Nigeria Still Paying For Fuel Subsidy

EKO HOT BLOG reports that Former Bauchi State Governor Isa Yuguda has contradicted President Bola Tinubu’s previous statement regarding the elimination of fuel subsidy, asserting that the federal government continues to subsidize petroleum products. This revelation adds to the ongoing discussions surrounding the economic implications of subsidy removal in Nigeria.

President Tinubu had announced the cessation of fuel subsidies in his inaugural speech, a decision not reflected in the 2023 Budget. This divergence highlights the government’s position on subsidy payments, deeming them no longer justifiable.

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The policy shift aligns with recommendations from the International Monetary Fund (IMF), which recently advised Nigeria to eliminate fuel and electricity subsidies as a means to address economic challenges.

However, the aftermath of the subsidy removal has seen petrol prices soar, tripling from less than N200 per litre to approximately N700 per litre across major cities.

Yuguda in an interview on Channels TV said, “If the IMF says we are paying subsidy then we are.

“But the subsidy that was removed was the one that was going into private pockets and I decoupled that subsidy that ordinarily shouldn’t have been paid.

“If it should have been paid it should be paid into the treasury of the country and today that revenue increase that we see is reflected in the removal of the monies that were going into the pockets of private individuals is what is going into the treasury of the country.

“You have that subsidy being paid on petrol products that are pumped through pipelines and in many instances they are pumped through imaginary pipelines, where the pipelines don’t exist, sow e all pay subsidy but that what was the President removed, that is why most states are getting twice or thrice of their allocation.”

Speaking on the economic hardship in the country, the former governor said the average Nigerian will not understand the challenges the president has to face in resolving the economic situation.

He indicated that the members of the president’s cabinet need to help in sensitising the masses on how the government policies will change the nation.