By Aaior K. Comfort

The presidency has responded to ongoing criticisms concerning the federal government’s stance on fuel subsidies, asserting its commitment to transparency. Special Adviser to the President on Information and Strategy, Bayo Onanuga, addressed the issue on Tuesday, September 3, via his X handle, stating that the Tinubu administration “did not lie about fuel subsidies.”

Onanuga clarified that since President Bola Tinubu’s deregulation of the Premium Motor Spirit (PMS) sector in May 2023, the government has upheld its policy of no longer paying fuel subsidies, with such provisions being excluded from the national budget.

“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,” Onanuga stated. “The truth is that there is no discovery. No lie uncovered.”

He emphasized that the Nigerian National Petroleum Company Limited (NNPCL) has been absorbing rising petrol costs, despite the financial strain caused by increased crude oil prices and the devaluation of the Naira. This move, according to Onanuga, reflects the government’s effort to protect Nigerian consumers from further hardship.

“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,” Onanuga explained, highlighting the broader economic impact.

He also pointed to the expected positive changes once local refineries, including the Dangote Refinery and government-owned Port Harcourt Refinery, begin full operations. These refineries are anticipated to reduce the need for fuel imports, stabilize petrol supply, and create job opportunities within the country.

Onanuga concluded by reaffirming that the government’s approach, though challenging, is necessary for the long-term stability and growth of Nigeria’s economy.