Fuel Subsidy Removal Not Suspended -Minister
…expands Subsidy Removal Committee
Following reports from the several media houses that the federal government has suspended the removal of fuel subsidy, government has said the subsidy stays for now.
Instead, to he federal government has said that it has rather expanded the subsidy removal committee to include teams from the incoming administration and the state governors.
The Minister of Finance, Budget and National Planning, Mrs. Zaniab Ahmed, stated this in Abuja shortly after the National Economic Council (NEC) meeting, chaired by the Vice President, Prof. Yemi Osinbajo on Thursday.
She said that NEC deliberated on the issue extensively and came to the conclusion that the subsidy must be removed as it is not sustainable, but there is a need for further consultations, especially the need to involve members of the incoming administration and representatives of the State governments.
Mrs. Ahmed also said: “We agreed to form an expanded committee that will be looking at the process for the removal of the subsidy, including determining the exact time as well as the measures that need to be taken to provide support to the poor and the vulnerable. There is also the need to agree alternative measures that will be put in place to ensure that there is sufficient supply of petroleum products in the country.”
According to the Minister, the Subsidy Removal Committee currently comprises the Ministry of Finance, Budget and National Planning, Ministry of Petroleum Resources, Nigerian National Petroleum Company (NNPC) Limited, the downstream and upstream regulators, Central Bank of Nigeria (CBN) and the Chief Economic Adviser to the President.
Mrs. Ahmed stated that the 2023 Fiscal Framework and Appropriation Act as well as the Petroleum Industry Act (PIA) have made the provision that government should exit fuel subsidy by June 2023. The committee is to work out a road map for the removal of the subsidy. No change in the overall policy direction regarding the petrol subsidy is envisaged by June 2023.
