Nigeria To Gain N700 Billion Monthly From Subsidy Removal, Crude Sales in Naira, Says Wale Edun

Minister of Finance and Coordinating Minister of the Economy, Wale Edun on Thursday disclosed that effective from October, 2024, the Federal Government will be making about N700 billion monthly as gains accruing from the sale of crude in Naira and the subsidy removal policies.Edun, who made this known while briefing newsmen after the National Economic Council (NEC) meeting chaired by Vice President Kashim Shettima, said: “As a result of the latest initiative to have local refineries pay for crude in Naira and thereby sell the PMs in Naira, it has provided a veritable platform for moving to a stage where we have market pricing of petroleum products, market pricing of foreign exchange, and that has led to immediate gains of around N600-N700 billion per month, starting from October, which will feed into the Federation Account.”No doubt, NNPC will say that there are some charges here and there that they want to remove from that sum, but effectively, the country is better off now by a huge amount, which will continue to increase as long as the major critical reforms of pricing petroleum properly, pricing foreign exchange properly are maintained.

“He equally announced that the sum of N3.5 billion had already been disbursed to 11,000 beneficiaries of the government Consumers Credit Scheme while N90 billion had also been given to 500,000 beneficiaries of the Students Loan Scheme so far.Edun continued “The Student Loan Scheme has reached over half a million students, and it has disbursed over N90 billion and that is to the institutions for the students’ fees directly, and then to the students for their upkeep and its interest free loan. Of course, it’s providing access to higher education to so many who otherwise will not afford them.

“While insisting that the government social investments program has commenced with five million poor households benefitting, the Minister said 11,000 persons have benefitted from the Consumers Credit SchemeAccording to him:

“The Consumers Credit Scheme to allow workers to be able to pay for things over time; to be able to afford various goods, including CNG kits to convert their car to a cheaper form of fuel, in the last five days, 11,000 beneficiaries have received N3.5 billion. So that’s an ongoing roll out of consumer credit to help people to make things more affordable to the worker.”Edun further announced that the federal government has commenced a policy to mop up dollars outside the system by allowing them to be brought into the nation’s financial system so long as such funds are not illicit.On the government’s policy to mop up dollars into the financial system, he said “one element of the cost increase is the foreign exchange rate, and that is demand and supply.

There is going to be a release today, details by the federal government through the Ministry of Finance, in conjunction with the Central Bank, a programme, starting today, 31st of October, and lasting nine months, that will allow people to bring in cash that is outside the banking system.”So therefore it is unsafe, it is insecure and it is outside of legal limits. They will be allowed forbearance to bring dollars cash. Let me emphasise once again, it is to bring dollars that they are holding outside the system to be able to bring them in and credit it to their bank accounts, as long as it is not proceeds of crime, illicit money.

There will be no penalty, there will be no taxes, there will be no questions.”Also speaking, Minister of Budget and National Planning, Senator Atiku Bagudu, told newsmen that the Council directed greater investments in the internally displaced persons (IDPs) and their host communities through a Solution programme.He said “the objective of the program is in recognition of the fact that the internally displaced situation calls for greater investment; long term and rather than emergency solutions.

“The objective of the program is to improve access to basic service, services and economic opportunities for the Internally Displaced Persons across communities in affected local governments in Nigeria and among clear objectives is investment and resilient infrastructure and services for internally displaced persons and host communities.”Because it’s not only the internally displaced person that needs support, but host communities need support as well in order to support them equally to enhance sustainable livelihoods for the internally displaced persons and the host communities, as well as project management and support to national internally displaced persons Policy implementation.

“The expectation is that states will express interest and also to assign a focal person in each of the participating states to facilitate communication,” Bagudu further explained.

Deji Elumoye

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