The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has refuted reports suggesting that the federal government has allocated N5.4 trillion for fuel subsidies in 2024. This clarification was made on Thursday through a statement by Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, on his X (formerly Twitter) account.
Onanuga emphasized that the draft projecting N5.4 trillion in fuel subsidy expenditure in 2024 is not official as it has not received presidential approval. He reiterated that President Tinubu’s declaration ended the fuel subsidy regime during his inaugural address on May 29, 2023.
Edun explained that the government’s strategy involves moving away from high petrol and diesel costs by promoting alternatives like the Compressed Natural Gas (CNG) transportation system. “It is important to understand that policymaking is an iterative process involving multiple drafts and discussions before any document is finalized,” Edun stated. The official position will be communicated after thorough reviews and approvals.
The government focuses on addressing key issues such as food inflation, which is significantly impacted by transport costs. The CNG initiative aims to reduce these costs by displacing high Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) expenses. Edun reaffirmed the government’s commitment to ending unproductive subsidies and supporting vulnerable populations.
Onanuga also clarified that the president has not approved the two draft documents in circulation and that they should not be considered official. One document, titled “Inflation Reduction and Price Stability (Fiscal Policy Measure, etc) Order 2024,” and another 65-page draft, “Accelerated Stabilisation and Advancement Plan (ASAP),” contain economic proposals still under review.
The public and media are urged to disregard these documents and refrain from discussing them as if they were official. The drafts are part of ongoing discussions and have not yet been finalized or approved by the government.
It was earlier reported that Finance Minister Wale Edun presented President Tinubu with a draft copy of the ASAP. The draft suggested that fuel subsidy expenditures could reach N5.4 trillion in 2024, an increase of N1.8 trillion from 2023. However, the government has maintained that the contentious petrol subsidy was discontinued following President Tinubu’s announcement on May 29, 2023. According to the government, the president has not approved the draft report.
