Bayo Onanuga, a spokesperson to President Bola Tinubu, has defended the government’s stance on fuel subsidies, saying that it has been truthful about its policy to deregulate the petroleum sector and end subsidy payments.
The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, in a statement posted on his X handle on Tuesday said the government did not lie about the removal of fuel subsidies.
Onanuga’s statement comes after NNPC Limited admitted to owing suppliers $6 billion, leading to accusations that the government had lied about ending fuel subsidies.
However, Onanuga argued that the government has been consistent in its policy since President Tinubu announced the deregulation of the PMS sector in May 2023, and that subsidy provisions have been removed from the budget.
He explained that NNPC Limited’s decision to absorb the rising costs of petrol was a commendable effort to protect Nigerian consumers, but that it was unsustainable due to rising crude costs and a devalued Naira.
Onanuga highlighted the implications of NNPC’s financial struggles on the Federation Account and the ability of the three tiers of government to function.
He suggested that the solution lies in the completion of local refineries, such as the Dangote Refinery, which will become the primary fuel suppliers to the local market, creating jobs, reducing foreign exchange demand, and benefiting the economy.
