Finance Minister Mum As Lawan Counters Her Claim On Fuel Subsidy

Hajiya Zainab Ahmed, minister of Finance , Budget and National Planning, is yet to comment on the position of senate president Ahmed Lawan that president Muhammadu  Buhari did not direct anyone in his administration to implement the removal of petroleum Subsidy.

In October, Zainab had announced that the federal government made provision for petrol subsidy only for the first six months of 2022 as the government looked towards complete deregulation of the sector.

She had said: “In our 2022 budget, we only factored in subsidy for the first half of the year; the second half of the year, we are looking at complete deregulation of the sector, saving foreign exchange and potentially earning more from the oil and gas industry”.

But speaking with reporters after meeting with the president at the Presidential Villa, Abuja, on Tuesday, Lawan said he told Buhari about the feelings and concerns of his constituents on critical issues, including the proposed removal of subsidy.

The Senate President said he raised the issue with the president because lawmakers were worried about the agitations and protests around the country over the move to end petrol subsidy.

Lawan, who said the subsidy could not be transferred to citizens, expressed doubt over the reported consumption of 100 million litres of Premium Motor Spirit (petrol) per day in the country.

He said he was glad to inform Nigerians that Buhari had not told anyone to remove petroleum subsidy.

He said: “Well, it will be of interest to Nigerians to hear what I have come to discuss with Mr President among several other things.

“Many of us are very concerned with the recent agitations, protests and many citizens were so concerned, our constituents across the country are very concerned that the federal government will remove the petroleum subsidy. And for us, as parliamentarians, as legislators representing the people of Nigeria, this must be of interest to us.

“And we have just finished our recess; we had gone home to our constituencies and senatorial districts. And we felt the pulse of our people.

“And I found it necessary to visit Mr President, as the leader of our government and our leader in the country, to discuss this particular issue of concern to Nigerians, and I am happy to inform Nigerians that Mr President never told anyone that the petroleum subsidy should be removed,” he said.

Burden can’t be moved to citizens

Speaking further, the Senate president said, “I know and I agree that the subsidy is very heavy. But I think we must never transfer the burden to the citizens.

“I believe that we need to look at the quoted figure of maybe 100 million litres that people claim we are consuming. Is it real? I mean is it either under-recoveries of subsidy? Is it really 100 million litres per day? How on earth are we consuming that?

“We need to look at this critically and see how we can find the truth. Because I am not convinced that within the boundaries of Nigeria we are consuming 100 million litres, probably neighbouring countries may be benefiting from this.  Can’t we do something about it?

“It is a failure on us if we are not able to control it, this particular aspect of smuggling of the petrol and then in return, push the burden to the ordinary citizen.”

Lawan, who dismissed the position of the governors of the People Democratic Party (PDP) on subsidy removal, said the leading opposition party that had its chance ought to have done something about it.

He, however, underscored the need for stakeholders to come together to find a solution to the issue of subsidy.

What finance minister said

The Finance Minister had repeatedly said the government could no longer sustain petrol subsidy payments, which currently stand at about N250 billion monthly.

The finance minister explained that the Petroleum Industry Act has a provision that all petroleum products must be deregulated.

“And in the 2022 budget, we made a provision to assume that at the maximum by the end of June, we must exit subsidy,” Ahmed said.

“So if we look at a cost of about 250 billion per month, and it has been increasing consistently. So, we are expecting something around N120 billion per month from NNPC. And now we are getting to a point where NNPC is remitting near zero.

“And if we don’t stop we will get to a point where they will tell you: ‘Pay me this for managing the fuel provision in the country’.