Sunday Dare, the Special Adviser to the President on Media and Communications, has said that Nigeria could gain an extra $7.5 billion each year after removing fuel subsidies.
In a recent report called “Tinubu Reforms Tracker,” released on Tuesday, Dare explained the progress and possible effects of President Bola Tinubu’s reform plans in 13 important areas. The report is meant to give a clear picture of how the government’s policies will affect the country in the short, medium, and long term.
Dare pointed out that the areas being looked at include changes in the oil sector, manufacturing plans, the Compressed Natural Gas (CNG) program, credit support through a proposed Credit Corp, education loans, and policies for young people, among others.
He also mentioned that these reforms could bring in $2.5 billion in new investments to Nigeria’s oil and gas industry, which would greatly help the sector.
“The elimination of the fuel subsidy is already saving Nigeria $7.5 billion each year—money that was previously used to subsidize petroleum products. This money is now being used in important areas that will help the whole country,” Dare said.
Dare also introduced a new two-part pricing system for petroleum products, which will be used for distribution by both trucks and ships. He explained that this system is meant to make pricing more organized and increase openness in the oil industry.
The Presidential Executive Orders signed earlier by President Tinubu are another key component of the reforms, with projections showing they will “immediately unlock $2.5 billion in new oil and gas investments.”