Buhari reverses self, earmarks $1bn for fuel subsidy in 2019 budget 

President Muhammadu Buhari has reversed himself and earmarked the sum of $1 billion (N305 billion) for fuel subsidy in the 2019 budget.

The President who stated this while presenting the N8.83 trillion 2019 Appropriation Bill to a joint session of the National Assembly on Wednesday, explained that the new subsidy regime involves the Nigerian National Petroleum Corporation (NNPC) being the sole importer of fuel for local consumption.

This, he said, was against practice of the past where marketers presented fictitious claims.

Prior to his assumption of office on May 29, 2015, Buhari had vehemently denied the existence of fuel subsidy and described it as a scam.

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But presenting the 2019 budget, the President said: “We have allowed for N305 billion ($1 billion) for under-recovery by NNPC on PMS in 2019. We will continue working to bring it downwards so that such resources are freed up to meet the developmental needs of our people.

“Let me also take this opportunity to address and clarify the under-recoveries or subsidy on petrol. In a period of economic challenges where purchasing power is weak, we must reduce some of the burden on Nigerians.

“The problem with subsidies in the past is abuse and corruption. Today the government through the NNPC is the sole importer of PMS and therefore, the under-recovery is from the NNPCs trading account. This means the possibility of some marketers falsifying claims is removed”.

The Senate is currently investigating $3.5 billion $3.5bn Subsidy Recovery Fund allegedly created by the state-owned oil firm.

OWEDE AGBAJILEKE, Abuja