FG’s claims of non payment of subsidy fells flat as govt projected N5.4trn in 2024
The federal government of Nigeria has finally admitted lying to Nigerians by accepting that it has projected payment of N5.4trn to subsidized petrol in 2024 alone.
The federal government has vehemently denied newspaper report and experts analyses that it could only sustain the petrol pump price at N630/litre considering the volatility of the naira at forex market.
RELATED NEWS
N24bn Hajj subsidy: Facts Behind the twisted narrative
FG agrees with IMF, plans withdrawal of electricity subsidy
W/Bank suspects return of subsidy, tells Tinubu to hike petrol price to N750/litre
At a point even the world bank urged the federal government to stop further payment of subsidy noting that the development is inimical to the development of other critical economic sectors on which Nigeria will defend to rejuvenate its frail economy.
Upon his election last year, president Bola Ahmed Tinubu has stopped payment of petroleum subsidy and floated the Nigerian currency, two policies that had negatively impacted on the well being of the common man.
When the president removed the subsidy, the exchange rate was about N700/$ but after floating the the national currency the naira witnessed a free fall until it crashed to about N1900/$.
Considering the exchange rate, and the fact that despite continuous free fall of the naira, the federal government maintained the N630 pump price industry experts said the only way the federal government could sell petrol at that price was by secretly payment of subsidy but the government consistently repudiated the assumptions.
Last year, the federal government budgeted N3.6 trillion for subsidy payment.
A draft copy report of the Accelerated Stabilization and Advancement Plan (ASAP) presented to President Tinubu by the finance minister, Wale Edun, on Tuesday, 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.
Previously, the Tinubu-led government had maintained that it would no longer subsidise fuel costs.
In December, the government said contrary to the claim by the World Bank that the government is still paying subsidy on petrol, the era of petrol subsidy is “gone for good”.
Speaking in an interview on Channels TV, Minister of Information and National Orientation, Mohammed Idris, had said President Tinubu made it clear from his first day in office that his government would not sustain the payment of subsidy on petrol.
The minister said the subsidy removal had translated to increased revenue accruing to the federation account.
In April, the former governor of Kaduna State, Nasir El Rufai, said the federal government was spending more on petrol subsidy than before.
__________________
We do hope that the information we were able to provide you are helpful. Checkout out other unique articles on our blog for more detailed information and do well to share with your friends and family. Follow us on our Twitter and Facebook to stay updated with premium information.
Please leave any comments or questions in the area given below.
DISCLAIMER: The views and opinions expressed in Fact Check are those of the authors and do not necessarily reflect the official policy or position of Fact Check. Any content provided by our bloggers or authors is of their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.
Information is presented to the best of our knowledge and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability concerning the website or the information, products, services, or related graphics contained on the website for any purpose. Therefore, any reliance you place on such information is strictly at your own risk.
