As many state governments and some stakeholders kicked against the policy, yesterday, Vice President Kashim Shettima stressed the need to end fuel subsidies saying failure to do so would end the country.

Speaking to journalists on his first day in office at the Presidential Villa, Abuja, Shettima said Nigeria needs to get rid of fuel subsidy, arguing that the subsidy regime was not benefiting Nigerians but has been subsidizing the lifestyle of the rich.
He, however, assured that despite expected opposition from beneficiaries of fuel subsidy President Tinubu would frontally address the menace.

His words: “The President has already made pronouncements yesterday (Monday) on the issue of the fuel subsidy. The truth is that it is either we get rid of subsidy or the fuel subsidy gets rid of the Nigerian nation.

“In 2022, we spent $10billion subsidizing the ostentatious lifestyle of the upper class of the society. “We will get fierce opposition from those benefiting from the oil subsidy scam but where there is a will, there is a way. Be rest assured that our President is a man of strong will and conviction.

“In the fullness of time you will appreciate his noble intentions for the nation. The issue of fuel subsidy will be frontally addressed. The earlier we do so, the better.”

However, the Trade Union Congress of Nigeria, TUC, in a statement by its President and Secretary General, Festus Osifo and Nuhu Toro, respectively, warned that it is a joke taken too far.

The body while assessing the President’s inaugural speech, said “”While listening to Tinubus’s Inaugural Address, we were at first encouraged by his pledge to lead as a servant of the people (and not as a ruler) and to always consult and dialogue, especially on key and knotty national issues. But we were subsequently taken aback, even horrified, when he announced the withdrawal of subsidy on petroleum products.

“If by this, he means increases in pump price and the exploitation of the people by unregulated and exploitative deregulated prices, then it’s a joke taken too far. It is not for nothing the Buhari government pushed this to the new administration. But we expect the Tinubu government to be wise on such a sensitive issue and be more explicit in its pronouncement to avoid contradictory interpretation when comparing his written statement, what he said and the provision in 2023 Appropriation Act.

“We dare say that this is a very delicate issue that touches on the lives, if not very survival, of particularly the working people. Hence, it ought to have been treated with utmost caution, and should have been preceded by robust dialogue and consultation with the representatives of the working people, including professionals, market people, students and the poor masses.

“Accordingly, we hereby demand that President Tinubu should tarry awhile to give room for robust dialogue and consultation and stakeholders’ engagement.”

“This new administration cannot be seen to be speaking from both sides of its mouth, we urge President Tinubu to be a President with a human face,” it added.

Festus Keyamo, the chief spokesperson for the All Progressives Congress presidential campaign, said that President Bola Tinubu has not eliminated the fuel subsidy.

He asserts that some media outlets are “mischievously twisting the narrative to read that Tinubu’s government has removed subsidy,” despite the fact that President Tinubu said that subsidy was gone during his inaugural speech on May 29.

Keyamo, who is also a former Minister of State for Labour, rather said that Tinubu’s administration only inherited a regime where there was no provision for subsidy in the 2023 Appropriation Act beginning June 2023 and the Petroleum Industry Act, which is now extant, has no provision for subsidy.

In a series of tweets on his official handle, @fkeyamo, he said, “A section of the Press is mischievously twisting the narrative to read that Tinubu’s government has removed subsidy. That is not correct. Tinubu’s govt has merely inherited a regime where there was no provision for subsidy in the 2023 Appropriation Act as of June 2023 and the Petroleum Industry Act which is now extant has no provision for subsidy.

“President Tinubu merely acknowledged this state of affairs in his inaugural speech at the Eagle Square.

“So, any advocate of subsidy should convince the Nigerian people why President Tinubu should start on a note of illegality by promising to reintroduce something which the law has taken away. They should also convince the Nigerian people why President Tinubu should embark on a present illegality that gulped $10 billion of our scarce or unavailable resources in 2022 alone.”

He added that those claiming to defend the rights or welfare of workers should convince the Nigerian people that the $10 billion injected into the economy annually will not jumpstart the economy enough to create massive jobs and even increase the same minimum wage they complain about.

According to news media sources obtained yesterday night, the withdrawal of the gasoline subsidy will no longer be instantaneous.

