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The Federal Government through the Ministry of Finance on Sunday said Nigeria saved $20 billion by removing petrol subsidy and adopting market-based foreign exchange pricing.
Sunday Telegraph recalls that during his swearing in as the 6th President of the Federal Republic of Nigeria on May 29, 2023, President Bola Tinubu official announced the removal of furl subsidy.
Speaking at an event in Abuja marking the first 100 days in office of Esther Walso-Jack, Head of the Civil Service of the Federation, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun made this disclosure.
According to him, the two subsidies were costing the country five percent of the Gross Domestic Product (GDP).
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“When there was a subsidy on PMS and on foreign exchange, they collectively cost five per cent of GDP. Assuming GDP was $400 billion on average, five per cent of that is $20 billion, funds that could now go into infrastructure, health, social services, and education,” he said.
The Minister further noted that the savings are being redirected into developmental projects.
“The real change is that no one can wake up and target cheap funding or forex from the Central Bank to enrich themselves without adding value.
“Similarly, profiteering from the inefficient petrol subsidy regime is no longer possible,” he added.
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