Former Bauchi State Governor Isa Yuguda stated in an interview on Channels Television’s Politics Today on Monday that the federal government continues to pay subsidies on petroleum products. This statement contradicts President Bola Tinubu’s announcement in his inaugural speech, where he declared, “The fuel subsidy is gone.” President Tinubu emphasized that the 2023 Budget did not allocate funds for fuel subsidies and argued that subsidy payments were no longer justifiable. Additionally, the International Monetary Fund (IMF) advised Nigeria to phase out costly fuel and electricity subsidies as part of efforts to address economic challenges.
Yuguda acknowledged the presence of subsidies, remarking, “If the IMF says we are paying su,bsidy then we are.” However, he clarified that the subsidy removed was the one going into private pockets. He claimed to have redirected this subsidy towards the country’s treasury, implying that it should have been paid to the government instead of private individuals. According to Yuguda, removing this diverted subsidy has increased government revenue, benefiting the nation’s treasury.
Furthermore, Yuguda highlighted the existence of subsidies on petroleum products pumped through pipelines, even in cases where these pipelines are non-existent or imaginary. He suggested President Tinubu’s removal of this particular subsidy has increased allocations for most states.
Regarding the country’s economic challenges, Yuguda opined that the average Nigerian may need to fully grasp the complexities of the president’s efforts to address these issues. He called upon the president’s cabinet members to engage with the public and explain how government policies aim to improve the nation’s situation. Yuguda attributed some of the economic difficulties to mismanagement by the Central Bank and previous economic mismanagement, suggesting that these factors have contributed to the current state of the economy.
