The Federal Government has announced that an estimated N5.4 trillion in savings from the 2024 subsidy removal will be allocated towards infrastructure and social intervention programs.
These initiatives are aimed at benefiting all tiers of government and improving the quality of life for Nigerians.
The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, disclosed this in a press release titled “Time for Atiku Abubakar to End His Grand Illusions and Fantasies”,noting that the savings will be directed towards vital development projects.
The funds are specifically earmarked for efforts designed to uplift Nigerians’ living standards and strengthen national infrastructure.
“The estimated N5.4 trillion savings from subsidy removal in 2024 are being actively directed toward infrastructure development and social intervention programmes, initiatives that will benefit all tiers of government and enhance Nigerians’ quality of life,” he stated.
The decision is in line with President Bola Tinubu’s strategy of reinvesting revenue to drive economic growth. The initiatives are expected to cover projects in key sectors such as transport, healthcare, and education, with a focus on improving both urban and rural infrastructure.
In response to recent criticisms from the former Vice President and presidential candidate of the People’s Democratic Party (PDP), Atiku Abubakar, Mr. Onanuga urged Atiku to acknowledge the administration’s efforts in generating revenue for the Federation.
He emphasized that the subsidy savings are being directed towards transformative initiatives aimed at driving national progress.
““It is expected of the former Vice President and Presidential Candidate of the People’s Democratic Party, Atiku Abubakar, to commend the Tinubu administration over revenue generation for the Federation,” Mr. Onanuga stated.
Onanuga highlighted that President Tinubu’s administration is prioritizing the revitalization of refineries, with the goal of reducing dependence on imported fuel and promoting local production.
This effort includes support for modular refineries and the operations of the new Dangote Refinery, which is expected to significantly boost Nigeria’s fuel production capacity.
“The model of farming the completely rehabilitated refineries to private sector managers at an agreed-upon rate of return to the government, as adopted by Tinubu’s government, is more practical and value-laden than selling our national patrimony to some private interests that are not technically capable of operating the refineries.
“The Tinubu administration focuses on revitalising these refineries while supporting modular refineries and the Dangote Refinery, which has greater capacity,” he said.
The gradual increase in fuel prices follows the removal of subsidies, as the government continues to grapple with challenges in regulating petrol distribution to marketers and filling stations.
It was previously reported that the Federal Government projected fuel subsidy costs to reach about N5.4 trillion in 2024, a significant increase of N1.8 trillion from the previous year’s budgeted N3.6 trillion. This rise reflects a sharp increase in the funding required for fuel subsidies.
