The Federal Government, along with the Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited (NNPC), has refuted claims made by various individuals and groups regarding the alleged return of subsidy on Premium Motor Spirit (PMS), commonly known as petrol.
Both entities challenged those asserting the return of the subsidy to provide evidence to support their claims, emphasizing that since President Bola Tinubu declared an end to petrol subsidy, the situation remains unchanged.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, highlighted the sensitivity of the issue but reiterated the government’s stance. A video clip provided by Lokpobiri’s media aide, Nneamaka Okafor, showed the minister emphasizing that petrol subsidy no longer exists. He urged those claiming otherwise to present factual evidence.
Lokpobiri stated, “As far as I’m concerned, the President removed the subsidy and it remains removed till today. Anyone alleging that subsidy is still being paid should present evidence.”
Responding to whether the current petrol price is market-driven, Lokpobiri noted that while it might not be entirely market-driven, the government undertakes certain measures to alleviate the burden on Nigerians.
NNPC echoed the government’s stance, emphasizing that they recover their full import costs for petroleum products and insisted that petrol subsidy is no longer in place, as NNPC is Nigeria’s sole petrol importer.
These statements come in response to claims by former Kaduna State Governor, Nasir El-Rufai, and oil marketers, who backed his assertions. El-Rufai had mentioned that the government had resumed subsidizing petrol and emphasized the importance of pragmatic leadership when policies need adjustments.
Oil marketers, represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN), argued that petrol subsidy fluctuates with the exchange rate of the United States dollar. They estimated that petrol prices should be around N900/litre due to the recent appreciation of the naira against the dollar.
Contrarily, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, maintained that NNPC does not subsidize petrol and recovers its full import costs. This stance was previously supported by NNPC’s Group Chief Executive Officer, Mele Kyari, who stated that fuel subsidy had not been reinstated.
Despite these official statements, Festus Osifo, the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), insisted that a form of subsidy exists due to the fluctuating cost of crude oil and the exchange rate.
President Bola Tinubu had declared the end of petrol subsidy during his inaugural address in May 2023, leading to a surge in fuel prices. However, conflicting reports and statements continue to raise questions about the actual status of petrol subsidy in Nigeria.
