Amidst confusion and hardship being created over fuel scarcity across the country, the Bola Tinubu Media Centre has said that the announcement by the new President on Monday of the removal of fuel subsidy was not his idea.
Tinubu, in his inaugural address after being sworn in on Monday, said “subsidy is gone.” Hardly had he completed his statement that many fuel stations shut down refusing to attend to attend to buyers.
A statement released by the Media Centre on Tuesday said “The public is advised to note that President Bola Tinubu’s declaration that “subsidy is gone” is neither a new development nor an action of his new administration.” The statement said the new president was “merely communicating the status quo, considering that the previous administration’s budget for fuel subsidy was planned and approved to last for only the first half of the year.”
It went further, “Effectively, this means that by the end of June, the Federal Government will be without funds to continue the subsidy regime, translating to its termination. The panic-buying that has ensued as a result of the communication is needless; it will not take immediate effect.”
It added that President Tinubu was clear about his plans to re-channel the funds previously devoted to the payment of subsidies into better investments that will cushion the effects of the removal on the general public, especially the poor of the poor. It added, “This includes but is not limited to investments in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions of Nigerians and increase their earning potential.” Reacting on Monday, the NNPC Limited, through the Group Chief Executive Officer, Mele Kyari, said there was no need for any panic buying. He said, NNPC Limited welcomes the decision by the Federal Government to remove subsidies on PMS.
Kyari had noted that the removal of the subsidy, which has been a burden on NNPC Limited’s cash flow, will free up funds to enable optimal operations within the company.
Reacting to the scarcity already being experienced, he assured Nigerians of a sufficient supply of the product. NNPC Limited is also monitoring all its distribution networks to ensure compliance.