Buhari Government Reveals When Fuel Subsidy Will Finally Be Removed
- The federal government has revealed that by June 2023, there won't be the issue of fuel subsidy in the country again
- Also, the government says it planned to spend N3.3 trillion on fuel subsidies between January and June 2023
- According to the minister of Finance, Budget and National Planning, Zainab Ahmed, the challenge is how to go about removing the subsidy
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The Nigerians government has revealed that it planned to spend N3.3 trillion on fuel subsidies between January and June 2023.
This was disclosed by the Minister of Finance, Budget and National Planning, Zainab Ahmed.
However, the minister said the Federal Government will do away with petroleum subsidies by June 2023, Daily Nigerian reports.
Source: Facebook
She made this known during a press conference to mark the end of the 28th National Economic Summit, NES in Abuja.
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Ahmed added that the removal of fuel subsidy is part of the Federal Government’s medium-term plan in the budget.
She, however, said that the challenge is how to go about removing the subsidy.
She said:
“First, we have to engage. We have already engaged with the states and the public before it was approved as part of the medium-term plan.
“We have to do it by systematically informing the citizens about the size and the quantum of the fuel subsidy.
“We also have to educate them about the opportunity cost of what we are unable to do because of the fuel subsidy."
Going further, the minister said the fuel subsidy, in addition to budget deficit, is putting enormous pressure on the “fiscals”.
She added:
“It is not money that we have; it is money that we have to borrow to maintain the fuel subsidy.
“Some countries introduced subsidy during COVID-19, and because of the Russia-Ukraine conflict, but they are using their money to fund such subsidy.
“In our case, we are borrowing to pay the subsidy; that is double jeopardy. It is something that has to stop
“We are glad that majority of people in decision-making positions, including the political parties, have agreed that subsidy is not sustainable.
”The plan is, by June 2023, we must have completely exited subsidy, and it has to be a gradual process."
Why FG must remove fuel subsidy immediately, Governor el-Rufai gives reasons
A strong message has been sent to the federal government. The message was sent by Governor Nasir El-Rufai of Kaduna state.
The governor called for the immediate removal of petrol subsidy, Vanguard Newspaper reports.
He made the call, yesterday, at the “State-of-the-State” session at the on-going NESG, in Abuja.
When the governor who was on panel during session was asked what should be the priority of the government, he said, “remove fuel subsidy immediately.”
Source: Legit.ng
