Femi Falana, a Senior Advocate of Nigeria (SAN), has asked the federal government to confirm or deny whether petrol subsidies have been restored.
President Bola Tinubu announced the removal of petrol subsidies during his inauguration on May 29, 2023.
This development has worsened Nigerians’ living conditions, as citizens’ disposable incomes continue to fall due to inflation.
Falana said on Sunday that Robert Dickerman, CEO of Pinnacle Oil, claimed at an Abuja conference that the federal government continues to pay N1 trillion in petrol subsidies every month.
The human rights activist said instead of urging Nigerians to continue to endure the hardship caused by the removal of petrol subsidies, the president should go public about the state of the economic policy.
The statement reads:
“During his inauguration on May 29, 2003, President Bola Tinubu announced the end of fuel subsidies and total deregulation of petroleum products. But at the recently concluded Nigeria International Energy Summit (NIES) held in Abuja, the Chief Executive Officer and Managing Director of Pinnacle Oil and Gas Limited, Mr. Robert Dickerman revealed that the Nigerian Government still pays N1 trillion every month for petrol subsidy.”
“Mr. Dickerman who disclosed while participating in a panel discussion disclosed that a significant subsidy is still in place, adding that this has contributed to the affordable price of the product and potentially fueling smuggling activities to neighbouring countries.
“On its part, the World Bank has alleged partial return of fuel subsidy in a report presented in Abuja last December. In justifying its claim then, the World Bank said that based on the official exchange rate, the petrol should sell for around N750 per litre and not the N650 currently being paid by Nigerians.
“Curiously, the Nigerian National Petroleum Corporation Limited has not deemed it fit to deny the serious allegation that fuel subsidy has been restored. Since there is no provision for fuel subsidy in the 2023 and 2024 Appropriation Acts, the federal government should, without any further delay, confirm or deny the serious allegation and end the opacity surrounding the importation of fuel from foreign countries.”
Falana also cited an International Monetary Fund (IMF) report from February 2024, which advised the Nigerian government to phase out all petrol and electricity subsidies in the country, despite the president’s announcement.
