Mr Chinedu Okonkwo, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), has revealed that the federal government has saved N400 billion within the past 30 days following the removal of fuel subsidy. President Bola Tinubu had announced the end of the petroleum subsidy regime, stating that the 2023 budget does not include provisions for it. The funds previously allocated for subsidies will now be directed towards public infrastructure, education, healthcare, and job creation. Mele Kyari, the Group Chief Executive Officer of Nigerian National Petroleum Corporation Limited (NNPCL), had earlier stated that the country spends N400 billion monthly on fuel subsidies. Okonkwo discussed the long-term impact of subsidy removal and changes in the foreign exchange market, mentioning that it could lead to either an increase or decrease in fuel prices depending on the market-determined price of forex. He also highlighted the gradual reduction of its impact on the masses through the introduction of Compressed Natural Gas (CNG) in the sector. Okonkwo emphasized that the removal of subsidies has resulted in significant savings for the government, while CNG offers an alternative solution.
