In a nationwide address on July 31, President Bola Tinubu revealed that the Federal Government has successfully saved over N1 trillion within a span of two months since the removal of petrol subsidy.
Speaking about the economy and the rationale behind the subsidy removal, Tinubu emphasized that it was a necessary step to prevent the benefitting of smugglers and fraudsters.
The significant savings from the subsidy removal will now be channeled towards more direct and beneficial purposes for the citizens.
Tinubu highlighted some key areas where the funds would be utilized, such as making education more affordable for all and providing loans to higher education students who may require financial support to continue their studies.
“The subsidy had to be removed because it only benefitted smugglers and fraudsters,” he said.
“In a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy, which only benefitted smugglers and fraudsters.
“That money will now be used more directly and more beneficially for you and your families.
He reassured Nigerian students that lack of money will no longer be a hindrance to pursuing their educational aspirations.
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“For example, we shall fulfil our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money,” Tinubu said.
Furthermore, the President disclosed plans for collaborating with labor unions to introduce a new national minimum wage for workers.
This move aims to address the welfare and well-being of Nigerian workers, and budget provisions will be made for its immediate implementation once an agreement is reached.
Addressing the concerns about the impact of subsidy removal on transportation costs, President Tinubu outlined a comprehensive plan to enhance mass transit.
“Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.”
These companies will be able to access credit at a low-interest rate of 9% per annum, with a repayment period of 60 months.
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