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Fueling Uncertainty: Investigating Nigeria’s Subsidy Removal And Dangote Refinery Debacle* By Sylvester Audu

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Fueling Uncertainty: Investigating Nigeria's Subsidy Removal And Dangote Refinery Debacle* By Sylvester Audu

*Fueling Uncertainty: Investigating Nigeria’s Subsidy Removal And Dangote Refinery Debacle*
By Sylvester Audu

 

 

*In the midst of dwindling revenues and skyrocketing subsidy costs, Nigeria has taken a bold step by removing fuel subsidies, igniting controversy and unrest among its population. Despite the opposition’s claims that subsidy removal will disproportionately affect the poor, the government’s redirection of funds towards crucial sectors such as health and education paints a promising picture for Nigeria’s future. The recent World Bank loan of almost a billion dollars for palliative measures may provide temporary relief, but it is not seen a sustainable solution*.

 

 

Fueling Uncertainty: Investigating Nigeria's Subsidy Removal And Dangote Refinery Debacle*
By Sylvester Audu

 

 

However, the fate of the much-anticipated Dangote Refinery, meant to reduce Nigeria’s reliance on imported petroleum products, remains uncertain as unforeseen technical difficulties delay its completion.

 

 

 

 

 

The Dangote Refinery, announced in 2013 with an initial $3.3bn loan deal with local and foreign banks to fund the construction, was expected to transform Nigeria’s reliance on imported petroleum products and boost the country’s economy. With an initial completion date of 2018, the refinery was planned to produce enough refined petroleum to meet domestic needs and provide a surplus for export. However, the project has been plagued by continuous delays, attributed to factors such as lack of technical expertise, financial constraints, and poor project scoping.

 

 

 

 

 

*Reports suggest that the Dangote Group is lobbying for an additional $3 billion cash injection, which could add to Nigeria’s debt burden and divert funds from more immediate solutions to the subsidy removal. Adding to the concerns surrounding the Dangote Refinery is the agreement between the Nigerian government and the Dangote Group. The Nigerian government in 2021 agreed to provide $2.7billion in cash-and-crude to the Dangote Group to fund the construction of the refinery in return for 20% equity. On December 1, 2021, the Federal Government through NNPC made a payment of $1.038billion in two tranches of $519.5million each to Lekki Refinery Funding Limited account with the beneficiary bank, representing the first cash portion of the deal, with the balance to be paid by the government upon completion of the project. This money was a loan from one of the international finance institutions to NNPC.*

 

 

 

 

 

 

*With the company missing out on interest payments due January 2023 of 750million dollars which is still yet to be paid despite being structured by the banks almost three times, the project is faced with a big dilemma – and with it, Nigeria’s hopes for the refinery.*

As it stands, there is evidence to suggest that the Company has exceeded its single obligor limit with local Nigerian banks and no international bank is willing to extend funds to it. In addition, the company will need at least 3 billion dollars in addition to its annual interest payments of about 700million dollars to complete the project by 2025. Whilst there are already talks for a backdoor arrangement being proposed with the CBN to enable a commercial bank circumvent its single obligor limit to the company in order for it to raise further cash for it to pay its interest obligation of 750million dollars which have fallen due, such a move has been viewed cautiously by supporters and critics of the project alike.

*These reports also suggest that the company unsuccessfully approached the outgoing president Muhammadu Buhari administration to release the remainder cash sum of 1.7billion dollars which was to have been paid upon completion of the project. According to these reports, President Buhari backtracked after further due diligence was done on the project which revealed that the project would not be completed before 2025 unlike the December 2022 date the company had promised at the time of signing the agreement*.

*As a result, intense pressure is now being mounted on the incoming government of Bola Tinubu to pay the remainder sum of $1.7billion dollars upon taking office as well as approve a new cash injection of 3billion dollars and crude for additional 20% equity in the project so the company can raise sufficient cash in the short term to pay outstanding interest costs and complete the project.* This is premised on the fact that the new government has declared it wants to plug revenue gaps by removing the subsidy but the company has now given them the impression that the project will be completed by mid-2024 – which is far from the case. The incoming government must therefore be wary of yet another such lofty promise by the project owners as sources close to the Chinese company brought in to salvage the refinery project say a 2024 date is not feasible.

Should the incoming government go this route, it does nothing to solve the problems with the completion of the refinery, adds further unnecessary debt burden to the country and its citizens, and takes away money from critical and immediate solutions to the subsidy removal. Nigeria is already over-leveraged to the Dangote refinery project.

Many commentators believe that rather than relying on the uncertain completion of the Dangote Refinery, the Nigerian government should focus on the ongoing refurbishing exercise of its existing refineries. This strategy would not only provide a more reliable short-term palliative solution but also pave the way for a smoother transition from imported petroleum products. They should also encourage the modular refineries to ramp up production.

