Nigerian govt admits fuel subsidy to gulp N5.4tn in 2024

Nigerian govt admits fuel subsidy to gulp N5.4tn in 2024

Meanwhile, Heineken Lokpobiri, Minister of State for
Petroleum Resources, Oil, at a recent ministerial briefing to mark President
Bola Tinubu’s anniversary insisted that fuel subsidy has been completely
removed.

 

“I can confirm to you that subsidy is gone; officially,
there is no subsidy; I want to make it clear that there is no subsidy in the
country today”, he claimed.

 

In a contrary view, recall that the President of the Trade
Union Congress, Festus Osifo, had, in April, revealed that the Nigerian
government was currently applying quasi-subsidy on fuel.

 

Recall that Tinubu’s infamous fuel subsidy is gone statement
served as a springboard for the policy implementation in June 2023, causing the
pump price of the product to increase from N250 per litre to over N500.

 

Since then, the pump price of fuel has continued to surge,
reaching an average of N702 per litre in April 2024.

 

The ripple effect of fuel subsidy and the Naira floating
policy in June last year saw Nigeria’s headline and food inflation skyrocket to
33.69 percent and 40.53 in April 2024.

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