Bayo Onanuga, Special Adviser to the President on Information and Strategy, has stated that President Bola Tinubu’s government did not mislead regarding gasoline subsidies.
He claimed that subsidies had vanished from Nigeria’s budget and were not there in the 2023 supplemental budget.
Onanuga, in a statement on his official X page, denied that the current administration had violated its policy of not paying fuel subsidies since President Tinubu ordered the liberalisation of the PMS sector on May 29, 2023.
He stated, “I have read a series of articles attacking the federal government for not telling the truth about fuel subsidy payments, following NNPC Limited’s admission that it owes suppliers approximately $6 billion.”
“Some of the tales were written with pleasure because the authors believe they have discovered important scoops.
“The truth is, there is no discovery. No lies were discovered. Since May 29, 2023, when President Tinubu declared the deregulation of the PMS industry, the government has adhered to its policy of no longer paying fuel subsidies. “Since then, subsidy provisions have been removed from the budget.
They were not included in the 2023 additional budget, 2024 budget, or 2024 modified budget.”So the spectacular headlines regarding the alleged unravelling of the Tinubu government’s subsidy payment and subsidy return are unfounded.
“Rather, what has developed is a commendable position by the oil firm, which is controlled by all levels of government, to absorb rising petrol prices and protect Nigerian consumers.
“This kind attitude by NNPC Limited, backed by a president who isn’t able to watch the people suffer, has been threatened for months by the growing price of petroleum and the declining value of the naira.
“Recently, the NNPC stated that it cannot sustain the pricing differential on its balance sheet without facing insolvency.”This situation has serious consequences for the ability of the three tiers of government to function, as the NNPC has failed to contribute to the federation account as scheduled.
“There are no easy options. Something must be done to ensure that the NNPC survives and maintains the government’s engines running and fuel flowing at the pumps.”This scenario is emerging, and the game changer and major relief could come from Dangote Refinery and other local refineries that will supply the local market.
“Our nation and economy will benefit on all fronts when the Dangote Refinery and other refineries, including the government-owned Port Harcourt Refinery, come fully online.”Along the value chain, this will generate a large number of well-paying jobs and lessen the enormous need for foreign exchange to import petroleum products.
Bottom Line
This clarification is significant given the recent controversy surrounding the Nigerian National Petroleum Corporation (NNPC) Limited’s admission of owing suppliers approximately $6 billion.
Critics have argued that this debt contradicts the government’s stance on ending fuel subsidies, leading to accusations of dishonesty. However, Onanuga’s explanation suggests that the NNPC’s actions were intended to cushion the impact of rising fuel prices on consumers, rather than reintroduce a formal subsidy.
