Tinubu’s govt did not lie about fuel subsidies, deregulation — Presidency

In a statement posted on his official X page, Onanuga refuted claims that the current administration has not adhered to its policy of eliminating fuel subsidies since President Tinubu announced the deregulation of the PMS sector on May 29, 2023.

He noted that subsidy provisions have been entirely removed from Nigeria’s budget and were not included in the supplementary 2023 budget.

Onanuga’s clarification follows speculation that the federal government is still paying fuel subsidies despite his declaration in May 2023.

“I have seen numerous articles criticizing the Federal Government for allegedly being untruthful about fuel subsidy payments, particularly in light of NNPC Limited’s acknowledgment of owing suppliers approximately $6 billion.

“Some of these articles seem to relish this purported revelation, as if they have uncovered significant new information.

“The reality is that there is no revelation or lie to disclose.

“The government has remained consistent in its policy to cease fuel subsidy payments since President Tinubu announced the deregulation of the PMS sector on May 29, 2023.

“Since that announcement, subsidy allocations have been eliminated from the budget. They were absent from the supplementary budget for 2023, the 2024 budget, and the amended 2024 budget.

“Thus, the sensational headlines suggesting the unraveling of the Tinubu government’s subsidy payments or a return to subsidies are unfounded.

“Instead, what has emerged is the commendable response of the oil company owned by all levels of government to absorb the rising costs of petrol at the pump to protect Nigerian consumers.

“This generous stance by NNPC Limited, supported by a compassionate president unwilling to let the populace suffer, has faced challenges for several months due to increasing crude prices and the devalued Naira.

“Recently, the NNPC raised concerns about its ability to maintain the price differential on its balance sheet without risking insolvency.

“This situation has broader implications for the operational capacity of the three tiers of government since the NNPC has not been able to contribute to the Federation Account.

“There are no simple solutions.

“Action must be taken to ensure the NNPC’s survival, keep government services running, and maintain fuel availability at the pumps.”

Onanuga also indicated that the entry of the Dangote refinery into the Nigerian market would significantly alleviate the public’s hardships.

He stated, “This is the unfolding scenario, and the game changer that could provide significant relief may very well be the Dangote refinery along with other local refineries that will supply the domestic market.

“When the Dangote Refinery and others, including the government-owned Port Harcourt Refinery, become fully operational, our country and economy will benefit greatly.

“This will create many quality jobs along the value chain and decrease the substantial demand for foreign currency needed to import fuel products.”

Uproar over new fuel prices

Fresh outrage erupted yesterday after the Nigerian National Petroleum Company Limited (NNPCL) raised petrol pump prices from approximately ₦568 to ₦855 and ₦897 per litre, depending on location, amidst an ongoing fuel scarcity crisis.

Reports from Abuja indicated that the price increased to ₦897 per litre, while a corresponding report from Lagos noted that the NNPCL station on Awolowo Road raised its price to ₦855 per litre.

Other marketers have since adjusted their prices in line with NNPCL’s increase, with reports of hikes exceeding 30%, reaching around ₦897 per litre.

Earlier reports highlighted a rise in the ex-depot price of the product to ₦754 per litre.

Speculation suggested that the price was adjusted upward to reflect global pricing and alleviate the debt burden on NNPCL.

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

“The federal government is compelled to address the outright falsehoods currently circulating on social media, which allege that Minister of Petroleum Resources (Oil), Senator Heineken Lokpobiri, directed NNPCL to inflate fuel prices above the approved pump price,” stated Nnemaka Okafor, the special adviser on media and communication to the Minister for Petroleum Resources.

The Nigeria Labour Congress (NLC) has since called for a rollback of the new fuel prices.

NLC President Joe Ajaero condemned the price increase, accusing the Federal Government of betraying the interests of the labor movement.