No going back on fuel subsidy, Nigerians must prepare - Finance Minister

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By June 2023, according to Minister of Finance, Budget, and National Planning Zainab Ahmed, the federal government would stop providing fuel subsidies.

This was expressed by Ahmed on Tuesday in Abuja during a news conference to announce the conclusion of the 28th National Economic Summit (NES).

In Nigeria, the subject of gasoline subsidies has generated debate since the nation's expenditure continues to reduce its earnings.

Nigeria Minister of Finance Zainab Ahmed
Nigeria Minister of Finance Zainab Ahmed

The federal government spent N2.565 trillion between January and August 2022 to cover some shortcomings in the petrol subsidy program.

By June 2023, according to Minister of Finance, Budget, and National Planning Zainab Ahmed, the federal government would stop providing fuel subsidies.

This was expressed by Ahmed on Tuesday in Abuja during a news conference to announce the conclusion of the 28th National Economic Summit (NES).

In Nigeria, the subject of gasoline subsidies has generated debate since the nation's expenditure continues to reduce its earnings.

The federal government spent N2.565 trillion between January and August 2022 to cover some shortcomings in the petrol subsidy program.

We have to do it by systematically informing the citizens about the size and quantum of the subsidy.

“We also have to educate them about the opportunity cost of what we are unable to do because of the fuel subsidy.”

According to the minister, the fuel subsidy, in addition to the budget deficit, is putting enormous pressure on the “fiscals”.

“It is not money that we have; it is money that we have to borrow to maintain the fuel subsidy,” Ahmed stated.

“Some countries introduced subsidy during COVID-19, and because of the Russia-Ukraine conflict, but they are using their money to fund such subsidy.

“In our case, we are borrowing to pay the subsidy; that is double jeopardy. It is something that has to stop."

The Minister further noted that the June 2023 removal date remains unchanged.

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