President Bola Tinubu said the removal of fuel subsidy has helped reduced Nigeria’s petrol daily consumption from several millions of liters to about 30 million liters.
President Tinubu made this statement on Thursday during a meeting with a group of former lawmakers at the State House in Abuja.
He explained that following the removal, the country now has an accurate understanding of its petrol consumption, which has significantly disrupted smuggling activities.
Tinubu emphasized that Nigerians should not only focus on achieving lower petrol prices but also work towards energy security as a long-term solution to the oil and gas challenges the nation faces.
“People are complaining of petroleum crisis. First of all, we must have fuel security. Yes, we have crude oil in the ground. But do we have the capacity to bring it up before we refine and distribute? Have we examined alternative sources of energy with all that the world has given to us?
“When I resumed, I said the subsidy was gone. There was no subsidy in the budget handed over to me. I can’t be creative look for magic lamp to create budget. Ever since, we maintain that position. From several millions of liters (of petrol), now we are down to 30 something. We are now knowing through consumption of how much we are taking.
“We are not here and we should not be here. And I know you are not one of them, the smugglers. Look at the prices across the countries—cameroon, Mali, Burkina Faso, Benin republic to Ghana—check the prices,” Tinubu added.
Subsidy Holding Back Investment in Critical Sectors
Speaking further, the President added that the petrol subsidy was holding back investment in critical areas such as infrastructure, education and health.
He added that as a result of subsidy Nigeria has been unable to equip its school facilities, healthcare system and provide social welfare programmes that will bring better return of investment.
“Imagine how you get here. If you get here by road, how many roads in your communities are passable? Infrastructural deficit, capital spending, financial regulations not followed. I thank many of you. We’ve come a long way, and all I can promise is that I will do the best.
“I can assure you. I didn’t come to look for money and exploit the situation. I cam to work. I asked for the vote and they gave it to me.
“And we are not able to equip our hospitals, build new classes. If we are spending this money on ourselves, I believe we will get better return, happiness and development programs. If we invest this in our infrastructure to some extent that we are now afraid to even borrow to invest,” Tinubu added.
What you should know
The removal of fuel subsidy has been a contentious issue for some months as crude oil prices increase and the exchange rate continues to depreciate, leading critics to suggest partial subsidy remains despite talk of a removal.
Several observers maintain that the federal government has restarted the subsidy on petrol since its removal on May 29, 2023.
The Special Adviser to the President on Energy, Mrs. Olu Veŕheijen, said that the Federal Government reserves the right to pay fuel subsidy intermittently to cushion hardship in the country.
On its part, NNPC admitted that it is owing the sum of $6 billion to oil traders due to fuel subsidy, which led to the increase in fuel price again from about N617 to N890 in some places across the country.