The Federal Government of Nigeria has reported savings of N1.83 trillion in less than three months it cut of petrol subsidy payments. This substantial windfall has been amassed from the revenue accumulated in June and July, as confirmed by a source within the Federation Account Allocation Committee (FAAC).
“The amount was saved in the federation account as a contingency measure for potential future needs,” the source stated. The savings consist of N1.05 trillion from the N1.97 trillion revenue generated in June and an additional N779.89 billion from the N1.746 trillion revenue amassed in July.
Wale Edun, the Minister of Finance and Coordinating Minister for the Economy (CME), communicated the government’s intentions for the saved funds. “The plan is to utilise this money for executing projects without resorting to borrowing,” Edun said. “The administration led by Bola Ahmed Tinubu aims to establish a foundation for financing crucial projects independently.”
President Tinubu also emphasised this during the 63rd Nigerian Bar Association (NBA) annual conference, where he articulated that the nation can no longer sustain its economy with an overwhelming 90 percent of revenue allocated to servicing national debts. At a recent Federal Executive Council (FEC) meeting, he reiterated his commitment to prioritizing a stable macroeconomic environment over further borrowing for projects.
“The era of accumulating more debts is behind us,” President Tinubu asserted. This position has been conveyed to FAAC members and revenue-generating agencies by the CME.
The saved sum of N1.83 trillion has been securely held in the federation account with the Central Bank of Nigeria (CBN). The government’s persuasive efforts led to the consensus among most FAAC members that a portion of the revenue accruing to the Federation Account should be preserved to prevent allocations from falling below a specified threshold. In instances when the monthly available amount is below this threshold, FAAC can draw from the savings to supplement the distribution.
Tony Elumelu, Chairman of HEIRS Holdings and Transcorp Plc, applauded President Tinubu’s resolute decisions in the best interest of the nation. After a private meeting with the President, Elumelu conveyed the private sector’s encouragement for the steps taken. He asserted that these actions are designed to benefit all Nigerians, particularly women and youths, in the long term.
“The President’s decisions are geared towards our people, our youth, and our women, ensuring job opportunities and empowerment,” Elumelu remarked, urging fellow citizens to exercise patience during this transformative process. “Rome was not built in a day,” he reminded.