Here are the gains Nigeria has achieved and what the President Tinubu-led government has been able to actualize from the removal of Fuel Subsidy among other ongoing reforms in the country…
Economic Gains:
- Reduced Fiscal Burden: Subsidy removal freed trillions of Naira enabling investment in critical sectors.
- Increased Revenue: The Federal Government now collects full revenue from fuel sales, bolstering its finances.
- Improved Macroeconomic Stability: Reduced subsidy expenditure helped stabilize the economy, lowering inflation and interest rates.
Investment Gains:
- Attracted Foreign Investment: Subsidy removal made Nigeria’s oil sector more attractive to investors, sparking new investments.
- Private Sector Participation: The removal of subsidy has encouraged private sector involvement in the oil industry, driving growth and efficiency.
- Increased Economic Activity: Subsidy savings invested in infrastructure and social programs stimulated economic growth.
Transparency and Accountability Gains:
- Reduced Corruption: Subsidy removal eliminated opportunities for corruption and rent-seeking.
- Improved Governance: Enhanced transparency and accountability in government spending.
- Better Resource Allocation: Funds redirected to priority areas like healthcare, education, and infrastructure.
Energy Sector Gains:
- Market-Driven Pricing: Subsidy removal allowed market forces to determine fuel prices, promoting efficiency.
- Increased Refining Capacity: Encouraged investment in domestic refining, reducing import dependence.
- Diversified Energy Mix: Subsidy savings invested in renewable energy sources, promoting diversification.
Social Gains:
- Improved Healthcare: Subsidy savings invested in healthcare infrastructure and services.
- Enhanced Education: Increased funding for education, improving access and quality.
- Infrastructure Development: Subsidy savings invested in roads, bridges, and transportation.
Environmental Gains:
- Reduced Smuggling: Subsidy removal decreased fuel smuggling, reducing environmental pollution.
- Encouraged Cleaner Energy: Investment in renewable energy sources promotes cleaner energy and reduced carbon emissions.
Overall:
- Monthly allocations to many states and local governments have increased significantly, with some getting up to 40% increase.
- Nigeria has successfully paid billions of inherited debts from several administrations.
- Hundreds of billions have been allocated to the revolutionary Students Loan and Consumer Credit Schemes.
- Landmark infrastructures are currently going on across the country, with existing roads and railways getting completed and new ones such as Lagos-Calabar highway moving at incredible pace.
- Nigeria’s foreign reserves has increased from $34bn in 2023 to $39bn in October 2024.
- The debt to revenue ratio has dropped drastically from 97% in 2023 to around 64%.
- Fuel consumption has dropped drastically from 66 million litres daily to 25 million liters, signifying a massive reduction in smuggling to nearby countries.
- Payment of debts owed to gas companies has resulted in massive improvements in electricity generation from 4300MW to 5500MW.
- Over 1 million MSMEs have benefited from N50,000 grants.
- The minimum wage has been increased from N30,000 to N70,000
These gains demonstrate the positive impact of fuel subsidy removal on Nigeria’s economy, energy sector, and society.
It has been a challenging year so far, but it must be said that so much progress has been made in the bid to reposition the economy for a sustainable future.
