• Friday, April 19, 2024
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There won’t be fuel subsidy removal anytime soon – Nigerian govt

Subsidy removal presents hardest test for new president

Nigeria’s Minister of Finance, Budget, and Economic Planning, Zainab Ahmed, said the federal government had postponed the planned removal of subsidy on petrol till further notice.

In a meeting convened by President of the Senate, Ahmad Lawan, Ahmed explained that the federal government planned to complete consultations before coming out with a clear policy direction on the matter.

The Minister said, the Federal government was initially looking at the removal of fuel subsidy from July this year, after which they made provisions in the 2022 budget to cushion the effect but noted that the timing has become a huge challenge.

The Finance Minister’s disclosure was at the backdrop of concerns raised by the Senate President who pointed out that there should be caution in the event of subsidy removal so as not to deepen the economic hardships of Nigerians.

“Let me start by stating that we did make a provision in the 2022 budget and which means that there will be fuel subsidy from July,” Ahmed clarified.

“After consultations with various stakeholders, it became apparent that the timing became a big problem and Mr. President didn’t want that. We are looking at various means either putting our four refineries in order and allowing Dangote Refinery to come on stream.

“It means that we shall submit a supplementary budget from July going forward.”

The Finance Minister’s disclosure was at the backdrop of concerns raised by the Senate President who pointed out that there should be caution in the event of subsidy removal so as not to deepen the economic hardships of Nigerians.

Lawan said he visited President Muhammadu Buhari over plans to remove fuel subsidy and so many factors were taken into consideration but with a view to ensuring that the citizens are not at the receiving end.

Read also: Nigeria’s top 10 richest states gulp nearly half of petrol subsidy

The Senate President had earlier said the country was confronted with the fuel subsidy liabilities but cautioned that the timing of its removal was inappropriate.

He called for the cooperation of stakeholders in the Petroleum industry to cooperate with the government on any step that would be taken, should there be a need to remove fuel subsidy or not, insisting that there was no confusion in government circles.

He also appealed to the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), to shelve their planned protest noting that any step taken by the FG with regards to fuel subsidy would be in the interest of the country.

“Admittedly the burden of subsidy is huge and massive and there is a need to do away with it. It needs the cooperation of all of us. Even though the economy is slowing,” Lawan said.

“The issue of removal of subsidy should be done with utmost care and the timing should be such the impact would not deepen our woes and Mr. President needs the cooperation of all of us.