The Nation Newspaper

Tag: Fuel subsidies

  • ‘Nigerians urged to adapt to current economic realities’

    ‘Nigerians urged to adapt to current economic realities’

    Nigerians have been called upon to adapt to the current economic realities to foster meaningful progress, as fuel subsidies have long hindered the country’s sustainable development.

    This is as Nigerian professionals across various sectors of engineering, law, healthcare, manufacturing, and science, among others, have been urged to uphold ethical standards and contribute actively to addressing the many challenges facing the nation.

    Speaking at the annual meeting of the Association of Professional Bodies of Nigeria (APBN) in Abuja on Tuesday, former President of the association, Akinloye Olufemi Oyegbola, emphasized the need for Nigerians to embrace a culture of good followership, noting that this is essential for fostering accountability and ensuring that leaders are held responsible to the people.

    Oyegbola criticized the unsustainable practice of subsidies, arguing that it has led to financial irresponsibility.

    He stressed that it is better to confront these issues now, rather than wait for them to escalate further, saying, “Right from when we had the COVID, things have been tiring, trying to fall apart, trying to fall apart.

    “I think when we talk, we should be sincere to the people. When you have a family and each of the parents have a job, if one loses the job, there is a need for that family to adjust.

    “And while that family is adjusting, we expect, for instance, the children who were earlier in private schools, now being put in government schools.

    “These are basic things. So I think we are adjusting already. We didn’t want to adjust before.

    “That’s why it got this bad. If we had adjusted as we are adjusting now, in the past, it wouldn’t be this bad for us. Whatever we call subsidy, you subsidize with what you have.

    “The moment you are borrowing money to put into something that you shouldn’t put it into, it is no more subsidy. You are being lavish. You are being irresponsible.

    Read Also: Fed Govt to institutionalise economic safety nets

    “So what we used to call subsidy in the past was not subsidy because Nigeria had no money to subsidize. You subsidize because it’s believed that you have that money and you are helping a situation. We are not subsidizing.

    “We are only being lavish and we are telling ourselves lies, being insincere with it. And a lot of people, very few of them who had that opportunity, directly or indirectly, are making money from it. Now the reality is on us.

    “It’s unfortunate. All of us are feeling it. But I think it’s earlier now.

    “It’s better now than never. Because it was going to really fall apart if we didn’t face it the way we are facing it. If we had faced it four or five years ago, it wouldn’t be this bad now.

    “We would have been picking up our pieces by now. So whether we like it or not, by the grace of God, we will pick up our pieces. It won’t get too bad for us, by the grace of God”.

    In his farewell remarks, the outgoing APBN President, Manason Garkuwa Rubainu, urged professionals from all fields to stand firm against unethical practices, stressing that working for the benefit of the country is in the interest of every Nigerian.

    He highlighted the pivotal role professionals play in shaping policies and ensuring accountability, saying, “When professionals support bad practices, they weaken society.”

    Rubainu also called for ethical leadership across all professions, urging professionals to uphold high standards and mentor the next generation.

    He emphasized the need for collaboration in addressing challenges and ensuring that Nigeria achieves good governance.

  • Fuel subsidies: Govt has been transparent, says Presidency

    Fuel subsidies: Govt has been transparent, says Presidency

    Presidency has addressed some misconceptions on fuel subsidies.

    Some reports had criticised the federal government and alleged deceit, following Nigerian National Petroleum Company (NNPC) Limited’s declaration of suppliers’ debts of $6 billion and gap between cost and retail price.

    Special Adviser to the President on Information and Strategy, Bayo Onanuga in a statement on his X handle yesterday, clarified that the Tinubu-led government “did not lie about fuel subsidies”.

    According to him, the government has maintained its policy of no longer paying fuel subsidies since President Bola Tinubu’s deregulation of the PMS sector in May 2023, with subsidy provisions disappearing from the budget.

    The President’s spokesman emphasised that the only truth that has come to light is the laudable decision of the Nigerian National Petroleum Company Limited (NNPCL) to absorb rising petrol costs despite having been under threat due to rising crude costs and devaluation of the Naira.

    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 admittance it was owing suppliers some $6 billion.

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

    “The truth is that there is no discovery. No lie uncovered. The government has been faithful to its policy that it was no longer going to pay fuel subsidies since President Tinubu announced the deregulation of the PMS sector on 29 May 2023. Since then, subsidy provisions have disappeared from the budget. It was not in the Supplementary budget of 2023, not in the 2024 budget and the amended 2024 budget.

    “So the giddy headlines about the so-called unraveling of the Tinubu government’s subsidy payment; and return of subsidy were not justifiable.

    “Rather what has unravelled was the commendable disposition of the oil company owned by all the tiers of government to absorb the rising costs of petrol at the pump and protect the Nigerian consumer. That generous disposition by NNPC Limited, backed by a compassionate president unwilling to let the people suffer, has been under threat for months, because of the rising cost of crude and the devalued Naira,”

    Onanuga highlighted the insolvency being faced by the NNPCL as a result of its inability to maintain a balance sheet price differential thus, impacting the government’s ability to function.

    Read Also: Fuel subsidies: Tinubu government transparent, says presidency

    He said: “The NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent. The situation has greater implications for the ability of the three tiers of government to function as the NNPC has failed to pay into the Federation Account, the money that should go to the government,”

    The Presidential spokesman, however, insisted NNPCL must make difficult choices to ensure its survival, as well as maintain government engines, and petrol supply at the pumps.

    Onanuga noted such was the unfolding scenario, adding that the game changer and big relief giver may well be the Dangote refinery and other local refineries which will become the fuel suppliers to the local market.

    “When Dangote Refinery and other refineries,  including government owned Port Harcourt Refinery,  come fully on stream, our country and economy will benefit on all fronts. There will be many good paying jobs that will be created along the value-chain. There will also be  a drop in the huge demand for foreign exchange to import petroleum products,” Onanuga said.