In his inauguration address on the 29th of May, 2023, the President, Bola Tinubu had announced the removal of subsidy on Premium Motor Spirit (PMS) otherwise known as petroleum.
In separate statements, yesterday, the PDP and its presidential candidate, Atiku Abubakar faulted the Presidency’s insistence that fuel subsidy was gone and queried the government for “lying to the citizens.” They premised their position on the content of leaked memos that reportedly emanated from the Office of the Coordinating Minister of the Economy who is Wale Edun, which suggested that N5.4 trillion was spent on fuel subsidy.
In his reaction, the Presidency’s mouthpiece, Mr. Bayo Onanuga reiterated that the position on fuel subsidy has not changed from the President’s declaration on May 29, 2023, that fuel subsidy regime had ended and denied any provision for N5.4 trillion in 2024, as widely speculated.
He said that government was committed to reducing the effects of the fuel subsidy removal eeand easing cost of living pressures on Nigerians, adding that the strategy focuses on addressing key factors such as food inflation, which is significantly impacted by transport costs.
The PDP, in a statement by its National Publicity Secretary, Debo Ologunagba, had argued that the “revelation” that the Federal Government had paid N5.4 trillion secretly as fuel subsidy for 2024 was an indication that the All Progressive Congress (APC)-led administration is a cesspit of corruption, lies and deceit and showed the callousness of the President Tinubu government.
It accused the APC-led administration of forcing Nigerians to buy fuel at over N800 per litre in various parts of the country while trillions of Naira is allegedly being paid as fuel subsidy into private bank accounts associated with corrupt APC leaders.
“Nigerians can recall how the APC leaders in their characteristic manner tried to divert the attention of the public when the PDP earlier alerted Nigerians of this fraudulent act in a statement on the 28 of May, 2024.
“This revelation by Wale Edun, after a series of denials by APC leaders and government officials, validates the axiom that no matter how long the lies appear to thrive, the truth, like the sun, will always prevail.
“Is it not provocative and an act of extreme insensitivity that while our nation is suffering from grave infrastructural decay and millions of Nigerians subjected to punishing hardship, acute poverty, life of misery and utter despondency by the removal of subsidy without cushioning measures, a staggering N5.4 trillion, in the name of fuel subsidy, is reportedly being cornered by the corrupt APC leaders?
“The deceit which is prevalent in the APC government is responsible for plunging Nigerians deeper into destitution with no hope in sight under the current administration.
“Nigerians deserve to know; where is the N5.4 trillion being taken from? Which agency of the government is responsible for the payment of the said fuel subsidy and to who? What is the criteria used for the payment?
“What volume of fuel is being subsidised and at what cost? Why is petrol still selling exorbitantly even with the revelation of the continued payment of fuel subsidy? These are questions that need to be answered.”
Consequently, the PDP charged President Tinubu to immediately clear the air and come clean by personally addressing Nigerians and ordering a public enquiry into the reported N5.4 trillion fuel subsidy under his watch.
The party also urged the president to immediately review his economic team so as to get capable hands to check the alleged corruption in the administration.
“Mr. President must also review the economic policies of the administration that is strangulating the people. Recognising, accepting, and reviewing a flawed economic policy is not weakness but courage. That is what define a leader at a time like this
“President Tinubu should listen to the heartbeat of Nigerians. There is hunger and destitution in the land. The reaction of hungry people is better imagined. Mr. President, please act now, “ the PDP stated.
In his reaction, Atiku accused the Federal Government of diverting public funds through secret payment of fuel subsidy.
Atiku, in a statement by his media adviser in person of Paul Ibe, said this is why the government has refused to disclose how much it is supposedly spending on fuel subsidy.
According to him, the supposed secret payment of subsidy was one of the reasons investments in the oil sector had refused to come in.
The former vice president noted that while the president said fuel subsidy was gone, his Special Adviser on Energy, Olu Verheijen, and Edun were saying a different thing. While Verheijen said they were intervening from time to time, Edun said the subsidy removal was an ongoing process.
“A document authored by the Coordinating Minister of the Economy revealing how much subsidy is being paid is now being disowned by the authors of the very document.
“Both the World Bank and the International Monetary Fund (IMF), have revealed in separate reports that Nigeria is still paying petrol subsidies, but the Bola Tinubu administration has refused to come clean. Even a senior member of the APC had revealed that subsidy was being paid.
He said, “For a man who claims to be on a mission to attract foreign direct investment, it is ironic that he cannot see that his policy flip flops and lies are capable of dissuading investors. He must come clean on this subsidy issue since he doubles as the petroleum minister. The Tinubu administration should be courageous enough to own its policies and outcome with its full chest, and responsible enough to be accountable for its actions to Nigerians.”
According to him, the government’s stance lends credence to claims that money meant for the Federation Account, which ought to be shared to states and local governments of the nation, is allegedly being diverted without any form of accountability whatsoever.
Consequently, Atiku Abubakar stated that there was a need for the National Assembly to get to the root of the issue, rather than focusing on frivolities.
He stated, “The National Assembly needs to be alive to its responsibilities, especially in the area of oversight. Posterity will not be kind to members of the National Assembly if they continue to look the other way, while daylight robbery is taking place.”
However, the Presidency has dismissed the two leaked documents, saying that they were not official documents. Mr. Bayou Onanuga, The Special Adviser to the President on Information and Strategy, in a statement, said one of the documents, titled: “Inflation Reduction and Price Stability (Fiscal Policy Measure etc) Order 2024,” was being shared as if it was an executive order signed by President Tinubu.
According to him, the second one was a 65-page draft document with the title, “Accelerated Stabilisation and Advancement Plan (ASAP), which he said contains suggestions on how to improve the Nigerian economy.”
He explained that a copy of the said draft was received by President Tinubu on Tuesday.
“We urge the public and the media to disregard the two documents and cease further discussions on them. None of them is an approved official document of the Federal Government of Nigeria.” He said.
He also said that, “They are all policy proposals that are still subject to reviews at the highest level of government. Indeed, one has ‘draft’ clearly written on it.”
Quoting the Coordinating Minister of the Economy, he said inter alia: “It is important to understand that policymaking is an iterative process involving multiple drafts and discussions before any document is finalised.
He further said, “We assure the public that the official position on the documents will be made available after comprehensive reviews and approvals are completed.”
According to Edun, emanating from the two documents have been reports second-guessing the current government’s policy on customs tariffs, fuel subsidy, and other economic matters.
“The government wants to restate that its position on fuel subsidy has not changed from what President Bola Tinubu declared on May 29, 2023.
“The fuel subsidy regime has ended. There is no N5.4 trillion being provisioned for it in 2024, as being widely speculated and discussed,” Edun had stated.
Clarifying further, Edun said: “As previously stated by government officials, including myself, President Tinubu announced the end of the fuel subsidy programme last year, and this policy remains firmly in place.
He stated, “The Federal Government is committed to mitigating the effects of this removal and easing the cost of living pressures on Nigerians.
Also that, “Our strategy focuses on addressing key factors, such as food inflation, which is significantly impacted by transport costs.
“With the implementation of our CNG initiative, which aims to displace high PMS and AGO costs, we expect to further reduce these costs.
“Our commitment to ending unproductive subsidies is steadfast, just as our dedication to supporting our most vulnerable populations.”
Mr. Onanuga urged the media to always exercise necessary checks and restraints in the use of documents that did not emanate from the official channels so that the public would be properly informed, guided and also educated on government policies and programmes.
Chinedum Anayo