NNPC Ltd’s $6bln debt confirms Tinubu’s truthfulness about fuel subsidy removal – Presidency

The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, has said that the $6 billion owed to oil traders by the Nigerian National Petroleum Corporation Limited (NNPC Ltd.) is evidence that fuel subsidy is gone.

Onanuga, via his official X handle on Tuesday, said that the latest report from NNPC Ltd. serves as clear proof that President Tinubu was truthful about the removal of the fuel subsidy.

He clarified that the debt arose because the budget did not account for the fuel subsidy, leaving the NNPC to bear the burden of the price difference caused by the devaluation of the naira and the high cost of crude oil.

He said: “I have read a series of articles attacking the Federal Government for not telling the truth about fuel subsidy payments following NNPC Limited’s admittance, it was owing suppliers some $6 billion.

“Some of the stories have been written with relish, as the authors believed they have uncovered some scoops.

“The truth is that there is no discovery. No lie uncovered. The government has been faithful to its policy that it was no longer going to pay fuel subsidies since President Tinubu announced the deregulation of the PMS sector on 29 May 2023. Since then, subsidy provisions have disappeared from the budget.

“It was not in the supplementary budget of 2023, not in the 2024 budget, and the amended 2024 budget.

“The NNPC cried out recently because it can no longer sustain the price differential on its balance sheet without becoming insolvent.

“The situation has greater implications for the ability of the three tiers of government to function, as the NNPC has failed to pay into the Federation Account the money that should go to the government.”

Persecondnews recalls that NNPC Ltd. has acknowledged recent reports in national newspapers regarding the company’s significant debt to petrol suppliers.

According to NNPC Ltd.’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, the financial strain has put considerable pressure on the company and poses a threat to the sustainability of fuel supply.

He said: “In line with the Petroleum Industry Act (PIA), NNPC Ltd. remains dedicated to its role as the supplier of last resort, ensuring national energy security.

“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide.”