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FG Reiterates Oil Subsidy is Truly Gone

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The Federal Government has reaffirmed that it is no longer paying a subsidy on fuel. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the clarification while speaking at the Ministerial Sectoral Updates in Abuja on Thursday.

The event was part of the activities marking President Bola Ahmed Tinubu’s first year in office.

Lokpobiri emphasized that Nigeria has sufficient crude oil to supply all refineries in the country, including modular ones.

Addressing rumours about the continuation of fuel subsidies under the Tinubu administration, Lokpobiri stated, “On the issue of subsidy, all of us know that from the first day the President took over office he said subsidy is gone.”

He stressed that this administration is committed to maintaining this stance.

He said, “The subsidy is gone. But the point must be made that all over the world, government finds a way to subsidize maybe not fuel, but agro products. Are we not subsidizing food? We are finding a way to subsidize fuel supply, finding a way to subsidize fertilizer supply.

“There is some way any responsible government will not find one way or another to be able to ameliorate the sufferings of her people, but officially, there is no subsidy. The government is not paying subsidy. Please, I want that officially cleared, there is no subsidy in the country.”

Lokpobiri highlighted the collaborative efforts between security agencies, the Ministry, and industry stakeholders in maintaining peace in the Niger Delta, which is crucial for the oil and gas industry’s operations.

“Peace in the Niger Delta is a result of collaboration between the security agencies, those of us in the Ministry, and other stakeholders, the industry players. All of us are in accord, working together to ensure that we sustain the peace for the oil and gas industry to operate in the Niger Delta region,” he noted.

The Minister also discussed the issue of non-producing oil wells, explaining that efforts are underway to bring them back into production to boost daily output.

“The only way we can increase production is to continue drilling. And in the past 12 years, that didn’t happen. But it has started happening in significant numbers under this administration.”

Lokpobiri concluded with an assurance that with increased production and crude oil availability, there will be no need for crude oil imports.

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