Ibadan – The Federal Government has pledged to publish a detailed account of how savings from the removal of fuel and foreign exchange subsidies have been utilised, amid growing public concerns over the impact of the reforms and persistent questions about where the funds have been spent.
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, made the pledge on Thursday at the ongoing 7th Africa Emerging Markets Forum in Abuja after responding to concerns raised by the World Bank Group’s Chief Economist and Senior Vice-President for Development Economics, Indermit Gill, who said many Nigerians remained unconvinced that the gains from the reforms had translated into better living conditions.
Gill noted that while the government had increased revenues, reduced subsidies and narrowed the fiscal deficit, “it’s not clear to people whether savings and the additional resources have been spent,” urging the minister to explain how the reforms had improved the lives of Nigerians.
He also said the Central Bank of Nigeria had done “a superb job” in reducing inflation from above 30 per cent to below 15 per cent, but stressed that further progress would require stronger fiscal support from the government.
Responding, Oyedele acknowledged that questions over subsidy savings were justified and assured Nigerians that a detailed breakdown would be released within days.
“There was a question about the subsidy savings. Where has it gone to? I’ve heard this question so many times. And guess what? It’s a valid question,” he said.
According to him, the combined impact of removing fuel subsidies and what he described as the “subsidy on foreign exchange” amounted to about five per cent of Gross Domestic Product.
