The Presidency has provided clarification regarding misconceptions surrounding assertions that the Federal Government has been providing fuel subsidies, which contradicts its initial declaration to deregulate the petroleum sector.
Special Adviser to the President on Information and Strategy, Bayo Onanuga on his verified X handle, said the government has been faithful to its policy of not paying fuel subsidies since President Tinubu announced the deregulation of the PMS sector on May 29, 2023.
Onanuga stated that the Nigerian National Petroleum Company, NNPC, Limited’s admission of owing suppliers $6 billion was not a discovery of a lie, but rather a reflection of the company’s efforts to absorb the rising costs of petrol and protect Nigerian consumers.
He added that the NNPC’s generosity has been under threat due to the rising cost of crude and the devalued Naira and that the company can no longer sustain the price differential on its balance sheet without becoming insolvent.
He disclosed that the Dangote refinery and other local refineries may be the game-changer, as they will become the fuel suppliers to the local market, creating jobs and reducing the demand for foreign exchange to import petroleum products.
