The Presidency has said that the administration of President Bola Tinubu has been truthful about its policies......See Full Story>>.....See Full Story>>
Special Adviser to the President on Information and Strategy, Bayo Onanuga, made the clarification following the increase in the price of petrol in the country as of Tuesday morning.
In a statement through his X (formerly Twitter) handle on Tuesday, Onanuga dismissed recent media reports accusing the government of misleading the public about fuel subsidy payments as misinformed.
He explained that the government has been faithful to its policy of deregulating the PMS sector, announced by President Tinubu on May 29, 2023.
“The truth is that there is no discovery. No lie uncovered. The government has been faithful to its policy that it was no longer going to pay fuel subsidies,” Onanuga said.
He added, “Since then, subsidy provisions have disappeared from the budget. It was not in the Supplementary budget of 2023, not in the 2024 budget, and the amended 2024 budget.”
He praised the Nigerian National Petroleum Company Limited (NNPC Limited) for its efforts to absorb the rising costs of petrol and shield Nigerian consumers from the impact. However, he noted that the NNPC’s financial challenges have significant implications for government funding.
He said, “Rather, what has unravelled was the commendable disposition of the oil company owned by all the tiers of government to absorb the rising costs of petrol at the pump and protect the Nigerian consumer. That generous disposition by NNPC Limited, backed by a compassionate president unwilling to let the people suffer, has been under threat for months, because of the rising cost of crude and the devalued Naira.”
“The NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent. The situation has greater implications for the ability of the three tiers of government to function, as the NNPC has failed to pay into the Federation Account, the money that should go to the government.”
Onanuga added, “There are no easy choices. Something must be done to make NNPC survive, keep the engines of government running and petrol flowing at the pumps. That is the scenario that is unfolding and the game changer and big relief giver may well be the Dangote Refinery and other local refineries which will become the fuel suppliers to the local market.”
Onanuga expressed optimism that the full operation of the Dangote Refinery and other local refineries will benefit Nigeria’s economy, creating jobs and reducing foreign exchange demand for petroleum products.