Presidential aide Bayo Onanuga has responded to recent articles criticizing the Federal Government for allegedly hiding the truth about fuel subsidy payments following the Nigerian National Petroleum Company Limited’s (NNPCL) admission of owing $6 billion to fuel suppliers. Onanuga argued that these claims are baseless, affirming that the government has remained consistent in its stance on ending fuel subsidies since President Bola Tinubu announced the deregulation of the PMS sector on May 29, 2023. He noted that no provisions for fuel subsidies have been made in the 2023 supplementary budget, the 2024 budget, or the amended 2024 budget.

Onanuga dismissed media reports of the government’s alleged subsidy payments as unfounded, emphasizing that NNPCL has been absorbing the rising fuel costs to protect Nigerian consumers. He acknowledged, however, that this approach is becoming unsustainable due to increasing crude oil prices and the weakened naira, which could impact NNPCL’s financial stability and the broader economy.

The financial strain on NNPCL has led to concerns about its ability to contribute to the Federation Account, affecting the financial operations of the federal, state, and local governments. Onanuga suggested that the situation may improve with the full operation of local refineries, including the Dangote refinery and the government-owned Port Harcourt refinery. He highlighted that these facilities would not only create jobs and reduce the demand for foreign exchange but also ensure a more stable supply of petrol in Nigeria.