The Nigerian government’s fuel subsidy bill is projected to reach a staggering N5.4 trillion in 2024, according to a draft copy of the Accelerated Stabilization and Advancement Plan (ASAP) presented to President Tinubu by Finance Minister Wale Edun.
This figure represents a significant increase from the N3.6 trillion budgeted for the subsidy intervention in 2023, a sum of N1.8 trillion higher than the previous year.
The ASAP, designed to address key challenges affecting the reform initiatives and stimulate development in various sectors of the economy, has unveiled the stark reality of the country’s growing fuel subsidy expenditure.
“At current rates, expenditure on fuel subsidy is projected to reach ₦5.4 trillion by the end of 2024. This compares unfavourably with ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022,” the draft copy of the ASAP revealed.
This development comes as a surprise, as the Tinubu-led government had previously maintained that it would no longer subsidise fuel costs. In December, the government had claimed that the era of petrol subsidy was “gone for good.”
In April, the former governor of Kaduna State, Nasir El Rufai, said the federal government was spending more on petrol subsidies than before.
