FG Admits Paying Fuel Subsidy, Says It Will Gulp ₦5.4 Trillion In 2024

The Nigerian government says fuel subsidy is projected to gulp about N5.4 trillion in 2024.

This is against the N3.6 trillion budgeted for the same intervention in 2023.

This was disclosed during the presentation of the Accelerated Stabilisation and Advancement Plan (ASAP) report, which outlines strategies to address critical  challenges and stimulate growth across various sectors.

A draft copy report of the ASAP was presented to President Tinubu by the finance minister, Wale Edun, on Tuesday.

The report shows 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 projected subsidy cost for 2024 marks a significant increase from ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022, highlighting a continuous upward trend in government spending on fuel subsidies.

This revelation comes amidst previous denials from the government regarding the complete deregulation of fuel prices.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, reiterated during a ministerial briefing on the anniversary of President Bola Tinubu’s administration that fuel subsidies had been entirely eliminated.

“I can confirm to you that subsidy is gone; officially, there is no subsidy; I want to make it clear that there is no subsidy in the country today,” Lokpobiri stated.

These statements come after significant policy shifts last year when President Tinubu declared the end of the fuel subsidy, leading to a hike in pump prices from ₦250 per litre to over ₦500. Prices have continued to climb, reaching an average of ₦702 per litre as of April 2024.

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