By Ogochukwu Isioma
President Bola Ahmed Tinubu says his earlier statement that petrol “subsidy is gone” was not a new development but a restatement of the federal government’s intention to end subsidy regime by June, 2023.
The President made the clarification on Tuesday in a statement issued by the Asiwaju Bola Ahmed Tinubu Media Centre, and made available to journalists.
On Monday, in his inaugural speech, Tinubu announced the removal of fuel subsidy from July 1, 2023, noting that his government will not provide funds to subsidise the product.
He said he is taking this decision because the 2023 budget has not provided for the payment of fuel subsidy from the second half of the year.
In the 2023 Appropriation Bill signed by his predecessor and immediate-past President Muhammadu Buhari, the provision was only for January 1 to June 30.
“On fuel subsidy, unfortunately, the budget before I assumed office is that no provision is there for fuel subsidy. So, fuel subsidy is gone,” the new Nigerian leader had said.
The president’s declaration was greeted with panic buying from Nigerians as huge fuel queues resurfaced at filling stations across the country, leading to price hike and many independent marketers hoarding the product.
However, in a statement on Tuesday, the President’s media team said the rush to purchase petrol “is needless” as the removal of subsidy on petrol will not happen soon.
The statement partly read, “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.
“He 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.
“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.
“Furthermore, 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.
“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.”