Recall that the subsidy was no longer in effect because it was not included in the 2023 budget, as President Bola Ahmed Tinubu stated in his remarks at his inauguration on Monday.

The implementation of the subsidy withdrawal, however, would start after June, sources told newsmen yesterday.

The need to clarify issues, sources told Vanguard, informed the meeting the President had with the governor of the Central Bank of Nigeria, CBN, and the Group Chief Executive Officer of Nigerian National Petroleum Company Limited, NNPCL, Mr. Mele Kyari, in the Presidential Villa, Abuja, yesterday.

It was learned that the essence of the meeting was to engage labour anytime from today to ensure the seamless removal of the subsidy.
A source said one of the fallouts of the meeting was for NNPCL to set up a template that would ensure that no toxic fuel was imported into the country and also create a benchmark for price.

The clarification came as scarcity of the product ground activities in major cities nationwide yesterday.

Yesterday, fuel queues emerged in many petrol stations as marketers who started hoarding fuel sold the product for as high as N600 per litre and transporters hiked fares.

From the South-West to the South-East, South-South to North-West and other zones of the country, it was tales of woe and fuel crisis gathered steam.

Tinubu resumes at Aso Rock, meets with Emefiele, Kyari

Meanwhile, President Bola Tinubu yesterday met with the governor of the Central Bank of Nigeria, CBN, Mr. Godwin Emefiele, and the Group Chief Executive Officer, of the Nigeria National Petroleum Company Limited, NNPCL, Mr. Mele Kyari, at the Presidential Villa, Abuja, on the matter.

This was the first official assignment by the President after his inauguration as the 16th president of the country at Eagle Square, Abuja

He arrived at the forecourt of the State House at about 2:30 pm through the quarter guard gate, which is his official entrance gate and was received by the Vice President, Senator Kashim Shettima, the Permanent Secretary, State House, Tijjani Umar, Speaker of the House of Representatives, Femi Gbajabiamila and the out-going Director of Protocol, DOP, Emefiele and Kyari, among others.

Although the agenda of the meeting was not made public, it may be in connection with the removal of fuel subsidies and the attendant fuel scarcity.

It was learned that the issue of unification of foreign exchange, and recent naira redesign was also discussed.

NNPCL backs Tinubu on petrol subsidy removal

The Nigerian National Petroleum Company Limited, NNPCL, has backed the removal of subsidy on petrol.

The Group CEO of NNPCL, Mele Kyari, said in Abuja that payments for petrol subsidy had been a huge burden on the company’s cash flow, disclosing that the Federal Government is owing the company N2.8 trillion it paid on petrol subsidy.

NNPC Limited was saddled with the payments for subsidy by former President Muhammadu Buhari with the company carrying the cost in its books as petrol under-recovery.

The company however deducts the cost from the revenue due to the Federation Accounts from the sales of Federation Crude Oil.

Speaking to journalists, Kyari said the NNPC Limited “welcomes the decision of Mr. President to announce that the subsidy on PMS (premium motor spirit) is over. This has been a major challenge for NNPC continued operations. We have been funding the subsidy from the cash flow of NNPC since the government is unable to defray the cost of the subsidy that is due to the corporation.

“We believe that this will free up resources for the NNPC to do the great work that this company is doing for our country and it allows us to continue to operate as a commercial entity”.

While assuring consumers that NNPC has enough stock of petrol in the supply system, he appealed the potential change in pump should not be enough reason for people to engage in panic-buying.

Also speaking, the Chief Executive of Nigerian Mainstream and Downstream Regulatory Authority, Faruk Ahmed, said that with the removal of subsidy, there would be no price cap on the sale of petroleum products in the country.

Ahmed said President Tinubu’s pronouncement in his inaugural speech on the removal of subsidy was in line with the law.

He said that the Federal Government has not been financing subsidies since 2022, adding, “the reality today is that the government cannot afford it.”

The withdrawal of fuel subsidies proposed by President Bola Tinubu during his inauguration ceremony on Monday has been rejected by the Trade Union Congress of Nigeria, or TUC.

Festus Osifo, the president of TUC, and Nuhu Toro, the secretary general, warned that it is a joke taken excessively serious in a joint press release.

