Fuel subsidy to gulp N5.4trn in 2024, despite FG removal claims

Despite constant denials that it was no longer subsidising fuel, the Nigerian government has finally admitted that fuel subsidy will gulp N5trilion in 2024.

This figure is a sharp increase from the N3.6 trillion spent in 2023 and N2.0 trillion in 2022.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun made this known in a recent presentation of the Accelerated Stabilisation and Advancement Plan, ASAP report.

He disclosed that the ASAP report was designed to address key challenges affecting the reform initiatives and stimulate development in various sectors of the economy.

“At current rates, expenditure on fuel subsidy is projected to reach N5.4 trillion by the end of 2024. This compares unfavorably with N3.6 trillion in 2023 and N2.0 trillion in 2022,” a draft copy of the ASAP presented by Edun said.

Meanwhile, Minister of State for Petroleum Resources, Oil, Heineken Lokpobiri, at a recent ministerial briefing to mark President Bola Tinubu’s anniversary insisted that fuel subsidy has been completely removed.

“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,” he claimed.

In a contrary view, recall that the President of the Trade Union Congress, Festus Osifo, had, in April, revealed that the Nigerian government was currently applying quasi-subsidy on fuel.

Recall that Tinubu’s ‘fuel subsidy is gone‘ statement served as a springboard for the policy implementation in June 2023, causing the pump price of the product to increase from N250 per litre to over N500, and later over N600.