FG postpones fuel subsidy removal
FG postpones fuel subsidy removal: The National Economic Council (NEC) has announced that the removal of petrol subsidy, which was earlier planned for June 2023, will not be implemented at this time. The decision was reached during a
valedictory meeting presided over by Vice President Yemi Osinbajo in Abuja. The Minister of Finance,
Budget, and National Planning, Zainab Ahmed, made the announcement to State House correspondents
after the meeting.
Ahmed stated that the council agreed on the need for continued discussions on the issue, and that more preparatory work is required by the Federal Government (FG), together with states and representatives
of the incoming administration. She noted that the fuel subsidy must be removed earlier rather than later,
as it is not sustainable and the country cannot afford it anymore. However, she added that the impact of the subsidy removal on ordinary Nigerians needs to be mitigated as much as possible.
the subsidy
According to Ahmed, the FG will be working together with representatives of the states between now
and June 2023 to put building blocks towards the eventual removal of the subsidy. The minister also
highlighted that the budget for 2023 has a provision for fuel subsidy only up to June 2023, and the
Petroleum Industry Act requires that all petroleum products must be deregulated 18 months after the
effective date of the PMS removal, which is up to June 2020.
The decision by NEC not to remove the petrol subsidy at this time is a significant development for Nigeria,
as the subsidy has been a contentious issue for years. The country has been grappling with the high cost
of fuel imports due to the subsidy, which has drained the national treasury of billions of dollars. However,
the removal of the subsidy has been met with resistance from labor unions and ordinary Nigerians, who
fear that it would lead to a hike in fuel prices and exacerbate the already high cost of living.
the decision
The decision to delay the removal of the subsidy is a welcome relief for Nigerians, particularly at a time
when the country is facing numerous economic challenges, including inflation, high unemployment rates, and a struggling economy. However, the FG must continue to work with stakeholders to find alternatives to the subsidy and develop policies that will support Nigerians who will be most affected by its eventual removal.
The decision by NEC not to remove the petrol subsidy at this time is a positive step towards ensuring that Nigerians are not burdened with additional economic hardship. The FG must now focus on developing alternative policies that will mitigate the impact of the subsidy removal on ordinary Nigerians and work towards its eventual removal in a way that does not negatively impact the lives of the people.