Tinubu Government May Spend N5.4Trillion On Fuel Subsidy By 2024 Ending To Tackle Inflation, Others
The government under President Bola Tinubu is considering spending up to N5.4 trillion on fuel subsidies by the end of 2024 to address inflation and boost Nigerians’ purchasing power. This information is revealed in the Accelerated Stabilization and Advancement Plan report presented to Tinubu by the Minister of Finance, Wale Edun. The subsidy expenditure is projected to rise significantly compared to previous years, reaching N5.4 trillion by the end of 2024, with an average monthly subsidy bill of N450 billion. The report emphasizes the government’s intention to accelerate economic recovery and mitigate the impact of ongoing economic reforms. Despite previous plans to remove fuel subsidies, the government has yet to implement this due to inflationary pressures and social concerns. The report recommends gradually phasing out fuel subsidies and transitioning to market-driven pricing for petroleum products to stimulate growth in the oil sector. However, the International Monetary Fund (IMF) criticizes Nigeria’s reintroduction of gasoline subsidies, estimating that it could consume nearly half of the country’s projected oil revenue for the year. The IMF also highlights concerns over corruption and inadequate compensatory measures for the poor. Despite these challenges, the government aims to address inflation and support Nigerians’ purchasing power through its economic stabilization plan.
SaharaReporters
