.

The conference was themed, “One Vision, One Ecosystem, One National Housing and Real Estate Plan.”

Jibrin said an assessment of the sector since he assumed office revealed that Nigeria had yet to fully harness its enormous housing and real estate potential because of inadequate regulation and the absence of a coordinated national framework.

He explained that although the Minister of Housing and Urban Development was responsible for driving government policies in the sector, several agencies and institutions involved in housing development operated outside the ministry’s direct jurisdiction.

According to him, the situation had created institutional gaps, duplication of functions and difficulties in coordinating activities across the housing ecosystem.

“There are enormous challenges. We have a wonderful Minister of Housing. But as the Minister of Housing of the Federal Republic of Nigeria, he does not have jurisdiction over all the agencies and institutions that have to do with housing. There is a link; there is a gap.

 

So, there is duplication of functions,” he said.

The lawmaker stressed that regulation should also protect prospective homeowners by ensuring they had adequate information and financial awareness before entering into property agreements.

He noted that some Nigerians committed themselves to housing arrangements beyond their financial capacity, while others failed to understand how inflation, prevailing economic conditions and changes in government policies could affect developers’ ability to complete projects.

Jibrin said the proposed authority would establish clear responsibilities for developers and consumers, introduce effective dispute-resolution mechanisms and ensure that operators complied with defined industry standards.

He described real estate as a major contributor to Nigeria’s Gross Domestic Product, adding that its economic contribution could increase significantly if the sector’s opportunities were properly harnessed.

The committee chairman observed that unlike oil and gas, power and telecommunications, the real estate sector continued to operate with considerable regulatory loopholes.

He said the situation allowed individuals to present property brochures to unsuspecting Nigerians and collect money without effective institutional mechanisms to verify their credentials, business operations or capacity to deliver promised projects.

Jibrin explained that the proposed legislation was designed to close these gaps and strengthen existing institutions without taking over their statutory responsibilities.

He also dismissed concerns that the proposed authority would encroach on the constitutional powers of state governments or undermine established professional bodies.

“The bill to create the National Housing Regulatory Authority is not going to take over the powers of any state government. We are not going to compete. We are only going to cooperate. And for professional bodies, nobody is taking away your responsibility. It will be protected,” he said.

He added that the proposed authority would strengthen government agencies and empower them to discharge their responsibilities in accordance with their respective enabling laws.

Minister backs proposed regulatory authority
In his remarks, the Minister of Housing and Urban Development, Muttaqha Darma, said the Federal Government was intensifying efforts to address the structural and institutional challenges affecting Nigeria’s housing sector.

Darma disclosed that the ministry had organised a similar stakeholder engagement in July, where issues surrounding the country’s housing deficit were examined and validated.

He said estimates indicated that Nigeria faced a housing shortfall of more than 50 million units.

The minister also identified inadequate access to mortgage financing as a major obstacle to homeownership, despite Nigeria’s estimated population of about 240 million.

According to him, mortgage penetration in Nigeria remained below 10 per cent, compared with 38 per cent in Malaysia and 40 per cent in South Korea.

“Our population, as of today, is estimated to be about 240m. But, as speakers after speakers mentioned, mortgage penetration is very low. It is less than 10 per cent, as against 38 per cent in Malaysia and 40 per cent in South Korea,” he said.

Darma noted that although Nigeria had institutions such as the Federal Mortgage Bank and other mortgage financing organisations, the number of mortgages accessed annually remained insufficient to address the country’s housing needs.

He also recalled that the built environment and real estate sector had been identified as the third-largest contributor to the Nigerian economy, stressing the importance of creating an enabling environment for its growth.

The minister expressed the ministry’s support for the proposed regulatory authority but urged stakeholders to consider placing it under the Ministry of Housing and Urban Development to ensure effective coordination and alignment with existing government policies.

He cited Singapore, Dubai, Malaysia, the United Kingdom and Rwanda as examples of jurisdictions with similar regulatory institutions operating within ministries responsible for housing and the built environment.

