FG not making provision for N5.4trn fuel subsidy in 2024- Presidency replies Atiku

The Presidency has refuted circulating reports claiming that it is presently allocating funds to cover a N5.4 trillion fuel subsidy in 2024.

Following a challenge from Abubakar Atiku, the Peoples Democratic Party (PDP) candidate in the 2023 presidential election, President Tinubu was urged to cease misleading Nigerians regarding his administration’s stance on petrol subsidy.

Atiku asserted that despite Tinubu’s public declarations about petrol subsidy removal, the administration has been clandestinely disbursing trillions of naira for petrol subsidy, with projections indicating a potential subsidy payment of N5.4 trillion this year.

In response, a statement issued by Bayo Onanuga, the Special Adviser to the President on Information and Strategy, reiterated that the era of fuel subsidies has concluded.

“The government wants to restate that its position on fuel subsidy has not changed from what President Bola Ahmed Tinubu declared on 29 May 2023. The fuel subsidy regime has ended. There is no N5.4 trillion being provisioned for it in 2024, as being widely speculated and discussed,” the statement stated.

The Presidency restated the declaration by the Coordinating Minister of the Economy, Wale Edun, when he said “As previously stated by government officials, including myself, President Tinubu announced the end of the fuel subsidy program last year, and this policy remains firmly in place.

It said the Federal Government is committed to mitigating the effects of the removal and easing the cost of living pressures on Nigerians.

“Our strategy focuses on addressing key factors such as food inflation, which is significantly impacted by transport costs. With the implementation of our CNG initiative, which aims to displace high PMS and AGO costs, we expect to further reduce these costs.

“Our commitment to ending unproductive subsidies is steadfast, as is our dedication to supporting our most vulnerable populations,” the statement said in part.

The Presidency also provided its viewpoint on two fiscal policy documents currently circulating.

It clarified that while one of the documents, titled “Inflation Reduction and Price Stability (Fiscal Policy Measure etc) Order 2024,” is being disseminated as if it were an executive order signed by President Bola Tinubu, it is still in the proposal stage.

The Presidency added that the other document, a 65-page draft document with the title “Accelerated Stabilisation and Advancement Plan (ASAP), containing suggestions on how to improve the Nigerian economy, is still in the draft stage, and was just received by President Tinubu on Tuesday.

“We urge the public and the media to disregard the two documents and cease further discussions on them. None is an approved official document of the Federal Government of Nigeria. They are all policy proposals that are still subject to reviews at the highest level of government. Indeed, one has ‘draft’ clearly written on it” the statement partly read.

The Presidency quoted the Coordinating Minister of the Economy, Wale Edun, when he said “It is important to understand that policymaking is an iterative process involving multiple drafts and discussions before any document is finalised,” assuring the public that the official position on the documents, will be made available after comprehensive reviews and approvals are completed.

Emanating from the two documents have been reports second-guessing government’s policy on customs tariffs, fuel subsidies and other economic matters.

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