CEM REPORT, FINANCE | Following the complete removal of fuel subsidy, the Federal Government claims to have saved ₦1.83 trillion between June and July.
The federal government has said the saved funds will be used for projects to save the nation from borrowing.
According to a Business Day report, the savings consist of ₦1.05 trillion from the ₦1.97 trillion revenue generated in June and an additional ₦779.89 billion from the ₦1.746 trillion revenue amassed in July.
The Minister of Finance and Coordinating Minister for the Economy (CME), Wale Edun, commented that the administration aims to establish a foundation for financing crucial projects independently.
“The plan is to utilise this money for executing projects without resorting to borrowing.”
The saved sum of N1.83 trillion has been securely held in the federation account with the Central Bank of Nigeria (CBN). The government’s persuasive efforts led to the consensus among most FAAC members that a portion of the revenue accruing to the Federation Account should be preserved to prevent allocations from falling below a specified threshold. In instances when the monthly available amount is below this threshold, FAAC can draw from the savings to supplement the distribution.
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Recall that CEM reported that President Bola Ahmed Tinubu during his remarks at the 63rd Nigerian Bar Association (NBA) annual conference, stressed that the country cannot the culture of service its external debt with an overwhelming 90 per cent of its revenue.
The Minister of Finance and Coordinating Minister for the Economy (CME), Wale Edun, had earlier stated that the federal government is in no condition to take on more borrowing than it has inherited already.
