The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has reported that the country incurs a monthly expenditure of $600 million on fuel imports.
During an interview on AIT’s Moneyline program, he attributed the substantial import bill to neighboring countries, extending to Central Africa which benefit from Nigeria's fuel imports.
Edun explained that this situation has prompted President Tinubu to remove the fuel subsidy, as the nation lacks clarity on the actual volume of fuel consumed domestically.
A report from the National Bureau of Statistics indicated a reduction in petrol imports to an average of one billion liters monthly after the subsidy removal on May 29, 2023.
He noted, “The fuel subsidy removal on May 29, 2023, by Mr. President meant that the poorest 40 percent received only four percent of the value, indicating minimal benefit for them. The situation raises questions about the sustainability of this approach.”
Edun emphasized the need for decisive action to address the issue, as it hampers economic growth and highlighted the government's commitment to the welfare of its citizens, particularly vulnerable populations.
During the interview, Edun clarified that the N570 billion fund released to state governments originated from reimbursements initiated in December of the previous year.
He stated, “This reimbursement aligns with the COVID financing protocol, and states have received increased funding to support food production.”
Furthermore, Edun addressed the recent increase in the maximum borrowing percentage in the Ways and Means from five to ten percent, asserting that this change does not indicate a reliance on the Central Bank of Nigeria for financing.
He explained that the government utilizes market instruments to manage its debts.
