The Digest: The Federal Government has announced that the removal of the petrol subsidy has more than doubled the revenue for state governments. Coordinating Minister of Finance, Wale Edun, said the tough decision was necessary to restore economic confidence and redirect funds to critical sectors.
Key Points:
- Minister Wale Edun stated that states now have more than double the revenue they had before the subsidy was removed.
- He called the subsidy a "tough decision" but one that has restored economic confidence.
- The subsidy previously consumed about 2.5 percent of Nigeria’s GDP and primarily benefited a few.
- The government aims to use the increased revenue for investments in sectors like healthcare and education.
- As proof of the financial turnaround, Edun cited the Federation Account Allocation Committee (FAAC), which shared ₦1.818 trillion in June and ₦2.001 trillion in July.
- He also noted that inflation has eased slightly, and petrol prices have stabilized below ₦900 per liter.
The minister's remarks highlight the government's justification for the controversial subsidy removal. By linking the painful policy to a significant increase in state revenues and a slight easing of inflation, the administration seeks to demonstrate that the tough decisions are yielding tangible financial gains and providing a path to greater investment in social and critical infrastructure.
Sources: Channels Television
