President Tinubu, in his inaugural speech on May 29, announced that the government could no longer sustain fuel subsidy. In light of this, Sani expressed optimism about the future, even in the face of current challenges such as the increase in transport fares.
Sani emphasised that Tinubu's administration has a renewed agenda and offers hope for Nigerians, propelling the country to greater heights. However, he emphasized that the responsibility for realizing this hope does not rest solely on Tinubu, Vice-President Kashim Shettima, or other government machineries. Sani stressed that all Nigerians must work together and contribute to the country's success.
Regarding the subsidy issue, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC), clarified that the previous government did not allocate funds for petroleum subsidy in the 2023 budget. He explained that while there was a subsidy in 2022, no provision was made for it in 2023.
Kyari highlighted that despite the lack of funding, the NNPC still had a net balance of over N2.8 trillion that should have been reimbursed by the federation. The subsidy existed only on paper and did not have any financial backing. Given this situation, the Federal Government could no longer bear the burden of fuel subsidy.
Kyari further explained that if the government continued subsidizing fuel, the NNPC would face significant financial deficits, which would be detrimental to the country. The removal of the subsidy was necessary to prevent further financial strain on the NNPC and ensure a sustainable future for the country.
The decision to remove fuel subsidy has been met with mixed reactions from the Nigerian public. While some express concerns about the impact on transportation costs and the overall cost of living, others believe that it is a necessary step towards economic stability and reducing the dependence on government subsidies.
President Tinubu's administration is facing the challenge of managing these concerns while striving to implement policies that will drive economic growth and development. The support and cooperation of Nigerians will be crucial in navigating these challenges and realizing the government's vision for a prosperous Nigeria.