President Tinubu Says Fuel Subsidy Removal Saved Nigeria $1.32 Billion

President Bola Tinubu disclosed that the government has saved N1 Trillion ($1.32 billion USD) within two months, following subsidy removal.

"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 benefited smugglers and fraudsters," the president said in a television interview on Monday, Punch reported.

While the president acknowledged the difficulties faced by the Nigerians due to subsidy removal, he urged everyone to look "beyond the present temporary pains and aim at the larger picture."

"I plead with you to please have faith in our ability to deliver and in our concern for your well-being," he continued. "All of our good and helpful plans are in the works. More importantly, I know that they will work."

He explained that the funds that got saved due to subsidy removal, will be now used "more directly and more beneficially" for Nigerians.

"I have consistently maintained the position that the fuel subsidy had to go. This once beneficial measure had outlived its usefulness," he added. "The subsidy cost us trillions of naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing and even national security."

Tinubu noted that Nigeria will eventually get out of this "turbulence."

President Tinubu took over office on May 29 and announced subsidy removal on the same day. To ease the impact of increased food prices, the Tinubu-led administration announced that it has mobilized $500 million to transform the food system last month.

The increase in food and fuel prices has outraged Nigerians. Over the weekend, thousands of Nigerian youths attacked the National Emergency Management Agency (NEMA) warehouses in Kaduna and Adamawa states.

The incident led to the death of four people and 47 were arrested by the security operatives.

Aside from this, the petrol prices also hiked from N195 per liter to N617 per litre in the country. Moreover, transport companies like Uber increased fares to ensure that drivers can cover their fuel costs and deal with inflation.

On top of it, the federal government confirmed in June that a 7.5 percent VAT (Value Added Tax) on diesel has been implemented. Last month, President Tinubu shared that Nigeria has no reason to fail, even if the country is currently facing multiple challenges.