The National Economic Council (NEC) has agreed that the timing for removing the subsidy should not be now. The Minister of Finance, Budget a...
The National Economic Council (NEC) has agreed that the timing for removing the subsidy should not be now.
The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, dropped the hint on Thursday after the meeting presided over by Vice President Yemi Osinbajo at the Council Chambers of the Presidential Villa, Abuja.
She, however, said all of the preparatory works should continue in consultation with the states and other key stakeholders, including representatives of the incoming administration.
Mrs Ahmed said: “Council agreed that the first subsidy must be removed earlier rather than later because it is not sustainable. We cannot afford it anymore. We have to do it in such a way that the impact of the subsidy is as much as possible mitigated on the lives of ordinary Nigerians.
“So, this will require looking at alternatives to the post-subsidy that needs to be planned for and subsequently put in place but also what needs to be done to support the people that would be most affected due to the removal.
“So, we will be working together with representatives of the state, and we will have a plan to start working on putting the building blocks towards the eventual removal of the fuel subsidy.
“If I May remind the forum, that the budget for 2023 has a provision for subsidy only up to June 2023 and also the Petroleum Industry Act (PIA) has a provision that requires that all petroleum products must be deregulated 18 months after the effective date of the PMs removal and that period is also up to June 2023.”
The Federal Government had said it obtained $800m palliative loan from the World Bank to cushion the effect of the subsidy.
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