Adedokun Waliyu 
Mixed reactions have trailed the confirmation by the International Monetary Fund (IMF) that the federal government has resumed the payment of subsidies on the premium motor spirit (PMS), otherwise known as petrol through the backdoor.
Recall that during his inauguration on May 29, 2023, President Bola Tinubu announced an end to petrol subsidy, triggering a hike in the prices of goods and services in the country.
A few weeks later, the Central Bank of Nigeria (CBN) collapsed the different exchange rate regimes into one, with the value of the naira to the dollar weakening. As of Monday, dollar was N1,499/$1 at the official window and N1,515/$1 at the parallel market.
Earlier in the week, the IMF issued a statement on the conclusion of its Executive Board’s Post Financing Assessment with Nigeria, and it expressed concerns that the government had capped the prices of fuel at retail stations.
The global lender advised the administration of President Tinubu to completely stop the payment of subsidies on petrol to free funds to run the government.
Daily Trust reports that after the removal of petrol subsidy in May 2023, the pump price changed from N185 per litre to N400 per litre, and then to N568 per litre at NNPC fueling stations, while some sold above N600.
There were reports that the landing cost of petrol had gone up and the retail price could go up to N1000 per litre.
Daily Trust investigation had revealed that the federal government paid N169.4 billion as subsidy to keep the pump price at N620 per litre.
A document from the Federal Account Allocation Committee (FAAC), sighted by one of our reporters, showed that in August 2023, the Nigerian Liquefied Natural Gas (NLNG) paid $275m as dividends to Nigeria via NNPC Limited. NNPC Limited used $220 million (N169.4 billion at N770/$) out of the $275 million to pay for the PMS subsidy. Then NNPC held back $55 million, illegally.
The IMF, in its latest statement, said the Tinubu-led administration has “capped retail fuel and electricity prices” ostensibly to “ease the impact of rapidly rising inflation on living conditions, thus partially reversing the fuel subsidy removal.”
Many Nigerians on X have reacted differently to the statement made by the IMF.
@iam_realjayson said: “I would really like to know the mathematics behind this… Fx is on a free fall, while PMS pump price is relatively stable. Miracle really no dey tire Jesus.”
@journalofOCO: “Once again, as long as the people in power are dishonest, this fuel subsidy issue will continue to be a bone in our throat. For those who say the President doesn’t matter, know that the continued support of dishonest people will lead to the continued destruction of the country.”
