The Nigerian Presidency announced that an estimated N5.4 trillion in savings from subsidy removal in 2024 is being directed towards infrastructure and social intervention programs aimed at benefiting all tiers of government and enhancing Nigerians’ quality of life.
This was stated by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, in a press release titled, Time for Atiku Abubakar to End His Grand Illusions and Fantasies, issued on Sunday.
Mr. Onanuga disclosed that the subsidy removal savings would support key development projects, emphasizing that these funds are actively allocated for projects designed to elevate the living standards of Nigerians and bolster national infrastructure.
“The estimated N5.4 trillion savings from subsidy removal in 2024 are being actively directed toward infrastructure development and social intervention programmes, initiatives that will benefit all tiers of government and enhance Nigerians’ quality of life,” he stated.
The decision aligns with President Bola Tinubu’s strategy of revenue reinvestment to stimulate economic growth, and the initiatives are expected to encompass projects across transport, healthcare, and education, with plans to enhance both urban and rural infrastructure.
Call for opposition support
Addressing recent criticisms from Atiku Abubakar, the former Vice President and the presidential candidate of the People’s Democratic Party (PDP), Mr. Onanuga suggested that Atiku should recognize the administration’s efforts in revenue generation for the Federation and the direction of the subsidy savings towards transformative initiatives.
“It is expected of the former Vice President and Presidential Candidate of the People’s Democratic Party, Atiku Abubakar, to commend the Tinubu administration over revenue generation for the Federation,” Mr. Onanuga stated.
Refinery development
Onanuga noted that President Tinubu’s administration is prioritizing refinery revitalization, aiming to reduce dependence on imported fuel and foster local production.
This involves support for modular refineries and the operations of the new Dangote Refinery, which is expected to bolster Nigeria’s fuel production capacity significantly.
“The model of farming the completely rehabilitated refineries to private sector managers at an agreed-upon rate of return to the government, as adopted by Tinubu’s government, is more practical and value-laden than selling our national patrimony to some private interests that are not technically capable of operating the refineries.
The Tinubu administration focuses on revitalising these refineries while supporting modular refineries and the Dangote Refinery, which has greater capacity,” he said
In his statement, Mr. Onanuga also responded to recent criticisms from Atiku, urging him to engage in constructive discussions rather than perpetuating political distractions.
What you should know
The gradual increase in fuel prices has followed the removal of subsidies, as the government continues to face challenges in regulating petrol distribution to marketers and filling stations.
Nairametrics earlier reported that the Federal government said fuel subsidy is projected to gulp about N5.4 trillion in 2024 against N3.6 trillion, significantly exceeding the previous year’s budgeted N3.6 trillion by N1.8 trillion. This increase reflects a steep rise in funding needed for fuel subsidies.
The Nigerian National Petroleum Corporation (NNPC) Limited has consistently raised its petrol prices over the past few months, attributing the hikes to market realities.
The Dangote Refinery is selling its petrol at prices ranging from N970 to N990 and maintains that it is pricing its products based on market conditions.
