Fuel Subsidy Removal Not Suspended, FG Clarifies 

* Says government on course

Ndubuisi Francis in Abuja 

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, has declared that the federal government is yet to suspend the removal of petroleum subsidy, but has instead expanded the subsidy removal committee to include teams from the incoming administration and the state governors. 

The minister, in a statement issued on Friday by his Special Adviser on Media & Communications, Yunusa Tanko Abdullahi, said the clarification became imperative following reports that the government had suspended the planned removal of subsidy.

The National Economic Council (NEC) had on Thursday advised the government to shelve subsidy removal until all preparatory plans with various segments of government, including states and the incoming administration are concluded.

But the statement issued by the minister’s aide said: “Against the backdrop of the story in some media that the federal government has suspended the removal of petrol subsidy, the government has said that it has not suspended the removal, but has rather expanded the subsidy removal committee to include teams from the incoming administration and the state governors. 

“The Honourable Minister of Finance, Budget and National Planning, Mrs. Zaniab Ahmed, stated this in Abuja on Thursday, shortly after the National Economic Council (NEC) meeting, chaired by the Vice-President, Prof. Yemi Osinbajo.”

It stressed that NEC deliberated on the issue extensively and came to the conclusion that 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,” it said.

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 need to be taken to provide 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.”

Abdullahi stressed that the minister disclosed 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. 

“Mrs. Ahmed stated that the 2023 Fiscal Framework and Appropriation Act as well as the Petroleum Industry Act (PIA) have made the provision that 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,” the statement said.