The Federal Government has finally confessed it would be paying out some N5.4 trillion on fuel subsidy this year 2024, up from the N3.6 trillion the previous year.
At his inauguration on May 29, 2023, President Bola Ahmed Tinubu had declared, “Subsidy gone!” while government officials had subsequently insisted the subsidisation of refined petroleum products was no more.
However, the real facts have emerged at a presentation by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on an Accelerated Stabilisation and Advancement Plan (ASAP), designed to address key challenges affecting the reform initiatives and stimulate development in various sectors of the economy.
A draft copy report of the Accelerated Stabilization and Advancement Plan (ASAP) presented to President Tinubu by the Finance Minister, Wale Edun, on Tuesday, June 4, showed that the estimated expenditure on fuel subsidy for 2024 is N5.4 trillion, a sum of N1.8 trillion more than the amount spent in 2023.
The ASAP 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 ₦5.4 trillion by the end of 2024. This compares unfavourably with ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022,” a draft copy of the ASAP presented by Edun said.
Government had severally said the subsidy removal had translated to increased revenue accruing to the federation account.
However, in April, former Kaduna State’s Governor Nasir El-Rufai insisted the Federal Government was spending more nowadays on petrol subsidy than before.
