- FG owes NNPCL N2.8trn – Kyari
- Don’t dare Nigerians – NLC
BY FESTUS OKOROMADU, ABUJA
President Bola Tinubu, on Tuesday, gave further clarification on his administration’s stand on petrol subsidy removal.
The President, in a statement, said the Federal Government remained committed to sustaining the subsidy payment era till the end of June as contained in the 2023 budget.
Responding to reactions trailing the earlier declaration through his Twitter handle, President Ahmed Bola Tinubu GCFR @NgrPresGCFR, the President assured the public of re-channeling of funds previously devoted to subsidy payment into other investments.
The statement reads in part, “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 of 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.”
Meanwhile, the House of Representatives has commended the President’s action while appealing to Nigerians to be patient with the new administration.
Addressing the House on Tuesday under a motion of urgent public importance, a member, Jimoh Olajide, said the decision was timely.
He therefore, charged Nigerians to prayerfully allow the President to deliver on his promises.
The House further appealed to Nigerians to be patient and prayerful to allow the President deliver on his promises.
FG owes NNPCL N2.8trn, says Kyari
Similarly, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, on Tuesday, in Abuja said the Federal Government still owes the company N2.8trn that it had spent on petrol subsidy.
“Today, we are waiting for them to settle up to N2.8trn of NNPC’s cash flow from the subsidy regime and we can’t continue to build this,” Kyari told State House Correspondents after meeting with President Bola Tinubu at the Presidential Villa, Abuja.
He confirmed that the subsidy would not be continued.
Affirming the President’s stance, Kyari argued that the subsidy payment was no longer tenable as it made it difficult for the company to fund its core businesses.
He said, “Since the provision of the N6trn in 2022, and N3.7trn in 2023, we have not received any payment whatsoever from the Federation.
“That means they (Federal Government) are unable to pay and we’ve continued to support this subsidy from the cash flow of the NNPC. That is, when we net off our fiscal obligations of taxes and royalty, there’s still a balance that we’re funding from our cash flow. And that has become very, very difficult and affecting our other operations.
“We’re not able to keep some of this cash to invest in our core businesses. And the end result is that it can be a huge challenge for the company and we have highlighted this severally to the government that they must compensate NNPC and they must pay NNPC back for the money that we have spent on the subsidy.”
Kyari who said the NNPCL had footed petrol subsidy from its cash flow said the government was unable to pay back the N2.8trn spent so far.
“So, today, the country doesn’t have the money to pay for subsidies. There’s incremental value that will come from it. But it is not an issue of whether you can do it or not because, today, we can’t afford it and they are not able to pay our bill. That comes to how much the federation owes NNPC now.
“Today, we are waiting for them to settle up to N2.8tn of NNPC’s cash flow from the subsidy regime and we can’t continue to build this,” he explained.
Kyari said the reemerging petrol queues nationwide were understandable as marketers will like to understand the meaning of the President’s pronouncement that “subsidy is gone.”
He said that the uncertainty on the remark also caused consumers to rush for the product, causing queues.
The NNPCL boss assured Nigerians that the government would initiate measures to cushion the effects of the subsidy discontinuance.
We’re outraged – Labour
Meanwhile, the Nigeria Labour Congress has said its members are outraged by the President’s subsidy removal pronouncement on inauguration day.
NLC in a statement by its President, Comrade Joe Ajaero, noted that a few hours after the pronouncement, some marketers shut down their filling stations, and immediately, there was a price hike in some places.
The statement read, “We at the Nigeria Labour Congress are outraged by the pronouncement of President Bola Tinubu removing fuel subsidy without due consultations with critical stakeholders or without putting in place palliative measures to cushion the harsh effects of the ‘subsidy removal’.
“Within hours of his pronouncement, the nation went into a tailspin due to a combination of service shutdowns and product price hikes, in some places representing over 300 per cent price adjustment.
“By his insensitive decision, President Tinubu on his inauguration day brought tears and sorrow to millions of Nigerians instead of hope. He equally devalued the quality of their lives by over 300 per cent and counting.
“It is no heroism to commit against the people this level of cruelty at any time, let alone on an inauguration day. If he is expecting a medal for taking this decision, he would certainly be disappointed to receive curses for the people of Nigeria consider this decision not only a slight but a big betrayal.”
