The Nigerian federal government has reportedly admitted to the existence of fuel subsidies, and projected that this fiscal expense will reach a staggering N5.4 trillion (roughly $12 billion) in 2024.
Daily Trust has obtained this information, which comes after years of denial from the government regarding the extent of subsidies on fuel prices.
The recently presented Accelerated Stabilization and Advancement Plan (ASAP) reveals that fuel subsidy expenditures could soar to N5.4 trillion, marking a dramatic 50% increase from the previous year.
Finance Minister Wale Edun presented this shocking revelation to President Bola Tinubu on Tuesday, highlighting the mounting burden of subsidies on the nation’s finances and raising questions about the wisdom of maintaining such a costly policy.

As recently as December, Nigeria’s Minister of Information and National Orientation, Mohammed Idris, had emphatically stated that the era of petrol subsidies was “gone for good.” Appearing on Channels TV, Idris insisted that President Bola Tinubu had made it clear from the outset of his administration that his government would not continue to foot the bill for fuel subsidies, directly contradicting claims made by the World Bank about the ongoing nature of these payments
Idris’s bold assertion that the era of petrol subsidies was over was further bolstered by his claim that the government’s decision to scrap them had translated into increased revenue for the federation account. However, a former governor of Kaduna State, Nasir El Rufai, seemed to refute these claims, alleging that the federal government was actually spending more on petrol subsidies than ever before. El Rufai’s remarks in April cast doubt on Idris’s claims, fueling suspicion that the Tinubu administration might be obscuring the true extent of Nigeria’s fuel subsidy burden.