Darma further called for coordination between the proposed authority, the National Housing Finance Authority and the Federal Government’s mortgage policy, which is awaiting presidential consideration.

Finance Incorporated raises concerns over implementation
Also speaking, the Managing Director and Chief Executive Officer of the Ministry of Finance Incorporated, Dr Armstrong Takang, commended the House of Representatives for collaborating with the Executive to address challenges in the housing and real estate sector.

Takang said the Presidency and the Federal Government were prepared to give the proposed legislation a fair and thorough consideration, particularly regarding its implications for the country’s existing legal and institutional framework.

He identified the relationship between the proposed legislation and the Land Use Act as one of the issues requiring careful examination.

He also called for clarity on the regulation of professional practices and cautioned against excessive regulation that could discourage private investment.

Takang urged stakeholders to develop a regulatory structure that would complement existing government institutions without unnecessarily increasing recurrent expenditure.

“To what extent are we going to address the regulation of practice in this sector? To what extent are we also going to ensure that the sector is not overregulated? And how do we create this new agency and fit it into the existing structure of government in a way that we do not expand the recurrent expenditure framework of government?” he asked.

He assured participants of the government’s readiness to work with stakeholders towards developing a transparent and sustainable real estate sector capable of attracting investment and delivering greater economic benefits.

Abbas seeks digital property registration system
In his keynote address, the Speaker of the House of Representatives, Tajudeen Abbas, called for a centralised and digitised real estate administrative system to simplify property transactions, strengthen public confidence and make Nigeria’s housing market more attractive to local and international investors.

Abbas said the country needed a reliable digital system linking property ownership records with the identities of property owners, as well as buyers and sellers.

He explained that such a system would help address fraudulent transactions, multiple ownership claims and disputes associated with land and property acquisition.

In his address titled, “Building a Trusted and Investable Nigerian Real Estate Market,” the Speaker argued that Nigeria’s housing challenge was not necessarily a shortage of properties but a lack of confidence in the real estate market.

“Nigeria does not lack property. Nigeria lacks enough trust in property,” he said.

Abbas maintained that effective regulation should not be viewed as an obstacle to legitimate businesses but as a safeguard against fraudulent practices, unfair competition and the exploitation of unsuspecting homebuyers and investors.

He said appropriate regulation would protect responsible businesses, strengthen market confidence and provide the institutional credibility required to attract long-term investment into the housing sector.

The proposed National Real Estate Regulatory Authority is expected to establish a coordinated framework for regulating Nigeria’s property market, strengthening consumer protection, promoting professional standards and addressing institutional gaps that have continued to undermine the growth of the housing sector.

Continue Reading

Government/Policies

Kano Assembly Extends Suspension of Three LG Chairmen by Three Months

Published

on

The Kano State House of Assembly has extended the suspension of three local government chairmen by another three months to allow further investigation into allegations levelled against them.

The affected council chairmen are those of Rogo, Bagwai and Bebeji Local Government Areas.

The House also extended the mandate of the ad hoc committee investigating the allegations against the three officials by the same period.

The development was disclosed in a statement issued on Monday by the Chief Press Secretary to the Speaker, Kamaluddeen Shawai, and made available to PUNCH Online.

According to the statement, the Assembly had initially granted the ad hoc committee three months to investigate the allegations and submit its findings to the House.

However, following the expiration of the initial period, lawmakers approved an additional three months for both the suspension of the chairmen and the committee’s investigation.

“With the expiration of the initial period, the House has now extended both the suspension of the chairmen and the mandate of the committee by another three months, to enable the.

 

committee to further examine the petitions, conclude its investigation, and submit its report to the House within the next three months,” the statement said.

The affected officials are Bello Abdullahi Gadanya, Chairman of Bagwai Local Government Area; Dr Alhassan Salisu, Chairman of Bebeji Local Government Area; and Abubakar Mustapha, Chairman of Rogo Local Government Area.

The extension means the three chairmen will remain suspended while the committee continues its investigation and prepares its report for consideration by the Assembly.
The House is expected to consider the committee’s findings upon completion of the extended investigation.

Continue Reading

Trending