Former Minister of State for Defence, Musiliu Obanikoro, has asked President Bola Tinubu’s administration to be transparent and inform Nigerians if fuel subsidy has been restored or not.

During his inaugural speech on May 29, 2023, President Tinubu declared an end to the subsidy regime, which immediately pushed up the prices of premium motor spirit, otherwise known as petrol.

The Alliance on Surviving Covid-19 and Beyond (ASCAB) had asked President Bola Tinubu’s administration to review the removal of fuel subsidy in the interest of the people.

Human rights lawyer and the Chair of ASCAB, Femi Falana (SAN), in a statement on Sunday, said, “It would be recalled that after the Muhammadu Buhari administration announced that it had removed subsidy on petrol, it turned round to spend N11 trillion on the so called “under recovery” within a period of 8 years.

“Mr. Dickerman who made the disclosure while participating in a panel discussion disclosed that a significant subsidy is still in place, adding that this has contributed to the affordable price of the product and potentially fueling smuggling activities to neighbouring countries.

“Before the disclosure, the International Monetary Fund (IMF) has asked the federal government to completely phase out petrol and electricity subsidies in the country. The IMF made the recommendation while advising Nigeria on pathways to restoring macroeconomic stability in its ‘Post Financing Assessment (PFA)’ report.

“On its own part, the World Bank has alleged partial return of fuel subsidy in a report titled, ‘Turning The Corner (From Reforms and Renewed Hope to Results)” which was 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.”

Similarly, Obanikoro, a former lawmaker who represented Lagos Central Senatorial District from 2003 to 2007, on Wednesday called for more transparency during an interview on Channels Television’s Sunrise Daily programme.

He explained that the government may be filling the widening gap between the US dollar and Nigeria’s naira to keep the price of petrol at what it is.

Obanikoro said, “You talk about subsidy, Mr Falana knows the price of crude in dollars and if our money, the naira has lost so much value, and crude is dollarized.

“Evidently, there must be a cushion somewhere and to what extent is that cushion being done, I can’t speak to that; it’s somebody who is representing the government that can address that.

“But my common sense tells me that there is a gap and because of the pain in the country, the government cannot allow that lacuna to be left unfilled, hence government may chip in some amount of money to fill in that gap.

“I do believe that that needs to be communicated, no doubt about that. That is why it is important to take the people along step by step.”