Special Adviser to the President on Information and Strategy, Bayo Onanuga has defended the administration’s stance on fuel subsidies, stating that the government has remained truthful about its policies.
Onanuga addressed the ongoing fuel subsidy debate in Nigeria through a post on his X (formerly Twitter) handle on Tuesday, amid a growing controversy regarding the country’s fuel supply and pricing.
Responding to recent media reports accusing the government of misleading the public about fuel subsidy payments, Onanuga stated, “I have read a series of articles attacking the Federal Government for not telling the truth about fuel subsidy payments, following NNPC Limited’s admittance it was owing suppliers some $6 billion.”
He dismissed these reports as misinformed, suggesting that the authors wrongly believed they had exposed a government cover-up.
“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 since President Tinubu announced the deregulation of the PMS sector on 29 May 2023,” Onanuga explained.
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 criticised the recent headlines suggesting a return of fuel subsidies as “giddy” and “not justifiable.”
Instead, Onanuga 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.
He noted, “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.”
Onanuga highlighted that the NNPC’s financial challenges, recently acknowledged in a statement by the company, have significant implications for government funding.
“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,” he said.
Onanuga further elaborated on the current predicament, stating, “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.”
He expressed optimism that the full operation of the Dangote Refinery and other local refineries, including the government-owned Port Harcourt Refinery, will benefit Nigeria’s economy.
“When Dangote Refinery and other refineries, including government-owned Port Harcourt Refinery, come fully on stream, our country and economy will benefit on all fronts. There will be many good paying jobs that will be created along the value-chain. There will also be a drop in the huge demand for foreign exchange to import petroleum products.”
LEADERSHIP reports that the country has faced fuel-related challenges, including long queues, fuel scarcity, and price hikes.
The NNPC’s admission of financial difficulties due to the high supply costs of Premium Motor Spirit (PMS) has further fueled concerns about potential fuel price increases, exacerbating the economic hardships faced by many Nigerians.
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