What Nigeria Has Been Able To Save So Far On Fuel Subsidy After 4 Months

So far, the Nigerian government has been able to save almost N1.45 trillion ($1.843 billion) from the money it made as a result of the removal of fuel subsidies.

This is based on FAAC allocation papers that were retrieved from the National Bureau of Statistics and the Governors Forum of Nigeria’s website.

An investigation revealed that the government collected N696.93 billion in June, N389.7 billion in July, N71 billion in August, and N289 billion in September as monthly contributions to the Non-Oil Revenue (Savings) account.

Prior to the elimination of the fuel subsidy program, the Nigerian National Petroleum Company Limited reported that it had paid N1.828 trillion in subsidies between January 2023 and May 2023, which was a 55% increase over the amount paid during the same time in 2022.

In the first four months of 2023, subsidies accounted for almost N1.15 trillion in spending. According to a breakdown of the numbers, N274.769 billion was spent in January 2023, N477.742 billion in February, N415.381 billion in March, and N353.130 billion in April.

In August, Nigerian President Bola Tinubu announced that the country had saved over 1 trillion naira ($1.32 billion) in less than two months by doing away with the costly fuel subsidy and bringing all of its currency values closer together.

As seen in the Nigerian news publication, the Punch, the Trade Union Congress president, Festus Osifo has expressed concerns about the Nigerian government’s intentions for the monies saved so far.

“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,” he stated in a TV interview with the TV network, Arise TV.

“And so, we don’t expect them to go everywhere and start borrowing money. They told us they were going to save money. So where is the money that you have saved and how have they deployed this money?” he queried.

Culled from Businessinsiders