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Senator Ningi Questions Tinubu’s Economic Team Over Fuel Subsidy Proceeds

Published by admin on January 10th, 2025.

Senator Ningi Questions Tinubu’s Economic Team Over Fuel Subsidy Proceeds

Senator Abdul Ningi, representing Bauchi Central, raised concerns on Thursday regarding the lack of clarity from the federal government’s economic team about the use of funds derived from the removal of the fuel subsidy in 2023.

Ningi, a member of the opposition Peoples Democratic Party (PDP), challenged government officials during a Senate Committee on Appropriations session, where they were defending the budget allocations for various Ministries, Departments, and Agencies (MDAs).

President Bola Tinubu announced the removal of the fuel subsidy on May 29, 2023, during his inaugural address. This policy, alongside the introduction of the floating naira, has led to widespread hardship in Nigeria, with rising costs of goods and services. While protests against these changes have occurred, the government maintains that they will ultimately benefit Nigerians.

Reports had indicated that the federal government paid an average subsidy of N501.47 per litre of petrol in several cities, though this was repeatedly denied by government officials.

During the budget defense, Senator Ningi pressed the economic team, led by Finance Minister and Coordinating Minister of the Economy, Wale Edun, for details on the fuel subsidy’s financial impact. He also sought clarification on the government’s debt servicing obligations.

“We have not been informed about the savings from the subsidy removal or how those funds have been spent,” Ningi remarked. “Furthermore, we’ve yet to hear how much has been allocated for debt servicing in 2024, and what the expectations are for 2025.”

The senator also expressed concern over the underperformance of the 2024 budget, especially in terms of capital project execution. He specifically asked whether the government would meet its capital project targets before the budget expires in June.

“Can the finance minister assure us that the capital budget extension to June 30, 2025, will lead to the desired outcomes, given the current low rate of implementation?” Ningi questioned.

In response, Minister Edun suggested that the discussion be moved to a private session for more detailed answers. “Are we in a closed-door session? If not, I kindly request one for a more thorough explanation,” he said.

Following this, the Chairman of the Senate Committee on Appropriations, Senator Adeola Olamilekan, directed that the session move behind closed doors to address the issues. The Minister of Budget and National Planning, Atiku Bagudu, was also present during the proceedings.