FUEL SCARCITY! Good News To Nigerians As Federal Government Discloses Fresh Plan On Fuel Subsidy; See Explosive Details
In a bid to stabilize the Nigerian economy, the federal government has revealed plans to allocate approximately N5. 4 trillion towards fuel subsidy, according to the Accelerated Stabilization and Advancement Plan report presented to President Bola Tinubu by Wale Edun, the minister of finance and coordinating minister of the economy.
The primary objective of this plan is to expedite economic recovery, provide assistance to as many Nigerians as possible, and further alleviate the impact of the current economic reforms being undertaken by the administration. The proposed plan, scheduled to be implemented over a period of one to six months, aims to address inflationary pressures and enhance the purchasing power of the populace.
The report highlights fuel subsidy as a significant challenge that could. potentially undermine the administration’ s bold reform efforts… It states, ” Fuel subsidy: 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. This projection translates to an average monthly subsidy bill of N450 billion.
Despite the government’ s intent to gradually eliminate fuel subsidies to align with market-driven pricing and stimulate growth in the oil sector, the report acknowledges the current inflationary and social pressures, which have prevented an immediate reduction to zero subsidies.
Notably, President Tinubu had announced the cessation of the subsidy regime in his inaugural speech on May 29, 2023. However, government officials, including the minister of State for Petroleum Resources, Heineken Lokpobiri, have consistently denied the reinstatement of subsidy, despite mounting evidence to the contrary.
In conclusion, the government’s plan to allocate N5. 4 trillion towards fuel subsidy underscores its commitment to stabilizing the economy and supporting Nigerians during these challenging times. The proposed measures aim to strike a balance between addressing immediate economic pressures and ensuring sustainable growth in the oil sector.
