No N5.4tr provision for fuel subsidy, says FG

There is no N5.4trillion provision for fuel subsidy this year, the Federal Government said on Thursday.

In a statement by Mr Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Ahmed Tinubu, the government said subsidy on fuel ended in May, 2023.

The government said its position has not changed.

“Our commitment to ending unproductive subsidies is steadfast, as is our dedication to supporting our most vulnerable populations,” the government said.

The government said it ” is committed to mitigating the effects of this removal and easing the cost of living pressures on Nigerians.”

It urged the public to disregard two fiscal documents in circulation that are being given wide coverage by the media , mainstream and social.

The documents are ” Inflation Reduction and Price Stability ( Fiscal Measures) Order 2024; and ” Accelerated Stabilisation and Advancement Plan( ASAP).

The statement reads: “The government wants to restate that its position on fuel subsidy has not changed from what President Bola Ahmed Tinubu declared on 29 May 2023. The fuel subsidy regime has ended. There is no N5.4 trillion being provisioned for it in 2024, as being widely speculated and discussed.”

The Coordinating Minister of the Economy further clarified: “As previously stated by government officials, including myself, President Tinubu announced the end of the fuel subsidy program last year, and this policy remains firmly in place.

“The Federal Government is committed to mitigating the effects of this removal and easing the cost of living pressures on Nigerians.

“Our strategy focuses on addressing key factors such as food inflation, which is significantly impacted by transport costs. With the implementation of our CNG initiative, which aims to displace high PMS and AGO costs, we expect to further reduce these costs.

“Our commitment to ending unproductive subsidies is steadfast, as is our dedication to supporting our most vulnerable populations”.