Ogun State Governor Dapo Abiodun stated that Nigeria would have spent N5.4 trillion on fuel subsidies by the end of 2024 if President Bola Ahmed Tinubu hadn’t removed them. He made this remark at an event in Abeokuta on Sunday, September 29. Abiodun stressed the importance of subsidy removal in preventing a financial disaster for the country.
Abiodun highlighted that the 2024 federal budget is N6.7 trillion. He explained that continuing the fuel subsidy would take up a large part of the budget, leaving little for essential investments in infrastructure and social services.
“The Federal Government, under the leadership of our President, Bola Ahmed Tinubu, wasted no time in embarking on bold and audacious initiatives aimed at repositioning our economy and saving us from bankruptcy,” Abiodun said. “We must persevere. The removal of the subsidy, which, if not curbed, would have cost us N5.4 trillion by the end of 2024, is a necessary step.”
The governor emphasized that funds saved from removing the subsidy will improve infrastructure and essential services nationwide. He noted that keeping the subsidy would subsidize neighboring countries due to fuel smuggling.
“Our budget this year for infrastructure was N6.7 trillion, meanwhile, the subsidy would have consumed N5.4 trillion if not curbed or checked. These are funds that can be invested in improving our infrastructure and other social services,” Abiodun explained.
Governor Abiodun emphasizes the urgent need to remove subsidies to help stabilize Nigeria’s economy. This move will also direct resources toward sustainable development.
