Would you like to receive notifications on latest updates of the following headlines?

Nigeria Lost 5% of GDP to Petrol Subsidy – Wale Edun

POSTED ON October 18, 2024 •   Business      BY Abiodun Saheed Omodara
Minister of Finance and Coordinating Minister of the Economy, Wale Edun

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said petrol subsidy cost Nigeria about 5 percent of its gross domestic product (GDP).

President Bola Tinubu, on May 29, said the petrol subsidy regime was over.

Speaking as a panelist at the launch of the Nigeria Development Update in Abuja, Edun said subsidy removal was necessary as it had cost the county a lot.

He said President Bola Tinubu’s administration has been able to end the subsidy issue which had lingered for 40 years.

“For the first time in 40 years, the vexed issue of fuel subsidy and linked to it, the foreign exchange subsidy, costing 5 percent of GDP has gone, “ Edun said.

“It takes time to do reform. So what started on May 29, 2023, taken from one place, tried to re-exit in another place, and it was finally extinguished.

“We have market pricing of PMS and with that, there’s huge benefit not only to NNPC, which was bearing the brunt, but to the economy as a whole, including the state governments and the local governments.

“In the same regard, market pricing of foreign exchange. And it’s a difficult step, apart from all the other things that you do to ameliorate the pain generally of macroeconomic reform.

“In this case, we sat down with the unions. We explained the economic trajectory the country was on, and we explained the opportunity which we all needed to ensure that we do not miss.

“Continuing inflation, getting the economy growing again, repairing a trillion’s hole. I mean, you can work out the figure yourself.

“When you lose 5% of GDP, I think Dr. Ogeo said it all the other day. But if you imagine that we now have those funds back each month, each day, with market pricing of PMS, the government has money at the federal, state, and private levels, and local government levels, for housing, for infrastructure.

“It is a very, very significant point and it’s President Bola Tinubu that has been able to do what was there for 40 years.”

READ ALSO
IMF urges Nigeria to exercise fiscal caution amid economic reforms
BY Abiodun Saheed Omodara April 24, 2025 0

The International Monetary Fund (IMF) has called on Nigeria to exercise caution in its expenditures...

READ ALSO
FG urges IMF, World Bank to bolster economic reforms in sub-saharan Africa
BY Abiodun Saheed Omodara April 24, 2025 0

Finance Minister Wale Edun has emphasized the need for increased global assistance to reform economi...

READ ALSO
Nigeria's Economic Reforms Boost Sovereign Credit Profile - IMF
BY Abiodun Saheed Omodara April 23, 2025 0

The Assistant Director for Global Markets at the International Monetary Fund (IMF), Jason Wu,  ...

READ ALSO
Trade Wars Take Center Stage at IM ,World Bank Spring Meetings
BY Abiodun Saheed Omodara April 22, 2025 0

Global finance leaders are convening in Washington this week for the semi-annual meetings of the Int...

READ ALSO
Kano secures $10bn investment for renewable energy, minerals in partnership with Morocco
BY Abiodun Saheed Omodara April 21, 2025 0

KANO, Nigeria (NAN) - The government of Kano state has announced that it will secure more than $10 b...

READ ALSO
RMAFC, ALGON collaborate to strengthen LG financial autonomy
BY Abiodun Saheed Omodara April 18, 2025 0

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bell...

READ ALSO
LCCI, NIXIN call for government support to revitalize Nigeria's paper manufacturing industry
BY Abiodun Saheed Omodara April 18, 2025 0

The Lagos Chamber of Commerce and Industry (LCCI), in collaboration with NIXIN Paper Mill Nigeria Li...

READ ALSO
Cross River to rejuvenate rubber estates after out-of-court settlement with Enghaut industries
BY Abiodun Saheed Omodara April 18, 2025 0

CROSS RIVERS, Nigeria - The Cross River State Government, along with Enghaut Industries, has reached...

OUR CHANNELS:

FG commends Ghana for rescuing 219 trafficked Nigerians from cybercrime
BY Abiodun Saheed Omodara April 27, 2025 0

ABUJA, Nigeria - The federal government has praised the Ghanaian authorities for rescuing at least 2...


Tinubu meets security chiefs, Calls for swift action against ongoing violence
BY Abiodun Saheed Omodara April 27, 2025 0

ABUJA, Nigeria - President Bola Ahmed Tinubu has called for an immediate end to the ongoing violence...


FG releases ₦50Bn for university staff unions, A commitment to educational reform
BY Abiodun Saheed Omodara April 27, 2025 0

The Minister of Education, Dr. Maruf Olatunji Alausa, announced on Wednesday that the federal govern...


Fani-Kayode criticises Mutfwang's leadership amid security crisis
BY Abiodun Saheed Omodara April 27, 2025 0

PLATEAU, Nigeria - Plateau State Governor, Caleb Mutfwang, and former Aviation Minister, Femi Fani-K...


Father demands justice as Nigerian correctional service dismisses kidnapping allegations
BY Abiodun Saheed Omodara April 27, 2025 0

PORT HARCOURT, Nigeria - Ogunsinasi Oluwaseyi, the father of 12-year-old Oluwaseyi Favour, who was r...


Ogun shuts  four companies for environmental violations
BY Abiodun Saheed Omodara April 27, 2025 0

OGUN, Nigeria (NAN) - The Ogun state government, via its Environmental Protection Agency (OGEPA), ha...


IMF urges Nigeria to exercise fiscal caution amid economic reforms
BY Abiodun Saheed Omodara April 27, 2025 0

The International Monetary Fund (IMF) has called on Nigeria to exercise caution in its expenditures...


FG urges IMF, World Bank to bolster economic reforms in sub-saharan Africa
BY Abiodun Saheed Omodara April 24, 2025 0

Finance Minister Wale Edun has emphasized the need for increased global assistance to reform economi...


LASG short 66,000 healthcare practitioners, threat to quality services delivery
BY Abiodun Saheed Omodara April 27, 2025 0

LAGOS, Nigeria - The Lagos State Government is grappling with a significant shortage of medical prac...


Pope Francis to be buried April 26
BY Abiodun Saheed Omodara April 27, 2025 0

Pope Francis’s funeral will be held on Saturday, the Vatican announced Tuesday, as world leade...


More Articles

Load more...

Menu