The Presidency has refuted claims that the administration of President Bola Tinubu has misled Nigerians regarding the removal of fuel subsidies. Bayo Onanuga, Special Adviser to the President on Information and Strategy, addressed the allegations following recent statements from the Nigerian National Petroleum Company Limited (NNPCL) about financial strains.
Onanuga’s remarks came in response to reports suggesting that the government’s failure to pay suppliers, amounting to approximately $6 billion, indicated a continuation of fuel subsidy payments. He stressed that President Tinubu’s declaration on May 29, 2023, affirming the end of fuel subsidies, remains valid and unaltered.
“The truth is that there is no discovery. No lie uncovered. The government has been faithful to its policy that it was no longer going to pay fuel subsidies since President Tinubu announced the deregulation of the PMS sector on 29 May 2023,” Onanuga stated. He pointed out that subsidies have been absent from the 2023 Supplementary budget, the 2024 budget, and the amended 2024 budget.
Onanuga explained that the recent admission by NNPC about its financial difficulties is not an indication of ongoing subsidy payments but rather a reflection of the company’s challenges in sustaining fuel prices below the landing cost. He highlighted that NNPC’s commitment to keeping fuel prices stable has led to significant financial strain, impacting its ability to contribute to the Federation Account.
“Rather what has unraveled was the commendable disposition of the oil company owned by all the tiers of government to absorb the rising costs of petrol at the pump and protect the Nigerian consumer,” Onanuga said. He acknowledged the impact of rising crude prices and the devalued Naira on NNPC’s financial stability, which has threatened its operations.
Looking forward, Onanuga expressed optimism about the role of the Dangote Refinery and other local refineries in addressing these challenges. He noted that the full operation of these refineries would not only alleviate the current fuel supply issues but also create job opportunities and reduce the country’s dependence on foreign exchange for petroleum imports.
“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,” Onanuga concluded.
