Boss Mustapha Says Nigeria Spent Over N13 Trillion On Fuel Subsidies In 16 Years

The Secretary to the Government of the Federation (SGF), Boss Mustapha has revealed that Nigeria spent over N13 trillion in subsidy payments between 2005 and 2021.

Boss Mustapha made this revelation on Monday during the launch of the Nigeria Extractive Industries Transparency Initiative’s (NEITI) 2022-2026 Strategic Plan in Abuja.

He disclosed that over N13 trillion (equivalent to N74 billion) spent on fuel subsidy surpassed the budgets allocated to vital sectors such as health, education, agriculture, and defense over the past five years.

The SGF said, “I have carefully studied the NEITI’s policy advisory on fuel subsidy forwarded to my office. I will like to commend NEITI for the in-depth research and outline of options to assist government in making a decision on the subsidy removal debate.

“From that Policy Advisory, over N13trillion (N74Billion) is documented to have been expended on the payment of subsidy between 2005 and 2021. The figure in relative terms is equivalent to Nigeria’s entire budget for health, education, agriculture, and defence in the last five years, and almost the capital expenditure for 10 years between 2011 2020.”

Boss Mustapha acknowledged that Nigeria’s financial and opportunity costs could have been even higher without the implementation of cost-cutting measures by the government.

He stated that the government is following the ongoing debate surrounding subsidy removal such as refinery rehabilitation and the establishment of visible safety net programs to mitigate the impact on vulnerable groups, especially workers.

The SGF expressed confidence that the incoming Bola Tinubu administration will carefully assess the recommendations and make an informed decision in the best interest of the public.

While acknowledging the complex challenges posed by the subsidy burden on the economy, Mustapha commended the President Muhammadu Buhari administration for effectively managing the situation and prioritizing the welfare of the average Nigerian.

“While we remain open to the ongoing debate, a comprehensive position to guide the incoming administration on when and how to make this decision is being developed by the Presidential Transition Council which I currently head.

“I therefore have no doubt that the incoming administration will consider our position on the issue and make an informed decision in the overriding public interest.

“However, I must state that the Buhari administration has done excellently well in managing the subsidy burden in-spite of the complex challenges it has posed to the economy over these years, putting at the forefront of its considerations, the welfare and needs of the average Nigerian,” Mustapha stated.

KanyiDaily recalls that the Minister of Finance, Zainab Ahmed had also revealed that Nigeria spends N18.39 billion daily on petrol subsidy petrol payments.