In contrast to earlier assertions of total deregulation, the Nigerian government has disclosed that gasoline subsidy expenses are expected to soar to ₦5.4 trillion in 2024, according to your news. The shocking revelation was disclosed by Finance Minister Wale Edun as the Accelerated Stabilization and Advancement Plan (ASAP) report was being presented.CONTINUE FULL READING>>>>>
This bombshell revelation comes on the heels of denials by government officials, including Minister of State for Petroleum Resources, Heineken Lokpobiri, who insisted that fuel subsidies had been completely eliminated. The ASAP report, however, paints a different picture, highlighting a continuous upward trend in government spending on fuel subsidies.
The projected ₦5.4 trillion subsidy cost for 2024 marks a significant increase from ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022. This surge is expected to have far-reaching implications for the economy, which is already grappling with soaring inflation rates. As of April 2024, Nigeria’s headline and food inflation rates had escalated to 33.69% and 40.53%, respectively.
The government’s admission raises questions about the transparency and accountability of the fuel subsidy program. Despite the significant expenditure, the government has not fully eliminated fuel subsidies, citing prevailing inflationary pressures and associated social challenges.
The International Monetary Fund (IMF) has also expressed concerns about the reintroduction of fuel subsidies, warning that it could cost Nigeria around 3% of its Gross Domestic Product (GDP) in 2024.
As the controversy surrounding fuel subsidies continues to unfold, Nigerians are demanding answers and accountability from their leaders. The government’s admission is a step in the right direction, but more needs to be done to ensure transparency and good governance in the management of public funds.CONTINUE FULL READING>>>>>