President Bola Tinubu has approved the Nigerian National Petroleum Company Limited's (NNPCL) request to use the 2023 dividends owed to the federation for petrol subsidies. According to TheCable, the president also authorized suspending the payment of 2024 interim dividends to support NNPCL's cash flow.
NNPCL had reported to Tinubu that despite efforts to stabilize the gasoline supply—such as combating oil theft, rescheduling debts, and deferring non-essential projects—these strategies were insufficient. The company warned that it could no longer remit funds to the Federation Account.
In response, Tinubu directed NNPCL to use taxes, royalties, and other funds intended for the Federation Account to cover the fuel subsidy costs. This decision, approved on June 6, 2024, follows the president's earlier announcement of fuel subsidy removal, which he described as necessary despite its challenges.
Despite government denials, reports indicate that billions are still being spent on subsidies. Recent protests demanding the subsidy’s reinstatement were met with Tinubu's firm stance against its return, calling it a "noose around the economic jugular" that has impeded national progress.
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