Banks’ borrowing from the Central Bank of Nigeria falls 76% to N4trn

According to Bayo Onanuga, Special Advisor to the President on Information and Strategy, the administration of President Bola Tinubu did not fabricate any claims on fuel subsidies.

He claimed that subsidies had vanished from Nigeria’s budget and were not there in the 2023 supplemental budget.

In a statement posted on his official X page, Onanuga refuted allegations that the current administration has been betraying its policy of not providing gasoline subsidies ever since President Tinubu declared the PMS sector’s deregulation on May 29, 2023.

He said: “I have read a series of articles attacking the federal government for not telling the truth about fuel subsidy payments, following NNPC Limited’s admission that it owes suppliers some $6 billion.

“Some of the stories have been written with relish, as the authors believe they have uncovered significant scoops.

“The truth is that there is no discovery. No lie uncovered. The government has been faithful to its policy of no longer paying fuel subsidy since President Tinubu announced the deregulation of the PMS sector on May 29, 2023.

”Since then, subsidy provisions have disappeared from the budget. They were not included in the supplementary budget of 2023, the 2024 budget, or the amended 2024 budget.

“So the sensational headlines about the so-called unraveling of Tinubu government’s subsidy payment and the return of subsidies are unjustified.

“Rather, what has emerged is the commendable stance of the oil company, owned by all tiers of government, to absorb the rising costs of petrol at the pump and protect the Nigerian consumer.

”This generous stance by NNPC Limited, supported by a compassionate president unwilling to let the people suffer, has been under threat for months due to the rising cost of crude and devalued naira.

“Recently, the NNPC has indicated that it can no longer sustain the price differential on its balance sheet without risking insolvency.

”This situation has significant implications on the ability of all three tiers of government to function, as the NNPC has failed to contribute to the federation account as expected.

“There are no easy choices. Something must be done to ensure that NNPC survives and keeps the engines of government running and petrol flowing at the pumps.

”This scenario is unfolding, and the game changer and significant relief might well come from Dangote Refinery and other local refineries, which will become suppliers to the local market.

”When the Dangote Refinery and other refineries, including the government-owned Port Harcourt Refinery, come fully online, our country and economy will benefit on all fronts. ”This will create many good-paying jobs along the value chain and reduce the huge demand for foreign exchange to import petroleum products.”