Bayo Onanuga, the Special Adviser to the President on Information and Strategy, has stated that President Bola Tinubu’s administration has remained transparent about the removal of fuel subsidies and has not reintroduced them.
In a statement on his official X page, Onanuga responded to recent allegations that the government has been unfaithful to its policy of ending fuel subsidy payments since the deregulation of the Premium Motor Spirit (PMS) sector, which President Tinubu announced on May 29, 2023. He clarified that there are no subsidy provisions in Nigeria’s budget following the deregulation.
"I have read a series of articles attacking the federal government for not telling the truth about fuel subsidy payments, following NNPC Limited’s admission that it owes suppliers some $6 billion," Onanuga said. "Some of the stories have been written with relish, as the authors believe they have uncovered significant scoops. The truth is that there is no discovery, no lie uncovered."
Onanuga emphasized that since the deregulation, subsidy provisions were excluded from the 2023 supplementary budget, the 2024 budget, and the amended 2024 budget. He argued that headlines suggesting a return to subsidies under Tinubu’s administration are misleading.
He pointed out that the Nigerian National Petroleum Corporation (NNPC) Limited has chosen to absorb the rising costs of petrol at the pump to protect consumers, despite the financial strain it has caused. "This generous stance by NNPC Limited, supported by a compassionate president unwilling to let the people suffer, has been under threat for months due to the rising cost of crude and devalued naira," Onanuga added.
Onanuga further noted that the NNPC has recently indicated that it cannot continue to absorb these costs without risking insolvency, which has implications for the financial stability of all three tiers of government. He stressed the urgent need for solutions to ensure NNPC’s survival and continued operation.
He also suggested that relief could come from the Dangote Refinery and other local refineries, which are expected to supply the local market soon. "When the Dangote Refinery and other refineries, including the government-owned Port Harcourt Refinery, come fully online, our country and economy will benefit on all fronts. This will create many good-paying jobs along the value chain and reduce the huge demand for foreign exchange to import petroleum products," Onanuga concluded.
The statement comes amid public scrutiny and criticism over the handling of fuel subsidy policies, highlighting the ongoing challenges faced by the Tinubu administration in navigating Nigeria's economic landscape.
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