Facts have emerged that the Federal Government of Nigeria is still paying subsidy on petroleum products.
This is despite President Bola Tinubu’s declaration in his inauguration speech that the subsidy era was gone.
The revelation was made by National President of Petroleum and Natural Gas Senior Staff Association of Nigeria PENGASSAN, Festus Osifo.
Osifo attributed the continued payment of subsidy stated to the increase in cost of crude oil in the international market and the poor dollar-to-naira conversation rate.
Osifo added that the only way for the government to stop subsidising petroleum was to manage the exchange rate effectively and increase the supply of fuel.
The news comes after Tinubu announced the removal of petrol subsidy, which led to an increase in the pump price of the product from N186 to over N500.
Osifo who said this when he appeared in an interview with Channels TV on Friday, said;
“They [government] are paying subsidy today.
“The only reason the price will not move is when you are able to manage your exchange rate effectively and you are able to pump in supply and bring down the exchange rate.
“So, if the exchange rate comes down today, we will not be paying subsidy. But with the exchange rate value and the price of crude oil in the international market, we have introduced subsidy.”
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