No N5.4 trillion provision for fuel subsidy in 2024 – FG 

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The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has debunked reports that the federal government made a N5.4 trillion provision for fuel subsidy for 2024.  

This is contained in a statement by the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, on his X account on Thursday.  

Onanuga pointed out that the draft containing the projected N5.4 trillion expenditure for fuel subsidy in 2024 isn’t official as it hasn’t received presidential approval. 

He further communicated the statement of the Minister that the fuel subsidy regime has ended, as declared by President Tinubu during his inaugural address on May 29, 2023.  

The spokesperson said Edun emphasized that the government’s strategy remains shifting away from high petrol and diesel costs through initiatives like the Compressed Natural Gas (CNG) transportation system. 

 “It is important to understand that policymaking is an iterative process involving multiple drafts and discussions before any document is finalised.  

“We assure the public that the official position on the documents will be made available after comprehensive reviews and approvals are completed. 

“Our strategy focuses on addressing key factors such as food inflation, which is significantly impacted by transport costs. With the implementation of our CNG initiative, which aims to displace high PMS and AGO costs, we expect to further reduce these costs.  

“Our commitment to ending unproductive subsidies is steadfast, as is our dedication to supporting our most vulnerable populations”, Edun said. 

Documents not official 

Furthermore, Onanuga said that the drafted copies of the two documents in circulation has not yet been approved by the president, adding that it is not official.  

According to him, the documents though contain economic proposals submitted to the president, they are still under review by the president.  

The spokesperson urged the media to refrain from discussing them as if they had already been approved by the government. 

“The attention of the Presidency has been drawn to two fiscal policy documents in circulation that are being given wide coverage by the mainstream media and social media platforms. 

“One of the documents titled Inflation Reduction and Price Stability (Fiscal Policy Measure etc) Order 2024 is being shared as if it were an executive order signed by President Bola Ahmed Tinubu.  

“The other Is a 65-page draft document with the title “Accelerated Stabilisation and Advancement Plan (ASAP), which contains suggestions on how to improve the Nigerian economy. President Tinubu received a copy of the draft on Tuesday.  

“We urge the public and the media to disregard the two documents and cease further discussions on them. None is an approved official document of the Federal Government of Nigeria,” Onanuga added.  

Backstory 

Earlier, Nairametrics reported that a draft copy report of the Accelerated Stabilization and Advancement Plan (ASAP) presented to President Tinubu by the finance minister, Wale Edun showed that the government projected that fuel subsidy will gulp N5.4 trillion in 2024.  

The report showed that the estimated expenditure on fuel subsidy for 2024 is N5.4 trillion, this is a swooping sum of N1.8 trillion more than the amount spent in 2023. 

“At current rates, expenditure on fuel subsidy is projected to reach N5.4 trillion by the end of 2024. This compares unfavourably with N3.6 trillion in 2023 and N2.0 trillion in 2022,” the report said. 

Meanwhile, the government has maintained that the contentious petrol subsidy is gone after President Tinubu announced on May 29, 2023, that the subsidy is gone. 

According to the government, the report has not been approved by the president.  


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