Tinubu's government to use N20trn Pension Funds for infrastructure development

After months of persistent denials, the federal authorities underneath President Bola Ahmed Tinubu has lastly acknowledged that Africa’s largest oil-producing nation will allocate as much as N5.4 trillion for oil subsidies in 2024.

This determine is a pointy improve from the N3.6 trillion spent in 2023 and N2.0 trillion in 2022.

The revelation got here throughout a presentation by Wala Edun, the minister of finance and coordinating minister of the financial system on an Accelerated Stabilisation and Development Plan (ASAP), designed to deal with key challenges affecting the reform initiatives and stimulate growth in varied sectors of the financial system.

“At present charges, expenditure on gas subsidy is projected to achieve ₦5.4 trillion by the top of 2024. This compares unfavourably with ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022,” a draft copy of the ASAP offered by Edun mentioned.

The federal authorities had beforehand maintained that it might not subsidise gas prices, as a substitute choosing a deregulation coverage.

In December, the federal government mentioned opposite to the declare by the World Financial institution that the federal government continues to be paying subsidy on petrol, the period of petrol subsidy is “gone for good”.

Talking in an interview on Channels TV, Minister of Info and Nationwide Orientation, Mohammed Idris had mentioned President Tinubu made it clear from his first day in workplace that his authorities wouldn’t maintain the fee of subsidy on petrol.

The minister mentioned the subsidy removing had translated to elevated income accruing to the federation account.

“So far as I’m involved, the President eliminated the subsidy and it stays eliminated until as we speak. Anyone who’s saying that subsidy is being paid, it’s left for the particular person to carry the info after which we’ll discuss them,” Heineken Lokpobiri, minister of state for petroleum sources (Oil) additionally mentioned in April.

In April, the previous governor of Kaduna State, Nasir El Rufai, mentioned the federal authorities was spending extra on petrol subsidy than earlier than.

The President of the Commerce Union Congress (TUC), Festus Osifo, additionally corroborated this in April that the Nigerian authorities was at the moment making use of quasi-subsidy on gas.

Recall that Tinubu’s ‘gas subsidy is gone‘