Former vice-president, Atiku Abubakar has requested clarity regarding petrol subsidy policy as well as crude oil refining from the federal government.
Abubakar, via a post on his official X page on Monday, said reports concerning the government’s continuation of the subsidy on petrol is an indication of the “unclear” governance under President Bola Tinubu’s administration.
TheCable, on Monday, publicized a report that President Tinubu approved a request by the Nigerian National Petroleum Company (NNPC) Limited to make use of the 2023 final dividends due to the federation to pay for the petrol subsidy.
An NNPC forecast seen by the news oulet indicated that the cumulative petrol subsidy bill from August 2023 will hit N6.884 trillion come December — leaving the national oil company unable to pay N3.987 trillion in taxes and royalties to the federation account.
Abubakar mentioned that only transparent governance can provide Nigerians with relief from “the debilitating conditions of fuel scarcity and the escalating inflation affecting petroleum products”.
Tinubu, when delivering his inauguration speech on May 29, 2023, said that the subsidy on petrol “is gone”.
“The latest revelations circulating through credible media outlets regarding the federal government’s covert continuation of the subsidy on premium motor spirit (PMS) represent another chapter in the opaque governance under President Bola Tinubu’s administration,” Atiku said.
“This development starkly contrasts with the president’s firm assertions in a national broadcast, which followed closely on the heels of public protests decrying poor governance, where he declared the subsidy regime concluded.
“However, disclosures prior to his announcement have consistently indicated a resurgence of subsidy payments, albeit through less transparent means.
“This dissonance between the president’s words and his actions not only undermines the moral fabric of his leadership but also significantly erodes the credibility of his administration.
“At a time when the nation grapples with severe fuel scarcity and escalating energy costs, the continued delays in the re-operation of the Port Harcourt refinery stand as a national disgrace — a failure that rests firmly on the shoulders of president Tinubu, who also holds the office of the minister of petroleum resources.
“Moreover, the persistent denials by NNPC Limited only exacerbate the plight of Nigerians, who endure severe difficulties due to fuel shortages and resultant price inflations.
“Amidst a contentious dispute between local investors favouring refinery operations and those advocating for imported PMS, the president’s silence is profoundly disconcerting.
“It is paramount that the president, who is intrinsically responsible for overseeing and intervening in such critical disputes to safeguard national interests, steps up to fulfil these expectations.
“It is imperative, therefore, that the Tinubu administration urgently clarifies the entanglements surrounding the subsidy policy and the refining of PMS.”
The former vice-president said the alleged fund diversions by NNPC heightens confusion in the petrol subsidy controversy.
“The veil of secrecy shrouding the downstream petroleum sector, coupled with alarming reports of NNPC Limited diverting funds intended for other purposes to cover subsidy payments, adds layers of confusion that are unbearably unsettling.”
He, however, cautioned that if these reports are true, they could have grave consequences on the integrity of fiscal federalism.
The NNPC, on January 3, strongly denied the return of petrol subsidy, noting that it had been removed totally.
But on April 15, the former governor of Kaduna state, Nasir el-Rufai, said the federal government is now spending more on petrol subsidy than before.
Also, the chief executive officer of Rainoil Limited, Gabriel Ogbechie, on April 17, claimed that the government now spends N600 billion on petrol subsidy monthly.