Tinubu’s Administration: Truth Behind Fuel Subsidies

Bayo Onanuga, Special Adviser to the President on Information and Strategy, stated that President Bola Tinubu’s administration did not lie about eliminating petroleum subsidies and deregulating the downstream sector.

Onanuga, who claimed this in a message on his official X page, refuted charges that the current administration has been dishonest to its goal of not paying fuel subsidies since President Tinubu ordered the deregulation of the PMS sector on May 29, 2023.

According to him, subsidy provisions have vanished from Nigeria’s budget and will not be included in the supplementary budget for 2023.

Onanuga’s response came after speculation that the federal government was still providing gasoline subsidies despite his declaration in May 2023.

He stated, “I have read a series of stories condemning the Federal Government for not disclosing the truth regarding fuel subsidy payments, following NNPC Limited’s admission that it owed suppliers over $6 billion.

Some of the tales were written with pleasure because the authors believed they had discovered some scoops.

“The truth is, there is no discovery. “No lie revealed.”Since President Tinubu announced the deregulation of the PMS industry on May 29, 2023, the government has maintained its stance of no longer paying fuel subsidies.

“Since then, subsidy provisions have been removed from the budget. It was not in the Supplementary budget of 2023, the 2024 budget, or the modified 2024 budget.

So the ecstatic headlines about the alleged unraveling of the Tinubu government’s subsidy payment and return of subsidy were unjustifiable.

“Rather, what has unravelled was the laudable resolve of the oil business owned by all levels of government to absorb rising petrol prices and safeguard Nigerian consumers.

“NNPC Limited’s kind disposition, supported by a caring president reluctant to let the people suffer, has been under threat for months due to rising crude prices and a devalued Naira.

“The NNPC lamented lately that it can no longer sustain the price disparity on its balance sheet without becoming insolvent.

The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government.

“There are no easy choices.

“Something must be done to make NNPC survive, keep the engines of government running and petrol flowing at the pumps.”

He, however, said the introduction of Premium Motor Spirit or petrol by the Dangote refinery into the Nigerian market, would definitely alleviate the suffering of the masses.

He said, “That is the scenario that is unfolding and the game changer and big relief giver may well be the Dangote refinery and other local refineries which will become the fuel suppliers to the local market.

“When Dangote Refinery and other refineries, including government owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts.

There will be many good paying jobs that will be created along the value-chain. There will also be a drop in the huge demand for foreign exchange to import petroleum products.”

Uproar On New Pump price

There was a fresh uproar on Tuesday after the Nigerian Nigerian Petroleum Company Limited increased petrol pump prices from around ₦568 to ₦855, ₦897 (depending on the location per litre) amid lingering fuel scarcity crisis.

While the report from Abuja said price was jerked up to ₦897 per litre, our correspondent in Lagos said NNPCL station at Awolowo Road in Lagos increased price to ₦855 per litre.

Other marketers have since jerked up prices too following NNPCL’s price adjustment, with over 30 per cent increments reported, to around ₦897 per litre.

Reports earlier revealed a hike in the ex-depot price of the product to ₦754 per litre.

Speculations revealed the price was reviewed upward to reflect the global price and to reduce the debt burden on NNPCL.

The Federal Government has denied ordering NNPCL to set fuel prices at ₦1,000.

“The federal government is compelled to address the outright falsehoods currently being circulated on social media, which claim that the Minister of Petroleum Resources (Oil), Senator Heineken Lokpobiri, has directed the Nigerian National Petroleum Company Limited to inflate petroleum prices above the approved pump price,” said a Tuesday statement by Nnemaka Okafor, special adviser, media and communication, to the Minister of Petroleum Resources (Oil), Heineken Lokpobir.

The Nigerian Labour Congress (NLC) has since called for a reversal of the current pump pricing.

NLC President Joe Ajaero condemned the action in a statement, accusing the federal government of disrespecting the labour movement.

Ajaero stated, “We demand the immediate reversal of the latest increase in the pump of PMS across the country, as well as the release of all those incarcerated or being prosecuted on the basis of their participation in the recent protests.”
Stop the indiscriminate arrest and detention of civilians on false charges, reverse the 250% increase in power tariffs, and end the hijacking of the Ministry of Labour and Employment’s duties.

“End policies that cause hunger and instability; halt the government’s culture of terror, fear, and deception. We are guided by our belief in our country and the need to protect and preserve its sovereignty, integrity, and people’s well-being.”

Dangote Refinery Launches Petrol in Market

Shortly after the Dangote Refinery announced the entrance of PMS into the Nigerian market on Tuesday, it was revealed that the NNPCL will remain the sole lifter of refinery goods.

This sparked concerns that President Tinubu’s administration’s promise of a deregulated downstream market was a fluke, with NNPCL continuing to control prices for other oil marketers.

During a live press conference on Tuesday, Aliko Dangote stated that the Federal Executive Council (FEC) would establish the new petrol pricing.