‘Hidden Continuation of Fuel Subsidy Has Serious Consequences,’ Atiku Criticizes Tinubu

Politician and former presidential candidate of the Peoples Democratic Party (PDP) in the 2023 elections, Abubakar Atiku has criticised President Bola Tinubu over reports on the re-introduction of fuel subsidies.

Atiku was reacting to media reports alleging that the president had directed the Nigerian National Petroleum Company Limited (NNPCL) to spend the federation’s dividends on petrol subsidies.

The report further alleged that NNPCL is expected to pause the payment of interim dividends for eight months this year — from May to December for payment of subsidies.

Responding to the report, Atiku in a statement on his verified X handle on Monday, described the move as “covert”, “secretive”, and portending “grave’ implications for the integrity of the country’s federalism.

He said, “The latest revelations circulating through credible media outlets 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.

“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.

“However, 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 NNPC Limited only exacerbate the plight of Nigerians, who endure severe difficulties due to fuel shortages and resultant price inflations.

“Amidst 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 NNPC Limited diverting funds intended for other purposes to cover subsidy payments, adds layers of confusion that are unbearably unsettling.

“If these reports hold true, they portend grave implications for the integrity of our fiscal federalism.

“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.”

The politician’s outburst comes on the heels of recurring fuel scarcity reported across the country.

The President of the Petroleum Products Retail Outlets Owners Association, (PETROAN), Billy Gillis-Harry who was a guest on Channels Television’s Morning Brief on Monday, attributed the scarcity to lingering logistics challenges.

According to him, oil marketers are currently supply constrained, and could “distribute only what we have”.

He said, “I think until we get our supply challenges sorted out efficiently and abundantly, we will not be able to get out of this circle.

“I believe you must have heard the NNPC’s communications director who explained that the issues at stake are still logistics-related.

“So until they get that resolved, we may just be managing the little they bring, and give to us to distribute among our members.

“NNPCL is doing its best to bring in products bit by bit, and we can only supply what we have.”

When asked to give further explanation on what the logistics challenges were all about, he said, “The logistics issue is about ship-to-ship transfer. Until the ship gets products, it cannot deliver to any of the depots. And until depots have products, we the retailers cannot also have access to products,”

He however assured that marketers were in talks with the NNPCL over supply challenges.

He said, “We have been speaking with NNPCL. We encourage them to do more, and I can assure you that they are trying their best.”

Fuel supply shortages had lingered especially in the northern parts of the country for a while, spreading to Lagos State over the weekend.

Channels Television had reported that a litre of the product now sells for between ₦800-₦1,000 in some filling stations, a move that increased the cost of transportation.

Some filling stations were, however, not selling the product as black market racketeers took advantage of the situation to do brisk business.

This is as reports emanated last week, linking the scarcity to debt owed to international oil traders by the Nigerian National Petroleum Company Limited.

However, in a response on Sunday, Chief Corporate Communications Officer, Olufemi Soneye debunked the report.

Soneye, however, acknowledged that it is normal to owe at one point or the other since the oil trading business, transactions are carried out on credit.

“But NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade credit lines from several traders.

“The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis,” he said.