The administration of President Bola Ahmed Tinubu claims that Nigeria has saved $20 billion (₦33.76 trillion) through the removal of the petrol subsidy and the adoption of a market-driven exchange rate. This was revealed by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, during a recent ceremony marking the first 100 days of Esther Walso-Jack as Head of Civil Service of the Federation in Abuja.

 

Edun explained that these measures, which accounted for 5% of Nigeria’s GDP (approximately $400 billion), were previously draining resources that could have been allocated to infrastructure, healthcare, education, and other social services. “These flows now return to the government’s coffers for further deployment,” Edun stated.

 

He criticized past practices, describing them as benefiting only a select few. “Nobody can wake up and target cheap funding or subsidies for wealth creation without adding value. Similarly, the inefficiencies of the petrol subsidy regime are no longer a source of overnight wealth.”

 

Despite these claims, Nigerians are grappling with severe economic hardship. The National Bureau of Statistics reports that many households are struggling to afford basic necessities. At the same time, Nigeria continues to face significant financial challenges, including:

 

• $3.5 billion annually spent servicing existing debts.

• A record-high public debt of ₦136 trillion, up from ₦87.3 trillion when Tinubu took office on May 29, 2023.

• An additional ₦50 trillion in borrowing over the past 19 months, including $900 million raised through Nigeria’s first domestic dollar bond in September, oversubscribed by 180%.

 

While the government celebrates fiscal savings, critics highlight the growing debt burden and the adverse economic conditions facing ordinary Nigerians.