THE Minister of Information and National Orientation, Muhammad Idris, said Nigeria witnessed a drop in domestic consumption of fuel of about one billion litres after the removal of fuel subsidy, representing 53 per cent of the initial total consumption.
The Minister, who disclosed this during an Iftar (breaking of fast) and interactive session with some media executives and practitioners in Kano, added that, ‘this delineates how our fuel was smuggled out through the nation’s porous borders to benefit those not paying tax to the country’.
He emphasized that the removal of the fuel subsidy was necessary because those not paying tax were benefiting from the subsidy more than Nigerians.
According to him, “the domestic consumption of petrol has gone down by about 53%, meaning that over a billion litres of fuel that we used to consume during pre-subsidy removal is now gone. And the question you will ask yourself is: Where has this fuel been going?
“How suddenly is it that domestic consumption has gone down by 53 per cent? It means that this petrol was finding its way out of our porous borders for the benefit of those who are not paying tax to this country.
“It doesn’t make sense to continue to subsidise somebody else’s home when your roof is leaking, your window is broken, and your child has not gone to school. You have to subsidise yourself before you subsidise somebody else.
On what the government is doing to cushion the effect of the hardship caused by the subsidy removal, he said, “there is the provisional wage increment of N35,000 monthly for six months – four months already paid.
“Governments of Lagos, Osun, Oyo, Ogun, Jigawa, Adamawa, Ebonyi, Niger, Ondo and Ekiti have also adopted this Federal Government’s initiative of wage award payment to their workers. Other state governments have been urged to implement same.
“A Tripartite Committee on new Minimum Wage was established and already working. Relevant stakeholders across the six geo-political zones have submitted memoranda suggesting new minimum wage to the government, collation is ongoing.
“President Tinubu approved the establishment of an Infrastructure Support Fund for States to invest in critical areas that will create an enabling environment for businesses and there is the N100 Billion Naira CNG bus rollout programme, to deliver CNG-powered buses, and automobile conversion toolkits. Already, the Presidential CNG Initiative has commenced supporting private and public sector partners in this regard.
“The commencement of a Cash Transfer of N25,000 monthly to 15 million of the poorest and most vulnerable households in Nigeria, intended for a three-month period. 3,140,819 households have already received initial payments before the program was suspended for review and reform.
“President Tinubu has also ordered the release of 42,000 Metric tonnes of grains from Nigeria’s Strategic Reserves, for free distribution to the most vulnerable citizens and Department of State Services (DSS) and the National Emergency Management Agency (NEMA) have been engaged to oversee the distribution process.
“The President also approved N100 Billion Naira for the funding of the National Agricultural Development Fund (NADF) in 2024 and the Ministry has commenced processes for the disbursement of N200 Billion Naira, approved by the President, through three (3) new special intervention funds established as part of measures to bring post-subsidy-removal relief to businesses, which are; The Presidential Conditional Grant Scheme (PCGS), the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund.
The Minister added that in a bid to ease access to the Students Loan program, address operational challenges and enhance its implementation, President Tinubu has written to the Senate, seeking repeal and re-enactment of the Students Loan Act.
He then promised that the Social Investment Programme will return with renewed vigour after a thorough reassessment of its operational mechanisms, with Nigerian graduates at Post-NYSC levels, and OND holders to be brought into the loop and paid monthly stipends, through a Social Credit Scheme, until they are gainfully employed.