Nigeria Roundup: $30 billion budget, Shell's asset sale, tragic stampedes

Nigerians continue to protest against economic hardship
People hold placards, as Nigerians protest in the streets during anti-government demonstrations against bad governance and economic hardship, in Lagos, Nigeria August 5, 2024. REUTERS/Francis Kokoroko
Source: REUTERS

$30 billion budget

President Bola Tinubu has presented Nigeria’s 2025 budget, amounting to 47.9 trillion naira ($30 billion), to Parliament. The proposal assumes a benchmark oil price of $75 per barrel and production of just over 2 million barrels per day. Analysts, however, are sceptical about achieving this production target due to sabotage and ageing infrastructure, Semafor Africa reports. Oil sales, which constitute 90% of the country’s foreign exchange earnings, remain the budget’s cornerstone. The plan also forecasts a reduction in inflation from over 34% to 15% by next year, an estimate some economists label as overly optimistic. Ibukun Omoyeni, an economist at Vetiva Capital, anticipates inflation to remain higher than projected, potentially necessitating a supplementary budget.

Shell’s $1.3 Billion Asset Sale

Nigeria has approved a $1.3 billion deal allowing local companies to acquire Shell Plc’s onshore assets. The transaction, initially rejected in October, has now been greenlit by Petroleum Resources Minister Heineken Lokpobiri. Bloomberg reports that Renaissance Africa Energy will acquire Shell Petroleum Development Co., supported by ND Western Ltd., Aradel Holdings Plc, Petrolin Group, FIRS Exploration and Petroleum Development Co., and Waltersmith Group.

Fuel prices drop

Competition in Nigeria’s downstream sector has led to a reduction in petrol prices. Premium Motor Spirit (PMS), previously priced at N1,020 per litre, now sells at N899 following price cuts by the Dangote Refinery in Lagos, the Vanguard reports. This marks a 12% decrease after months of escalating prices that raised consumer concerns. The Nigerian National Petroleum Company Limited (NNPCL) also slashed its prices, dispelling rumours about operational issues at the Port Harcourt Refinery.

Stampedes kill 37 at Charity Events

Charity events aimed at distributing Christmas palliatives turned tragic in Abuja and Okija, Anambra State, claiming at least 37 lives and injuring scores. Twenty-seven fatalities occurred in Okija, while 10 were confirmed dead in Abuja, the Nation reports. The incidents involved crowds rushing to collect rice distributed as aid. Similar stampedes in Ibadan last week left 35 dead. President Bola Tinubu cancelled weekend engagements to mourn the victims, while Zubaida Umar, Director-General of the National Emergency Management Agency (NEMA), called for better crowd management to prevent such tragedies in the future.

Extrajudicial killings

Reports of extrajudicial killings in Nigeria’s Delta State have drawn public condemnation. In December, a 17-year-old boy, Emeka Odogwu, was fatally shot by police in Ozoro for possessing fireworks. In November, Nollywood cameraman Chimezie Opara sustained life-threatening injuries after being shot by operatives of Operation Delta Hawk, the Nation reports. These incidents add to concerns about security personnel’s training and accountability. Critics have called for reforms to curb excessive use of force by law enforcement.

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