Nigeria has saved more than one trillion naira ($1.32 billion) in just over two months by ending the popular and expensive fuel subsidy and working to consolidate its various exchange rates, the President said. Bola Tinubu said on Monday. Tinubu is under pressure as prices rise after the country's decades-long austerity, which groups say hurts the poor. A meeting between unions and the government to try to avoid a planned strike from Wednesday ended without agreement on Monday evening, union officials said. In a TV show, Tinubu defended his decision to scrap the fuel subsidy, which he said benefited a few leaders and that the change would help boost the economy. “In just over two months, we have saved over a trillion naira that would otherwise have been wasted on unproductive fuel subsidies that only benefit dealers and fraudsters,” Tinubu said.
The President said that he is aware of the difficulties caused by the removal of the subsidy and that he is also monitoring the impact of changes in fuel prices, adding that he will intervene if necessary. The World Bank said last month that Nigeria could recover as much as 3.9 trillion naira this year alone after Tinubu's reforms, but warned of inflation in the short term. Members are pressuring Tinubu to give aid to families and small businesses. Tinubu has announced a 500 billion naira package that includes public transport vehicles and cheap loans to farmers and small businesses to boost employment. Earlier on Monday, the government said it had distributed corn to families, ordered public school principals to suspend travel lessons and provided buses to reduce transportation costs for students. It plans to generate funds from the savings fund to build infrastructure.
In a television broadcast, Tinubu defended his decision to scrap the petrol subsidy, which he said benefited a few elites and that the reforms would help boost the economy. "In a little over two months, we have saved over a trillion naira that would have been squandered on the unproductive fuel subsidy which only benefited smugglers and fraudsters," Tinubu said. The president said he was aware of the hardship caused by removing the subsidy and was "monitoring the effects of the exchange rate and inflation on gasoline prices," adding that he would intervene if and when necessary.
"Sadly, there was an unavoidable lag between subsidy removal and these plans coming fully online. However, we are swiftly closing the time gap," Tinubu said. ($1 = 758.90 naira)
