Senior Advocate of Nigeria (SAN) and human rights activist, Femi Falana, has called on the federal government to provide clarity regarding the status of petrol subsidy in Nigeria. Falana’s challenge comes amidst conflicting reports regarding the existence of petrol subsidy, with implications for the country’s economic policy and the welfare of its citizens.
President Bola Tinubu, during his inauguration on May 29, 2023, announced the removal of petrol subsidy, a move aimed at addressing economic challenges and promoting transparency in the petroleum sector. However, recent revelations have cast doubt on the implementation of this policy.
In a statement issued on Sunday, Falana referenced comments made by Robert Dickerman, CEO of Pinnacle Oil and Gas Limited, during a conference in Abuja. Dickerman purportedly disclosed that the federal government still disburses N1 trillion monthly for petrol subsidy, contrary to official claims of subsidy removal.
“Mr. Dickerman revealed that a significant subsidy is still in place, contributing to the affordable price of petrol and potentially fueling smuggling activities to neighbouring countries,” Falana’s statement reads.
Falana further highlighted a report by the World Bank, which alleged a partial return of fuel subsidy based on discrepancies between official petrol prices and the prevailing market rates. Despite these assertions, the Nigerian National Petroleum Corporation Limited has not provided clarification on the matter.
Moreover, Falana referenced a February 2024 report by the International Monetary Fund (IMF), urging the Nigerian government to completely phase out petrol and electricity subsidies, despite the president’s announcement of subsidy removal.
