By Jemimah Wellington, JKNewsMedia Reporter
THE NIGERIAN Presidency has refuted allegations of reintroducing fuel subsidies, a claim circulating in various reports following the Nigerian National Petroleum Company (NNPC) Limited’s disclosure of a $6 billion debt to suppliers.
Bayo Onanuga, the Special Adviser to the President on Information and Strategy, addressed these misconceptions through his verified X handle.
Onanuga emphasized that the government has adhered to its commitment to deregulate the petroleum sector since President Bola Tinubu’s announcement on May 29, 2023.
He clarified that the absence of fuel subsidy allocations in both the 2023 Supplementary Budget and the 2024 budget underscores the government’s consistent stance.
Onanuga explained that NNPC’s debt, amounting to $6 billion, should not be viewed as a contradiction to the government’s subsidy policy.
Instead, it reflects the company’s efforts to cushion the impact of rising petrol costs on Nigerian consumers.
This strategy, however, is increasingly unsustainable due to escalating crude oil prices and the weakening Naira.
NNPC’s inability to maintain this price differential without jeopardizing its financial stability has led to concerns about the broader economic implications, particularly for government revenues.
The Special Adviser pointed to the potential impact of upcoming local refineries, including the Dangote Refinery and the government-owned Port Harcourt Refinery, as a pivotal shift in Nigeria’s petroleum market.
These refineries are expected to supply the local market, reduce the nation’s reliance on imported petroleum products, and create jobs.
He also expressed optimism that these developments will alleviate the financial burden on NNPC and strengthen the Nigerian economy.
Onanuga concluded by reiterating that the Federal Government’s position remains unchanged, with no plans to revert to fuel subsidies.
The government continues to explore long-term solutions to stabilize the petroleum market and protect the interests of Nigerian consumers.
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