Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed that eliminating the petrol subsidy and implementing market-driven foreign exchange pricing has saved the country $20 billion.
Speaking at an event in Abuja celebrating Esther Walso-Jack’s first 100 days as Head of the Civil Service of the Federation, Edun explained the economic impact of these reforms.
“Both subsidies on petrol and foreign exchange cost about 5% of GDP,” he stated. “Assuming GDP averages $400 billion, that amounts to $20 billion—funds now available for infrastructure, healthcare, social services, and education.”
He emphasized that the savings are being channeled into developmental projects, adding, “No one can now exploit cheap funding or forex from the central bank for personal gain, nor profit from the inefficiencies of the former petrol subsidy system.”
The petrol subsidy regime was officially terminated by President Bola Tinubu on May 29.
However, on August 19, the Nigerian National Petroleum Company (NNPC) Limited reported that the federal government owed ₦7.8 trillion for under-recovery costs, raising concerns about the earlier denial of a subsidy reintroduction.