The body while assessing the President’s inaugural speech, said “TUC is delighted by the peaceful transition from the Muhammad Buhari government to the Bola Tinubu administration and across the 28 states of the federation. We congratulate Nigerians and the new administration at all levels even as we urge all those contesting the election results across the board to keep following the rule of law as provided in the constitutional and electoral act in seeking redress.

“While listening to Tinubus’s Inaugural Address, we were at first encouraged by his pledge to lead as a servant of the people (and not as a ruler) and to always consult and dialogue, especially on key and knotty national issues. But we were subsequently taken aback, even horrified, when he announced the withdrawal of subsidy on petroleum products.

“If by this, he means increases in pump price and the exploitation of the people by unregulated and exploitative deregulated prices, then it’s a joke taken too far. It is not for nothing the Buhari government pushed this to the new administration. But we expect the Tinubu government to be wise on such a sensitive issue and be more explicit in its pronouncement to avoid contradictory interpretations when comparing his written statement, what he said and the provision in the 2023 appropriation act.

“We dare say that this is a very delicate issue that touches on the lives, if not very survival, of particularly the working people. Hence, it ought to have been treated with utmost caution, and should have been preceded by robust dialogue and consultation with the representatives of the working people, including professionals, market people, students and the poor masses.

“Accordingly, we hereby demand that President Tinubu should tarry awhile to give room for robust dialogue and consultation and stakeholders engagement. Just as he opined in his speech until all issues and questions; and there are a host of them, are amicably considered and resolved. Nigerian Workers and indeed masses must not be made to suffer the inefficiency of successive governments.

“We are also worried that in his speech President Tinubu failed to delve into or reveal his plans on how to tackle and address the issue of poor and unchecked deterioration in industrial relations, particularly in the education, health and judiciary sectors, often resulting in prolonged strike and Industrial actions and their

attendant adverse effects on society and the economy. A case in point is the current nationwide strike by JOHESU.

“If there is anything for the new administration to hurriedly address from day one in office, it is the abysmal N30,000 minimum wage that has since been eroded by the problematic monetary and fiscal policies of the government.

“The Labour Movement is open and ready to dialogue with the Tinubu administration on the fuel subsidy issue. We urge it in the interest of the country and its people not to dictate on such a matter or engage in manipulating the outcome of such consultations.

“The TUC identifies with the new government’s declaration that it will defend the nation from terror and all forms of criminality that threaten peace and stability. We suggest that in its promised review of our security architecture, a more robust method of defending the country by involving the mass of the people and empowering them to defend themselves when attacked by bandits and terrorists.

“We also are encouraged by the new government’s promise to engage in job creation, food security and end extreme poverty. In this, we urge it to involve organized labour, employers of labour, professional organisations and the informal sector. This is necessary so that these programmes would not become mere propaganda in which unverifiable statistics are churned out periodically.

“Congress welcomes the promise to make electricity accessible and affordable to businesses and homes and, suggests that the Tinubu government begins by stopping the periodic arbitrary increases in the price of electricity imposed by the distribution companies while regulatory and consumer agencies look away.

“This new administration cannot be seen to be speaking from both sides of its mouth, we urge President Tinubu to be a President with a human face.

“Like always, we will stand by the people and their interests. Nigerian workers are hardworking and have remained consistent with productive work regardless of harsh government policies, poor governance and mismanagement of resources
that has placed us in these difficult living conditions”

President Bola Tinubu remarked on Monday that the era of fuel subsidies in Nigeria is over.

Tinubu, who made the claim during his inaugural speech as Nigeria’s 16th President, also stated that his team will reveal the important aspects of his administration’s economic policies.

His words: “We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.

“We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.”

He also spoke on revamping Nigeria’s economy by ensuring budgetary reforms and promised to make electricity more accessible by encouraging various state governments to participate in power generation.

He added that his government will review various multiple taxations.

President-elect, Bola Tinubu and Vice President-elect Kashim Shettima has on Monday been sworn in for his as Vice President in a ceremony at the Eagle Square in the nation’s capital, Abuja.

Chief Justice of the Federation, Olukayode Ariwoola administered the oath of office to the President at 10:40 am, shortly after the Vice President the Vice President took his oath of office.