The Nigerian presidency has announced that its decision to remove fuel subsidies has yielded annual savings of $7.5 billion for the West African nation. The subsidy removal, implemented shortly after President Bola Tinubu took office on May 29, 2023, caused petrol prices to rise by nearly 700%. The policy aimed to redirect scarce resources to critical sectors like education, health, and infrastructure. Despite these savings, the administration faces criticism over continued borrowing, including recently announced plans to secure $2.2 billion in funding to address shortfalls in the 2024 budget. Additionally, President Tinubu signed five executive orders to unlock $2.5 billion in new oil and gas investments. The government also introduced two pricing tiers for petroleum products based on whether they are transported by truck or sea.
SOURCE: NAIRAMETRICS
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