LAGOS, Nigeria — On Monday, May 29, 2023, President Bola Tinubu assured Nigerians of a new dawn, declaring the end of petrol subsidies.
What followed was a skyrocketing of petrol prices, surging from N189 to an approximate N500.
However, murmurs from inside corridors suggest the government might be covertly compensating oil marketers to maintain the current prices.
Contrary to the government’s official stance, petrol prices fluctuate between N568 and N617 across the nation.
The NNPC Limited and government officials cite foreign exchange fluctuations, as Nigeria still relies on imports for its petrol needs.
Without any allocated budget, the government seems to be shouldering an undisclosed sum to cushion the blow of elevated fuel prices on its citizens. Why the secrecy? A close presidential aide, speaking anonymously, hinted at fears of political backlash and eroding public support in the wake of harsh economic policies.
“The security reports we are getting are not favourable at all… Don’t forget that the election that brought President Tinubu in is still being vigorously challenged by opposition parties,” the source commented.
Such sentiments suggest that rising fuel prices could be the spark that ignites a political inferno.
Amidst this turmoil, the NNPC announced its partnership with AFREXIM Bank, securing a $3 billion crude oil repayment loan.
Aimed at buttressing the naira and stabilizing the foreign exchange market, this move intends to support the government’s monetary reforms.
A confidential source from a major fuel marketing firm alleged government interference in setting petrol prices, painting a picture of the government’s return to subsidizing fuel, albeit unofficially.
“The government is not telling Nigerians the truth,” the source stated.
Echoing these concerns, Chief John Kekeocha, National Secretary of the Independent Petroleum Marketers Association of Nigeria, called out the government’s double speak, urging transparency.
He highlighted the impracticality of introducing fuel price caps without subsidies. “Removal of subsidy means you have removed your hands and the prices have to follow demand and supply… There is no way they can bring in the product and reduce the price and peg it for marketers to sell at a certain level; it means they are indirectly bringing back subsidy.”
In the face of escalating prices and political pressure, the NNPC and the Federal Government’s reassurances might be a smokescreen for the reintroduction of petrol subsidies.
As President Tinubu’s administration navigates these choppy waters, clarity and transparency will be vital in maintaining public trust.
