Tinubu’s Government Did Not Lie About Fuel Subsidy — Presidency

In response to reports suggesting that the government had resumed fuel subsidy payments, Onanuga dismissed such claims as baseless

Abuja, Nigeria – The Special Adviser to the President on Information and Strategy, Bayo Onanuga, has clarified that the administration of President Bola Tinubu did not mislead the public regarding fuel subsidy.

Onanuga made this statement on his official X page, addressing allegations that the current government has not adhered to its policy of halting fuel subsidy payments.

Onanuga explained that since President Tinubu’s announcement on May 29, 2023, regarding the deregulation of the Premium Motor Spirit (PMS) sector, subsidy provisions have been completely removed from Nigeria’s budget.

He emphasized that these provisions were absent from the supplementary budget of 2023 and are not included in either the 2024 budget or its amended version.

In response to reports suggesting that the government had resumed subsidy payments, Onanuga dismissed such claims as baseless. He stated that the headlines claiming the unearthing of hidden subsidy payments were unwarranted, asserting that the government has remained consistent in its no-subsidy policy.

Onanuga further explained that the Nigerian National Petroleum Company (NNPC) Limited, which is owned by all tiers of government, has been absorbing the rising costs of petrol to shield consumers from the impact of increasing crude oil prices and the devaluation of the naira. However, he warned that the NNPC’s ability to continue this practice is under strain, as the company has indicated that it can no longer sustain the price differential without jeopardizing its financial stability.

This situation, he noted, has significant implications for the financial health of the federal, state, and local governments, as the NNPC’s contributions to the federation account have been below expectations. Onanuga highlighted the urgent need for a solution to ensure the survival of the NNPC, the continuous flow of petrol at the pumps, and the ongoing operation of the government.

Onanuga also expressed optimism that the challenges facing the PMS sector could be mitigated with the full operation of the Dangote Refinery and other local refineries, including the government-owned Port Harcourt Refinery.

He noted that these facilities, once fully operational, would reduce the demand for foreign exchange to import petroleum products, create jobs, and strengthen the Nigerian economy.