FG suspends planned removal of fuel subsidy

The controversial petrol subsidy earlier planned to be removed by June this year has been suspended by the Federal Government (FG).

The Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, revealed this on Thursday after the National Economic Council (NEC) meeting in Abuja presided over by Vice President Yemi Osinbajo.

The Minister said the suspension was deliberated upon by the Federal Government, states, and representatives of the incoming administration.

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Ahmed maintained that the country cannot afford fuel subsidy anymore, saying the Council agreed on its earlier removal rather than later because it is not sustainable.

She added that the effect of the subsidy will mitigate on the lives of ordinary Nigerians, saying FG will work together with representatives of the states between now and June 2023. 

Ahmed said the process will require looking at alternatives to the fuel subsidy that needs to be planned for and subsequently put in place. 

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“But also what needs to be done to support the people that will be most affected as a result of the removal.

“And if I may remind this forum that the budget for 2023 has a provision for fuel subsidy only up to June 2023 and also the Petroleum Industry Act has a provision that requires that all petroleum products must be deregulated 18 months after the effective date of the PMS removal and that that period is also up to June 2020.”