The Federal Government of Nigeria has finally admitted that fuel subsidy will gulp N5.4 trillion in 2024. This is coming after several denials that subsidy had completely been removed.
This was disclosed by the Minister of Finance, Wale Edun, in a recent presentation of the Accelerated Stabilization and Advancement Plan, ASAP report.
According to Edun, the ASAP report was designed to address key challenges affecting the reform initiatives. And also, to stimulate development in various sectors of the economy.
A draft copy of the ASAP presented by the Minister read, “At current rates, expenditure on fuel subsidy is projected to reach N5.4 trillion by the end of 2024. This compares unfavourably with N3.6 trillion in 2023 and N2.0 trillion in 202.”
The revelation, however, is in contrast to the statement by the Minister of State for Petroleum Resources, Oil, Heineken Lokpobiri. At a recent ministerial briefing to mark President Bola Tinubu’s anniversary, Lokpobiri insisted that fuel subsidy has been completely removed.
He was quoted to say, “I can confirm to you that subsidy is gone. Officially, there is no subsidy. I want to make it clear that there is no subsidy in the country today.”
The President of the Trade Union Congress, Festus Osifo, had, in April, stated that the Nigerian Government was currently applying quasi-subsidy on fuel.
Recall that on May 29, 2023, Tinubu at his inauguration of President of Nigeria announced the removal of subsidy on PMS
That announcement, however, caused the pump price of the product to increase from N250 per litre to over N500.
Since then, the pump price of fuel has continued to surge. And presently, the product is on the average of N702 per litre in April 2024.
The ripple effect of fuel subsidy and the Naira floating policy in June last year saw Nigeria’s headline and food inflation skyrocket to 33.69 percent and 40.53 in April 2024.
source: Daily Post
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