The minister of Finance and coordinating minister of the economy revealed to Nigerians the amount the country spends on fuel importation monthly-$600m.
He made this known during an interview on AIT’s money line programme. The minister stated that the import bull is high due to neighbouring counties that are benefitting from the country’s fuel import.
Edun explained that this was the reason President Tinubu removed fuel subsidy.
“The fuel subsidy was removed May 29, 2023, by Mr President, and at that time, the poorest of 40 per cent was only getting four per cent of the value, and basically, they were not benefitting at all. So it was going to be just a few.
Another point that I think is important is that nobody knows the consumption in Nigeria of petroleum. We know we spend $600m to import fuel every month but the issue here is that all the neighbouring countries are benefitting.
So we are buying not for just for Nigeria, we are buying for countries to the east, almost as far as Central Africa. We are buying. We are buying for countries to the North and we are buying for countries to the West. And so we have to ask ourselves as Nigerians, how long do we want to do that for and that is the key issue regarding the issue of petroleum pricing.”
He emphasized that the country needs to take decisive action to address the issue as it hinders economic growth.
Edun highlighted that a top priority for the government is the welfare of the population, especially the vulnerable groups.
A major focus area is ensuring that food is both available and affordable.
In the interview, the finance minister also clarified that the N570bn fund was released to state governments in December of last year.
He said, “This actually refers to a reimbursement that they received from December last year onwards and it was a reimbursement I think under the COVID financing protocol but the point is that the states have received more money. They have received more money. Mr President has charged to ensure food production in the states.”
Edun also clarified that the recent increase in the maximum borrowing percentage in the Ways and Means from five to 10 percent does not mean that the Federal Government plans to depend on financing from the Central Bank of Nigeria.
He stated that the government has instead utilized market instruments to manage its debts.
The minister said, “We have not gone to the central bank to say, please lend the government money to pay its debt, to pay its salaries. That’s Ways and Means. We have not gone. In fact, we have used market instruments to pay down what we owed, and that is a very, very germane aspect of having a strong economy.
“It was raised to 10 per cent, but that doesn’t mean it will be used. It’s there as a fail-safe and just gives that extra flexibility so that if a payment needs to be made and there is a mistiming or gap in when revenue would come in and expenses, we can just draw it down briefly.”
He characterized the National Assembly’s approval as a precautionary measure.
The minister added, “Sometimes it just gives that extra flexibility so that if a payment needs to be made and there’s a mistiming, there’s a gap between the time at which the revenue will come in and the expenses needed, you can just draw down briefly.
“So, the aim is to keep within the letter of the law, I think that’s the main point.”
He also stated that the well-being of Nigerians continues to be a primary concern for the current administration, with a special focus on making food available and affordable.
Edun said, “There is a concerted effort to ensure that we have homegrown food available. In the short term, apart from what is being distributed from reserves, there is a window that has been opened for importation because the commitment of Mr President is to drive down those prices now and make food available now.”
He reassured everyone that the measure would not disadvantage local farmers, as importation would only be allowed once local supplies were depleted.
He said, “So, one of the conditions for this importation will be that everything available locally in the markets it with the millers and so forth has been taken up. We will have auditors that will check that.”
He stated that these interventions aim to reduce inflation, stabilize exchange rates, and lower interest rates, thus fostering an environment conducive to investment and job creation.
The Punch Newspaper
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