In a move to address Nigeria’s escalating fuel crisis, President Bola Tinubu has approved the use of the 2023 dividends due to the federation by the Nigerian National Petroleum Company Limited (NNPCL) to cover the cost of petrol subsidies.
According to a report obtained on Monday, President Tinubu gave the green light after NNPCL expressed that it had exhausted all other options to maintain a stable supply of gasoline across the nation. The president’s approval comes as Nigerians grapple with skyrocketing fuel prices, which have surged to between N750 and N1,000 per litre, a dramatic increase from the previous rate of N620.
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To further support the NNPCL’s cash flow, Tinubu has also suspended the payment of 2024 interim dividends to the federation. This decision highlights the government’s response to the dire situation faced by millions of Nigerians at the pump.
Despite Tinubu’s announcement on May 29, 2023, regarding the removal of fuel subsidies, recent developments suggest that the government has continued to pour billions into subsidies to alleviate the crisis. However, until now, the Federal Government has consistently denied making any subsidy payments.
This decision is likely to spark a nationwide debate as Nigerians react to the president’s latest intervention in the ongoing fuel subsidy saga.
