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Business News of Tuesday, 30 May 2023


Public declaration of fuel subsidy removal not “ new development” -Tinubu media centre

Fuel Fuel

The declaration by the recently sworn-in Nigerian President, Bola Ahmed Tinubu stating that Fuel Subsidy has been removed, a move creating panic and chaos in Nigerian energy retail markets is not a new development.

This was disclosed in a statement on Tuesday morning by the Asiwaju Bola Ahmed Tinubu Media Centre, a media and information affiliate of the President.

They added that the panic buying which has come as a result of the declaration is “ needless as it will not take immediate effect until the end of June.

Why this is not a new development

The Tinubu Media Center urged the public that he was merely communicating the status quo, they said:

“The public is advised to note that President Bola Tinubu’s declaration that “subsidy is gone” is neither a new development nor an action of his new administration.

“He was merely communicating the status quo, considering that the previous administration’s budget for fuel subsidy was planned and approved to last for only the first half of the year.

“ Effectively, this means that by the end of June, the Federal Government will be without funds to continue the subsidy regime, translating to its termination.”

Needless panic

They also urged that the panic buying that has come as a result of the announcement is needless as the removal not be immediate, adding:

“The panic-buying that has ensued as a result of the communication is needless; it will not take immediate effect.

“Furthermore, President Tinubu was clear about his plans to re-channel the funds previously devoted to the payment of subsidies into better investments that will cushion the effects of the removal on the general public, especially the poor of the poor.

“This includes but is not limited to investments in public infrastructure, education, healthcare, and jobs that will materially improve the lives of millions of Nigerians and increase their earning potential.

What you should know

Following reactions of panic buying by Nigerians, Mele Kyari, the CEO of NNPC Limited stated that the potential changes to petrol price is not enough reason for Nigerians to engage in panic buying of the commodity.

According to him, the NNPCL is on hand to ensure a continuous and sufficient supply of petroleum products, particularly premium motor spirit (PMS), also called petrol.

According to Kyari, the company is monitoring all its distribution networks to ensure compliance.

He said: “We would like to assure Nigerians that we have sufficient supply of petroleum products, particularly PMS in our country and there is no reason to panic. We understand that people will be scared of potential changes to the price of petrol.

“But that is not enough for people to rush to fuel stations to buy more than what they need. We are watching all the distribution networks, and support facilities and we believe that normalcy will be restored very soon.”