Fuel Price to Go Higher as FG Reveals When Subsidy Will Finally Be Removed

• The minister of finance, budget and national planning, Zainab Ahmed, has said that fuel subsidy could be removed in the first half of 2023
• Zainab noted that if the government continue with the subsidy next year, it means more money would be borrowed to fund the subsidy
• While maintaining the subsidy cannot be sustained, the minister revealed that it will cost the government N6.4 trillion to sustain the regime next year

FCT, Abuja - Zainab Ahmed, the minister of finance, budget and national planning, has said the payment of subsidy on the premium motor spirit (petrol) will be removed in mid-2023.

According to The Punch, the minister said this while appearing before the house of representatives ad-hoc committee investigating the subsidy regime between 2013 to 2022 on Thursday, August 18.

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Why government will remove subsidy next year - minister

Ahmed, during her presentation, disclosed that the federal government had proposed a new date to end the subsidy regime, stating that the subsidy was not sustainable and might push the government to borrow more in 2023.

She added that the government had planned to pay subsidies for only half of next year, citing the 2023-2025 medium-term expenditure framework and fiscal strategy paper.

According to her, President Muhammadu Buhari has transmitted the MTEF/FSP to the senate president, Ahmed Lawan and the house of representatives speaker, Femi Gbajabiamila as it was approved by the national economic council and the federal executive council.

She stated, “One thing that stands out in the Medium Term Expenditure Framework was that if the nation holds on to fuel subsidy as it is designed now, we will be incurring from January to December, a subsidy cost of N6.4tn."

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Photos: FG seals 4 illegal fertiliser blending plants in Kano, ceases truckload of raw materials

Legit.ng has earlier reported that the federal government has sealed no less than 4 fertiliser blender plants in Kano for not obtaining the license to operate.

The government revealed it will also be confiscating a truckload of adulterated fertiliser that has been seized.

according to the government, the objective of its task force is not to arrest people but to ensure people comply with the law.

Source: Legit.ng