Nigerian govt will save N8 trillion from fuel subsidy, forex annually – Presidential Committee

The Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has revealed that the Nigerian federal government will save N8 trillion from fuel subsidy removal and the floating of Naira at the foreign exchange market.

Taiwo Oyedele, the chairman of the Committee, disclosed this during a recent panel session at the Lagos Chamber of Commerce and Industry 2024 Economic Outlook and Budget Analysis.

He said the Federal Government will accrue a combined sum of N8 trillion annually from the fuel subsidy removal and exchange rate unification policies.

He noted that the government needed to spend the amount saved from the two policies to alleviate the suffering of the average Nigerian.

He said, “The Nigerian people made sacrifices due to the removal of fuel subsidies from the government; that is N4tn savings a year. We did naira floatation. It is not perfect. We are also saving another N4tn. So we are having roughly N8tn transferred from the private pockets of the people to the government”.

Recall that Tinubu introduced fuel subsidy removal and Naira floating reforms on June 14 2023.

However, the policies have continued to cause hardship in the lives of Nigerians as prices of goods and services hit the rooftop.

DAILY POST reports that headline and food inflation increased to 28.92 per cent and 33.93 per cent, respectively, in December 2023, according to the National Bureau of Statistics.