FG has saved over ₦1tr since removal of fuel subsidy

Two months after the Federal Government stopped fuel subsidy payments, Nigeria has saved over one trillion naira.

President Bola Tinubu announced this in his nationwide broadcast on the current state of the country’s economy on Monday, July 31, 2023. 

The President said if he had not removed fuel subsidy, the savings would have been squandered on the scheme "which only benefitted smugglers and fraudsters."

He said, “In a little over two months, we have saved over a trillion naira that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters. That money will now be used more directly and more beneficially for you and your families.”

Recall that the official price of petrol increased from ₦195 to over ₦500 per litre a few days after the President declared in his inauguration speech on Monday, May 29, 2023, that his administration would discontinue fuel subsidy payments.

In July, the price rose to ₦617 per litre leading to a hike in the prices of other goods across the country.

In his bid to assuage the sufferings of Nigerians, President Tinubu said his administration is already working out palliatives to remedy the effects of fuel subsidy removal.

The President urged Nigerians to be patient with him, saying the country is already reborn with the removal of fuel subsidy.

“I understand that our people are suffering yet there can be no childbirth without pain. The joy of childbirth is the relief that comes after the pain. Nigeria is reborn already with fuel subsidy removal. It is a rebirth of the country for the largest number over a few smugglers. Please tell the people to be a little patient,” he said. 

President Tinubu also assured workers that his government would soon introduce a new minimum wage for them.