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
Nigeria's Debt Soars: To exceed N155 Trillion by 2025 amidst economic strain
BY Abiodun Saheed Omodara March 21, 2025 0

The United Nations Conference on Trade and Development (UNCTAD) has indicated that many countries, p...

READ ALSO
Petrol prices at risk of increase as Dangote refinery suspends Naira sales
BY Abiodun Saheed Omodara March 20, 2025 0

ABUJA, NIgeria - The cost of Premium Motor Spirit (PMS), commonly referred to as petrol, may increas...

READ ALSO
Afreximbank urges fiscal discipline as Africa's bebt hits $1.2trillion
BY Abiodun Saheed Omodara March 17, 2025 0

With Africa's total debt reaching $1.2 trillion, Afreximbank has emphasized the necessity for govern...

READ ALSO
Nigeria's response to WTO obligations, AfCFTA opportunities for foreign investment
BY Abiodun Saheed Omodara March 16, 2025 0

In light of Nigeria's previous commitment to the World Trade Organisation (WTO) global trade agreeme...

READ ALSO
Tinubu highlights need for economic reform to protect future generations
BY Abiodun Saheed Omodara March 14, 2025 0

ABUJA, Nigeria - President Bola Tinubu emphasizes that the purpose of his administration's economic...

READ ALSO
PDP slams Niger governor for regret amid economic decline
BY Abiodun Saheed Omodara March 13, 2025 0

MINNA , Nigeria - The opposition Peoples Democratic Party (PDP) has ridiculed Governor Moh...

READ ALSO
Nigeria unveils comprehensive economic strategy to drive sustainable development
BY Abiodun Saheed Omodara March 11, 2025 0

ABUJA, Nigeria - The Federal Government, represented by the Minister of Finance and Coordinating Min...

READ ALSO
Tax reform bills sparks controversy among stakeholder
BY Abiodun Saheed Omodara March 11, 2025 0

The recently concluded public hearing on the proposed tax reform bills has sparked debates among sta...

OUR CHANNELS:

FRSC calls for Safe driving practices amid Eid-el-Fitr festivities
BY Abiodun Saheed Omodara March 30, 2025 0

OGUN, Nigeria - The Federal Road Safety Corps (FRSC) in Ogun State has issued a warning to motorists...


Proposed Age Limit Sparks Outcry Among Political Parties
BY Suleiman Jimoh March 30, 2025 0

In a move that has ignited widespread criticism and debate, Nigeria's House of Representatives recen...


Kano's 15th Emir cancels Eid Durbar following security discussions
BY Abiodun Saheed Omodara March 31, 2025 0

KANO, Nigeria - Amid increasing tensions surrounding the Kano Emirate, the 15th Emir of Kano, Aminu...


Wamakko facilitates release of 60 inmates in Sokoto, Promotes non-custodial sentencing
BY Abiodun Saheed Omodara March 30, 2025 0

SOKOTO, Nigeria -  The representative of Sokoto-North senatorial district, Aliyu Wamakko, has a...


Nigeria set to lead in smart mobility with AI speed train initiative
BY Abiodun Saheed Omodara March 31, 2025 0

The Ogun-Guangdong Free Trade Zone (OGFTZ) and China’s Zhongguancun Infogu Asset Management Co...


Sabalenka, Paolini set for Miami semifinal after quarterfinal victories
BY Abiodun Saheed Omodara March 31, 2025 0

World number one Aryna Sabalenka staged a comeback in the second set to secure her place in the semi...


Son Heung-min blames poor pitch conditions for South Korea's World Cup qualifying struggles
BY Abiodun Saheed Omodara March 30, 2025 0

Son Heung-min criticized the poor condition of South Korea's pitches for their struggles in the 2026...


Nigeria gains unexpected edge in 2026 World Cup quest qmid South Africa's player eligibility controversy
BY Abiodun Saheed Omodara March 31, 2025 0

Nigeria's emerging quest for a spot in the 2026 World Cup received an unforeseen advantage over the...


Nigeria, Canada forge new Aviation ties with bilateral Air services agreement
BY Abiodun Saheed Omodara March 31, 2025 0

ABUJA, Nigeria - In a notable achievement for the aviation sector, the Minister of Aviation and Aero...


Collaboration for Transparency: BPP, ICPC sign MOU to combat procurement fraud
BY Abiodun Saheed Omodara March 31, 2025 0

The Director-General of the Bureau of Public Procurement, Dr. Adebowale  Adedokun, has und...


More Articles

Load more...

Menu