The Federal Government has disclosed plans to completely bring to a halt the matter of fuel subsidy in the country before May 29, 2023 when a new government will resume office.
The Federal Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed made the disclosure during a courtesy visit to the headquarters of Voice of Nigeria, VON in Abuja.
Investors King recalls that at the beginning of the year, Ahmed told Nigerians that fuel subsidy will be removed before the end of June to enable the federal government divert the large sum of money spent on subsidies to other sectors for national development.
According to the Minister, the subsidy ought to have been removed before now but for the recent general elections and upcoming national population census.
She noted that the fuel subsidy removal decision was hard to take at first but as more people reasoned with the government that the masses were not the ones benefiting from it and considering the large sum it has been adding to the government’s spending and deficit yearly, the decision became easier to take.
Ahmed disclosed that the federal government spends about N250 billion on subsidy every month as the subsidy cost per litre of petrol is around N350 to N400.
She stated that such a huge sum could be channeled towards the construction of more hospitals, schools, roads and other critical needs of the citizens to build a better nation.
On the benefits of subsidy removal, the minister mentioned that oil marketers would have the opportunity to import and sell petroleum products directly to Nigerians just like the Nigeria National Petroleum Company, NNPC is currently doing as the only authorised importer.
Her words, “The fuel subsidy is one of those political, economic decisions that you don’t want to have, but you’re stuck with it anyway. And right now, we have approval within the Appropriation Act to exit the subsidy by June 2023. Or at least, I can say, the Appropriation Act made provision that only allows subsidies up to June 2023.
“You can build more hospitals, more schools, provide more social services, improve infrastructure that will enhance the quality of life of the people, instead of just using it on a consumption item. You put gas in your car and in a couple of days it is gone and then you have to put again.
“So we do hope that this time around, that the whole country will work with the government to get rid of this subsidy to save us from continuously expending limited resources on a consumption item.”
However, the federal government is yet to spell out measures to reduce the effect of the subsidy removal on the citizens, though discussions and consultations are ongoing.
