Finance Minister Wale Edun has revealed that Nigeria is currently spending $600 million monthly on fuel imports, a situation exacerbated by neighboring countries benefiting from these imports. During an interview on AIT’s Moneyline program, Edun explained that this significant expenditure was one of the key factors leading President Bola Tinubu to remove the fuel subsidy, as the government lacked precise data on domestic fuel consumption.
Edun stated, “We know we spend $600 million to import fuel every month, but the issue here is that all the neighboring countries are benefiting. We are buying not just for Nigeria, but also for countries to the east, almost as far as Central Africa, and those to the north and west.” He emphasized the need for decisive action to address this issue, which he believes hinders economic growth.
The removal of the fuel subsidy on May 29, 2023, was aimed at addressing these challenges, as it was found that the poorest 40% of the population were receiving only 4% of the subsidy benefits. Edun’s comments highlight the ongoing economic implications of fuel importation and the government’s commitment to tackling these challenges for sustainable development.