The Presidency has said it reserves the right to intervene at difficult times to address economic strain by way of subsidy, including paying fuel subsidy intermittently to cushion hardship in the country
Special Adviser to the President on Energy, Olu Veŕheijen said this while responding to claims that the Tinubu administration has restored fuel subsidy, noting that the government has the prerogative to maintain price stability to address social unrest.
She explained that if the government feels that it cannot continue to allow prices to fluctuate due to high inflation and exchange rates, the government can intervene intermittently, insisting that such actions does not negate the fact that subsidy has been removed.
Earlier, the International Monetary Fund reported that the Nigerian government brought back petroleum subsidies through the back door, which may lead to an expenditure of around N7trn (3 per cent of GDP) should the existing fuel pump price cap and electricity subsidy be upheld in 2024.
