THE Federal Government has saved over N1 trillion two months from the removal of petrol subsidy, according to President Bola Tinubu.
The President said this in a nationwide address on Monday, July 31.
In his speech, Tinubu spoke about the economy and the impact of subsidy removal.
He said the subsidy had to be removed because it only benefitted smugglers and fraudsters.
“In a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy, which only benefitted smugglers and fraudsters.
“That money will now be used more directly and more beneficially for you and your families.
“For example, we shall fulfil our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money,” Tinubu said.
The President also said he is collaborating with the labour unions to introduce a new national minimum wage for workers.
“I want to tell our workers this: your salary review is coming. Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation,” he stated.
On measures to reduce the cost of transportation as a result of subsidy removal, Tinubu said, “Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.”
He added that the buses will be shared with major transportation companies in the states, using the intensity of travel per capita.
Tinubu says participating transport companies will be able to access credit under this facility at 9 per cent per annum with a 60-month repayment period.
The ICIR reported that the removal of subsidy led to a spike in the pump price of petrol, which also resulted in an increment in the cost of goods and services.
The development has led to a surge in transport fares across the country, leaving commuters in great agony.