Subsidy don return? Wetin govment tok, how Nigerians react and all you suppose know

Reactions don plenty for Nigeria afta di govment announce late on Thursday say dem go introduce petrol price discount for 30 days as part of efforts to help di citizens as di cost of crude oil products continue to go up all around di world.

Na di Minister of Finance and Coordinating Minister of di Economy, Taiwo Oyedele, announce dis new policy, but e quickly add say make pipo no mistake dis petrol price discount as subsidy.

Remember say on 29 May, 2023 wey President Bola Tinubu take im oath of office, e announce say govment no go continue wit di petrol subsidy payment wey past administrations bin dey pay to bring down di price of petrol for di kontri.

Oyedele tok say dis discount na temporary measure, e go be only for fuelling stations owned by Nigeria National Petroleum Corporation (NNPC), and na just part of many oda policies wey di govment wan take reduce di suffering of Nigerians sake of rising cost of living.

So wetin we go call dis new policy since govment say e no be subsidy? How dem dem go fund am and wia di moni go come from?

Di Finance minister explain say di discount na di profit margin wey NNPC suppose dey make ontop di petrol wey dem dey sell, but dem now don agree to forgo dat profit.

Presidential tok-tok pesin Bayo Onanuga explain dis for one statement wey e release on Thursday as e tok say: "Di Nigerian National Petroleum Company (NNPC) agree to forgo dia petrol retail profit margin and sell to Nigerians at cost to cushion di impact of global crude oil price shocks and volatility on vulnerable households.

"Dis mean to say if NNPC landing cost (of petrol) na 1300 naira, dem go sell di fuel to Nigerians, especially commercial vehicles, for di same price," e tok.

No be subsidy be dis?

For di separate statements by both di Finance Minister Taiwo Oyedele and di presidency tok-tok pesin Bayo Onanuga, dem maintain say dis fuel price discount policy no be subsidy and say di Tinubu govment no dey go back on dia decision to comot fuel subsidy.

Onanuga say: "Dis na neither subsidy nor price control: e dey designed to smooth prices ova time rather dan suppressing dem."

Oyedele for im part explain say: "Di reasoning dey simple. 1,400 naira per litre today and 1,400 tomorrow dey beta dan 1,500 today and 1,300 tomorrow, bicos volatility dey add to uncertainty and cost."

Di Minister further explain say evri marketer wey buy fuel go usually add somtin to di cost price bifor e sell, so margin discount mean say di marketer go now add smaller moni or e no go even add any moni at all to im cost price.

"Na di retailer alone dey bear di cost of di discount. Subsidy dey different. (Subsidy) na only wen govment dey pay part of di price wey di consumer suppose pay. Dat moni dey come from public revenue. Dat na di regime wey dis administration bin end for 2023, and e no go come back," Oyedele tok.

"Subsidy na to spend public moni to lower di price of fuel (but) di NNPC retail discount dey lower di price witout spending any public moni, and e fit strengthen NNPC retail business at di same time."

Wia di money for di discount go come from?

Oyedele maintain say di discount no go dey funded from any govment account, rather na di NNPC go bear am.

E however explain say even di NNPC fit make more profit sake of dis discount bicos e go increase dia volume of sales, in di sense dat even though dia profit margin go dey smaller, di rate of turnover go boost dia profit.

"NNPC Retail dey buy petrol from di Dangote Refinery and oda suppliers at market prices, on commercial terms, den dem go add dia retail margin to set di pump price. Di discount go come out of dat margin alone, so di discounted pump price remain market-reflective," Oyedele explain.

Di Minister maintain say dis kain discount na di main reason why govment bin set up NNPC, to make sure refined petroleum products dey available and affordable all di time.

"Di purpose (of NNPC) na to keep products available across di kontri and to moderate retail prices, not necessarily to maximise retail profit. Di current discount dey continue dat role, and na commercial decision wey any retailer dey free to make," Oyedele tok.

How Nigerians go benefit from dis?

Di current price of petrol per liter for NNPC fuelling stations na between 1,360 naira and 1,380 naira across di kontri.

So going by di 1,350 naira example wey Bayo Onanuga give for im statement, e mean say commuters go dey save between 10 naira and 30 naira.

"Wetin dat one go do for me?" Anyanwu Emmanuel, one taxi driver ask our tori pesin for Abuja, Nigeria capital. "E mean say even if I buy 50 litres of fuel, I no go save up to 1,000 naira. So wetin be di difference?"

However, di presidency tok say no be just di fuel price discount dem dey put in place to reduce di hardship wey pipo dey experience for di kontri.

Oda measures include faster rollout of di Compressed Natural Gas (CNG) policy, wey govment tok say e dey 60 to 70 percent cheaper dan petrol; removing illegal levies; increasing cash transfers to di most vulnerable households; investment in National Strategic Fuel Reserve; and beta traffic and logistics management.

Wetin go hapun afta di 30 days?

Di question wey many Nigerians dey ask na wetin go happun afta di 30 days. Major opposition figures like former Vice President Atiku Abubakar and presidential candidate of di Nigeria Democratic Congress and Obidient Movment.

Bayo Onanuga for im statement tok say govment go dey review di ceiling monthly, reset am as costs require, and publish di figures for transparency.

However, Atiku condemn di policy and describe am as "panic-driven publicity stunt".

Remember say Atiku don dey tok say if e win di 2027 presidential elections, e go bring back petrol subsidy.

"Nigerians no be fools wey you go dey offer one month of discounted fuel afta years of punishing prices, and den expect dem to forget di hardship wen di discount expire," Atiku tok.

"Wetin go happun on Day 31? Nigerians go wake up to di same brutal prices, di same punishing transport fares and di same rising cost of food.

"Di govment no fit manufacture relief for one month and expect Nigerians to clap for dem while di hardship remain.

"Nigerians need lasting relief, no be countdown to di return of hardship. Tinubu govment no fit spend years telling Nigerians to endure, den offer 30 days of relief and call am solution."

Similarly, di Obidient Movement, wey be one of di campaign bodi of di NDC presidential candidate, also condemn di petrol price discount policy and ask why govment dey bring am now, just few months to election.

"For three years, Tinubu bin tell Nigerians say di 'baby steps of pain' dey necessary. Now, suddenly, petrol discount don dey possible. So, wetin change?" Onyeka Dike, di tok-tok pesin of di Obidient Movement ask.

"Di pains bin no dey necessary. Dem be policy choices. Three years of suffering no fit dey erased by 30 days of petrol discount," e tok.