Finance Minister Taiwo Oyedele has defended the Federal Government’s 30-day fuel discount initiative, insisting that it does not amount to a return to petrol subsidy....
Finance Minister Taiwo Oyedele has defended the Federal Government’s 30-day fuel discount initiative, insisting that it does not amount to a return to petrol subsidy.
Oyedele spoke in an interview with the BBC’s Madina Maishanu in Bangkok, Thailand, on Tuesday, following a surge in global crude oil prices amid escalating tensions involving the United States, Israel and Iran.
He said Brent crude prices rose above $100 per barrel, triggering an increase in petrol pump prices and prompting the government to seek temporary relief for consumers.
“We’re clear that we’re not bringing back subsidy because it’s not sustainable,” the minister said.
Oyedele explained that the government approached the Nigerian National Petroleum Company Limited (NNPC) to convert its N66-per-litre promotional discount, introduced to mark Nigeria’s 66th Independence anniversary, into temporary support for motorists and commuters.
He said the government directed NNPC to limit the discount to its retail profit margin, rather than absorb the full cost of petrol or sell below commercial prices.
“They buy at commercial price. They add their costs of transportation, overhead for running the stations and their retail margin. We said limit the discounts to your retail margin and do it for 30 days and prioritise public transporters,” he said.
The minister added that NNPC would review the programme at the end of the 30-day period and submit a report to the government before any further decision was taken.
Oyedele also acknowledged that the removal of fuel subsidy and other economic reforms had imposed significant hardship on Nigerians, insisting that the government understood the difficulties faced by ordinary citizens.
“First, it’s to show understanding, acknowledge that this has come with some difficulties for some of our citizens, and then empathy,” he said.
Defending the reforms, the minister cited wage increases and wage awards, student loans through the Nigerian Education Loan Fund (NELFUND), and credit support for small businesses through the Bank of Industry and the Bank of Agriculture as measures intended to benefit ordinary Nigerians.
He said NELFUND had supported more than 1.5 million students.
Oyedele acknowledged that the benefits of the reforms had yet to reach everyone but maintained that ordinary Nigerians remained central to the government’s economic policies.
“While we are not there, it has always been about the average Nigerian,” he said.