President Bola Tinubu has revealed that the fuel subsidy removal was initially not part of his inaugural speech as it was excluded by his Special Advisers, Wale Edun and Dele Alake, but he felt he had to stop it on the first day in office.
The president described the fuel subsidy as a “scam” and disincentive to growth, noting it rewarded smugglers and reduced the burden of the “real cost” of the commodity for some countries.
According to a statement by the Special Adviser to the President on Special Duties, Communication and Strategy, Dele Alake, this was made known by President Tinubu, while addressing members of the Nigerian community in France on Friday, June 23, 2023.
President Tinubu, who disclosed that it was the next day after the announcement that he called the Group Managing Director of the Nigerian National Petroleum Company (NNPC) Limited, adding that he let out the giant elephant of fuel subsidy without bringing down the house.
Fuel subsidy was a scam
President Tinubu said the interest of Nigerians will always be protected, even in engagements with the international community, governments and multilateral institutions on global issues relating to climate change, energy transition, food security, trade, security and diplomacy.
According to the statement, the President said,
- “We have transport challenges, electricity challenges, infrastructural challenges and others. I let out the giant elephant of fuel subsidy without bringing down the house,’’ he said, adding, “Our diversity is our asset, if we know how to use it.’’
- The statement added, ‘’President Tinubu explained that the fuel subsidy was a “scam” and disincentive to growth as it rewarded smugglers and reduced the burden of real cost of the commodity for some countries.
- ‘’He said the Special Adviser on Monetary Policy, Wale Edun and Special Adviser on Special Duties, Communication and Strategy, Dele Alake, had excluded fuel subsidy removal in his inaugural speech, but he felt it was expedient to stop the subsidy on the first day.’’
Tinubu said, “It was the next day I called the GMD of NNPL.’’
What you should know
- Recall that President Bola Tinubu during his inaugural speech on May 29, 2023, announced that fuel subsidy is gone as there was no provision for that in the 2023 budget from July 1.
- The President pledged his administration’s support to channel the money to provide basic infrastructural needs to Nigerians.
- The action of the president has been backed by some stakeholders and interest groups including state governors, legislators, oil marketers, economic and financial experts, among several others.
- However, this did not go that well with organized labour due to the spike in the pump price of petrol, leading to a declaration of a planned strike action and protest by the NLC and TUC.
- The strike was however suspended on the backdrop of the judgment of the Industrial Court which restrained them from going ahead with the strike as well as the outcome of the meeting between the leadership of the organized labour and representatives of the Federal Government.