President Bola Tinubu announced that the removal of the fuel subsidy has reduced Nigeria’s daily petrol consumption from several million liters to about 30 million liters.
Tinubu made this statement on Thursday during a meeting with a group of former lawmakers at the State House in Abuja.
He explained that, following the subsidy removal, the country now has an accurate understanding of its petrol consumption, which has significantly curtailed smuggling.
The President emphasised that Nigerians should not only focus on lowering petrol prices but also aim for energy security as a long-term solution to the country’s oil and gas challenges.
“People are complaining of petroleum crisis. First of all, we must have fuel security. Yes, we have crude oil in the ground. But do we have the capacity to bring it up before we refine and distribute? Have we examined alternative sources of energy with all that the world has given to us?”
“When I resumed, I said the subsidy was gone. There was no subsidy in the budget handed over to me. I can’t be creative and look for a magic lamp to create a budget. Ever since, we maintain that position. From several millions of liters (of petrol), now we are down to 30-something. We are now knowing, through consumption, how much we are taking.
“We are not here and we should not be here. And I know you are not one of them, the smugglers. Look at the prices across the countries—Cameroon, Mali, Burkina Faso, Benin Republic to Ghana—check the prices,” Tinubu added.
The President also pointed out that the petrol subsidy had stifled investments in critical sectors such as infrastructure, education, and healthcare.
“Imagine how you get here. If you get here by road, how many roads in your communities are passable? Infrastructural deficit, capital spending, financial regulations not followed. I thank many of you. We’ve come a long way, and all I can promise is that I will do the best.
“I can assure you. I didn’t come to look for money and exploit the situation. I came to work. I asked for the vote and they gave it to me.
“And we are not able to equip our hospitals, build new classes. If we are spending this money on ourselves, I believe we will get better return, happiness, and development programs. If we invest this in our infrastructure to some extent that we are now afraid to even borrow to invest,” Tinubu added.
The removal of the fuel subsidy has been a contentious issue, especially as crude oil prices rise and the exchange rate depreciates. Critics argue that a partial subsidy remains despite the claimed removal.
Some observers suggest that the federal government has restarted the subsidy on petrol since its removal on May 29, 2023.
Special Adviser to the President on Energy, Mrs. Olu Verheijen, noted that the Federal Government reserves the right to pay fuel subsidies intermittently to cushion hardship in the country.
Meanwhile, the NNPC admitted to owing $6 billion to oil traders due to fuel subsidies, which has contributed to the increase in fuel prices, now ranging from N617 to N890 in some areas across the country.
