Fuel Subsidy Removal Not Suspended – FG

The Federal Government has clarified that the planned subsidy removal is on course and that it was not suspended as erroneously misconstrued by some media reports. It said that what the government did was to expand the members of the Subsidy Removal Committee to include teams from the incoming administration and the state governors. Media Assistant to the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, Mallam Tanko Yunusa explained this in a statement issued on Friday.

Recall that Mrs. Zaniab Ahmed briefed the media on Thursday shortly after the National Economic Council (NEC) meeting chaired by the Vice President, Professor Yemi Osinbajo. Ahmed said that NEC deliberated on the issue extensively and came to the conclusion that the subsidy must be removed as it is not sustainable, but that there is a need for further consultations, especially the need to involve members of the incoming administration and representatives of state governments. Mrs. Ahmed also said: “We agreed to form an expanded committee that will be looking at the process for the removal of the subsidy, including determining the exact time as well as the measures that support to the poor and the vulnerable. There is also the need to agree alternative measures that will be put in place to ensure that there is sufficient supply of petroleum products in the country.”

According to the Honourable Minister, the Subsidy Removal Committee currently comprises the Ministry of Finance, Budget and National Planning, Ministry of Petroleum Resources, Nigerian National Petroleum Company (NNPC) Limited, the downstream and upstream regulators, Central Bank of Nigeria (CBN) and the Chief Economic Adviser to the President. Mrs. Ahmed stated that the 2023 Fiscal Framework and Appropriation Act as well as the Petroleum Industry Act (PIA) have made the provision that the government should exit fuel subsidy by June 2023. The committee is to work out a road map for the removal of the subsidy. No change in the overall policy direction regarding the petrol subsidy is envisaged by June 2023″, she said.

(NT)