Amidst economic hardship confronting Nigerians, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun has revealed that the nation has saved $20 billion from the removal of petrol subsidy and floating of the Naira.
The Minister made the disclosure at an event marking the first 100 days in office of the Head of the Civil Service of the Federation, Esther Walso-Jack, in Abuja.
According to the Minister, the subsidies used to cost five per cent of Nigeria’s Gross Domestic Product (GDP). He, however, noted that with the introduction of the twin economic policies of President Tinubu, things have now changed.
“Between them, they were costing five per cent of GDP,” Edun explained.
Speaking at the event, Edun emphasized the significance of these savings, breaking down their potential impact.
He said, “If you say GDP was on average, let’s say $400 billion, we all know what five per cent of that is. $20 billion of funds that could be going into infrastructure, health, social services, education.”
The Minister also stated that these funds, which had previously been drained through subsidies, are now being redirected into the government’s coffers for critical developmental sectors.
“The real change that has happened with the measures of Mr. President is that nobody can wake up and their target for the day or for the week or the month or the year is to get access to cheap funding. Cheap funding exchange from the central bank, which they can now flip. And overnight, they become wealthy from no value added for doing virtually nothing. Except you know the right people,” Edun said.
The Minister noted that inefficiencies in the petrol subsidy system, had previously allowed individuals to profit significantly with minimal contribution to the economy.
He said, “Similarly, they can no longer try and be part of a new peak market. And a very inefficient petrol subsidy regime as a way of making money overnight.”
source: Nigerian Tribune
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