Bayo Onanuga, the Special Adviser to the President on Information and Strategy, has refuted claims that President Bola Tinubu’s administration misled the public regarding fuel subsidy payments.
In a statement posted on his official X page, Onanuga clarified that subsidy provisions have been entirely removed from Nigeria’s budget since the president announced the deregulation of the Premium Motor Spirit (PMS) sector on May 29, 2023.
Onanuga addressed recent criticisms following the Nigerian National Petroleum Company Limited’s (NNPCL) admission that it owes fuel suppliers approximately $6 billion, asserting that these do not indicate any policy breach by the government.
“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 stated.
“Some of the stories have been written with relish, as the authors believe they have uncovered significant scoops.”
However, he emphasized that there was no deception involved.
“The truth is that there is no discovery. No lie uncovered. The government has been faithful to its policy of no longer paying fuel subsidy since President Tinubu announced the deregulation of the PMS sector on May 29, 2023.”
Onanuga also pointed out that since the policy change, fuel subsidies have not been included in the national budget.
“Subsidy provisions have disappeared from the budget. They were not included in the supplementary budget of 2023, the 2024 budget, or the amended 2024 budget,” he explained.
He further defended the government against the “sensational headlines” suggesting a return to subsidy payments, calling them unjustified.
Onanuga praised the NNPCL for absorbing rising petrol costs to protect consumers, despite the financial strain it placed on the company and the government.
“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,” he noted.
Onanuga warned of the significant financial implications for the government, stating that “the NNPC has indicated that it can no longer sustain the price differential on its balance sheet without risking insolvency.”
He stressed the need for urgent solutions to ensure the survival of NNPCL and the continuation of petrol supply.
Looking ahead, Onanuga expressed optimism about the potential relief that local refineries, including the Dangote Refinery and the government-owned Port Harcourt Refinery, could provide once they become fully operational.
“This scenario is unfolding, and the game changer and significant relief might well come from Dangote Refinery and other local refineries, which will become suppliers to the local market,” he said.
“When the Dangote Refinery and other refineries 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’s statement aims to reassure the public and dispel concerns over the government’s handling of fuel subsidy issues, emphasizing that the administration remains committed to its policies and the welfare of Nigerian citizens.