The Minister of Finance, Wale Edun, revealed that Nigeria has saved a significant $20 billion as a result of the removal of the petrol subsidy and the implementation of market-based foreign exchange policies.
He made this announcement during a recent event marking the first 100 days in office of Esther Walso-Jack, Head of the Civil Service of the Federation, in Abuja on Friday.
According to Edun, these two reforms were costing the country about five percent of its Gross Domestic Product (GDP) when subsidies on petroleum products and foreign exchange were in place.
“If you say GDP was on average, let’s say $400 billion, five percent of that is $20 billion,” Edun stated, noting that this substantial sum could have been channeled into critical sectors like infrastructure, education, health, and social services.
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He further emphasized that these savings now flow back into the government’s coffers, allowing for more effective investment in vital areas of development.
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Edun also discussed the broader impact of President Tinubu’s economic reforms, which he said have halted the previous practice of individuals exploiting government policies for personal gain.
“The real change is that the measures taken by Mr. President have put an end to practices where individuals could wake up and access cheap funding or foreign exchange from the central bank, only to flip it for instant wealth without adding any real value to the economy,” Edun explained.
