According to Finance Minister Wale Edun, Nigeria spends $600 million monthly on fuel imports. During an interview, Edun dismissed reports that the government sought Ways and Means advances from the Central Bank of Nigeria (CBN), insisting no such request was made.
Edun explained that Nigeria’s high fuel expenditure is partly due to neighboring countries benefiting from its fuel imports. He cited this as a reason for President Bola Tinubu’s decision to remove the fuel subsidy, aiming to reduce foreign exchange expenses.
“The fuel subsidy was removed on May 29, 2023, by Mr. President. At that time, the poorest 40 percent of the population was receiving only four percent of the subsidy value,” Edun said. “It was benefiting only a few.”
Edun highlighted the lack of accurate data on Nigeria’s internal fuel consumption. This complicates efforts to manage the situation effectively. “We know we spend $600 million to import fuel every month, but neighboring countries benefit too,” he noted. “We must ask ourselves how long we want to continue this.”
Edun emphasized that the government’s top priority is the welfare of its citizens, especially the vulnerable. Ensuring the availability and affordability of food is a key focus area. The Minister clarified that the N570 billion fund allocated to state governments was initiated in December of the previous year.
To combat inflation, Edun discussed the government’s efforts to stabilize the economy by ensuring the availability of homegrown food. He reassured that imports would only be allowed once local supplies were depleted. “In the short term, there is a window opened for importation,” he explained. “The President’s commitment is to drive down prices and make food available immediately.”
Edun revealed plans to offer tax breaks to companies that hire more staff and suspend import duties on certain goods. These measures are part of the forthcoming Inflation Reduction Act, set to be signed by President Bola Tinubu in the coming weeks.
“In addition to tax breaks, the government will have auditors verify that all locally available food is taken up first before allowing imports,” Edun stated.
During the interview, Edun addressed the misinformation surrounding the oil sector and reiterated the government’s commitment to transparency and accountability. He denied reports that the federal government secretly approached the CBN for loans, insisting no such thing occurred.
The Finance Minister’s statements shed light on Nigeria’s economic challenges and the government’s efforts to address them. The removal of the fuel subsidy, measures to combat inflation, and plans for economic stabilization are part of a broader strategy to ensure the welfare of Nigerian citizens.
Source: Sun News
