Tinubu Gov’t Did Not Lie About Fuel Subsidy – Says Onanuga

Bayo Onanuga, the Special Adviser to President Bola Ahmed Tinubu on Information and Strategy, has articulated a defense of the incumbent administration’s position on fuel subsidy.

Taken to his official X handle on Tuesday, Onanuga asserted that the government has consistently been transparent regarding its policies.

The presidential aide further spoke on the ongoing discourse surrounding fuel subsidies in Nigeria, which has become increasingly contentious in light of the current issues related to fuel supply and pricing.

In response to recent media allegations suggesting that the government has deceived the public concerning fuel subsidy payments, Onanuga stated, “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.”

The presidential aide faulted the reports, describing them as misinformation.

Onanuga suggested that the authors wrongly believed they had exposed a government cover-up.

“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.

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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 condemned the recent headlines indicating a potential reinstatement of fuel subsidies as “excessive” and “unjustifiable.” In contrast, Onanuga commended the Nigerian National Petroleum Company Limited (NNPC Limited) for its initiatives to mitigate the increasing petrol costs and protect Nigerian consumers from the adverse effects.

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 provided additional insights into the existing challenges, asserting, “There are no straightforward options. Action is required to ensure the survival of NNPC, maintain governmental operations, and ensure a steady supply of petrol at the pumps. This is the situation that is developing, and a significant turning point and source of relief may indeed be the Dangote Refinery along with other domestic refineries that will serve as fuel providers for the local market.”

He conveyed a sense of hope that the full functionality of the Dangote Refinery and other local refineries, including the state-owned Port Harcourt Refinery, will positively impact Nigeria’s economy.

He added: “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.”