Fuel Subsidy in Nigeria: The Truth Revealed

The Nigerian government has been urged by a prominent human rights activist, Femi Falana, to confirm or deny if the petrol subsidy has been restored.

This comes after Robert Dickerman, the Chief Executive Officer of Pinnacle Oil, claimed at a conference that the federal government still pays N1 trillion every month for petrol subsidy.

This revelation has sparked controversy and raised questions about the transparency of the Nigerian National Petroleum Corporation (NNPC) and the government’s stance on fuel subsidies.

During President Bola Tinubu’s inauguration on May 29, 2023, he announced the end of fuel subsidies and total deregulation of petroleum products.

However, the recent statement from Mr. Dickerman suggests that a significant subsidy is still in place, which has contributed to the affordable price of petrol and potentially fueled smuggling activities to neighboring countries.

The World Bank has also alleged a partial return of fuel subsidy in a report presented in Abuja last December.

According to their analysis, based on the official exchange rate, petrol should sell for around N750 per liter, not the current N650 being paid by Nigerians.

Despite these claims, the NNPC has not denied the allegations, leaving the public in a state of confusion and uncertainty.

Furthermore, an IMF report from February 2024 advised the Nigerian government to completely phase out petrol and electricity subsidies, despite President Tinubu’s announcement of the removal of fuel subsidies.

This contradictory information has only added to the public’s concern and frustration.

In light of these developments, it is crucial for the government to provide clarity on the issue of fuel subsidies and address the allegations made by the World Bank and Mr. Dickerman.

Transparency and open communication are essential in maintaining public trust and ensuring that the Nigerian economy remains stable and prosperous.