President Bola Tinubu says removal of the costly petrol subsidy has enabled Nigeria to ascertain the volume of petrol consumed in the country per day.
While addressing a forum of former lawmakers at the State House in Abuja on Thursday, Tinubu said Nigeria’s petrol consumption has been reduced from “several million liters to now 30 something liters”.
The president stated that the cancellation of the unsustainable subsidy which gulps as much as $3.9 billion from the government coffers has curbed smuggling activities, revealing the accurate amount of petrol consumption in the country.
Speaking on the recurring petrol scarcity, the Nigerian leader said efforts are underway to source alternative energy in order to put an end to the lingering fuel crisis that has become a ritual in Africa’s biggest oil producing state.
“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 looking for magic lamps 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 true consumption how much we are taking,” Tinubu said.
“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,” he added.
Subsidy crippling key infrastructural development
President Tinubu also said that critical infrastructure necessary for economic development has been slowed down due to pumping government’s revenue into subsidies.
He added that as a result of the implicit subsidy, Nigeria has been unable to equip its school facilities, healthcare system and provide social welfare programmes that will bring better return of investment.
“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,” Tinubu said.
President Tinubu ended the age-long popular gasoline subsidy the very day he was sworn into office in a bid to channel funds used to reduce prices of petrol to improve other crucial sectors of the economy.
However, several observers, including the International Monetary Fund holds that Nigeria is still maintaining partial subsidy even as the presidency has vehemently denied this.
The state-owned Nigeria National Petroleum Corporation (NNPC) Limited admitted that it is owing the sum of $6 billion to oil traders due to fuel subsidy, which led to the increase in fuel price again from about N617 to N890 across the country.
