BusinessNewsOpposition is Playing Dirty Politics With the Subsidy Removal — Lai Mohammed

The decision of the federal government to allow market forces to determine the retail price of petrol in Nigeria resulted to a rift among many as conflicting opinions flew left and right.

While some commended the new electricity tariff and subsidy removal, canvassing for structural reforms, others kicked against the proposition including the People’s Democratic Party (PDP).

The opposition party urged the government to announce the total removal of petroleum subsidy and under-recovery through a policy statement.

Responding to this demand, the minister of information, Lai Mohammed said the opposition is playing dirty politics with the new electricity tariff and increase in petrol price.

During a press conference  in Abuja, Mohammed declared that subsidising petrol is no longer feasible owing to the prevailing economic conditions.

“The opportunistic opposition and their allies are playing dirty politics with the issue of petrol pricing and electricity tariff. Please note that these naysayers did not complain when the price adjustment led to lower petrol prices on at least two occasions since March.

“Yet, the government has had to sustain expenditures, especially on salaries and capital projects.

“One of such difficult decisions, which we took at the beginning of the COVID-19 pandemic in March – when oil prices collapsed at the height of the global lockdown – was the deregulation of the prices of PMS,” he said.

Speaking further, the minister said that the deregulation is that PMS prices will change with changes in global oil prices.

He also noted that the adjustment to the electricity tariff is to ensure the stability in the industry.

“As I said earlier, the benefit of lower prices at that time was passed to consumers. Everyone welcomed the lower fuel price then. Again, the effect of deregulation is that PMS prices will change with changes in global oil prices.

“This means quite regrettably that as oil prices recover, there will be some increases in PMS prices. This is what has happened now.”

“The truth of the matter is that due to the problems with the largely-privatised electricity industry, the government has been supporting the industry,” he said.