• Wednesday, June 12, 2024
businessday logo

BusinessDay

After countless denials, FG admits to N5.4trn oil subsidy in 2024

After countless denials, FG admits to N5.4trn oil subsidy in 2024

In a surprising turn of events, the federal government has finally admitted Africa’s biggest oil-producing country will be spending up to N5.4 trillion on oil subsidies in 2024. This comes after months of repeated denials by government officials who insisted there were no subsidies.

The revelation came during a presentation by Wala Edun, the minister of finance and coordinating minister of the economy on an Accelerated Stabilisation and Advancement Plan (ASAP), designed to address key challenges affecting the reform initiatives and stimulate development in various sectors of the economy.

Read also: FG spends N600bn monthly on petrol subsidy Rainoil CEO

“At current rates, expenditure on fuel subsidy is projected to reach ₦5.4 trillion by the end of 2024. This compares unfavourably with ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022,” a draft copy of the ASAP presented by Edun said.

The federal government had previously maintained that it would no longer subsidise fuel costs, instead opting for a deregulation policy.

“As far as I’m concerned, the President removed the subsidy and it remains removed till today. Anybody who is saying that subsidy is being paid, it is left for the person to bring the facts and then we will talk about them,” Heineken Lokpobiri, minister of state for petroleum resources (Oil) said in April.