The Federal Government has rejected claims by the World Bank that government is still paying subsidy on petrol, saying the era of petrol subsidy is “gone for good”.
Speaking in an interview on Channels TV on Thursday, December 14, Minister of Information and National Orientation, Mohammed Idris, said President Bola Tinubu made it clear from his first day in office that his government would stop the payment of subsidy on petrol.
The minister said the subsidy removal had translated to increased revenue accruing to the federation account.
Subsidy is gone, and the President told Nigerians from his first day in office that there won’t be subsidy (on petrol). It is because subsidy has gone that we have so much money available for government to do so many things. Of course, it’s never enough, but fuel subsidy is gone and it’s gone for good.
“There are instances where government needs to come in to see that things don’t go so bad. That’s the responsibility of government. Every rule will also have its self-adjusting mechanism, but I can assure Nigerians that subsidy is gone.
“If you look at the monies accruing to the federation account and the kind of money the states are receiving, you would know that everybody desires that subsidy should go. What do we do with that subsidy, I think, is the next question. We need to scrutinise that, so that Nigerians would have the benefit of the subsidy that has been taken away. Subsidy is gone.”
The FG’s rebuttal comes after the World Bank hinted on Wednesday that current fuel prices in Nigeria were not cost-reflective and that the Federal Government might still be paying subsidy on petrol.
The bank said Nigerians should be paying about N750 per litre as against the current price of N650 in some parts of the country.
The World Bank’s lead economist for Nigeria, Alex Sienaert, during his presentation of the Nigeria Development Update (NDU), December 2023 Edition in Abuja on Wednesday, insisted that there was still subsidy on petrol.
He stated, “It does seem like petrol prices are not fully adjusting to market conditions. So, that hints at the partial return of the subsidy if we estimate what is the cost reflective of the retail PMS price of the would-be and assume that importation is done at the official FX rate.
“Of course, the liberalisation is happening with the parallel rates, which is the main supplier, the price would be even higher. These are just estimates to give you a sense of what cost-reflective pricing most likely looks like.
“We think the price of petrol should be around N750 per litre more than the N650 per litre currently paid by Nigerians.”
14 Responses
If subsidy is gone then why is petrol is still cost these Nigeria when are you going to get better
abeg wen was the last time a government official last told the truth
dem claim the have gotten huge funds that would have been used for management but we haven’t seen it or seen it used
All this is on there own favour, that is the big men, poor man can never enjoy in Nigeria, everything is on bearable to poor man
The fuel price is unbearable for the common man, it put everyone in tight Conner if it should be 400 per liter it could have be better.
If our refineries are working in this our country Nigeria this issue of removal of fuel subsidy will be in d past
If petroleum subsidy is gone as the federal Government claims,then they should ensure to turn around the four refineries in Nigeria. The talk about the turn around maintenance of the refineries have on sincere the start of the present democratic despensation,all to no avail. If the refineries we’re good,it would’ve helped to generate more revenue.
No problem, it’s just a matter of time
The truth about all this subsidy removal will come to limelight.
Governments will keep on disappointing citizens whatsoever.Fuel is a source of corruption
Is federal government saying the world bank data is not correct? What is the secret they are keeping from the public?
Subsidy my foot this government that is full of scammed
All this is to their own favour and not the favour of the poor
What is the business of world bank in Nigeria subsidy matter,how does this subsidy concern the world bank?Tinubu says subsidy is gone,world says Nigeria government is still paying subsidy,who do we know believe?
Na your problems be that because you already frustrated humans life then if you like increase fuel to 3k per litre is still your wahala
Na only that one wey u sabi talk fuel subisy is gone rubbish talk una no go no wetin una go do