Following Bola Tinubu, the president’s statement that there is no longer a fuel subsidy, Nigerians have been hit with scarcity of petroleum commodities.
Tinubu, during his inauguration on Monday, May 29, 2023, declared that there would no longer be a fuel subsidy regime as the current 2023 budget he glimpsed does not contain it.
He stated this on Monday in his inaugural address at the Eagle Square, Abuja.
The current 2023 budget has provision for the fuel subsidy till June.
Tinubu stated that funds for subsidies will be diverted to other things like public infrastructure, education, health care, and jobs.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. The subsidy can no longer justify its ever-increasing costs in the wake of drying resources.
“We shall, instead, re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions,” he said.
BizWatch Nigeria understands that the Nigerian government has, for decades, subsidised fuel and fixed retail prices of petroleum products. The payment has, however, threatened the nation’s fiscal position and impacted the government’s ability to fund developmental projects across the nation.
However, a few hours after the claim was made, filling stations across Nigeria, particularly Lagos started to witness long queues, such that many of them later shut their businesses.
The statement may have caused panic buying among Nigerians, who feared what the new price of petrol would be.