Fuel, FX subsidies removal will save FG N10tn – Report

Nigeria is going to save about N10tn annually by the elimination of subsidies on Premium Motor Spirit, popularly called petrol, and foreign exchange, a report released on Sunday by Centre for the Promotion of Private Enterprise, stated.

It explained that the country would save about N7tn annually by halting subsidy on petrol, while an estimated N3tn would be unlocked when the Central Bank of Nigeria eventually halts subsidy on foreign exchange.

The Director, CPPE, Muda Yusuf, who disclosed this in the report titled, “Economic Agenda for Incoming Administration,”explained that the government that would take over in May should prioritise macroeconomic stability.

He said the incoming administration should lay emphasis on moderating inflationary pressures, stabilising the exchange rate and boosting economic growth.

On fiscal consolidation, the report stated that the Bola Tinubu-led administration should carry out a reformed tax regime to ensure efficiency in tax administration, reduce tax evasion and tax avoidance, as well as eliminate multiple taxation.

“Elimination of fuel subsidy to save an estimated N7tn annually. Elimination of foreign exchange subsidy to unlock a minimum of N3tn revenue annually from the sale of CBN forex to the official foreign exchange window,” the report read in part.

It added, “Unlock more income from revenue generating agencies through enhanced efficiency of their operations. Initiate budget reforms to ensure fiscal discipline, curb budget padding, curb duplication of projects and review the service wide votes to ensure transparency.

“Ensure value for money in government expenditure and procurement. Commit to reduction in the cost of governance.”