"I Can Confirm to You": FG Finally Speaks Truth on Return of Fuel Subsidy
- Nigeria's petroleum minister has clarified the government's alleged continued implementation of fuel subsidy
- The clarification follows several call-outs by some individuals, oil marketers and global organisations that insist otherwise
- The minister highlighted that Nigeria's daily petrol consumption had decreased while daily oil production had increased
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
Senator Heineken Lokpobiri, the minister of state for petroleum (oil), has sought to dispel concerns raised by various individuals and organisations regarding Nigeria's ongoing petrol subsidies.
These claims of a subsidy reintroduction contradict President Bola Tinubu's statement during his inauguration on May 29, 2023, where he announced the removal of the fuel subsidy.
Source: UGC
Notably, Tinubu's administration has faced criticism from politicians, economists, oil and gas industry operators, and international officials, who allege that the government continues to secretly subsidise fuel.
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Minister insists subsidy is gone
In an interview on Channels Television, Lokpobiri clarified that the Nigerian National Petroleum Company Limited (NNPCL) is mandated to intervene whenever necessary.
Lokpobiri explained that President Tinubu's remarks about the subsidy were misinterpreted, noting that the previous administration did not allocate funds for the subsidy in the 2023 budget.
He said:
“And I can confirm to you that subsidy is gone. But there could be strategic interventions from time to time. But officially, subsidy is gone. If you look at the Petroleum Industry Act (PIA), the NNPC, as a national oil company, also has a legal obligation to also intervene from time to time.”
According to ThisDay, the minister contended that if the subsidy had not been eliminated, Nigeria might have faced a situation similar to Venezuela's.
He emphasised that the president's decision to remove the fuel subsidy is not sufficiently appreciated.
Speaking at a recent economic forum in Saudi Arabia, President Tinubu defended his administration's decision to discontinue fuel subsidy payments, insisting that it is in the best interest of the people.
Petrol consumption decreases, oil production increases
During the television program, Lokpobiri mentioned that according to information from NNPCL, the Port Harcourt refinery is expected to become operational by the end of the third quarter of the year.
He also shared that the national oil company reported Nigeria's daily petrol consumption to be between 50 million and 60 million litres.
Regarding oil production, Lokpobiri noted that Nigeria currently produces an average of 1.5 million barrels per day, attributing this increase to the significant reduction in oil theft.
NNPC reports increase in oil production
In related news, Legit.ng reported that the Nigerian National Petroleum Company Limited has announced an increase in Nigeria's oil production.
According to Mele Kyari, the NNPCL's group chief executive officer, Nigeria now produces 1.7 million barrels per day.
This represents a significant increase compared to the 1.28 million barrels per day reported in the previous month.
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Source: Legit.ng
