“We have Saved N1.45 Trillion from Subsidy Removal”-Tinubu - The Top Society

“We have Saved N1.45 Trillion from Subsidy Removal”-Tinubu

In a substantial financial development, the Federal Government of Nigeria has reported significant savings of approximately N1.45 trillion between June and September, resulting from the removal of petrol subsidies. The data was sourced from FAAC allocation records, which were obtained from the National Bureau of Statistics and Nigeria’s Governors Forum websites.
According to the records, monthly contributions to the Non-Oil Revenue (Savings) account showed a consistent trend. In June, contributions amounted to N696.93 billion, followed by N389.7 billion in July, N71 billion in August, and N289 billion in September.
This impressive achievement comes in the wake of President Bola Tinubu’s declaration in May 2023 to end the fuel subsidy. Before the subsidy removal, the Nigerian National Petroleum Company Limited had spent a staggering N1.828 trillion on subsidies from January to May 2023, marking a 55 percent increase compared to the same period in the previous year.
President Tinubu underscored the substantial fiscal relief brought about by the subsidy removal, stating that N1 trillion was saved in June and July alone. He further announced that these savings would be channeled into intervention programs designed to benefit families across Nigeria.
N1.45 trillion
Bola Ahmed Tinubu, President of FRN
“In a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy, which only benefitted smugglers and fraudsters,” President Tinubu remarked.
However, this claim raised questions and concerns among some individuals. Festus Osifo, President of the Trade Union Congress, questioned the government’s assertion regarding the N1 trillion savings following the subsidy removal. He emphasized the importance of transparency in the utilization of these funds and called for the saved money to be employed for the welfare of Nigerians.
“The president and commander-in-chief, on his own, came and said the country has saved N1 trillion. The federal government went everywhere to announce that if the subsidy is removed, it’s going to save substantial money,” Osifo stated during an interview on the Arise Television News program.
In response to these queries, Mohammed Idris, the Minister of Information and National Orientation, acknowledged the substantial savings arising from the subsidy removal. He disclosed that funds were provided to state governments to mitigate the impact of the policy on citizens, although the exact amount was not specified.
“So much money has been saved since the removal of the subsidy. Some of the money that has been saved has been given to states,” Minister Idris explained. “Mr. President believes that state governments are closer to the people than federal ones. That is why the administration has been passing funds through the governors to provide palliatives to cushion the effects of the subsidy removal. I cannot give the exact figure right now because it is an ongoing exercise.”
The removal of the petrol subsidy and the subsequent substantial savings have marked a significant turning point in Nigeria’s fiscal policy, leading to questions and anticipation about the impact of these funds on the nation’s economic development and welfare programs. As the government focuses on transparency and the prudent utilization of these savings, Nigerians await the concrete benefits that these funds will bring to their lives.
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