The Federal Government of Nigeria has saved approximately N1.45 trillion between June and September from the removal of petrol subsidy, according to FAAC allocation records obtained from the National Bureau of Statistics and Nigeria’s Governors Forum websites.
Monthly contributions to the Non-Oil Revenue (Savings) account totalled N696.93 billion in June, N389.7 billion in July, N71 billion in August, and N289 billion in September.
President Bola Tinubu declared the end of the subsidy in May 2023. Prior to this, the Nigerian National Petroleum Company Limited spent N1.828 trillion on subsidies from January to May 2023, 55 percent higher than the same period in 2022.
Tinubu announced that N1 trillion was saved in June and July alone, which will now be used for intervention programmes benefiting families.
You would recall, Festus Osifo, Trade Union Congress President, questioned the government’s claim of saving N1 trillion after the subsidy removal, urging transparency in utilising the funds.
Osifo expressed that there’s no need for further borrowing and that the government should use part of the saved money for the benefit of Nigerians.
Meanwhile, Mohammed Idris, Minister of Information and National Orientation, acknowledged substantial savings from the subsidy removal and stated that funds were provided to state governments to ease the policy’s impact on citizens. The exact amount wasn’t disclosed.