In addition, the Nigerian government should explore alternative strategies, such as investing in renewable energy sources, to reduce the nation’s reliance on imported petroleum products. This approach would provide long-term benefits to Nigeria’s economy and environment, while also fostering self-sufficiency in fuel production.

*The removal of fuel subsidies offers Nigeria a unique opportunity to reassess its priorities and invest in a more sustainable future. By rejecting the new investment proposal for the Dangote refinery which has become an albatross whilst focusing on feasible alternative strategies, Nigeria can emerge stronger and more resilient in the face of global challenges. Can the incoming government afford to mortgage Nigeria’s scarce resources on a false hope? With billions of dollars and the country’s economy at stake, Nigeria cannot afford to pin all its hopes on the Dangote Refinery and even if the new government were to invest further in the project, there must be proper due diligence done before any investment is considered.*

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Governor Dauda Lawal Hails Troops for Successful Fight against Banditry, Terrorism across Zamfara State

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Governor Dauda Lawal Hails Troops for Successful Fight against Banditry, Terrorism across Zamfara State

 

Governor Dauda Lawal has commended the troops of the Joint Task Force (North West) Operation Fansan Yamma for achieving significant operational successes against bandits in Zamfara State. The troops of the Joint Task Force launched an elaborate and coordinated onslaught in the early hours of Thursday, May 7, 2026, in the Kaura Namoda and Birnin Magaji Local Government Areas of Zamfara State. Following the encounter, troops effectively neutralised three gang leaders and recovered a cache of weapons and ammunition, which included an AK-47 rifle, a machine gun, a locally fabricated handgun, seven rifle magazines and a total of 571 rounds of ammunition.

 

Governor Lawal described the renewed military offensive as timely, particularly due to the successful operation recorded on May 10, 2026, which disrupted a significant gathering of notorious terrorist leaders and neutralised several commanders. The troops acted on an intelligence report that confirmed that the terrorists had converged at a concealed location in Tumfa Village, Shinkafi Local Government Area, with the intention to coordinate attacks and criminal activities targeting innocent communities in the state. The Air Component launched a precision airstrike on the identified terrorist hideout that successfully destroyed the structure, which served as the terrorists’ meeting point. The governor further reiterates Zamfara State Government’s commitment to ongoing support and logistics for the military and other security agencies operating in the state.

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Old Students Association rejects alleged commercialisation of Unity School land ‎

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Old Students Association rejects alleged commercialisation of Unity School land



‎By Ifeoma Ikem



‎The Unity Schools Old Students Association (USOSA) has rejected the alleged commercialisation of any unity schools land under the Public-Private Partnerships (PPP) initiative.

‎The association made its displeasure known during their awareness walk to protest the concession of the 33 hectares of land belonging to Federal Government College (FGC) Kano yesterday in Lagos.

‎The members were carrying placards, some of which read “PPP: Save the Future”, “Protect Unity Schools”, “PPP must serve Education not land conversion” and “Schools are not for Real Estate”.

‎President-General of the Unity Schools Old Students Association USOSA Michael Magaji says Public-Private Partnerships (PPP) was designed to improve public institutions, and not strip them of assets or reduce their land.

‎Over 60 Unity schools members were drawn from across the nation for the awareness walk to protest against the alleged sale of the school lands.

‎ The P-G said the association was advocating for a sustainable funding model that would preserve educational assets while improving infrastructure, manpower and learning conditions.

‎“Our coming together is to restore the lost glory of Unity Schools and strengthen Nigeria’s education system. Unity schools are nation-building institutions that have produced leaders across various sectors.

‎ “Unity Schools were not just about education, they were about integration built not by spectators but by active citizens that believe in one nation.

‎ “ The alumni support PPP but oppose the sale of educational assets. Unity never happens by chance but designed, nurtured and protected,’’ he added.

‎He added that the awareness walk brought about by the alumni across the nation was also to have a stronger network to revive the vision of the Unity Schools.

‎Mr Humphrey Nwafor, Lagos Chapter President, Federal Government College, Kano Old Students Association said that they are pushing back against the alleged commercialisation of Unity School lands.

‎Nwafor pointed out that the 33 hectares of land belonging to FGC Kano was concessioned without adequate consultation with stakeholders.

‎“We are saying there is a better option. Instead of selling our lands and assets, we would rather fund the schools ourselves.

‎“If the government says it does not have enough money to run the schools, the old students can provide support without taking one inch of the land,” he said.

‎According to him, the concession arrangement involving the school’s land will undermine the future of unity schools, which were established in the first place to promote national integration.

‎“These schools were established to unite Nigerians from different ethnic and religious backgrounds and we are appealing to President Bola Tinubu to intervene and ensure that public educational assets are protected,” he added.

