The Special Adviser to the President on Information and Strategy Bayo Onanuga has firmly rebutted claims that President Bola Tinubu’s government has been dishonest about its policy on fuel subsidies. Onanuga addressed these concerns in a statement on his official X page, asserting that the government has adhered to its commitment to eliminate fuel subsidies and deregulate the downstream sector of the oil industry.
Onanuga’s clarification comes in response to speculation that the Nigerian Government continued to subsidize fuel despite President Tinubu’s announcement of deregulation on May 29, 2023. He emphasized that fuel subsidy provisions have been removed from Nigeria’s budget, including the supplementary budget for 2023 and the 2024 budget.
“I have read numerous articles accusing the Federal Government of dishonesty regarding fuel subsidy payments, particularly after the NNPC Limited admitted it owed suppliers approximately $6 billion,” Onanuga said. “These reports have been presented with a sense of triumph, as if they have uncovered significant revelations.”
Onanuga insisted that no deceit has occurred. “The government has remained true to its policy of not paying fuel subsidies since President Tinubu’s announcement,” he stated. “Subsidy provisions have not been included in any budget since May 2023. Claims suggesting a return of subsidies are unfounded.”
He explained that the recent financial strain faced by NNPC Limited, which has been unable to sustain the price differential at the pump due to rising crude oil costs and the devalued Naira, has threatened the company’s financial stability. This situation has impacted the Nigerian government’s revenue, as NNPC has struggled to pay into the Federation Account.
“There are no easy choices in this situation,” Onanuga said. “The government must find a way to ensure NNPC’s survival while keeping fuel prices stable and maintaining government operations.”
Onanuga expressed optimism about the potential impact of the Dangote Refinery and other local refineries. “The Dangote Refinery, along with other local refineries including the government-owned Port Harcourt Refinery, will provide significant relief,” he said. “These refineries will create jobs, reduce the need for foreign exchange to import fuel, and ultimately benefit the Nigerian economy.”
He concluded by highlighting the anticipated benefits of increased local refining capacity, which he believes will address the current challenges and improve conditions for Nigerian consumers.
