• Privacy Policy
  • Terms
  • About us
  • Contact Us
Tuesday, February 7, 2023
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Natural Resources

Subsidy may hit N5tln

Subsidy

The Matters Press by The Matters Press
March 9, 2022
Reading Time: 2 mins read
0
Nigeria has not taken decision yet on fuel subsidy

Oil price has hit S140 per barrel as the Russia-Ukraine war continues promising to drain Nigeria’s purse through unending subsidy that is likely to peak at N5 trillion.

RELATED POSTS

Agriculture accounts for 23.78% of GDP

3 ships discharge frozen fish at Lagos ports – NPA

NUPRC gazettes 5 oil industry regulations, completes 6 others

The spike followed the announcement early yesterday by the United States’ President, Joe Biden, of a ban on Russian energy imports, including oil, coal, and LNG, which has added to the pressure in oil markets. Russia is the second largest producer of crude oil in the world.

The price brings the commodity to the highest ever experienced in the last 14 years.

ALSO READ  Reps summon Finance Minister on oil subsidy claims

Experts have, however, warned that if urgent steps were not taken, oil may hit the $200 per barrel mark by month end.

According to ICE Futures Europe data compiled by Bloomberg, more than 1,200 contracts were traded on last Monday for the option to buy Brent Crude future for May at $200 per barrel.

As a result of active options trading in recent days, the price to buy such options has skyrocketed.

For example, the $200 oil options on the May Brent futures – expiring on March 28, three days before the contract expires-saw the price for buying them surge by 152 percent to $2.39 a barrel.

ALSO READ  10 steps to improve insurance sector — NAICOM

The price of the $150 a barrel June call option doubled, and the $180 call options surged by 110 percent, per the exchange data cited by Bloomberg.

The Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, had described the rising global crude oil price as a “penalty” for the economy.

He explained that the development would translate to more foreign exchange and revenue earnings for the country; more profits for the oil companies operating in Nigeria and for other stakeholders in the oil sector.

However, he said, this could not be celebrated because the country’s oil sector has been grossly mismanaged, thereby making the oil boom presently being experienced a double edged sword for the country.

ALSO READ  Nigeria yet to benefit from US duty free trading waiver

“The rising oil price cannot be celebrated by Nigeria because it penalises the economy and this is a paradox; the implication of this rise in oil price is that our import bill for petroleum products is going to go up; the subsidy payment on petrol is going to increase.
 

If this trend continues this way in another six months, then Nigeria should be looking at a subsidy cost of about N5 trillion or more,” Yusuf warned.

More =Nation=

Tags: Subsidy
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

Nigeria to rebase CPI, GDP
Economy/Technology

Agriculture accounts for 23.78% of GDP

February 7, 2023
Council seeks incentives to boost indigenous ship operations
Economy/Technology

3 ships discharge frozen fish at Lagos ports – NPA

February 7, 2023
Chevron, NNPC secure $1.4bn for drilling project
Economy/Technology

NUPRC gazettes 5 oil industry regulations, completes 6 others

February 7, 2023
Food shortage: Nigeria bans foreigners from direct purchase of produce from farmers
Economy/Technology

Food traders lament spoilage due to low patronage as banknotes crunch bites harder

February 7, 2023
FIRS deploys tech platform for tax collection
Economy/Technology

LIRS, FIRS sign pact on tax audit

February 7, 2023
Trading in Nigerian stock market dips further N83bn
Economy/Technology

Stock market extends gains by N81bn

February 7, 2023
Next Post
Consumer commission, CBN, EFCC investigate violations in money lending

CBN moves to reposition dairy sector

Nigeria targets Trans Saharan, Europe gas market

Nigeria urges Turkey to fund oil, gas projects in West Africa

Leave a Reply Cancel reply

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

Recommended Stories

Trade minister assures beer producers of support

Trade minister assures beer producers of support

March 3, 2022
Nigeria begins process for ratification of key ILO conventions

Nigeria begins process for ratification of key ILO conventions

October 26, 2021
AfCFTA’s potential for enterprises dominates discussion

Nigeria places importance on private sector in AfCFTA

January 21, 2022

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • Agriculture accounts for 23.78% of GDP
  • 3 ships discharge frozen fish at Lagos ports – NPA
  • NUPRC gazettes 5 oil industry regulations, completes 6 others

Categories

  • Economy/Technology
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2022 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2022 Domo Tech World - Powered by Thematterspress.

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
Call Us
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?