Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has asked the public to discountenance reports alluding to the fact that the planned removal of fuel subsidy in June has been halted, insisting that the move was on course and at no time suspended.
Her position, contained in a statement signed by her media aide, Tanko Abdullahi, came barely 24 hours after the media reported the decisions of the National Economic Council to suspend subsidy removal in June.
The minister explained that the subsidy removal committee has been expanded to include teams from the incoming administration and the state governors.
She said: “NEC deliberated on the issue extensively and came to the conclusion that the subsidy must be removed as it is not sustainable, but there is a need for further consultations, especially the need to involve members of the incoming administration and representatives of the state governments.
“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 need to be taken to provide support to the poor and the vulnerable. There is also the need to agree to alternative measures that will be put in place to ensure that there is sufficient supply of petroleum products in the country.”
Ahmed noted that 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.
The Minister 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 roadmap for the removal of the subsidy. No change in the overall policy direction regarding the petrol subsidy,” she added.
