Tinubu’s government has projected that fuel subsidy will cost about N5.4 trillion in 2024, compared to the N3.6 trillion allocated for the same purpose in 2023.
This information is detailed in a draft report of the Accelerated Stabilization and Advancement Plan (ASAP), which was presented to Tinubu by Finance Minister Wale Edun on Tuesday.
The report indicates that the estimated expenditure on fuel subsidies for 2024 is N5.4 trillion, which is N1.8 trillion more than the amount spent in 2023.
Previously, the government had insisted that the controversial petrol subsidy had been removed, following Tinubu’s announcement on May 29, 2023, that the subsidy was no longer in place.
However, the draft ASAP report projects N5.4 trillion in subsidy expenditure for 2024, despite claims that the subsidy has been eliminated.
“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 2022,” the report said.
In a previous statement, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized that the removal of fuel subsidies is an evolving process dependent on various factors.
Edun highlighted that the government is committed to completely eliminating fuel subsidies from the nation’s economy. He stated that the current policy direction of the government places greater emphasis on utilizing Compressed Natural Gas (CNG) for energy needs in the country.
“Clearly, it is a combination of pivoting away from petroleum imports. Now, we are focusing more on CNG.
“It is an ongoing conversation, it is an ongoing process of ensuring that fuel subsidy that fuel subsidy is eliminated from the Nigerian economy, that is what Mr. President intent is and that is what is being worked towards,” Edun said.
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