Tinubu saved Nigeria N20bn with subsidy removal, naira floating – Edun
Mr. Wale Edun, Minister of Finance and Coordinating Minister of Economy, revealed that the full implementation of market-based pricing for Premium Motor Spirit and exchange rates had saved the federal government nearly $20 billion, or 5% of the country's GDP, by October 2, 2024.He made the statement on Friday during the validation of federal civil service principles and standards in Abuja, which marked Mrs. Esther Didi Walso-Jack's first 100 days in office as Head of Civil Service of the Federation.
The minister noted that the country has seen substantial changes in the 18 months since President Bola Tinubu's reforms, with the benefits of these reforms now becoming apparent, despite the initial time of pain, discomfort, difficulty, and rising living costs.
According to Edun, the outcomes of these initiatives have resulted in immediate gains for the federal, state, and local governments' budgets.
"Those two subsidies cost 5% of GDP when there was a subsidy on PMS; when there was a petroleum product for a long time; and when there was a foreign exchange subsidy. They accounted for 5% of GDP combined.
"Assume the average GDP was $400 billion. We all know what five percent of that is: $20 billion in monies that might be used for infrastructure, health, social services, and education.
"And that is what the flow is now coming back into government's coffers to be able to be deployed in those areas," according to him.
He went on to say, "The real change that has happened with Mr. President's measures is that no one can wake up and say their goal for the day, week, month, or year is to get access to cheap funding, cheap funding exchange from the central bank, which they can now flip."
"And overnight, they become affluent with no added value for doing nothing but knowing the right people. Similarly, they can no longer expect to make money quickly by participating in a new peak, market, and very inefficient petrol subsidy regime.
He urged the public to take advantage of various incentives, such as farming, where increasing supply might assist cut high costs, as well as to consider manufactured exports. He emphasized that the relatively weak currency enables exports of cosmetics and ladies' hair extensions to markets in Kenya, Egypt, and South Africa.
"To summarize, the country has transformed. The incentive framework has shifted from rent-seeking, or attempting to make money for doing nothing, to having real opportunities to use your background, skills, knowledge, contacts, relationships, and energy to legitimately do well for yourself in free enterprise while also helping the country create jobs and reduce poverty.
"On that topic, as I mentioned, you are the implementers, thus your talent, commitment, and dedication are really important. And I believe that these transformational documents will help you perform your activities, jobs, and obligations more effectively, and I commend the head of the civil service, Mrs. Didi Esther Walson-Jack, and myself for her hundred days in office and for our transformative agenda," he remarked.
The minister congratulated the Federation's Head of Service for kicking off her tenure in a dynamic, bright, and enthusiastic manner. He praised her for providing an agenda that included four transformative texts centered on reward and recognition.
In her remarks, Walso-Jack emphasized that the Stakeholder Validation of Federal Civil Service Policies and Guidelines would reshape Nigeria's public service delivery culture. She stressed that it would establish the groundwork for a civil service that is professional, efficient, globally competitive, and sensitive to the needs and ambitions of all Nigerian citizens.
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