The Nigerian government says fuel subsidy will cost about N5.4 trillion in 2024, compared to the N3.6 trillion budgeted for the same intervention in 2023.
This was disclosed during the presentation of the Accelerated Stabilisation and Advancement Plan (ASAP) report, which outlines strategies to address critical challenges and stimulate growth across various sectors.
A draft copy of the ASAP report was presented to President Tinubu by the finance minister, Wale Edun, on Tuesday.
The report shows that the estimated expenditure on fuel subsidy for 2024 is N5.4 trillion, a sum of N1.8 trillion more than the amount spent in 2023.
The projected subsidy cost in 2024 marks a significant increase from N3.6 trillion in 2023 to N2.0 trillion in 2022, highlighting a continuous upward trend in government spending on fuel subsidies.
This revelation comes amidst previous denials from the government regarding the complete deregulation of fuel prices.
The Minister of State for Petroleum Resources, Heineken Lokpobiri, reiterated during a ministerial briefing on the anniversary of President Bola Tinubu’s administration that fuel subsidies had been eliminated.
“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,” Lokpobiri stated.
These statements follow significant policy shifts last year. President Tinubu declared the end of the fuel subsidy, leading to a hike in pump prices from N250 per litre to over N500. Prices have continued to climb, reaching an average of N702 per litre as of April 2024.
