Nigeria Set to Spend ₦5.4 Trillion to Maintain Fixed Petrol Prices in 2024


ABUJA, June 6 – According to a draft document seen by Reuters on Thursday, Nigeria is projected to spend 5.4 trillion naira ($3.7 billion) in 2024, a 50% increase from 2023, to sustain fixed petrol prices. Additionally, the country plans to borrow an extra 6.6 trillion naira to address budget deficits.

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The “Accelerated Stabilisation and Advancement Plan” (ASAP), devised by the finance ministry in collaboration with private sector executives and economists, aims to tackle challenges associated with growth-boosting reforms.

Last May, President Bola Tinubu removed a costly petrol subsidy in a significant reform applauded by investors. However, this led to a tripling of petrol prices, escalating transportation costs, and fueling inflation, triggering public dissatisfaction.

Despite pressure from labour unions, Tinubu remains committed to his reforms. Petrol prices have been fixed since July last year, despite currency devaluations and the country’s reliance on petroleum imports due to insufficient domestic refining capacity.

The ministry’s draft document warns that fuel subsidy expenditure is projected to reach 5.4 trillion naira by the end of 2024, a significant increase from 3.6 trillion naira in 2023 and 2.0 trillion naira in 2022.

Presidential aide Bayo Onanuga confirmed Tinubu received the draft, emphasizing it’s a proposal aimed at improving the Nigerian economy.

If approved, the policy could lead to executive orders for implementation, including reforms in the power, oil and gas, agriculture, and healthcare sectors, with a focus on business support.

Nigeria’s economy, currently growing at around 3%, falls short of the 6% annual expansion target set by Tinubu upon assuming office last year.

The ministry’s policy document also suggests selling equity in refineries by May 2026, increasing excise duty on beverages, and introducing taxes on single-use plastics and sweetened beverages to raise funds. Additionally, the government aims to increase oil production to around 2 million barrels per day by December to enhance cash flow and address revenue shortfalls.

Godwin Okafor, The Naija247news
Godwin Okafor, The Naija247news
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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