The Nigerian government has firmly decided against bringing back the fuel subsidy. This decision was confirmed by Finance Minister Wale Edun during a recent interview with AIT.
Minister Edun explained that the fuel subsidy is not part of the 2024 national budget. He emphasized that the government is focused on economic progress and believes that maintaining current policies is essential for continued improvement.
“There is no fuel subsidy in the budget. We have signs that we are moving in the right direction, and we must maintain this trend,” he stated.
This announcement follows a nationwide address by President Bola Ahmed Tinubu, who defended the removal of the subsidy as a necessary but painful measure.
President Tinubu’s remarks have faced criticism from various quarters, including former President Olusegun Obasanjo. In an interview with the Financial Times, Obasanjo argued that inflation has effectively reintroduced the impact of the subsidy, contrary to the government’s stance.
The removal of the fuel subsidy in June 2023 caused a dramatic increase in fuel prices, which soared from N238 to over N600 per litre. The sharp rise in fuel costs has intensified public discontent, with many protesters calling for the reinstatement of the subsidy as a remedy to the worsening cost of living.
