Headline

Nigeria Still Pays Fuel Subsidy – Yuguda

Isa Yuguda, former Governor of Bauchi State, has disclosed that the federal government continues to pay subsidies on petroleum products, contradicting President Bola Tinubu’s earlier announcement that the fuel subsidy had been eliminated.

President Tinubu, in his inaugural speech last year, declared, “The fuel subsidy is gone,” asserting that the 2023 Budget contained no provision for fuel subsidy, deeming subsidy payments unjustifiable.

However, Yuguda’s revelation casts doubt on the government’s assertion, indicating ongoing subsidy payments despite official claims of its abolition. The International Monetary Fund (IMF) recently recommended Nigeria to phase out costly fuel and electricity subsidies as part of economic reform measures.

Since the purported removal of the subsidy, the price of petrol has surged across major cities, soaring from less than N200 per litre to approximately N700 per litre. This drastic increase has significantly inflated the costs of goods and services, exacerbating economic hardships for millions of citizens.

Yuguda’s statement raises questions about the transparency and effectiveness of government policies concerning fuel subsidies.

”If the IMF says we are paying subsidy then we are,” Yuguda said on Monday during his interview on PolitcsToday.

”But the subsidy that was removed was the one that was going into private pockets and I decoupled that subsidy that ordinarily shouldn’t have been paid.”

”If it should have been paid it should be paid into the treasury of the country and today that revenue increase that we see is reflected in the removal of the monies that were going into the pockets of private individuals is what is going into the treasury of the country.”

”You have that subsidy being paid on petrol products that are pumped through pipelines and in many instances they are pumped through imaginary pipelines, where the pipelines don’t exist, sow e all pay subsidy but that what was the President removed, that is why most states are getting twice or thrice of their allocation.”

Related Articles