President Tinubu has opened subsidy savings spending amid controversy and interrogations.
NewsOnline Nigeria reports that the Federal Government has provided a comprehensive explanation on how savings from the removal of petrol subsidies are being utilized, assuring Nigerians that the funds are being channeled into infrastructure projects, human capital development, and economic reforms.
Speaking on behalf of President Bola Ahmed Tinubu at the National Conference on Public Accounts and Fiscal Governance in Abuja, Minister of State for Finance, Dr. Nkiruka Uzoka-Anite, said the government has significantly increased monthly allocations to federal, state, and local governments, rising from an average of N900 billion under the Buhari administration to approximately N1.6 trillion monthly since the fuel subsidy was eliminated in 2023.
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“These resources have been redirected into strategic national priorities: expanding social safety nets, improving public transportation, financing infrastructure, and strengthening fiscal buffers to make Nigeria more resilient,” President Tinubu stated.
The President, who scrapped the subsidy during his May 2023 inauguration, noted that over N4 trillion was spent on fuel subsidies in 2022 alone, an amount that exceeded capital expenditure. He described the former system as “unjust,” benefiting the wealthy, enabling smuggling, and promoting inefficiency.
“We are not here to dwell on the past, but to chart a new course,” Tinubu said, emphasizing that reforms are underway to correct long-standing economic imbalances, reduce leakages, and boost transparency.
Among the ongoing reforms are:
Broadening the tax base by integrating the informal sector,
Simplifying tax compliance for SMEs,
Digitizing revenue collection to curb corruption,
Harmonizing multiple taxes to ease doing business.
‘He also highlighted priority sectors for economic diversification, including agriculture, manufacturing, renewable energy, digital services, mining, and the creative industry. Tinubu pointed to the creation of the National Credit Guarantee Company as part of efforts to support local production and enhance non-oil exports.
“These reforms are not just about economic numbers; they’re about creating jobs, driving innovation, and building long-term national stability,” he said.
On monetary policy, Tinubu acknowledged the Central Bank’s role in stabilizing the naira, curbing inflation, and aligning efforts with fiscal authorities to tackle structural challenges, especially in food supply.
He reaffirmed the government’s commitment to transparency and accountability, citing digital platforms like IPPIS, GIFMIS, and the Open Treasury Portal as tools ensuring public funds are traceable and officials are accountable.
“Public finance must move from opacity to openness. From suspicion to confidence,” the President declared, calling on the National Assembly’s Public Accounts Committees (PACs) to maintain integrity and independence in their oversight duties.
House of Representatives Speaker Abbas Tajudeen, represented by Majority Leader Julius Ihonvbere, revealed that over N300 billion flagged in audit reports remains unrecovered, stressing the need for consequence-backed fiscal accountability.
Senate President Godswill Akpabio, represented by Senator Abdul Ningi, echoed this concern, urging PACs to enforce their constitutional authority under Sections 80, 81, and 88 of the 1999 Constitution. He condemned the increasing disregard for legislative summons by some agencies and individuals, calling it an assault on democratic governance.
Chairman of the Senate Public Accounts Committee, Senator Aliyu Wadada, assured that the 10th National Assembly is committed to open budgeting, prudent expenditure, and the review of outdated financial laws.
The conference spotlighted the ongoing efforts to enhance public financial management and ensure that every naira saved from subsidy removal contributes meaningfully to Nigeria’s development.
