BY GODWIN IJEDIOGOR
FORMER vice president, Alhaji Atiku Abubakar, has condemned the reported return of the fraudulent fuel subsidy, whose end President Bola Tinubu, on assumption of office on May 29, 2023, leading the current economic hardship and public outcry.
Atiku, writing on his X handle, said latest revelations circulating in the media regarding the federal government’s covert continuation of the subsidy on Premium Motor Spirit (PMS) “represent another chapter in the opaque governance under President Bola Tinubu’s administration” adding: “This development starkly contrasts with the President’s firm assertions in a national broadcast, which followed closely on the heels of public protests decrying poor governance, where he declared the subsidy regime concluded.”
Tinubu is reported to have approved the request of the Nigeria National Petroleum Company Limited (NNPCL) to use dividends to pay subsidy, as fuel subsidies that gulped N6.8trillion
The report, which was based on a forecast from NNPC, obtained by an online newspaper, indicated that the total petrol subsidy expenses from August last year to December this year would amount to N6.884trillion, leaving the company unable to remit N3.987trillion in taxes and royalties to the federation account.
Despite denials by the Federal Government, prominent Nigerians, including former President Olusegun Obasanjo, have insisted that the Tinubu administration was still paying fuel subsidies, and the latest BusinessDay report that the President has given his nod for the to the NNPCL to use last year’s final dividends owed to the federation to cover the cost of petrol subsidies, prove that fact.
The newspaper said Tinubu approved a halt on the payment of this year’s interim dividends to the federation to help boost NNPC’s cash flow after the company informed him that due to the subsidy payments, it was unable to pay taxes and royalties into the federation account, referring to this as a “subsidy shortfall/FX differential.”
The exact number of dividends that would be withheld or put on hold could not be verified at the time of filing the report.
In his reaction, Atiku stated: “Disclosures prior to his announcement have consistently indicated a resurgence of subsidy payments, albeit through less transparent means. This dissonance between the President’s words and his actions not only undermines the moral fabric of his leadership, but also significantly erodes the credibility of his administration.
“At a time when the nation grapples with severe fuel scarcity and escalating energy costs, the continued delays in the re-operation of the Port Harcourt Refinery stand as a national disgrace- a failure that rests firmly on the shoulders of President Tinubu, who also holds the office of the Minister of Petroleum Resources.
“Moreover, the persistent denials by NNPCL only exacerbate the plight of Nigerians who endure severe difficulties due to fuel shortages and resultant price inflation.
“Amid a contentious dispute between local investors favouring refinery operations and those advocating for imported PMS, the President’s silence is profoundly disconcerting. It is paramount that the President, who is intrinsically responsible for overseeing and intervening in such critical disputes to safeguard national interests, steps up to fulfil these expectations.
“The veil of secrecy shrouding the downstream petroleum sector, coupled with alarming reports of NNPCL diverting funds intended for other purposes to cover subsidy payments, adds layers of confusion that are unbearably unsettling.”
He said if reports of fuel subsidy return turns out to be true, they portend grave implications for the integrity of our fiscal federalism, noting: “It is imperative, therefore, that the Tinubu administration urgently clarifies the entanglements surrounding the subsidy policy and the refining of PMS.
“Only through transparent governance can Nigerians hope to find relief from the current debilitating conditions of fuel scarcity and the spiralling inflation affecting petroleum products.”
