Some of the savings will be provided as loans for businesses, including small, medium and micro enterprises, the president said.
The federal government has saved over one trillion naira in the past two months following the removal of subsidy on petrol, President Bola Tinubu has said.
Some of the savings will be used as low-interest loans for businesses, including small, medium and micro enterprises, the president said.
The government also plans to spend N100 billion to acquire "3,000 units of 20-seater CNG buses to be distributed to transporters across Nigeria at an interest rate not more than nine per cent, " Mr Tinubu said.
Subsidy
The Nigerian government has for decades subsidised fuel and fixed retail prices of petroleum products.
The government has repeatedly said the subsidy on petrol was unsustainable due to the amount spent.
Over N4 trillion was expended on petrol subsidy last year, more than the government spent on education and healthcare combined.
This year, the immediate past government of Muhammadu Buhari only provided budgetary allocation for petrol subsidy until 30 June after saying it would leave the incoming administration to make a final decision on the matter.
However, critics of the fuel subsidy removal argue that it will further weaken the purchasing power of Nigerians and impoverish more citizens in a country where almost half of the population is poor.
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On 29 May, during his inauguration, President Tinubu announced the removal of subsidy on petrol. This development has caused hardship for many Nigerians with its attendant increase in the prices of goods and services.
Following the announcement, the NNPCL directed its outlets nationwide to sell petrol between N480 and N570 per litre, an over 200 per cent increase from the initial price below N200.
The hike immediately triggered an increase in transportation fares and prices of goods and services.
The subsidy removal has also led to increased government revenue, with total distributable revenue increasing from about N786.161 billion in May to about N1.9 trillion in June as the government earned money that would in the past be used to subsidise petrol.
The Tinubu government subsequently promised to provide buffers for Nigerians to cushion the effect of the subsidy payments on Nigerians.
