Fuel Scarcity: Fayose Faults VP Osinbajo On N26 Subsidy

“NNPC can’t pay N26 subsidy without FG’s approval”

Governor Ayodele Fayose of Ekiti State has expressed disappointment

over Vice President Yemi Osinbajo’s comment that the Nigerian

National Petroleum Corporation (NNPC) was bearing the cost of fuel

subsidy and not the federal government, asking; “What is the

difference between NNPC and the federal government? Who is NNPC and

who is federal government? Is NNPC now an autonomous agency of the

federal government?”


The governor, who said the All Progressives Congress (APC) federal

government should stop addressing Nigerians as if they were

kindergarten pupils, added that; “Fact is; NNPC does not have rights

to spend money it generates from the sales of crude oil. It does not

have the rights to swap crude oil for subsidy. Where is NNPC getting

the money with which it is subsidizing petrol with N26 per litre? Is

NNPC spending money from the sales of crude oil that should be paid

into the federation account to pay subsidy?”


Fayose urged Prof Osinbajo not to engage

in bulk passing like his boss, President Muhammadu Buhari and tell

Nigerians the truth as to how much is being spent on subsidy by the

federal government.


Speaking at a press conference on Sunday, NNPC Group Managing

Director, Maikanti Baru, said that the landing cost of petrol was now

N171 as against the official pump price of N145 per litre, meaning

that the federal government must be paying N26 as subsidy on every

litre of petrol imported to retain the pump price of N145.


While answering questions from journalists on Monday, in Lagos, Vice

President Osinbajo said NNPC was bearing the cost of subsidy and not

the federal government.


Fayose said; “I like the Vice President, he is a

pastor and I don’t believe that he will also join others in Buhari’s

government to lie to Nigerians. However, this one that he presented

NNPC as an agency of the federal government that can allocate fund

without the approval of the president is very strange to me.


“If subsidy is being paid by the NNPC as claimed by Vice President

Osinbajo, where is the money coming from? Is it from sales of crude

oil? Does it now mean that the NNPC is spending part of the proceeds

of the sale of crude oil outside allocation to the federal government

by the Federation Account Allocation Committee (FAAC)?”


Speaking further, the governor said; “We were all in this country in

2012 when chieftains of the APC, including President Buhari led

protests across the country against removal of fuel subsidy.


“Before he became President, Buhari maintained that fuel subsidy never

existed and when he became President, he said he did not know what

fuel subsidy meant.

“We were also in Nigeria in May 2016, when the federal government

announced the removal of subsidy on petrol and went on to increase the

pump price of petrol to N145 per litre. The same APC people, who

protested against removal of subsidy and increment of petrol price to

N140 in 2012, defended the removal in 2016 and increment of pump price

to N145.


“In 2017 budget of the federal government, provision was not made for

the payment of fuel subsidy, so also that of 2018. So where is the N26

they are subsidizing one litre of petrol with coming from? Is the

Buhari-led government spending fund not appropriated by the National



Fayose said that the current fuel scarcity was caused

by the federal government so as to be able to force Nigerians to

accept the planned increment of petrol pump price from N145 to N185

per litre.