Bayo Onanuga, Special Adviser to the President on Information and Strategy, has defended the administration’s stance on fuel subsidies, maintaining that the government has been truthful about its policies.
Onanuga addressed the controversy surrounding Nigeria’s fuel supply and pricing through a social media post on Tuesday.
He responded to recent media reports accusing the government of misleading the public about fuel subsidy payments, following NNPC Limited’s admission that it owed suppliers approximately $6 billion.
Onanuga dismissed these reports as misinformed, suggesting that the authors had wrongly assumed they had uncovered a government cover-up.
Onanuga explained that the government had consistently communicated its policies and decisions regarding fuel subsidies to the public, and that the NNPC’s debt to suppliers was a result of legitimate business transactions.
He emphasized that the government was committed to transparency and accountability in its dealings with fuel suppliers.
Onanuga also noted that the government had taken steps to address the issue of fuel subsidies, including the implementation of a new pricing regime and the introduction of measures to ensure transparency and accountability in the petroleum sector.
He assured the public that the government was working to ensure a stable and sustainable fuel supply, and that its policies were guided by the need to protect the interests of Nigerians.
“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.”
Recall 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.
The controversy surrounding fuel subsidies in Nigeria has been ongoing, with some critics accusing the government of lacking transparency in its dealings with fuel suppliers. However, Onanuga’s post aimed to clarify the government’s position and reassure the public of its commitment to honesty and transparency in its policies.
