The Government of President Bola Tinubu has claimed that it has saved $20 billion by removing petrol subsidy and adopting market-based foreign exchange pricing.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun said this at an event in Abuja marking the first 100 days in office of Esther Walso-Jack, Head of the Civil Service of the Federation.
The disclosure came fews days after the Nigerian Senate granted President Tinubus request to borrow another $2billion.
In any case Edun said the subsidies were costing the country five percent of the Gross Domestic Product, GDP.
“When there was a subsidy on PMS and on foreign exchange, they collectively cost five percent of GDP. Assuming GDP was $400 billion on average, five percent of that is $20 billion — funds that could now go into infrastructure, health, social services, and education,” he said.
The minister further noted that the savings are being redirected into developmental projects.
“The real change is that no one can wake up and target cheap funding or forex from the Central Bank to enrich themselves without adding value.
“Similarly, profiteering from the inefficient petrol subsidy regime is no longer possible,” he added.
President Bola Tinubu officially ended the petrol subsidy regime on May 29, 2023.
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