The National Economic Council (NEC) has made the decision to delay the removal of subsidies on petroleum products until the end of President Muhammadu Buhari’s term, News About Nigeria reports.
During a press conference at the Presidential Villa in Abuja, Finance, Budget, and National Planning Minister Zainab Ahmed revealed the decision, which was made at the conclusion of a NEC meeting chaired by Vice President Yemi Osinbajo.
According to Ahmed, the removal of subsidies may not occur until June due to the provisions of the Petroleum Industry Act (PIA) and the 2023 budget, which provide for subsidies until that time.
She also mentioned that there is no set date for when the subsidies will be removed, and that the decision will be made by the incoming administration.
If there is a delay, the PIA and budget provisions may need to be modified.
The move to remove fuel subsidies has long been a contentious issue in Nigeria, with some arguing that it is necessary to reduce government spending and stimulate economic growth, while others maintain that it will lead to significant price increases for consumers and exacerbate poverty in the country.
Advocates of subsidy removal argue that the current system is inefficient and wasteful, as it allows wealthy individuals and companies to benefit from government subsidies that were intended to help the poor.
In addition, they argue that the subsidies have contributed to the country’s current economic problems, as they have created a significant burden on government finances and made it difficult for the government to invest in much-needed infrastructure and social programs.
Opponents of subsidy removal argue that the government should instead focus on improving the efficiency of the subsidy system, rather than eliminating it altogether.
They argue that the removal of subsidies will lead to significant price increases for consumers, which will have a particularly negative impact on low-income households.
In addition, they argue that the government should be investing in social programs and infrastructure, rather than cutting spending on essential services.
