Nigerian Government Denies Alleged N5.4 Trillion Allocation for Subsidy Payments

Media reports claiming that the federal government has set aside N5.4 trillion for fuel subsidy payments have been refuted by Special Advisor to the President on Information and Strategy, Bayo Onanuga, who maintains that the fuel subsidy era is permanently finished.

He issued a warning to social media and mainstream media outlets to stop publishing fiscal policy documents that have not been approved by the administration.

One of the documents, Inflation Reduction and Price Stability (Fiscal Policy Measure etc.) Order 2024, is being distributed, Onanuga bemoaned, as though it were an executive order with President Bola Ahmed Tinubu’s signature.

The other is a 65-page draft document titled “Accelerated Stabilisation and Advancement Plan (ASAP),” which offers recommendations for enhancing the economic situation in Nigeria. A copy of the draft was given to President Tinubu on Tuesday, he said.

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He emphasised that none of the two documents are authorised official documents of the Federal Government of Nigeria and advised the public and media to ignore them and stop having further conversations about them.

“It is important to understand that policymaking is an iterative process involving multiple drafts and discussions before any document is finalised,” stated Mr. Wale Edun, the Coordinating Minister of the Economy.

“We guarantee the public that following thorough examinations and approvals, the official position on the papers will be made available.”

The two documents have given rise to claims that question the government’s stance on fuel subsidies, customs taxes, and other economic issues.

“The administration wishes to reiterate that President Bola Ahmed Tinubu’s remarks from May 29, 2023, regarding fuel subsidies remain unchanged. The programme of fuel subsidies has ended. Contrary to popular belief, N5.4 trillion is not set aside for it in 2024, according to Edun.

“As previously stated by government officials, including myself, President Tinubu announced the end of the fuel subsidy programme last year, and this policy remains firmly in place,” the Coordinating Minister of the Economy, according to him, had further clarified.

“The Federal Government is dedicated to lessening the impact of this removal and relieving Nigerians of the financial burden of living.”

“Our approach centres on tackling critical elements like food inflation, which is heavily influenced by transportation expenses. We anticipate more cost reductions with the launch of our CNG programme, which aims to replace high PMS and AGO expenses.

“We remain steadfast in our commitment to supporting our most vulnerable populations and to ending unproductive subsidies.”

He urged the media to always use the appropriate caution and checks when using papers that do not come from official channels in order to ensure that the general public is well-informed, directed, and educated about government policies and initiatives.