Ogun State Governor, Dapo Abiodun, has revealed that the removal of fuel subsidies has saved Nigeria N5.4 trillion. He made this statement during a Special Church Service held on Sunday to mark the 64th National Day celebration at the Cathedral Church of St. Peter, Ake, Abeokuta.
Governor Abiodun emphasized that the savings are being redirected towards national infrastructure development. He stated, “Mr. President removed the subsidy, which, if not addressed, would have cost us N5.4 trillion by the end of 2024. We have been subsidizing our neighbors, using funds that could instead improve our infrastructure and social services.”
He further explained that Nigeria’s infrastructure budget for the year was N6.7 trillion, and without the subsidy removal, the country would have faced the challenge of paying out N5.4 trillion, nearly matching the federal budget.
The federal government had reinstated fuel subsidies a year after President Bola Tinubu, in his May 29, 2023, inauguration speech, declared that “subsidy is gone.” The policy change has led to economic challenges for many Nigerians, with fuel prices rising from N197 to between N480 and N570 per liter, causing a surge in transportation costs and the prices of goods and services.
In July 2023, the petrol pump price increased to N617 per liter at Nigerian National Petroleum Company Limited (NNPC) outlets. As of September 15, 2024, the price of petrol had soared further, ranging from N855 to N897 per liter, depending on the region.
