President Tinubu’s Administration Was Truthful About Fuel Subsidies and Deregulation

According to Bayo Onanuga, Special Advisor to the President on Information and Strategy, President Bola Tinubu’s administration did not mislead about eliminating gasoline subsidies and dereglementing the downstream industry.

In a statement posted on his official X page, Onanuga refuted allegations that the current administration has abandoned its gasoline subsidy program after President Tinubu declared the PMS sector’s deregulation on May 29, 2023.

He claimed that subsidies had vanished from Nigeria’s budget and were not there in the 2023 supplemental budget.

Onanuga clarified his remarks in response to rumors that, despite his May 2023 proclamation, the federal government was still providing fuel subsidies.

After NNPC Limited acknowledged it owed suppliers around $6 billion, he stated, “I have read a series of articles attacking the Federal Government for not telling the truth about fuel subsidy payments.”

“The writers of some of the stories wrote them with great pleasure, thinking they had some inside information.

In actuality, nothing has been discovered. Nothing but lies revealed.

Since President Tinubu declared the deregulation of the PMS industry on May 29, 2023, the government has been true to its promise of not providing fuel subsidies.

Subsidy allocations have vanished from the budget since then. It was absent from the 2023 Supplementary Budget, the 2024 Budget, and the 2024 Budget Amendment.

Therefore, it was not justified to publish frenzied headlines about the alleged unraveling of the Tinubu government’s subsidy payment and return of subsidy.

Instead, what went wrong was the admirable decision made by the oil corporation, which is controlled by all levels of government, to absorb the rising cost of gas at the pump and safeguard Nigerian consumers.

“That giving nature exhibited by NNPC Limited, supported by a kind president who would not allow the people to suffer, has been threatened for months by the rising price of oil and the depreciating value of the Naira.

The recently announced insolvency of the NNPC stems from its inability to maintain the pricing disparity on its financial sheet.

Because the NNPC has neglected to deposit government funds into the Federation Account, the situation has wider ramifications for the three levels of government’s capacity to operate.

“It’s not an easy decision.

“Something needs to be done to ensure that NNPC survives, to keep the government’s engines turning and gasoline on the pumps.”

But he asserted that the Dangote refinery’s release of Premium Motor Spirit, or gasoline, to the Nigerian market will undoubtedly lessen the suffering of the general populace.

“That is the situation that is developing,” he stated. “The Dangote refinery and other nearby refineries, which will supply fuel to the local market, may very well be the game changer and major relief giver.”

“Our nation and economy would gain on all fronts when Dangote Refinery and other refineries, including the government-owned Port Harcourt Refinery, come fully online.

Numerous well-paying positions will be generated along the value chain. The enormous need for foreign currency to import petroleum products will also decline.

Disagreement Over New Pump Cost

Tuesday saw a new round of protests following the lingering fuel scarcity situation, when the Nigerian Petroleum Company Limited raised the price of gasoline at the pump from approximately ₦568 to ₦855, ₦897 (depending on the location per liter).

According to our correspondent in Lagos, the NNPCL station on Awolowo Road in Lagos raised the price to ₦855 per liter, notwithstanding the news from Abuja stating that the price had been abruptly increased to ₦897 per litre.

Since NNPCL’s price adjustment, other marketers have also abruptly raised their pricing, with reports of increases of over 30% to over ₦897 per litre.

Previous reports stated that the product’s ex-depot price has increased to ₦754 per litre.

Rumors surfaced that the price was increased to reflect the current worldwide pricing and lessen NNPCL’s debt load.

Reports claiming that the Federal Government gave NNPCL the order to set fuel prices at ₦1,000 have been refuted.

Nnemaka Okafor, special adviser for media and communication to Senator Heineken Lokpobiri, minister of petroleum resources (oil), issued a statement on Tuesday saying, “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.”

Since then, the Nigerian Labour Congress (NLC) has called for the new pump pricing to be reversed.

NLC President Joe Ajaero denounced the action in a statement and charged that the federal government was undermining the labor movement.

“We demand the immediate reversal of the latest increase in the pump of PMS nationwide, the release of all individuals who are detained or facing charges based on allegations that they were involved in the recent protests,” Ajaero stated.

“Stop the arbitrary detention and arrest of citizens on false accusations, reverse the 250% increase in the electricity tariff, and put an end to the Ministry of Labor and Employment’s duties being taken over.”

Put an end to laws that promote hunger and instability, and put an end to the government’s culture of deceit, deception, and terror. Our conviction in our nation and the necessity of preserving its integrity, sovereignty, and general well-being serve as our compass.

Dangote Refinery Introduces Fuel to the Market
News of the NNPCL continuing to be the only product lifter from the refinery surfaced shortly after the Dangote Refinery announced the Tuesday debut of PMS into the Nigerian market.

This gave rise to rumors that NNPCL would keep setting pricing for other oil marketers and that President Tinubu’s administration’s statement of a deregulated downstream market was a fluke.

In a live press conference on Tuesday, Aliko Dangote stated that the Federal Executive Council (FEC) would set the new gas prices.