FG Opens Up on Bringing Back Fuel Subsidy, Shares Monthly Spending on Petrol Importation

• Nigeria’s finance minister said the country currently imports $600 million worth of petrol per month
• The minister did, however, reiterate that there is no petrol subsidy in the 2024 budget
• Edun declared that the nation must take immediate action to resolve the problem

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Nigeria presently spends $600 million a month on petrol imports, according to Wale Edun, the minister of finance and coordinating minister of the economy.

The Cable reported that Edun said this in an interview for AIT's Moneyline show On Tuesday, August 6.

Nonetheless, the minister restated that the budget for 2024 does not include a petrol subsidy.

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He said,

“The fuel subsidy was removed May 29, 2023, by Mr President, and at that time, the poorest of 40 percent was only getting four percent of the value, and basically, they were not benefitting at all. So it was going to be just a few,”

“Another point that I think is important is that nobody knows the consumption in Nigeria of petroleum. We know we spend $600 million every month on importation but the issue here is that all the neighbouring countries are benefitting.

“So we are buying not for just for Nigeria, we are buying for countries to the east, almost as far as Central Africa, north and west.

“And so we have to ask ourselves as Nigerians, how long do we want to do that for and that is the key issue regarding the issue of petroleum pricing.”

Edun stated that since the issue obstructs economic growth, the country needs to act decisively to address it.

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Obasanjo alleges fuel subsidy is back

Earlier, Legit.ng reported that former President Olusegun Obasanjo has revealed that the fuel subsidy, which the federal government removed in 2023, has been reintroduced due to inflation.

President Bola Ahmed Tinubu during his inaugural address on May 29, 2023, had declared that fuel subsidy “was gone.”

This development has led to a hike in the pump price of petrol from about N200 to over N600 per litre.

Tinubu explains why he removed subsidy

Legit.ng reported that President Bola Tinubu addressed the nation on Sunday, August 4, explaining his decision to remove fuel subsidies and abolish multiple foreign exchange rates.

During the broadcast, which was monitored by Legit.ng, Tinubu stated that this decision was made to grow the economy and promote national development.

Tinubu described the decision as "painful" but necessary to block the greed and profits of smugglers and rent-seekers.

Source: Legit.ng