Again, FG Insists Fuel Subsidy is Gone, Speaks on Commencement of N200 Fuel at Filling Stations
- The federal government has said it is not subsidising petrol as purported in a leaked draft report of the Accelerated Stabilisation and Advancement Plan
- It stated that the report is only a draft by Wale Edun, the minister of finance, and is yet to be signed by President Tinubu
- FG asked that the documents be disregarded and that there will be no further discussions on them in the public or media
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Federal Government maintains that the days of fuel subsidies are past.
Source: Getty Images
This was stated in response to a leaked draft report of the Accelerated Stabilisation and Advancement Plan (ASAP), which was given to President Tinubu by Wale Edun, the finance minister, on Tuesday.
Legit.ng earlier reported that the federal government has finally acknowledged that Nigeria will spend up to N5.4 trillion on petrol subsidy in 2024 based on a presentation by the Finance Minister.
Similarly, it was reported that the country may have started a plan to stop paying import tariffs on medications, core foods, and other necessities for six months, a likely attempt to control inflation.
What FG is saying
According to a statement shared by Bayo Onanuga, special adviser to the president on information and strategy on X, the first document titled "Inflation Reduction and Price Stability (Fiscal Policy Measure etc) Order 2024" is being distributed under the false impression that President Bola Ahmed Tinubu has signed it as an executive order.
The other document, titled "Accelerated Stabilization and Advancement Plan (ASAP)," is a 65-page draft document that offers recommendations for enhancing the Nigerian economy. On Tuesday, a copy of the draft was given to President Tinubu."
The ASAP, which aims to overcome significant obstacles to reform measures and promote growth in many economic sectors, revealed that fuel subsidies will cost an estimated N5.4 trillion in 2024, N1.8 trillion higher than in 2023.
FG says documents should be disregarded
FG requested that the media or the general public ignore the two documents.
It emphasised that the documents were not official, sanctioned documents from the Nigerian Federal Government.
The highest government echelon is still reviewing each of the policy recommendations. In fact, one had a "draft" printed quite clearly on it.
It assured the public that the official position on the papers would be made available after thorough examinations and approvals were finished.
According to the coordinating minister of the economy, Wale Edun said:
"The government wants to restate that its position on fuel subsidy has not changed from what President Bola Ahmed Tinubu declared on 29 May 2023. The fuel subsidy regime has ended. There is no N5.4 trillion being provisioned for it in 2024, as being widely speculated and discussed.”
“Our strategy focuses on addressing key factors such as food inflation, which is significantly impacted by transport costs. With the implementation of our CNG initiative, which aims to displace high PMS and AGO costs, we expect to reduce these costs further."
Filling stations to sell CNG fuel at N200
Legit.ng reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has ordered all filling stations across the country to commence the sale of Compressed Natural Gas (CNG).
Engr Farouk Ahmed, the chief executive of NMDPRA, disclosed this during a meeting in Abuja. He said it is now mandatory for filling stations to increase CNG accessibility for consumers.
CNG is a fuel gas under pressure that remains clear, odourless and non-corrosive, an alternative to petrol.
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Source: Legit.ng
