The National Economic Council (NEC) on Thursday decided that the planned fuel subsidy removal slated to commence by the end of June this year should be suspended in the view of the current politico-economic situations in the country.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, broke this news to State House correspondents shortly after the valedictory meeting of the NEC presided over by the Vice President, Prof. Yemi Osinbajo, at the Presidential Villa, Abuja.
She disclosed that the Council agreed on the need for continued discussions on the fiscal measure between the three tiers of government and representatives of the incoming administration since the implementation requires more preparatory work.
The Minister expatiated: “Council agreed that the timing of the removal of fuel subsidy should not be now. But that we should continue with all of the preparatory works that need to be done and that this preparatory has to be done in consultation with the states and other key stakeholders including representatives of the incoming administration.
“Council agreed that the fuel subsidy must be removed earlier rather than later because it is not sustainable. 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.
“So, this will require looking at alternatives to the fuel subsidy that needs to be planned for and subsequently put in place. But also what needs to be done to support the people that will be most affected as a result of the removal”, Ahmed added.
The minister explained that the Federal Government would be working together with representatives of the states between now and June 2023 to agree on the best suited time for the removal of the fuel subsidy
According to her, the Federal Government has a plan to start working on, putting the building blocks towards the eventual removal of the first subsidy.
Ahmed reminded the forum that the budget for 2023 had a provision for fuel subsidy only up to June 2023 and also the Petroleum Industry Act had a provision that required that all petroleum products must be deregulated 18 months after the effective date of the PMS removal and that that period is also up to June 2020.
