The Federal government has finally admitted that it is still paying subsidy with about N5.4 trillion projected in 2024 as against the N3.6 trillion budgeted for the same intervention in 2023.
The acknowledgement was found in a draft copy report of the Accelerated Stabilization and Advancement Plan (ASAP) presented to President Tinubu by the finance minister, Wale Edun.
“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.
The report indicated that the projected subsidy for 2024 was N1.8 trillion more than the amount spent in 2023 despite President Bola Tinubu declaring an end to subsidy in his inaugural address.
The figure is however lower when compared to the N8.43 trillion projected to be paid earlier this year.
The IMF in a report issued last month said, “the implicit subsidy will cost Africa’s largest crude producer an estimated 8.43 trillion naira ($5.9 billion) of its projected 17.7 trillion naira of oil revenue.”
