The Federal Government announced on Thursday that there is no provision for a N5.4 trillion fuel subsidy this year.
This clarification came from Mr. Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Ahmed Tinubu.
In his statement, Onanuga emphasized that the fuel subsidy ended in May 2023 and the government’s stance remains unchanged. “Our commitment to ending unproductive subsidies is steadfast, as is our dedication to supporting our most vulnerable populations,” the government said.
The government also highlighted its efforts to alleviate the impact of the subsidy removal on Nigerians.
“The Federal Government is committed to mitigating the effects of this removal and easing the cost of living pressures on Nigerians,” Onanuga added.
The public was urged to disregard two fiscal documents circulating in the media, which are titled “Inflation Reduction and Price Stability (Fiscal Measures) Order 2024” and “Accelerated Stabilisation and Advancement Plan (ASAP).” Onanuga clarified, “The government wants to restate that its position on fuel subsidy has not changed from what President Bola Ahmed Tinubu declared on 29 May 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.”
The Coordinating Minister of the Economy also reiterated this point, saying, “As previously stated by government officials, including myself, President Tinubu announced the end of the fuel subsidy program last year, and this policy remains firmly in place. The Federal Government is committed to mitigating the effects of this removal and easing the cost of living pressures on Nigerians.”
The government is focusing on key issues such as food inflation, which is significantly affected 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,” the minister explained.
In conclusion, the statement reaffirmed the government’s resolve: “Our commitment to ending unproductive subsidies is steadfast, as is our dedication to supporting our most vulnerable populations.”