‎He called on the Federal Government to leverage alumni networks in addressing funding challenges confronting unity schools.

‎“We are in solution mode and impact mode and we believe alumni associations should be integrated into the process of repositioning these schools.

‎“We recently met with officials of the Federal Ministry of Education and discussions are ongoing toward finding mutually beneficial solutions,” he said.

‎Mr Alex Akindumila, President of FGC Idoani Alumni Association said the concession controversy was a national test of how public assets and educational institutions are being managed.

‎He said that they are concerned that reducing lands allocated to unity schools could limit future expansion, agricultural projects, sports facilities, technical workshops and staff accommodation.

‎“The lands allocated to unity schools were deliberate and visionary.“They were designed to ensure that the schools remain self-sustaining and adaptable to future needs.

‎According to him, when you shrink the land of a unity school, you do not just reduce space, but reduce possibility , reduce ability to run agricultural programs that can feed students and teach enterprise, even the space required for sports facilities that build discipline, health and national pride.

‎Also, Mrs Ifeoma Okeke, an alumna of FGC Nsukka, called for transparency, due process and stakeholder engagement in any PPP arrangement involving educational institutions.

‎She said PPP agreements should align with the public purpose of the schools and not diminish their long-term capacity.

‎“There must be transparency, competitiveness and proper stakeholder engagement in any concession process involving public educational assets,” she said.

 

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NAPS Southwest Condemns Delay in Passage of HND,/B.SC Dichotomy Bill, Issues 30 Days Ultimatum to Nigeria Senate and Federal House of Representative

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NAPS Southwest Condemns Delay in Passage of HND,/B.SC Dichotomy Bill, Issues 30 Days Ultimatum to Nigeria Senate and Federal House of Representative

 

The National Association of Polytechnic Students (NAPS) Southwest has strongly condemned the continued delay in the passage of the bill aimed at ending the long-standing disparity between Higher National Diploma (HND) and Bachelor of Science (B.Sc) qualifications in Nigeria. The association has described the delay as unjust, discriminatory, and harmful to the future of polytechnic education in the country.

The NAPS Southwest expressed deep frustration over what it called the unacceptable silence and inaction from the Nigerian Senate and Federal House of Representatives regarding the bill. The proposed legislation seeks to abolish the dichotomy between HND and B.Sc holders, a divide that has for years limited career progression opportunities for polytechnic graduates, particularly in the public sector.

This ongoing delay represents a significant policy gap that must be urgently addressed. The continued discrimination against HND holders contradicts the principles of equity, fairness, and meritocracy that should define Nigeria’s public service.

For years, polytechnic students and graduates have faced systemic discrimination in employment opportunities, career progression, and societal recognition an injustice that undermines the value of technical and vocational education in national development. The proposed bill represents a critical step toward equity, fairness, and the full recognition of polytechnic education in Nigeria.

We therefore call on the current administration and the National Assembly to prioritize the reintroduction and immediate passage of this critical legislation. Nigeria cannot afford to sideline a significant segment of its skilled workforce due to outdated and discriminatory policies.

It is therefore disheartening that the Nigeria Senate and House of Representatives has yet to act decisively on this matter of urgent national importance. The continued delay raises serious questions about the commitment of lawmakers to addressing the challenges faced by millions of Nigerian youths in the polytechnic system.

The NAPS southwest unequivocally calls on the Senate and House of Representatives to, without further delay, deliberate on and pass the bill to end the HND/B.Sc dichotomy. The future of countless students and graduates depends on this decisive action.

The continued delay in passing this bill is a direct attack on the dignity and future of millions of Nigerian students and graduates, the statement read. We cannot continue to tolerate a system that places artificial barriers on capable individuals simply because of the institution they attended.

Failure to meet this demand will leave NAPS Southwest with no choice but to mobilize Nigerian Polytechnic Students and Graduates across the country for peaceful but firm actions to press home our demands. We are prepared to take all legitimate steps necessary to ensure that justice is served.

NAPS Southwest has therefore issued a strong warning to the Senate and House of Representatives, urging lawmakers to prioritize and immediately pass the bill without further delay. The association made it clear that failure to act promptly would trigger nationwide protests and coordinated actions by Nigerian polytechnic students and graduates.

We urge all relevant stakeholders to initiate comprehensive reforms that will harmonize qualification frameworks, ensure equal opportunities for career advancement, and restore confidence in the civil service system.

NAPS Southwest remains committed to advocating for the rights and dignity of polytechnic students and graduates across Nigeria. We will continue to engage constructively with policymakers and mobilize support until justice is achieved.

Signed

Comr Ogunsola Adewale John
NAPS Southwest Coordinator
+234 704 720 2907

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