During his inaugural address at Eagle Square in Abuja on Monday, President Tinubu declared that there would no longer be a petroleum subsidy regime, as it was not included in the 2023 budget he reviewed.

In his address, Tinubu emphasised the redirection of subsidy funds towards vital sectors such as public infrastructure, education, healthcare, and job creation.

“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime, which has disproportionately favoured the wealthy over the poor. The increasing costs of subsidies can no longer be justified given our limited resources,” he declared.

This sparked reactions from various quarters of the country even as fuel scarcity is already being witness in some parts of the country.

However, in a statement issued on Tuesday, the newly inaugurated President clarified that his declaration of “subsidy is gone” was not a new development or action of his administration. Instead, the president said it was an acknowledgement of the status quo, as the previous administration’s budget for fuel subsidy was planned and approved to last only for the first half of the year.

The President further explained that this effectively means that by the end of June, the Federal Government will no longer have the funds to sustain the subsidy regime, leading to its termination.

As a result, he cautioned that the panic-buying triggered by his earlier communication is unnecessary, as the immediate effects will not be felt.

Read the full statement below:

The public is advised to note that President Bola Tinubu’s declaration that “subsidy is gone” is neither a new development nor an action of his new administration. He was merely communicating the status quo, considering that the previous administration’s budget for fuel subsidy was planned and approved to last for only the first half of the year.

Effectively, this means that by the end of June, the Federal Government will be without funds to continue the subsidy regime, translating to its termination. The panic-buying that has ensued as a result of the communication is needless; it will not take immediate effect.

Furthermore, President Tinubu was clear about his plans to re-channel the funds previously devoted to the payment of subsidies into better investments that will cushion the effects of the removal on the general public, especially the poor of the poor. This includes but is not limited to investments in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions of Nigerians and increase their earning potential.