The Nigerian Minister of Finance, Budget, and National Planning, Zainab Ahmed, has clarified that the government has not suspended the removal of fuel subsidies in June 2023 as earlier reported in the media.
Ahmed stated that there is no change in the overall policy direction regarding the petrol subsidy, News About Nigeria gathered.
She explained that the National Economic Council (NEC) had deliberated extensively on the issue and concluded that the subsidy must be removed as it is not sustainable.
However, there is a need for further consultations, especially involving the incoming administration and representatives of state governments.
Ahmed also revealed that the subsidy removal committee has been expanded to include teams from the incoming administration and state governors.
The committee will be responsible for determining the exact time for the removal of the subsidy and the measures that need to be taken to provide support to the poor and vulnerable.
The committee is expected to work out a roadmap for the removal of the subsidy and agree to alternative measures that will be put in place to ensure a sufficient supply of petroleum products in the country.
According to the Minister, the 2023 Fiscal Framework and Appropriation Act as well as the Petroleum Industry Act (PIA) have made provisions for the government to exit fuel subsidy by June 2023.
The committee currently comprises the Ministry of Finance, Budget, and National Planning, Ministry of Petroleum Resources, Nigerian National Petroleum Company (NNPC) Limited, downstream and upstream regulators, Central Bank of Nigeria (CBN), and the Chief Economic Adviser to the President.
The Minister’s clarification came barely 24 hours after media reports claimed that the National Economic Council had suspended the removal of fuel subsidies in June.
Ahmed’s media aide, Tanko Abdullahi, signed the statement, which was issued to clear the air on the matter.
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