The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has expressed support for President Bola Ahmed Tinubu’s decision to remove the fuel subsidy, stating that it has saved the nation from significant financial losses, News About Nigeria reports.
Speaking at the opening ceremony of the National Council on Finance and Economic Development (NACOFED) in Bauchi on Monday, Edun highlighted that the President’s policy halted the importation of fuel, which had been costing the country approximately five percent of its GDP annually.
He explained that the removal of the subsidy open up avenue for substantial investments in infrastructure and also in critical social services like education and healthcare.
“When you look at where we are now, the major macroeconomic reforms are in place,” Edun stated.
“The President has stopped the bleeding that was costing five percent of the GDP annually, which added no value except to a select few individuals and neighboring countries benefiting from the fuel subsidy and a related foreign exchange subsidy.
“The benefits were concentrated among a few, while the majority of Nigerians gained nothing from these structures.
“With the removal of these subsidies, the federation account will benefit from an increased flow of resources to federal, state, and local governments. This paves the way for greater investments in infrastructure and social services like education and health,” he added.
Edun also noted that the reform provides clarity for private sector investments, particularly in the petroleum refining sector.
“We are back on the path to industrialization. Crude oil is no longer just being exported; it is being refined locally, yielding petroleum products and raw materials for industrial growth,” he said.
