The Federal Government has reported savings of approximately ₦1.45 trillion between June and September following the removal of the subsidy on Premium Motor Spirit, commonly known as petrol. FAAC allocation documents from the Nigeria Governors Forum and National Bureau of Statistics indicate a monthly remittance to the Non-Oil Revenue (Savings) account, with June receiving ₦696.93bn, July ₦389.7bn, August ₦71bn, and September ₦289bn.
President Bola Tinubu officially declared the end of the petrol subsidy during his inaugural address on May 29, 2023. The Nigerian National Petroleum Company Limited revealed a pre-removal subsidy spending of ₦1.828tn from January to May 2023, a 55% increase compared to the same period in 2022.
President Tinubu, in a nationwide broadcast on August 1, 2023, announced that the government had saved ₦1tn in the two months following the subsidy removal (June and July). He emphasized redirecting these funds from potential misuse by “smugglers and fraudsters” into national intervention programs benefiting families across the country.
Despite the government’s claims, Trade Union Congress president, Festus Osifo, questioned the whereabouts of the saved funds during an interview on AriseTV. Osifo urged the government to utilize the saved ₦1 trillion instead of resorting to further borrowing.
In response, the Minister of Information and National Orientation, Mohammed Idris, acknowledged substantial savings from the subsidy removal. He disclosed that a significant portion of the saved funds had been passed on to state governments to alleviate the impact of the policy on Nigerians.
While he didn’t specify the exact amount saved, Idris highlighted the ongoing effort to provide palliatives through state governors, aligning with the belief that state governments are better positioned to address local needs.
