The Nigeria’s National Economic Council (NEC) at its meeting on Thursday, resolved that the federal government has suspended the planned removal of subsidy on petroleum products by the end of President Muhammadu Buhari’s administration.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed disclosed this while briefing State House correspondents at the end of the NEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
Zainab explained that the removal of the subsidy will likely take effect in June because the Petroleum Industry Act, PIA and the 2023 budget provided subsidy till June, hence any delay may require the amendment of the PIA and the budget provision.
The minister, however, said that there was no deadline given for the subsidy removal and that the incoming administration will take decision on when possible to do that.
Zainab said the subsidy cannot be removed for now, but noted that discussions on the matter and the necessary preparatory work in conjunction with states and representatives of the incoming administration will not be stoped.
Recall that in January 2022, the finance minister disclosed during the public presentation of the 2023 Federal Government budget that the FG will stop the payment of fuel subsidy by the end of June this year.
She revealed that, the government has made provisions of N3.36trn for fuel subsidy payment to cover the first six months of this year.
This, she had stated, was in line with the 18-month extension announced early 2022.
