Thursday, 06 June 2024 04:53

‘Petrol subsidy gone’, long live petrol subsidy: FG finally admits to N5.4trn petrol subsidy for 2024 after previous denials

Rate this item
(0 votes)

In a not-so-surprising development, the federal government has admitted that Nigeria, Africa’s largest oil producer, will be spending up to N5.4 trillion on oil subsidies in 2024. This admission follows months of repeated denials by government officials who had insisted that there were no subsidies.

The revelation came during a presentation by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, on an Accelerated Stabilisation and Advancement Plan (ASAP). The plan is designed to address key challenges affecting reform initiatives and stimulate development across various sectors of the economy.

“At current rates, expenditure on fuel subsidy is projected to reach ₦5.4 trillion by the end of 2024. This compares unfavorably with ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022,” stated a draft copy of the ASAP presented by Edun.

Previously, the federal government had maintained that it would no longer subsidise fuel costs, opting instead for a deregulation policy.

In April, Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), asserted, “As far as I’m concerned, the President removed the subsidy and it remains removed till today. Anybody who is saying that subsidy is being paid, it is left for the person to bring the facts and then we will talk about them.”

Approximately four months ago, Mele Kyari, Group Chief Executive Officer of NNPCL, also denied the return of fuel subsidies. “No subsidy whatsoever. We are recovering our full cost from the products that we import. We sell to the market, and we understand why the marketers are unable to import. We hope that they do it very quickly and these are some of the interventions the government is doing. There is no subsidy,” he stated to State House Correspondents after a meeting with the President at Aso Rock Villa.

President Bola Tinubu, during his inauguration on May 29, 2023 declared that the petrol subsidy was “gone”. This latest admission, however, contradicts those earlier declarations.

November 25, 2024

From zero to $10 billion annual transactions: How Jiji became one of Nigeria’s e-commerce leaders

When Jiji launched in 2014, it entered a competitive e-commerce market in Nigeria, joining the…
November 24, 2024

PDP governors urge Tinubu to review economic policies amid rising hardship

Governors elected on the platform of the Peoples Democratic Party (PDP) have called on President…
November 24, 2024

Older adults opened up about things they ‘took for granted’ in their 20s and 30s

Last month, we wrote a post where older adults from the BuzzFeed Community shared things…
November 16, 2024

Influencer eats pig feed in extreme attempt to save money

Popular Douyin streamer Kong Yufeng recently sparked controversy in China by eating pig feed on…
November 22, 2024

FG excited as pro-Biafra agitator Simon Ekpa arrested in Finland on terrorism charges

Simon Ekpa, the controversial leader of the pro-Biafra faction Autopilot, was arrested by Finnish authorities…
November 25, 2024

Here’s the latest as Israel-Hamas war enters Day 416

Hezbollah rockets land near Tel Aviv after large Israeli strike on Beirut Lebanon's Hezbollah movement…
November 21, 2024

Nigeria comes top in instant payment system inclusivity index in Africa

Nigeria’s instant payment system is projected to advance to the maturity inclusion spectrum ahead of…
October 27, 2024

Nigeria awarded 3-0 win over Libya after airport fiasco

Nigeria have been awarded a 3-0 victory over Libya, and three vital points, from their…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.