By Milcah Tanimu

Former Minister of State for Defence, Musiliu Obanikoro, has suggested that the Federal Government might be compensating for the widening Dollar-Naira gap in the final price of Premium Motor Spirit (PMS), commonly known as petrol.

In an interview on Channels Television’s Sunrise Daily on Wednesday, Obanikoro discussed the recent removal of the petrol subsidy by President Bola Tinubu, which led to a significant increase in the fuel price, varying from around N184 to over N600 across different regions.

Obanikoro acknowledged the collapse of the foreign exchange rate under the Tinubu administration, with the naira hitting an all-time low. While the World Bank and Robert Dickerman, the CEO of Pinnacle Oil and Gas Limited, asserted that the Federal Government is still subsidizing fuel, human rights lawyer Femi Falana urged the government to clarify its stance on the matter.

In response, Obanikoro pointed out the impact of the depreciating value of the naira against the dollar, emphasizing the need for a cushion to address the economic challenges faced by the country. He suggested that the government might be filling the gap in the petrol price caused by the Dollar-Naira disparity.

While Obanikoro couldn’t specify the extent of this financial intervention, he highlighted the importance of government representatives providing clarity on the matter. He stressed the necessity of transparent communication to keep the public informed and involved in the decision-making process, particularly in times of economic adjustments.

Obanikoro concluded by emphasizing the importance of taking the people along step by step to ensure understanding and acceptance of government policies, especially those affecting essential commodities like petrol.