The Federal Government (FG) has finally conceded to the continuation of fuel subsidies, with projections indicating a staggering N5.4 trillion expenditure for 2024.
This figure significantly overshadows the N3.6 trillion allocated for the same purpose in 2023.
A preliminary version of the Accelerated Stabilization and Advancement Plan (ASAP), presented to President Tinubu by Finance Minister Wale Edun, reveals that the anticipated spending on fuel subsidies for 2024 will exceed the previous year’s expenditure by N1.8 trillion.
ASAP, a strategic initiative designed to tackle major impediments to reform and stimulate economic growth across various sectors, indicates that the fuel subsidy expenditure is set to reach N5.4 trillion by the end of 2024. This projection stands in stark contrast to the N3.6 trillion spent in 2023 and N2.0 trillion in 2022.
Despite previous assertions by the Tinubu administration that fuel subsidies would be discontinued, recent developments suggest otherwise. In a December statement, the government refuted World Bank claims of ongoing petrol subsidies, declaring the era of petrol subsidies as “permanently over”.
However, in a recent interview on Channels TV, Information and National Orientation Minister Mohammed Idris stated that President Tinubu had made it clear from his inauguration that his administration would not continue subsidising petrol. He further claimed that the removal of subsidies had resulted in increased revenue for the federation account.
Yet, in April, former Kaduna State Governor Nasir El Rufai contradicted these claims, stating that the federal government’s spending on petrol subsidies had actually increased.
