The Minister of Finance and Coordinating Minister of Economy, Mr. Wale Edun, announced that the full implementation of market-based pricing for Premium Motor Spirit and exchange rates had saved the federal government approximately $20 billion, or 5% of the country’s GDP, as of October 2, 2024.
He made this statement on Friday during the validation of federal civil service policies and guidelines, marking the first 100 days in office for the Head of Civil Service of the Federation, Mrs. Esther Didi Walso-Jack, in Abuja.
The minister emphasized that after 18 months of reforms under President Bola Tinubu, the country has undergone significant changes, with the benefits of these reforms now becoming evident, despite the initial period of pain, discomfort, difficulty, and rising living costs.
Edun stated that the results of these actions have provided immediate benefits to the coffers of the federal, state, and local governments.
“An amount of five per cent of GDP is what those two subsidies were costing when there was a subsidy on PMS; when there was a petroleum product generally for a long time and when there was a subsidy of foreign exchange. Between them, they were costing five percent of GDP.
“If you say GDP was on average, let’s say $400 billion. We all know what five percent of that is – $20 billion of funds that could be going into infrastructure, health, social services, education.
“And that is what the flow is now coming back into government’s coffers to be able to be deployed in those areas,” he said.
He continued “The real change that has happened with the measures of Mr. President is that nobody can wake up and their target for the day or for the week or the month or the year is to get access to cheap funding, cheap funding exchange from central bank, which they can now flip.
“And overnight, they become wealthy from no value added for doing nothing virtually except you know the right people. Similarly, they can no longer try and be part of a new peak, market and very inefficient petrol subsidy regime as a way of making money overnight.”
He urged the public to take advantage of available incentives, such as farming, where increased supply could help lower elevated prices, and to explore manufactured exports. He highlighted that the relatively weak currency is enabling exports of products like cosmetics and ladies’ hair extensions to markets in Kenya, Egypt, and South Africa.
“So in a nutshell, the country has changed. The incentive framework has moved from one of rent-seeking, trying to make money for doing nothing to one of having real opportunities that you can use your background, your skills, your knowledge, your contacts, your relationships, and your energy to legitimately do well for yourself in free enterprise while helping the country creating jobs, helping to reduce poverty.
“On that note, as I say, you are the implementers, so your skill and your determination, your dedication really matters. And I think these transformative documents will help you to do your tasks, your jobs and your responsibilities, that much better and I commend the head of the civil service, Mrs. Didi Esther Walson-Jack. and I, for her hundred days in office, and for this transformative agenda of us,” he said.
The minister praised the Head of Service of the Federation for beginning her tenure in a transformative, vibrant, and energetic manner. He commended her for presenting an agenda that includes four key transformative documents focused on reward and recognition.
In her remarks, Walso-Jack stated that the Stakeholder Validation of the Federal Civil Service Policies and Guidelines would redefine the ethos of public service delivery in Nigeria. She emphasized that it would lay the foundation for a civil service that is professional, efficient, globally competitive, and responsive to the needs and aspirations of all Nigerians.
