In a troubling turn of events, President Bola Ahmed Tinubu has approved the Nigerian National Petroleum Corporation (NNPCL) Ltd’s request to use its dividends to cover the cost of fuel subsidies, which have shockingly gulped N6.8 trillion. This decision is not only a betrayal of trust but also a stark contradiction to the government’s previous claims that fuel subsidies had been abolished. The move raises serious concerns about the government’s transparency, its commitment to reform, and its willingness to deliver on its promises to the Nigerian people.
When President Tinubu announced the removal of fuel subsidies shortly after taking office, it was presented as a bold and necessary step to stabilize the nation’s economy. The subsidy removal was framed as a measure that would free up resources for critical investments in infrastructure, education, and healthcare. The government argued that the billions previously spent on fuel subsidies could now be redirected to more productive uses that would benefit all Nigerians.
However, the revelation that N6.8 trillion has been siphoned off to maintain these so-called “abolished” subsidies tells a different story. This decision not only undermines the credibility of the Tinubu administration but also perpetuates a culture of deception that has plagued Nigeria’s leadership for far too long. Nigerians were led to believe that the era of fuel subsidies, with its attendant corruption and economic distortion, was over. Yet, it is now clear that this promise was nothing more than political rhetoric.
The implications of this policy reversal are severe. The continued payment of fuel subsidies drains the national treasury, depriving other sectors of much-needed funds. The education system remains underfunded, healthcare services are in dire straits, and critical infrastructure projects are delayed or abandoned—all because billions are being funneled into sustaining an unsustainable subsidy regime. This financial burden is unsustainable and only exacerbates Nigeria’s economic woes.
Moreover, this decision calls into question the government’s commitment to transparency and accountability. How can Nigerians trust an administration that promises one thing and does the exact opposite behind closed doors? The NNPC’s use of dividends to cover subsidies is a backdoor mechanism that avoids public scrutiny and parliamentary oversight. It is an opaque practice that leaves Nigerians in the dark about the true state of the nation’s finances and the real cost of maintaining artificially low fuel prices.
This deception also has significant long-term consequences for Nigeria’s economic stability. By continuing to subsidize fuel, the government is sending the wrong signal to the international community and potential investors. It suggests that Nigeria is unwilling or unable to implement the difficult but necessary reforms needed to build a sustainable economy. Investors are looking for stable, predictable policies that reflect a commitment to fiscal discipline. The decision to covertly maintain subsidies undermines this perception and could deter much-needed foreign investment.
Furthermore, this policy reversal is a betrayal of the social contract between the government and its citizens. The removal of fuel subsidies was meant to be a painful but necessary step towards a more equitable and sustainable future. Nigerians were prepared to endure higher fuel prices with the understanding that it was a temporary sacrifice for long-term gain. Instead, they are now faced with the realization that this sacrifice was in vain and that the government has not been honest about its intentions or actions.
President Tinubu’s approval of the NNPC’s request to use dividends to pay for fuel subsidies is a disastrous decision that betrays the trust of the Nigerian people. It perpetuates a cycle of deception, drains the nation’s finances, and undermines Nigeria’s economic future. If this administration is serious about reform, it must abandon this costly and unsustainable practice and recommit to the principles of transparency, accountability, and fiscal discipline. The Nigerian people deserve nothing less.
Maazi Tochukwu Ezeoke, Media Practitioner, CEO Njenje Media Group.
