Tinubu Still Pays Massive Amount Monthly As Petrol Subsidy – Pinnacle Oil MD

The Managing Director/CEO of Pinnacle Oil and Gas Limited, Robert Dickerman, has disclosed that the Federal Government is currently paying massive subsidies on petrol.

Dickerman, who spoke during panel session six on Nigeria’s Downstream Forum at the just-concluded Nigeria International Energy Summit (NIES) in Abuja, explained why the product is still being smuggled to neighbouring countries.

According to him, President Bola Tinubu’s administration is currently paying N1 trillion monthly as petrol subsidy.

He said the practice explains why the cost of the product in Nigeria remains the lowest, thus encouraging smuggling to neighbouring countries.

He said, “With legacy monetary policymaking and currency exchange difficult, we desperately need foreign investment. This is a reality. So the best policy during this time of crisis is a national policy to transform our economy’s regulations and laws to accommodate and encourage FDI.

“Foreign investors, foreign lenders and government-run DFIs have been very clear about what they want to see: conservative fiscal policy, tackling corruption, enabling competitive markets, and enforcement of fairness in markets through policy, regulation and the ability to enforce contracts. Keeping that context in mind, I want to point out that there is still a massive subsidy in PMS, albeit in the FX portion of the PMS price.

Meanwhile, a foremost human rights activist and senior advocate of Nigeria (SAN), Femi Falana, has challenged the federal government to confirm or deny if the petrol subsidy has been restored.

The human rights activist said instead of urging Nigerians to continue to endure the hardship caused by the removal of subsidies on petrol, the president should go public about the state of economic policy.

“During his inauguration on May 29, 2003, President Bola Tinubu announced the end of fuel subsidies and the total deregulation of petroleum products. But at the recently concluded Nigeria International Energy Summit (NIES) held in Abuja, the Chief Executive Officer and Managing Director of Pinnacle Oil and Gas Limited, Mr. Robert Dickerman, revealed that the Nigerian Government still pays N1 trillion every month for petrol subsidy,” the statement reads.

“On its own part, the World Bank has alleged partial return of fuel subsidy in a report presented in Abuja last December. In justifying its claim then, the World Bank said that based on the official exchange rate then, the petrol should sell for around N750 per litre and not the N650 currently being paid by Nigerians.

“Curiously, the Nigerian National Petroleum Corporation Limited has not deemed it fit to deny the serious allegation that fuel subsidy has been restored. Since there is no provision for fuel subsidy in the 2023 and 2024 Appropriation Acts, the federal government should, without any further delay, confirm or deny the serious allegation and end the opacity surrounding the importation of fuel from foreign countries.”

Falana also cited a February 2024 report by the International Monetary Fund (IMF) advising the Nigerian government to completely phase out petrol and electricity subsidies in the country despite the president’s announcement.

Recall, President Tinubu during his inauguration on May 29, 2023, announced the removal of the petrol subsidy.

This development has worsened the living conditions of Nigerians, as the disposable income of citizens continues to decline due to inflation.