Edun: Tinubu’s Removal of Petrol Subsidy, Floating The Naira, Have Saved Nigeria $20 Billion

The Minister of Finance and Coordinating Minister of Economy, Mr. Wale Edun, disclosed that the full implementation of the key reforms of market-based pricing of premium motor spirit (PMS) and market-based pricing of exchange rate by the federal government saved the federal government about $20 billion or five percent of the country’s Gross Domestic Product (GDP) as at October 2, 2024.

He stated this on Friday, at the validation of the federal civil service policies and guidelines to mark the first 100 days in office of the Head of Civil Service of the Federation, Mrs. Esther Didi Walso-Jack in Abuja.

The minister noted that after 18 months of reforms implemented by President Bola Tinubu, the country has changed with gains of the reforms now glaring after gestating period pain, discomfort, difficulty, and increased cost of living.

Edun, said the result of that action was of immediate benefit to the federal, state and local governments coffers.

“An amount of five per cent of GDP is what those two subsidies were costing when there was a subsidy on PMS; when there was a petroleum product generally for a long time and when there was a subsidy of foreign exchange. Between them, they were costing five percent of GDP.

“If you say GDP was on average, let’s say $400 billion. We all know what five percent of that is – $20 billion of funds that could be going into infrastructure, health, social services, education.

“And that is what the flow is now coming back into government’s coffers to be able to be deployed in those areas.

“The real change that has happened with the measures of Mr. President is that nobody can wake up and their target for the day or for the week or the month or the year is to get access to cheap funding, cheap funding exchange from central bank, which they can now flip.

And overnight, they become wealthy from no value added for doing nothing virtually except you know the right people. Similarly, they can no longer try and be part of a new peak, market and very inefficient petrol subsidy regime as a way of making money overnight,” Edun said.

He urged the public to tap into available incentives like farming where supply would bring down elevated prices and into manufactured exports, where the relatively weak market price currency is allowing people to export cosmetics, ladies’ hair extensions and others into Kenya, Egypt and South Africa.

 “So in a nutshell, the country has changed. The incentive framework has moved from one of rent-seeking, trying to make money for doing nothing to one of having real opportunities that you can use your background, your skills, your knowledge, your contacts, your relationships, and your energy to legitimately do well for yourself in free enterprise while helping the country creating jobs, helping to reduce poverty.

“On that note, as I say, you are the implementers, so your skill and your determination, your dedication really matters. And I think these transformative documents will help you to do your tasks, your jobs and your responsibilities, that much better and I commend the head of the civil service, Mrs. Didi Esther Walson-Jack. and I, for her hundred days in office, and for this transformative agenda of us,” he said.

The minister lauded the head of service of the federation for starting in a transformative, vibrant, energetic and value-added mode and for putting across an agenda with four transformative documents, dealing with reward and recognition.

He said the critical transformation from what hitherto existed to a vibrant, efficient technology-driven body of civil servants was important to the success of Tinubu’s agenda and his macroeconomic reforms.

In her address, Walson-Jack said the Stakeholder Validation of the Federal Civil Service Policies and Guidelines would redefine the ethos of public service delivery in Nigeria, setting the stage for a civil service that is professional and efficient, globally competitive, and responsive to the aspirations of all Nigerians.

The exercise centred on the validation of four transformative documents that will guide the principles, practices, and priorities of the Federal Civil Service: the rewards and recognition policy and guidelines; the incentives and consequence management policy and guidelines; the mentoring framework and the protocol on the use of federal secretariats.

Deji Elumoye and Olawale Ajimotokan 

Follow us on: