By Felicia Udeji
The recent developments in the fuel scarcity crisis have left many Nigerians wondering if the promise to end fuel importation is just a distant reality. Despite President Bola Tinubu’s directive for NNPC to sell crude to Dangote and other domestic refineries in naira, the refusal of NNPC to be the sole off-taker of Dangote’s petrol has raised concerns about the government’s commitment to ending fuel importation.
Tinubu’s Announcement: A False Dawn?
In May 27, 2023, President Bola Ahmed Tinubu announced in his first address to the nation an end to fuel subsidy, in his words “Subsidy is Gone”. This move was greeted with mixed reactions. While some hailed the move, describing it as a bold step towards ending the fuel crisis in the country, others criticized it, noting the hardship it would plunge Nigerians into. Amongst their concerns was the fact that no measures were put in place by the FG to alleviate the burdens the subsidy removal would put on Nigerians.
According to Dr. Muda Yusuf, Director-General of the Lagos Chamber of Commerce and Industry, “The removal of fuel subsidy without adequate preparation and palliative measures will lead to significant hardship for Nigerians, especially the vulnerable segments of society.”
In reaction to these concerns, the FG quickly put together palliative schemes, which ended before they even got to the masses. A good case example is the scheme handled by Betta Edu, Minister of Humanitarian Affairs and Poverty Alleviation. We all know the outcome of that scheme.
The Fuel Subsidy Conundrum
The fuel subsidy payments have been a contentious issue. Few months after the proposed removal, there were reports by some online mediums that the payment of subsidy by the FG through NNPC had returned.Premium Times, a Nigerian online newspaper, titled “NNPC spent N7.8tn on fuel subsidy in seven months – Official” published on August 24, 2023,
However, both the FG and NNPC debunked the report, tagging it as false.
The recent revelation by NNPC’s Chief Financial Officer, Umar Ajiya, that the company covered about N7.8tn in “shortfall” in the first seven months of this year, has raised questions about the sincerity of the government’s announcement. Was the announcement just a smokescreen to deceive Nigerians?
According to a report by the Natural Resource Governance Institute, “The lack of transparency and accountability in the fuel subsidy regime has led to widespread corruption and abuse of the system.”
Why did the FG and NNPC deny the reports of still paying subsidy for petrol, only to later affirm it? Is the government trying to hide something, or is it just a case of incompetence?
The NNPC-Dangote Disagreement
The disagreement between NNPC and Dangote over the sale of petrol has further complicated the fuel scarcity crisis. NNPC’s refusal to be the sole off-taker of Dangote’s petrol has raised concerns about the government’s commitment to ending fuel importation.
According to Mr. Tunji Oyebanji, Chairman of the Major Oil Marketers Association of Nigeria, “The disagreement between NNPC and Dangote is a setback to the efforts to end fuel importation and will lead to further scarcity of the product.”
Why is NNPC not willing to buy petrol from Dangote, despite the fact that the refinery is producing high-quality petrol? Is NNPC trying to protect its own interests, or is it just a case of bureaucratic red tape?
NNPC’s Absurd Condition
The condition given by NNPC to buy fuel from Dangote is absurd and raises questions about the government’s motives. NNPC wants Dangote to sell petrol to it at a price that is higher than the current pump price, which will only lead to higher fuel prices for Nigerians.
What are NNPC’s motives for wanting to overburden Nigerians with higher fuel prices? Is it just a case of greed, or is there something more sinister at play?
A New Twist: IPMAN’s Intervention
The squabble between NNPC and Dangote has opened up a new can of worms, with the Independent Petroleum Marketers Association of Nigeria (IPMAN) now willing to explore other options. According to Ukadike Chinedu, National Publicity Secretary of IPMAN, marketers are now free to source their products from any cheaper source, including importing petrol directly or buying from Dangote.
This development will lead to a disparity in petrol prices across the country, as marketers will set prices they deem fit to maximize profit for themselves. The FG will no longer be able to control the price of petrol, just like it’s obtainable with other commodities in Nigeria such as food, gadgets, etc.
This will lead to a chaotic situation where prices will vary from one filling station to another, further complicating the already complex fuel scarcity crisis.
Conclusion
The fuel scarcity crisis is a complex issue that requires a multifaceted approach. However, the recent developments have shown that the government is not committed to ending fuel importation. The promise to end fuel importation remains a distant reality, and Nigerians will continue to suffer until the government takes concrete steps to address the crisis.
To address this crisis,Truth Live News advices the government to be sincere in its approach and put the interests of Nigerians first. The government must:
- Provide transparency and accountability in the fuel subsidy regime to prevent corruption and abuse.
- Â Put in place adequate palliative measures to alleviate the burdens of subsidy removal on Nigerians.
- Encourage and support the development of domestic refineries to reduce reliance on imported fuel.
- Ensure that NNPC and other stakeholders are held accountable for their actions and inactions.
Anything less will be a betrayal of the trust that Nigerians have placed in their leaders. We urge the government to take immediate action to address the fuel scarcity crisis and put an end to the suffering of Nigerians.
Truth Live News will continue to monitor the situation and provide updates as more information becomes available.
