The federal government has finally admitted that fuel subsidy is projected to cost about N5.4 trillion in 2024.
According to a draft copy report of the Accelerated Stabilization and Advancement Plan (ASAP), the estimated expenditure on fuel subsidy for 2024 is N5.4 trillion.
When compared to the previous year, the 2024 fuel subsidy expenditure is higher than that of the year 2023, with a sum of N1.8 trillion, as N3.6 trillion was budgeted for the same intervention in 2023.
The report was presented to President Bola Tinubu on Tuesday by the finance minister, Wale Edun.
“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.” The report said.
The ASAP was designed to address key challenges affecting the reform initiatives and stimulate development in various sectors of the economy.
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The Tinubu-led government had at several functions insisted that it would no longer subsidize fuel costs.
In December, the government said, contrary to the claim by the World Bank that the government is still paying subsidy on petrol, the era of petrol subsidy is “gone for good”.
Corroborating the claim, Minister of Information and National Orientation, Mohammed Idris, said President Tinubu made it clear from his first day in office that his government would not sustain the payment of subsidy on petrol.
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The minister, on Channels TV, said the subsidy removal had translated to increased revenue accruing to the federation account.
Recall that in April, the former governor of Kaduna State, Nasir El Rufai, said the federal government was spending more on petrol subsidy than before.