From Juliana Taiwo-Obalonye, Abuja
President Bola Tinubu has said the Federal Government is redirecting savings from the removal of subsidy from Premium Motor Spirit (PMS) to critical and social safety nets.
President Tinubu stated this at the opening of the National Conference on Public Accounts and Fiscal Governance, jointly organized by the Public Accounts Committees (PACs ) of the Senate and House of Representatives, on Monday, in Abuja.
President Tinubu, who was represented by the Minister of State for Finance, Doris Nkiruka Uzoka-Anite, explained that the measures are aimed at rebuilding public confidence in government and ensuring inclusive development.
President Tinubu had announced end of the fuel subsidy regime in his inaugural speech, shortly after his swearing on May 29, 2023. However, the announcement immediately led to the sharp increase in the price of PMS across the
He stated that though the removal of the fuel subsidy was a painful decision, it was imperative the free up resources and direct same to sector that would benefit the larger population.
“In 2022 alone, Nigeria spent over N4 trillion on fuel subsidies, more than we allocated to capital expenditure. This was not only physically unsustainable, it was unjust. A subsidy that disproportionately benefited the affluent, encouraged smuggling, and bred inefficiency was neither equitable nor strategic.
“Since its removal, we have redirected those funds into targeted interventions, expanding our social safety nets, improving public transportation, and financing critical infrastructure projects. Most importantly, we have strengthened our fiscal buffers, making Nigeria more resilient to external shocks.”
President Tinubu, while stressing the need for transparency and accountability in the management of public resources, said reforms by his administration, including the tax reforms, would impact on businesses positively.
“For far too long, Nigeria’s economy has been burdened by structural inefficiencies, fiscal leakages, and an overreliance on oil revenues. But we are not here today to dwell on the challenges of the past. We are here to chart a new course.”
Furthermore, the President noted that the tax reforms are designed to widen the tax base by integrating the informal sector, simplify compliance for small and medium-sized enterprises, digitize revenue collection to reduce human interference and eliminate leakages, and harmonize multiple taxes to make doing business easier in Nigeria.”
President Tinubu, who identified economic diversification as a policy priority of the government, stated that agriculture, manufacturing, digital services, renewable energy, mining, and the creative economy are receiving targeted investments.
“These efforts go beyond mere economic metrics. They are creating jobs, fostering innovation, building economic resilience, and strengthening our national security and long-term stability.
“There is better coordination now between the fiscal and monetary side, and we are determined to reduce inflationary pressures by addressing structural bottlenecks, particularly in food supply chains.”
He charged the National Assembly, especially the Public Accounts Committees to uphold their constitutional duty with “integrity, courage, and independence,” noting that
“oversight is not a political tool. It is a patriotic duty. Every project must be guided by value for money, and every budget must reflect the new priorities of our people.”
Senate President, Godswill Akpabio, charged the Public Accounts Committees in the two chambers to assert themselves in enforcing transparency and accountability in government.
Akpabio, who was represented by Senator Abdul Ningi, decried the refusal of some Ministries, Departments and Agencies (MDAs) to honour the summon of the parliament describing as an affront on the law.
“The Public Accounts Committees are not just legislative creations, they are constitutional bodies empowered by Sections 80, 81, and 88 of the Constitution to act as watchdogs of public funds.