Nigeria To Spend Nearly $4 Billion On Fuel Subsidies This Year - Politics - Nairaland
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| Nigeria To Spend Nearly $4 Billion On Fuel Subsidies This Year by malali: 2:28am On Jun 07 |
Nigeria is projected to allocate 5.4 trillion naira ($3.7 billion) in 2024—50% more than the previous year—to maintain stable petrol prices. Additionally, the country plans to borrow an extra 6.6 trillion naira to address budgetary deficits, according to a draft document reviewed by Reuters on Thursday, shining a light on the country’s troubled refinery industry. The "Accelerated Stabilisation and Advancement Plan" (ASAP), developed by the finance ministry in collaboration with private sector leaders and economists, aims to tackle challenges posed by recent economic reforms intended to stimulate growth. President Bola Tinubu's decision last May to abolish a costly petrol subsidy, a move praised by investors, led to a threefold increase in petrol prices, higher transport costs, and rising inflation, causing public discontent. Despite pressure from labor unions, Tinubu remains committed to these reforms. Since July last year, petrol prices have remained fixed, despite two currency devaluations. Nigeria continues to depend on imported petroleum products due to the low output from its state-owned refineries. "Given the current rates, fuel subsidy expenditures are expected to reach 5.4 trillion naira by the end of 2024, compared to 3.6 trillion naira in 2023 and 2.0 trillion naira in 2022," stated the finance ministry in the draft document. Presidential aide Bayo Onanuga noted that President Tinubu received the draft on Tuesday, highlighting that it is a proposal with suggestions for enhancing the Nigerian economy. Analysts suggest that if the president approves the policy, he may issue executive orders to implement its recommendations. These recommendations encompass the power, oil and gas, agriculture, and healthcare sectors, with provisions for business support. Nigeria's economy has been sluggish, growing around 3% annually, well below the 6% growth target set by Tinubu when he assumed office last year. The draft policy document proposes the government sell equity in its refineries by May 2026, increase the excise duty on beverages, and introduce taxes on single-use plastics and sweetened beverages to generate revenue. Furthermore, the government aims to boost oil production to around 2 million barrels per day by December, up from the current 1.4 million, to improve cash flow and close revenue gaps. By Julianne Geiger for Oilprice.com 1 Share
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| Re: Nigeria To Spend Nearly $4 Billion On Fuel Subsidies This Year by Temmymighty(m): 2:31am On Jun 07 |
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| Re: Nigeria To Spend Nearly $4 Billion On Fuel Subsidies This Year by malali: 2:33am On Jun 07 |
A Call for Transparency: The Nigerian Government Must Clarify the Fuel Subsidy Issue The recent draft document reviewed by Reuters indicates that Nigeria is projected to allocate 5.4 trillion naira ($3.7 billion) in 2024 to maintain stable petrol prices, a 50% increase from the previous year. This sharp rise comes amid an economic crisis exacerbated by President Bola Tinubu's decision last May to abolish the costly petrol subsidy—a move that, while praised by investors, has led to soaring petrol prices, increased transport costs, and rising inflation. Despite these pressures, President Tinubu remains committed to his economic reforms, which include relying on imported petroleum products due to low output from state-owned refineries. However, the Nigerian government’s approach to addressing these challenges has been shrouded in secrecy, leaving citizens in the dark about critical issues that directly affect their daily lives. Are we paying a fuel subsidy or not? If we are, how are we accounting for international fluctuations in oil prices? If not, why does the expenditure keep rising? These are legitimate questions that demand honest answers. As Nigerians, we have the right to know the truth about our country's economic policies. The government's lack of transparency is not only frustrating but also undermines public trust. It is high time for President Tinubu, as the leader and Commander-in-Chief, to instruct his Minister of Information to clarify these issues unequivocally. We need clear, honest communication about the state of the fuel subsidy, the reasons behind the increasing expenditures, and the broader implications for our economy. Secrecy breeds suspicion and discontent. Transparency fosters trust and cooperation. The Nigerian government must choose the latter. We deserve honesty, clarity, and accountability from those we have entrusted with our nation's future. It is not just a matter of good governance; it is a matter of respect for the Nigerian people. |
| Re: Nigeria To Spend Nearly $4 Billion On Fuel Subsidies This Year by libertyfather(m): 2:48am On Jun 07 |
wetin we gain? |
| Re: Nigeria To Spend Nearly $4 Billion On Fuel Subsidies This Year by Jostoman: 5:21am On Jun 07 |
El rufai told nigerians in his last interview that it is now nigerians are paying more for subsidy under same the same Tinubu government that told nigerians that subsidy is gone but many people criticize him. |
| Re: Nigeria To Spend Nearly $4 Billion On Fuel Subsidies This Year by ayoolataiwo(m): 6:51am On Jun 07 |
This government have been on the verge of taking us to we no know,,I think em say subsidy is gone forever?which one be 5.4 trillion allocated for it.Is the oil cabals more stronger and influential than over 230 million Nigerians |
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