President Bola Ahmed Tinubu has announced that his administration will remove the subsidy on Petroleum products.
Speaking during his inaugural address at Eagle Square, Abuja, Tinubu said “Subsidy is gone.” This development comes shortly after he was sworn in as the 16th President of Nigeria today.
Tinubu who hinted that there was no provision for subsidy in the national budget from June 2023 said, “We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. The subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.”
Recall that Former President Muhammadu Buhari earlier stated that the costly petrol subsidy will end by 2023. Speaking during his presentation of the proposed 2023 budget to the national assembly, in Abuja, Buhari said, “As we seek to grow our government revenues, we must also focus on the efficiency of utilisation of our limited resources. Critical steps we are taking include immediate implementation of additional measures towards reducing the cost of governance and the discontinuation of fuel subsidy in 2023 as announced earlier.”
Buhari who presented a record N20.51 trillion 2023 appropriation bill to the national assembly, said, “We are however mindful of the fact that reducing government spending too drastically can be socially destabilising, and so will continue to implement programmes to support the more vulnerable segments of society.”.
He also said, “Petrol subsidy has been a recurring and controversial public policy issue in our country since the early eighties. However, its current fiscal impact has clearly shown that the policy is unsustainable. As a country, we must now confront this issue taking cognisance of the need to provide safety nets to cushion the attendant effects on some segments of society.”
Tinubu targets six per cent GDP growth
The new president also revealed that his administration targets minimum GDP growth of six per cent annually. He said, “In economy, we’ll target not less than 6 per cent growth in GDP growth. We’ll do this through budgetary reforms. We’ll use a full range of domestic manufacturing and lessen importation.”
Speaking further, Tinubu promised to lead the country with “compassion and amity towards all.”Tinubu also said, “To our foreign investors, our government will review all complaints about multiple taxations. All businesses will be allowed to repatriate hard-earned profits back home.”
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