The Presidency has categorically dismissed recent allegations accusing President Bola Tinubu’s administration of misleading Nigerians regarding fuel subsidy payments. In a statement released on X (formerly Twitter) on Tuesday, Bayo Onanuga, Special Adviser to the President on Information and Strategy, refuted claims that the government had been dishonest following the Nigerian National Petroleum Company Limited’s (NNPCL) admission of approximately $6 billion in outstanding payments to suppliers.
Onanuga criticized several reports for falsely accusing the Federal Government of concealing the truth about fuel subsidy payments. He described these reports as sensationalist and misleading. “There is no discovery, no lie uncovered. The government has been consistent in its policy of ending fuel subsidies since President Tinubu announced the deregulation of the PMS sector on May 29, 2023,” Onanuga clarified. He emphasized that subsidy allocations have been removed from the federal budget and were not included in the Supplementary Budget of 2023, the 2024 Budget, or the amended 2024 Budget.
Onanuga also addressed recent media headlines suggesting that the government had secretly reintroduced fuel subsidies, labeling these claims as unfounded. He explained that the NNPC’s current financial difficulties stem from its inability to absorb the cost difference of subsidized fuel without risking insolvency. This situation, Onanuga noted, has serious implications for the ability of all three tiers of government to function effectively, as the NNPC has been unable to contribute as expected to the Federation Account.
The Special Adviser emphasized that difficult decisions are necessary to ensure the NNPC’s survival, maintain government operations, and keep petrol available at the pumps. He highlighted the importance of local refineries, such as the Dangote Refinery and the government-owned Port Harcourt Refinery, which, once fully operational, could serve as primary suppliers of fuel to the local market.
Onanuga outlined the economic benefits of these refineries, including the creation of well-paying jobs along the value chain and a reduction in the demand for foreign exchange to import petroleum products. He stated, “The operationalization of these refineries will bring significant economic advantages and contribute to reducing the nation’s reliance on imported fuel.”
In summary, the Presidency remains firm in its stance on the deregulation of the petroleum sector and maintains that there has been no reintroduction of fuel subsidies. The focus now is on resolving the financial challenges faced by the NNPC and leveraging local refineries to stabilize the fuel supply and reduce the economic impact on the nation.
