Presidency Channels N5.4 Trillion Subsidy Savings to National Development Projects

The Nigerian Presidency has announced that an estimated N5.4 trillion in savings from the 2024 subsidy removal will be allocated to infrastructure and social programs intended to improve the lives of Nigerians and support all levels of government. This was disclosed by Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, in a press statement titled, Time for Atiku Abubakar to End His Grand Illusions and Fantasies. Onanuga emphasized that these funds are specifically earmarked for developmental projects to raise Nigerians’ living standards and strengthen the country’s infrastructure.

“The projected N5.4 trillion from subsidy removal is being actively directed toward infrastructure and social intervention projects that will benefit all levels of government and improve Nigerians’ quality of life,” Onanuga said. This reallocation supports President Bola Tinubu’s revenue reinvestment policy aimed at economic growth, with planned projects covering transportation, healthcare, education, and the enhancement of both urban and rural infrastructure.

Onanuga also addressed recent critiques from Atiku Abubakar, former Vice President and People’s Democratic Party (PDP) presidential candidate, urging him to acknowledge the administration’s revenue-generating measures and its commitment to using subsidy savings for impactful projects. “Former Vice President and PDP Presidential Candidate Atiku Abubakar should commend the Tinubu administration for its revenue generation efforts for the Federation,” he added.

Focusing on refinery development, Onanuga highlighted that the Tinubu administration is prioritizing the revival of local refineries to lessen reliance on imported fuel and promote domestic production. The government plans to support modular refineries and ensure the smooth operation of the Dangote Refinery, expected to significantly increase Nigeria’s fuel output. He noted that Tinubu’s model of leasing refineries to private managers under mutually beneficial agreements is a practical approach, emphasizing private sector efficiency over direct ownership.

In his remarks, Onanuga urged Atiku to engage in constructive discourse instead of diverting focus with political distractions.

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Key points to know:
Fuel prices have gradually increased following subsidy removal, posing regulatory challenges in fuel distribution. Recent reports show that fuel subsidies are projected to reach N5.4 trillion in 2024, surpassing the previous year’s allocation by N1.8 trillion due to rising funding needs. The Nigerian National Petroleum Corporation (NNPC) Limited has been adjusting fuel prices based on market conditions, with the Dangote Refinery pricing petrol between N970 and N990.