Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has called on the administration of President Bola Tinubu to clarify the alleged return of the fuel subsidy regime. Falana cited Robert Dickerman, CEO of Pinnacle Oil, who recently claimed that the federal government still pays N1 trillion every month for petrol subsidy.
Instead of urging Nigerians to continue to endure the hardship caused by the removal of subsidies on petrol, Falana believes Tinubu should make public the state of the economic policy. Falana also questioned why the Nigerian National Petroleum Corporation Limited (NNPCL) has not responded to the International Monetary Fund (IMF) and the World Bank’s claims of a return to subsidy payments.
Falana stated that during his inauguration on May 29, 2003, President Bola Tinubu announced the end of fuel subsidies and total deregulation of petroleum products. However, at the recently concluded Nigeria International Energy Summit (NIES) held in Abuja, Robert Dickerman revealed that the Nigerian Government still pays N1 trillion every month for petrol subsidy. Dickerman disclosed that a significant subsidy is still in place, adding that this has contributed to the affordable price of the product and potentially fueling smuggling activities to neighbouring countries.
The World Bank has also alleged partial return of fuel subsidy in a report presented in Abuja last December. In justifying its claim, the World Bank said that based on the official exchange rate then, the petrol should sell for around N750 per litre and not the N650 currently being paid by Nigerians. Curiously, the Nigerian National Petroleum Corporation Limited has not deemed it fit to deny the serious allegation that fuel subsidy has been restored.
Since there is no provision for fuel subsidy in the 2023 and 2024 Appropriation Acts, the federal government should confirm or deny the serious allegation and end the opacity surrounding the importation of fuel from foreign countries without any further delay, Falana urged.