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NOA Hails Fuel Subsidy Removal as a Lifesaving Economic Reform

The National Orientation Agency (NOA) has commended the 2023 removal of fuel subsidies by President Bola Ahmed Tinubu, declaring the policy a pivotal step that saved Nigeria from looming economic collapse and set the nation on a path toward fiscal sustainability and growth.

The agency made this assertion in the 45th edition of ‘The Explainer’, its weekly policy review publication, released on Friday. The latest edition focused extensively on the economic ripple effects of ending fuel subsidies, calling the move a “historic correction” after decades of fiscal strain.

According to NOA, Nigeria’s federal revenue jumped from N154 billion to N836 billion in the first quarter following the removal of subsidies — a dramatic increase attributed to redirected funds that were previously lost to subsidy payments.

“Indeed, the subsidy removal saved Nigeria from bankruptcy. The savings from the declaration that stopped subsidy freed vast resources, as government revenue surged from N154bn to N836bn in Q1,” the publication stated.

These redirected funds have been channeled into critical development areas, including:

·         N20 trillion Infrastructure Fund

·         N54 billion NELFUND for student loans

·         N1.5 trillion investment in agriculture

·         N1 trillion in the solid minerals sector

·         Nationwide rollout of Compressed Natural Gas (CNG) transport systems to reduce long-term energy costs.

The agency also noted a historic shift in national spending priorities, as capital expenditure has now surpassed recurrent expenditure, a key indicator of improved fiscal discipline.

NOA highlighted that the Federation Account Allocation Committee (FAAC) disbursed N15.26 trillion to States in 2024, facilitating regular salary payments and enabling the reduction of national debt by N1.85 trillion.

Additionally, Nigeria’s foreign reserves increased to $38.9 billion, despite foreign exchange obligations — a testament to the country’s growing fiscal resilience.

“This edition also contains many more reports on policies of the Tinubu-led government in the last two years, underlining the administration’s broad focus on reform and investment-led growth,” the publication noted.

The agency urged citizens to stay informed and engaged with ongoing reforms, noting that strategic decisions like subsidy removal are essential for long-term national prosperity.

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