FG finally halts fuel subsidy removal

FG finally halts fuel subsidy removal
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The National Economic Council said on Thursday in Abuja that it has decided against eliminating the fuel subsidy in June 2023 as originally planned.FG finally halts fuel subsidy removal

This was announced by Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning, shortly after the final Council meeting, which was held in the Council Chambers of the Presidential Villa in Abuja under the chairmanship of Vice President Yemi Osinbajo.

The Council, according to Mrs. Zainab, decided that further discussion of the matter was necessary, and they also agreed that the FG, as well as the states and representatives of the future administration, required more preparation.

She revealed that the Council has decided against removing the fuel subsidy at this time.

However, they must proceed with all of the necessary preparations, and they must do so in conjunction with the states and other important parties.

She added that because the fuel subsidy is unsustainable, the Council resolved that it should be eliminated sooner rather than later.

We cannot afford it anymore. But 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.” – Mrs. Zainab said.

She emphasized that this would need considering alternatives to the petrol subsidy, which would then need to be prepared for and implemented.

Moreover, something must be done to assist those who will be most negatively impacted by the removal.

The Finance Minister further stated that from now until June 2023, the FG will collaborate with state officials.

We have a plan that we will start working on, putting the building blocks towards the eventual removal of the first subsidy.” – she said.

The minister continued by pointing out that the budget for 2023 only includes funding for fuel subsidies through June 2023, and that the Petroleum Industry Act also includes a requirement that all petroleum products be deregulated 18 months after the removal of the PMS, which runs through June 2020.

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