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FG suspends fuel subsidy removal

THE Federal Government has on Monday said there won’t be any removal of fuel subsidy anytime soon as a result of perceived difficulties associated with it.


Minister for Finance, Hajia Zainab Ahmed stated this at an interactive meeting with the Senate President, Dr. Ahmad Ibrahim Lawan, and other principal officers of the Senate.


The Minister said, the Federal government was initially looking at the removal of fuel subsidy from July this year, after which they made provisions in the 2022 budget to cushion the effect but noted that the timing has become a huge challenge.


The Finance Minister’s disclosure was at the backdrop of concerns raised by the Senate President who pointed out that there should be caution in the event of subsidy removal so as not to deepen the economic hardships of Nigerians.


Lawan said he visited President Muhammadu Buhari over plans to remove fuel subsidy and so many factors were taken into consideration but with a view to ensuring that the citizens are not at the receiving end.


In her further reaction, the Minister of Finance said her ministry consulted widely and discovered that the federal government cannot go ahead with the removal plans until some steps are taken to protect the interest of Nigerians.


She said: “Let me start by stating that we did make a provision in the 2022 budget which means that there will be fuel subsidies from July.


After consultations with various stakeholders, it became apparent that the timing became a big problem and Mr President didn’t want that. 


“We are looking at various means of either putting our four refineries in order and allowing Dangote Refinery to come on stream.


‘It means that we shall submit a supplementary budget from July going forward.”


The Senate President had earlier said the country was confronted with the fuel subsidy liabilities but cautioned that the timing of its removal was inappropriate.


He called for the cooperation of stakeholders in the Petroleum industry to cooperate with the government on any step that would be taken, should there be a need to remove fuel subsidy or not, insisting that there was no confusion in government circles.


He also appealed to the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), to shelve their planned protest noting that any step taken by the FG with regards to fuel subsidy would be in the interest of the country.


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