The Federal Government is facing the challenge of spending approximately N5.4tn on fuel subsidies as part of an economic stabilisation plan proposed in a report obtained by PUNCH Online. The plan, presented by the Minister of Finance, Wale Edun, aims to expedite economic recovery and mitigate the impact of ongoing reforms while improving purchasing power and tackling inflation within one to six months.
The report highlights the growing fuel subsidy costs, projecting a substantial increase in expenditure by the end of 2024. Despite denials from government officials, stakeholders like the International Monetary Fund anticipate the significant strain that the subsidy would place on the country’s oil revenue.
Additionally, the report mentions other challenges affecting the economy, such as high inflation rates, interest rates, and exchange rate volatility. The document outlines various strategies, including selling government assets, to address revenue constraints and achieve financial projections for the 2024 budget.
Overall, the economic stabilisation plan focuses on key areas like agriculture, energy, health, and business support to advance economic recovery efforts and promote sustainable growth under the Tinubu administration.
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