The Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has stated that the removal of fuel subsidies by President Bola Tinubu’s administration has significantly boosted the economies of Nigeria’s federal, state, and local governments. Speaking at the National Council on Finance and Economic Development (NACOFED) conference in Bauchi on Monday, Edun explained that the move ended an annual loss amounting to 5% of Nigeria’s Gross Domestic Product (GDP), which was previously drained by the subsidy.
Edun highlighted that the subsidy had disproportionately benefited a select few individuals and neighboring countries while depriving the majority of Nigerians of critical resources. He stressed that redirecting these funds has allowed the federation account to receive increased revenue, enabling enhanced investments in infrastructure, education, healthcare, and other essential sectors.
“We are now seeing the benefits of increased resources for the federation account, supporting federal, state, and local governments in their developmental efforts. This reform ensures more impactful investments in infrastructure and social services,” Edun noted.
He also stated that the removal of subsidies has opened opportunities for private sector investment, particularly in the oil refining sector, where crude oil is now being refined locally to support industrial growth. According to Edun, these developments are paving the way for industrialization and creating a stable macroeconomic environment conducive to domestic and foreign investment.
The conference, themed “Hosting Economic Growth at Challenging Times: Strategies, Effective Policies, and Partnerships for Fiscal Sustainability and Growth,” emphasized the need for collaboration among all levels of government. Edun called on participants to prioritize strategies that address economic challenges and promote sustainable growth across the federation.
Bauchi State Governor Bala Mohammed Abdulkadir, who hosted the conference, expressed pride in hosting the event for the second time in 17 years. He emphasized the importance of unity and collaboration in addressing Nigeria’s economic challenges and opportunities. “Your presence here underscores your commitment to advancing Nigeria’s financial and economic landscape,” he told participants, urging constructive contributions to the discussions.
The conference reinforced the government’s focus on fostering partnerships and policies that ensure fiscal sustainability, economic growth, and improved living standards for Nigerians.
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