Between June and September, the federal government stated that it effectively saved about N1.45 trillion in profits by eliminating the premium motor spirit, or fuel subsidy.
These conclusions were based on records from the Federation Account Allocation Committee (FAAC) obtained from the National Bureau of Statistics and the Nigeria Governors Forum official websites.
The government’s Non-Oil Revenue (Savings) account received monthly payments of N696.93 billion in June, N389.7 billion in July, N71 billion in August, and N289 billion in September, according to a detailed study of the data.
President Bola Tinubu publicly declared the end of the petrol subsidy at his inaugural address on May 29, 2023, proclaiming, “Subsidy is gone.”
News About Nigeria gathered that the Nigerian National Petroleum Company Limited stated that between January 2023 and May 2023, it paid N1.828 trillion in subsidies. This was before the termination of subsidies.
This is a 55% increase compared to the same period in 2022. An analysis shows that aid expenditure for the first four months of 2023 is about N1.15 trillion: N274.769 billion in January, N477.742 billion in February, and N353,130 in April.
President Bola Tinubu, in his speech on August 1, 2023, said that just two months after the removal of the oil subsidy, specifically in June and July, the Nigerian government saved 1 trillion Naira.
Tinubu said the huge savings would no longer be used by “smugglers and fraudsters” but on national response projects to support families across the country.
Tinubu said the savings were the first important step in the government’s efforts to tighten fiscal discipline across the country, improve finances and reinvest in initiatives that improve livelihoods.
“In two months, we have saved over a trillion naira that should have been spent on futile subsidies that will only help smugglers and fraudsters,” the President said.
