The Federal Government has declared that state governments are now flush with funds following the removal of petrol subsidy by President Bola Tinubu’s administration in May 2023.
Coordinating Minister of Finance, Wale Edun, revealed this on Thursday during the National Health Financing Dialogue in Abuja.
Edun admitted that the removal of Premium Motor Spirit (PMS) subsidy was a tough but necessary decision, stressing that the move had freed resources and restored confidence in the economy.
“The states now have more than double the money they had before, so they can provide their own contribution in important areas,” he said.
According to him, subsidy payments previously guzzled 2.5% of the GDP, benefiting only a few individuals and foreigners, while starving key sectors like healthcare and education.
Since the policy shift, states’ allocations have surged, with FAAC sharing ₦1.818 trillion in June and an even higher ₦2.001 trillion in July.
On health reforms, Edun stressed that increased revenue would be directed into healthcare, creating jobs and growing the economy, while the private sector and philanthropy would play complementary roles.
“Important and bold fiscal steps are being made to restore stability and ensure that gains from economic recovery are felt in clinics, communities, and households,” Edun assured.
The minister also highlighted ongoing training of health practitioners, improved primary healthcare, and plans to strengthen government savings to drive public investments in critical assets and infrastructure.
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