Nigeria’s Minister of Finance, Wale Edun, revealed that the country spends $600 million monthly on petrol importation. He emphasized that there is no petrol subsidy in the 2024 budget, as it was removed on May 29, 2023. Edun noted that the subsidy benefited only a few, with the poorest 40% receiving just 4% of the value.
Edun highlighted the need to address the issue of petroleum pricing, as neighboring countries benefit from Nigeria’s importation. He stressed the importance of taking decisive steps to tackle the problem, which hinders economic growth.
Regarding food availability and affordability, Edun assured that the suspension of tax and duties on food importation will not undermine local farmers. Importation will only be permitted after exhausting local supplies, with auditors ensuring compliance.
Edun explained that the government’s interventions aim to reduce inflation, stabilize exchange rates, and lower interest rates, creating a conducive environment for investment and job creation. He also discussed the recent release of N570 billion to state governments, clarifying that it was a reimbursement under the COVID financing protocol.
Additionally, Edun addressed the introduction of the 70% windfall tax in the banking industry, stating that it will redistribute unearned income. He emphasized that this tax is not unique to Nigeria and is implemented globally to address unearned income.
Finally, Edun discussed the increase in the maximum borrowing percentage in the Ways and Means advances, describing it as a “fail-safe” measure to provide flexibility in managing debts. He reassured that the government has used market instruments to pay down debts and aims to act within the law.
