The Nigerian government confirms that it is redirecting an estimated N5.4 trillion in savings from the removal of fuel subsidies in 2024 towards critical infrastructure and social intervention programs designed to improve living standards for citizens and support nationwide development.
According to a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, these savings are being actively invested in key sectors such as transportation, healthcare, and education, with a focus on enhancing infrastructure in both urban and rural areas.
“The N5.4 trillion saved from the removal of fuel subsidies is being allocated to infrastructure projects and social programs that will benefit all levels of government and improve Nigerians’ quality of life,” Onanuga reveals.
Strategic Economic Reinvestment Under Tinubu Administration
This reallocation aligns with President Bola Tinubu’s strategy of reinvesting revenue into projects that drive economic growth. The administration aims to use these funds to address critical socio-economic challenges and support sustainable development across the country.
Response to Opposition Criticisms
Onanuga also responds to recent criticisms from Atiku Abubakar, former Vice President and presidential candidate of the People’s Democratic Party (PDP), urging him to recognize the government’s efforts in enhancing revenue generation and using subsidy savings for national progress.
“It is essential for opposition leaders like Atiku Abubakar to acknowledge the administration’s commitment to generating revenue and investing in transformative initiatives,” Onanuga states, calling for constructive engagement instead of political distractions.
Focus on Refinery Revitalization for Energy Independence
Onanuga highlights that the Tinubu administration prioritizes the revitalization of Nigeria’s refineries to reduce reliance on imported fuel. The government supports the development of modular refineries and aims to optimize operations at the new Dangote Refinery to boost local fuel production.
“The strategy involves leasing fully rehabilitated refineries to private sector managers under agreed terms, which is more sustainable than outright privatization to entities lacking the technical capacity to run them,” Onanuga explains.
These efforts are set to enhance Nigeria’s fuel production capacity, strengthen energy security, and reduce the burden on foreign exchange reserves.
Impact on Fuel Pricing and Market Dynamics
Since the removal of subsidies, fuel prices have gradually increased due to market forces. The Nigerian National Petroleum Corporation (NNPC) Limited has adjusted petrol prices multiple times, citing market realities. The Dangote Refinery currently sets its petrol prices between N970 and N990, reflecting current economic conditions.
The government’s comprehensive strategy to use subsidy savings for national development and refinery revitalization aims to build a resilient economy and improve living conditions for all Nigerians.
