Atiku Criticizes Tinubu, Warns of Grave Implications of Covert Fuel Subsidy

Atiku Abubakar challenges President Tinubu over the covert continuation of the fuel subsidy, highlighting the severe implications for Nigeria’s economy and governance.

Abubakar Atiku, a former presidential candidate of the Peoples Democratic Party (PDP) in the 2023 elections and politician, has expressed his disapproval towards President Bola Tinubu’s reported decision to reintroduce fuel subsidies.

Reacting to media reports, Atiku alleged that the president instructed the Nigerian National Petroleum Company Limited (NNPCL) to utilize federation dividends on subsidizing petrol.

According to the report, it is anticipated that NNPCL will suspend issuing interim dividends for a period of eight months this year – spanning from May until December – in order to allocate funds towards subsidy payments.

In reaction to the report, Atiku released a statement via his verified X handle on Monday. He characterized the move as “covert,” “secretive” and warned that it could have serious ramifications for the integrity of federalism in Nigeria.

In reference to the federal government’s covert extension of subsidizing Premium Motor Spirit (PMS), he expressed that it is another instance of opaque governance under President Bola Tinubu’s administration. This information has been disseminated through reliable media outlets and represents a recent revelation.

The recent occurrence sharply contradicts the President’s strong claims made in a nationwide broadcast that declared an end to the subsidy system, presented shortly after public demonstrations demanding better governance.

Nevertheless, previously revealed information strongly suggests a reemergence of financial aid payouts, albeit executed through more opaque methods.

The contradiction between the President’s words and deeds not only weakens the ethical foundation of his leadership but also undermines the credibility of his government.

The nation is currently struggling with significant fuel shortages and rising energy expenses, making the prolonged inactivity of the Port Harcourt refinery a national disgrace. This failure squarely falls on President Tinubu’s shoulders as he serves both as president and Minister of Petroleum Resources.

Furthermore, NNPC Limited’s continual denials worsen the hardships faced by Nigerians who already struggle with fuel shortages and subsequent price hikes.

The President’s profound silence is causing great concern as local investors who prefer refinery operations and those pushing for imported PMS are engaged in a heated dispute.

Fulfilling these expectations is crucial for the President as they have an inherent responsibility to oversee and intervene in critical disputes that threaten national interests.

The downstream petroleum sector is covered in secrecy and coupled with reports of NNPC Limited channeling funds meant for other purposes to cover subsidy payments, causing confusion that can be extremely distressing.

Should these reports prove to be accurate, they indicate significant consequences for the reliability of our fiscal federalism.

Hence, it is crucial for the Tinubu government to promptly elucidate the complexities associated with both the subsidy policy and PMS refining.

Nigerians can only find relief from the current fuel scarcity and soaring inflation of petroleum products if governance is transparent.

The politician’s eruption follows the repeated instances of fuel scarcity that have been documented throughout the nation.

During his appearance on Channels Television’s Morning Brief program on Monday, Billy Gillis-Harry – who holds the position of President for PETROAN (Petroleum Products Retail Outlets Owners Association) – stated that ongoing logistical issues were to blame for the current shortage.

He states that oil marketers are presently limited by supply and can only distribute as much as they have.

“Unless we efficiently and abundantly address our supply challenges, I believe we will remain stuck in this cycle,” he stated.

It is probable that you heard about the explanation given by NNPC’s communications director regarding logistics-related issues which are still unresolved.

“Until that issue is resolved, we will need to make do with the limited resources they provide us and distribute it among our members.”

NNPCL is making every effort to gradually introduce new products, and we are only able to provide what is currently available.

When questioned regarding the specifics of the logistical difficulties, he responded by stating that it pertained to transferring goods between ships. Without receiving supplies on board, distribution to storage facilities cannot occur nor can retailers access merchandise until stock is available at such depots.’

Nevertheless, he guaranteed that discussions between marketers and NNPCL regarding supply issues were ongoing.

According to him, “We have engaged in conversations with NNPCL and urged them to increase their efforts. Rest assured that they are striving for better outcomes.”

There had been persistent fuel supply shortages, particularly in the northern regions of the country, which eventually spread to Lagos State during the weekend.

According to a report by Channels Television, the price of one liter of the product has risen between ₦800-₦1,000 at certain filling stations causing an increase in transportation costs.

Despite the availability of some filling stations, there were those that refrained from selling due to black market racketeers who seized the opportunity for lucrative endeavors.

As per reports from last week, the scarcity has been linked to the debt owed by the Nigerian National Petroleum Company Limited to international oil traders.

On Sunday, Chief Corporate Communications Officer Olufemi Soneye discredited the report.

Soneye recognized that owing at some point is typical in the oil trading industry, as transactions are frequently conducted on a credit basis.

NNPC Ltd. holds numerous trade credit lines from multiple traders via its subsidiary, NNPC Trading.

“On a first-in-first-out (FIFO) basis, the company is fulfilling its obligations of related invoices,” he stated.