Fuel Subsidy Removal and Exchange Rate Unification to Save Nigeria N8tn Annually, Says Fiscal Policy Committee Chair

Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, declared that the Nigerian government is poised to save N8 trillion annually through the implementation of fuel subsidy removal and exchange rate unification policies.

Speaking during a panel session at the Lagos Chamber of Commerce and Industry 2024 Economic Outlook and Budget Analysis, Oyedele underscored the need for strategic utilization of the funds saved to alleviate the challenges faced by the average Nigerian.

The chairman said the substantial sacrifices made by Nigerians due to the removal of the fuel subsidy will result in annual savings of N4 trillion.

Also, the recent naira floatation policy contributed another N4 trillion to the government’s savings, bringing the total to approximately N8 trillion redirected from private pockets to the national treasury.

Oyedele urged the government to conscientiously deploy the N8 trillion windfall to maximize positive impacts on the citizens, particularly addressing multidimensional poverty affecting more than 133 million Nigerians.

He advocated for transparency in tracking the expenditure of these funds and building a platform for accountability.

Furthermore, the committee recommended the suspension of certain taxes deemed as “nuisance taxes,” which impede economic activities without significant contributions to the government treasury.

Oyedele also stressed the urgency of creating digital opportunities for Nigeria’s burgeoning youth population, asserting that the nation has the capacity to generate $20 billion annually from the technology sector.

The fiscal policy committee is actively engaging in conversations aimed at charting a path for Nigeria’s economic growth, emphasizing key areas such as inflation, forex instability, and lack of investments.

With a focus on promoting exports, supporting digital innovation, and optimizing fiscal policies, the committee aims to drive sustainable economic development in the country.