Despite the announcement by President Bola Ahmed Tinubu on May 29, 2023 during his inauguration address that the subsidy was gone, the Federal Government has projected the payment of the subsidy to reach N5.4 trillion by the end of the 2024.

It has also been revealed that a total of N3.6 trillion was paid for the same subsidy in 2023.

This is the first time the federal government is admitting to be paying the subsidy after almost a year of denials by government officials who insisted there were no subsidies.

The revelation came during a presentation by Wala Edun, the minister of finance and coordinating minister of the economy on an Accelerated Stabilisation and Advancement Plan (ASAP).

The ASAP is designed to address key challenges affecting the reform initiatives and stimulate development in various sectors of the economy.

“At current rates, expenditure on fuel subsidy is projected to reach ₦5.4 trillion by the end of 2024. This compares unfavourably with ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022,” a draft copy of the ASAP presented by Edun said.

The federal government had previously maintained that it would no longer subsidise fuel costs, instead opting for a deregulation policy.

“As far as I’m concerned, the President removed the subsidy and it remains removed till today. Anybody who is saying that subsidy is being paid, it is left for the person to bring the facts and then we will talk about them,” Heineken Lokpobiri, minister of state for petroleum resources (Oil) said in April.