The President, Bola Ahmed Tinubu’s, media team on Tuesday stated that the rush to purchase petrol is needless as the subsidy removal plan is not immediate.
AM Business reported on Monday that Tinubu during his inauguration announced the end of the fuel subsidy.
Following his comments, huge queues resurfaced at filling stations in some parts of Nigeria, a situation the Independent Petroleum Marketers Association of Nigeria blamed on panic-buying.
However, in a statement on Tuesday, the media team said that stopping petrol subsidy was not a new development but a restatement of the federal government’s intention to end subsidy by June.
The statement read, “The public is advised to note that President Bola Tinubu’s declaration that “subsidy is gone” is neither a new development nor an action of his new administration,” the statement reads.
“He was merely communicating the status quo, considering that the previous administration’s budget for fuel subsidy was planned and approved to last for only the first half of the year.
“Effectively, this means that by the end of June, the federal government will be without funds to continue the subsidy regime, translating to its termination. The panic-buying that has ensued as a result of the communication is needless; it will not take immediate effect.
“Furthermore, President Tinubu was clear about his plans to re-channel the funds previously devoted to the payment of subsidies into better investments that will cushion the effects of the removal on the general public, especially the poor.
“This includes, but is not limited to investments in public infrastructure, education, healthcare, and jobs that will materially improve the lives of millions of Nigerians and increase their earning potential.”
