4 things every Nigerian benefits from govt

4 major subsidy gulping funds in Nigeria are as follows:

1. Fuel subsidy.

This one is popular and it takes the lion share. At least, in 2022, fuel subsidy claims N3.5 trillion. This subsidy is paid directly through the federal budget.

Every Nigerian, from rich to poor enjoys fuel subsidy from govt.

2. Education subsidy

This is the second major subsidy govt cover in Nigeria.

Everyone that acquired education in Nigeria enjoyed from education subsidy in the country.

Government at all level in Nigeria, from federal, to state and even to local govt pay some level of subsidy in education.

This makes it difficult to arrive at a figure.

Apart from the fact that govt is responsible for building education infrastructure across the country, the primary source of funding in a government-owned institution in Nigeria is tuition, subventions, and grants. However, after payments of staff salaries what is left is usually not enough to run the university. The average tuition in Federal universities is N20,000-N30,000 while in state-owned universities it’s within N50,000-N200,000. In comparison with private universities where tuition ranges from N300,000-N1,000,000. The figures showed that the Federal and State Governments pay subsidies for Education in the country, but it is usually not enough due to the universities in the country, and also considering other levels of tertiary education such as Polytechnics, Colleges of Education, Colleges of technology, amongst others.

3. Health Subsidy

The 2022 budget for health is N724 billion, which represents 4.2% of the N17.16 trillion budgeted for 2022.

State governments also cover some subsidies to make life easier for people, especially at the rural areas.

Due to relative subsidy in prescription drugs in Nigeria's health sector, drugs in Nigeria are often not so expensive.

In order to subsidize healthcare in Nigeria, the National Health Insurance Scheme (NHIS), was launched in 1995 but became operational in 2005. Funding for the NHIS has been the sole responsibility of the Federal Government.

4. Power subsidy

One thing that might shock Nigerians is that the Federal Government pays subsidies on power in the country.

The Federal Government announced it spent N1 trillion on fuel between 2019-2021 to help lower the tariff.

There are other subsidies too not mentioned here.

Abdulrazaq Hamzat