The Federal Government, in collaboration with the Nigerian National Petroleum Company Limited, has strongly denied the claims made by various individuals and groups regarding the alleged reinstatement of the subsidy on Premium Motor Spirit (PMS), commonly known as petrol.
The government has called on those making these assertions to provide concrete evidence to support their allegations, emphasizing that President Bola Tinubu’s declaration marked the end of the subsidy on petrol, and that the situation remains unchanged.
Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), stressed the sensitivity of the fuel subsidy issue while affirming that the government’s position on the matter was clear. When approached for comment, Lokpobiri’s media aide, Nneamaka Okafor, provided a video clip in which the minister addressed the claims made by former Kaduna governor and marketers. Lokpobiri insisted that petrol subsidy had been eliminated and challenged those alleging ongoing subsidy payments to present factual evidence.
The minister expressed, “I prefer not to delve into that issue. It is a highly sensitive matter. It is essential that we have all the facts. As far as I am concerned, the President has removed the subsidy, and it remains eliminated to this day. If anyone claims that subsidy payments continue, it is incumbent upon them to present the evidence so that we can engage in a discussion based on facts.”
When asked whether the current petrol price is determined by market forces, Lokpobiri responded, “It may not be solely determined by market forces, but let us address the current price as it stands. Every government has a responsibility to undertake certain measures, not only in the petroleum sector but also in various other sectors, to alleviate the impact on Nigerian citizens.”
The Nigerian National Petroleum Company (NNPC) echoed the government’s stance, asserting that it is recovering the full cost of petroleum products imported into the country and emphasizing the absence of petrol subsidy. Currently, NNPC is the sole importer of petrol in Nigeria.
Meanwhile, oil marketers, expressing support for former Governor Nasir El-Rufai’s statements, claimed that the Federal Government had indeed resumed subsidizing Premium Motor Spirit. They argued that the subsidy increased with the rise in the exchange rate of the United States dollar, noting that the government spent more on the subsidy when the dollar was valued at around N1,500. However, they acknowledged that the subsidy had been decreasing due to the recent appreciation of the local currency against the dollar.
Chief Ukadike Chinedu, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), reaffirmed his earlier claim that the petrol subsidy had been reinstated, referring to the government’s approach as “quasi-subsidy” that remained unchanged.
In response to these assertions, Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd, maintained that the national oil firm had ceased subsidizing petrol. He emphasized, “We are recovering our full costs from the products we import. It is important to emphasize that the subsidy is no longer in place. Contrary to allegations, the petrol subsidy has not been reinstated.”
This recent controversy surrounding petrol subsidy comes after the Group Chief Executive Officer of NNPC, Mele Kyari, previously stated that fuel subsidy had not been reintroduced. Kyari’s response followed the confirmation by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) regarding the return of fuel subsidy. Festus Osifo, the President of PENGASSAN, attributed the presence of the subsidy to the cost of crude oil in the international market and the exchange rate.
As the debate on petrol subsidy continues, it remains to be seen whether the government and oil marketers can reach a consensus on the matter, considering the conflicting viewpoints and the impact on the Nigerian populace.
