FG spent N3.6 trillion on fuel subsidy in 2023, projects N5.4 trillion in 2024 – ASAP Reports

Fuel subsidies are expected to cost over N5.4 trillion in 2024, according to the federal government, compared to the N3.6 trillion allocated for the same intervention in 2023.

This is included in a draft copy of the Accelerated Stabilization and Advancement Plan (ASAP) report that Finance Minister Wale Edun gave to President Tinubu on Tuesday.

According to the analysis, fuel subsidy spending is expected to reach N5.4 trillion in 2024, a staggering N1.8 trillion higher than in 2023.

Read Also: Foreign Investments Depend On FX Reforms, Not Higher Oil Production Fitch Tells FG

The government had previously maintained that the contentious petrol subsidy is gone after President Tinubu announced on May 29, 2023, that the subsidy is gone.

However, a draft copy of the ASAP report showed a projection of N5.4 trillion in subsidy expenditure, despite the claim that subsidy is no more.

“At current rates, expenditure on fuel subsidy is projected to reach N5.4 trillion by the end of 2024. This compares unfavourably with N3.6 trillion in 2023 and N2.0 trillion in 2022,” the report said.

Read Also: FG Dangles N1b Loan At 9% Interest Rate Before Large Businesses

Subsidy is an Ongoing Conversation — Edun
In an earlier statement, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the fuel subsidy removal is an ongoing process that depends on a combination of factors.

Edun said the government is working to ensure a complete elimination of fuel subsidy in the country’s economy, adding that the policy direction of the government now focuses more on Compressed Natural Gas (CNG) to power energy in the country.

“Clearly, it is a combination of pivoting away from petroleum imports. Now, we are focusing more on CNG.

“It is an ongoing conversation, it is an ongoing process of ensuring that fuel subsidy that fuel subsidy is eliminated from the Nigerian economy, that is what Mr. President intent is and that is what is being worked towards,” Edun said.