Lokpobiri Reports N2.1 Trillion in Subsidy Savings for States

Timipre Sylva Lokpobiri, the Minister of State for Petroleum Resources, stated that the three tiers of government are currently sharing approximately N2.1 trillion through the Federation Account Allocation Committee, attributing this increase to savings from the removal of petrol subsidy. Lokpobiri made these remarks while defending the Federal Government's decision to eliminate the petrol subsidy and deregulate the downstream oil sector.

He noted that prior to the current administration, many states struggled to meet salary obligations, with about 27 states lacking the capacity to pay salaries. The minister emphasized that the savings from subsidy removal have allowed states to embark on significant projects.

He also defended the deregulation policy, asserting that it has facilitated private investment, allowing businesses like the Dangote Refinery to operate. Lokpobiri clarified that the presence of a major refinery does not guarantee lower petrol prices due to global market dynamics and maintained that the government would not reverse the deregulation policy despite consumer concerns.