• Cheaper alternative to fuel price
  •  HOME NEWS POLITICS METRO SPORT ENTERTAINMENT OPINION EDUCATION HEALTH INTERVIEW DAILY POST GHANA CONNECT WITH US      Daily Post Nigeria NEWS Osinbajo reveals cheaper alternative to petrol Published   on  September 26, 2020 By  John Owen Nwachukwu  Vice President, Prof Yemi Osinbajo has said that in a determined effort to offer Nigerians an effective option to petrol, the Federal Government will focus on developing Compressed Natural Gas, otherwise known as auto gas, which is priced significantly lower than PMS. Osinbajo stated this during a virtual interactive session hosted by the Africa Report magazine on Thursday. Answering a participant’s questions regarding the removal of petrol subsidy, the Vice President said “we have experienced a severe downturn in our finances over the years, so at 60 percent less revenue, we are in a position where sustaining fuel subsidies is practically impossible simply because we do not have the resources.” According to him, “what we have decided to do is to focus on Compressed Natural Gas (CNG) which is about half the price of petrol today. So, if we use CNG for our cars and for our buses, it will cost between N78 and N80 or so per liter.” Under the Nigerian Economic Sustainability Plan (NESP), the Federal Government’s objective is to promote domestic use of CNG and support the creation of 1 million jobs by maximizing the domestic use of CNG while reducing reliance on refined petroleum products like kerosene and Premium Motor Spirit (PMS). Responding to a question regarding increase in taxes, the Vice President noted that the administration has no plans of increasing taxes, stating that “our position really is that, this is hardly the time to raise taxes”. According to him, “It is even more difficult for people to pay taxes now than ever before, I mean, given the state of affairs, but this is why we’re doing everything now. “We are trying to ensure that businesses survive this period by providing as much support as we can, and by relieving them of as much burden as possible and ensuring that they are able to get some moratorium so that they can at least continue to run their businesses and by all the other interventions and support that we are giving, we hope that those interventions will help businesses. “Our approach is first to ensure that we save jobs. If we save jobs and save businesses, and then do the best we can in agriculture, the housing scheme and all of that, we will actually be able to improve spending and if we are able to improve spending, taxes will definitely improve, and if businesses survive, taxes will improve. So, those are the sort of projections that we are looking at.” NEWS:  Fuel/Electricity Hike: We are not in banana republic - TUC tackles Head of Service It would be recalled that the 2020 Finance Act exempts businesses generating less than N25 million in annual turnover from Companies Income Tax. Also, businesses with a turnover of between N25m and N100m will only pay 20% Companies Income Tax instead of the 30% which was the former applicable rate. The Vice President had recently said it is the plan of the Buhari administration to put money in the hands of Nigerians. Addressing concerns raised about electricity tariffs, the Vice President said the era of subsidizing petrol and electricity was over, noting that government has adopted measures of addressing the situation. His words: “What we are trying to do is to ensure that we are able to reform the electricity industry. The industry is privatized except for the transmission sector. But what we have seen is that the distribution companies (DisCos) are just not able to meet their targets or to even provide electricity on any kind of stable basis now. “The DisCos have been hankering all these years for a cost-reflective tariff and government has been paying the subsidy. In fact, in the past few years, we have spent about N1.3 trillion on subsidies for electricity. Again, here is a situation where that is completely unaffordable. “We want to ensure that new companies come into the market. So, that will be decentralized completely. This way, in several parts of our country, we can have micro-grids, small grids, and all of that. We are doing 5 million solar connections as part of the Economic Sustainability Plan. We think that, with all these, we can electrify our country within a short period of time.” The Vice President added that the overall target of government in the Economic Sustainability Plan is to save existing jobs and revamp businesses by improving the spending capability of Nigerians through the various initiatives in industry, agriculture, mass housing, and the solar connectivity projects. Over 1, 200 persons on different platforms across the world, participated in the virtual event tagged by Africa Report, the organisers as Digital Dialogues. Buhari Govt facing unprecedented challenge - Osinbajo Attack on Buhari: Atiku, PDP have been exposed - APC Strike looms as FG, Labour talks end in deadlock 'We are suffering' - Nigerians lament increase in petrol price to N151.56pl by Buhari govt COVID-19: NUPENG reacts as police kills member in Aba Fuel price hike: APC blames PDP, tells members to return subsidy loot     RELATED TOPICS:OSINBAJO YOU MAY LIKE  Kogi tanker explosion: Details of Osinbajo’s meeting with Gov Yahaya Bello emerge  COVID-19: Osinbajo explains reason behind Buhari’s survival funds for small businesses  Nigeria will get justice for its citizens in Ghana – Osinbajo      ADVERTISE   CONTACT US   DISCLAIMER   PRIVACY-POLICY   TERMS Copyright © Daily Post - Nigeria News
  • Share to earn:
  • 27 Sep '20 - 10:52pm
    6 30
  • Comments (14)
  • harribaba on 27 Sep '20 - 11:09pm
    Nigeria will rise again someday
    2
  • alkali103 on 28 Sep '20 - 06:01am
    Nigerian vice mind your ward oh please you are pastor o
    2
  • chuksdy on 28 Sep '20 - 08:42am
    Please number two citizen be careful of what you say
    2
  • sunday081 on 28 Sep '20 - 12:07am
    thanks for the update
    1
  • mmadu on 28 Sep '20 - 02:38am
    he is not serious
    1
  • thompsonm4 on 28 Sep '20 - 03:00am
    nice information
    1
  • ola1 on 28 Sep '20 - 06:32am
    thanks for the information
    1
  • adeizaj on 28 Sep '20 - 08:57am
    thanks for the information
    1
  • cenzo on 28 Sep '20 - 09:31am
    thanks for the news update
    1
  • arin70 on 18 Oct '20 - 10:02pm
    Thanks for the information
    0
  • thankgodfavour on 28 Sep '20 - 10:44am
    thanks for d information ooooooooiiii
    0
  • yungicezcleff on 28 Sep '20 - 03:09pm
    thanks for the information
    0
  • olarewaju01 on 29 Sep '20 - 12:33pm
    High time we start thinking outside the box.
    0
  • umohjoseph on 09 Oct '20 - 05:19pm
    Thanks for the update
    0
  • Login or Register to comment
  • Others are also reading..