The Minister for Finance, Budget and National Planning, Mrs Zainab Ahmed, has announced the Federal Government’s decision to suspend Fuel Subsidy Removal.
Ahmed announced this on Monday, January 24, amid the National Labour Congress proposed Nationwide strike action to protest the planned removal of subsidy and hike in pump price.
According to the Minister, the FG’s retraction is owed to consultations made which showed that the removal of fuel subsidy now, will leave negative impact on Nigerians
She revealed that the suspension is till further notice while a further amendment will be made to the 2022 budget to provide for subsidy beyond June.
Ahmed who spoke during a meeting at the National Assembly in Abuja, said;
“Let me start by stating the fact that we did make a provision in the 2022 budget for fuel subsidy from January to June. And that suggests that from July, there would be no fuel subsidy.
“This provision was made sequel to the passage of the Petroleum Industry Act, PIA, that has made provision that all products will be deregulated.“Subsequent to the passage of the Act, we went back and amended the Fiscal Framework that was submitted to the National Assembly to incorporate this demand, but after the budget was passed, we have had consultations with a number of stakeholders.
“It became clear that the timing is problematic, that practically, there is still heightened inflation, and also removal of subsidy will further worsen the situation, thereby, imposing more difficulties on the citizens, and the President clearly does not want to do that.“What we have to do now is to continue with the discussions we are making, in terms of putting in place a number of measures, one of which is the deployment of an alternative to Premium Motor Spirit, PMS, and also the roll-out of enhanced refining capacity in the country, including the 650,000 barrels per day Dangote Refinery and also the rehabilitation of the four national refineries that have a combined capacity of 450,000 barrels per day.
“The increased refining capacity in the country means we will need to import less products. But also as we are discussing right now within the Executive the possibility of amending the budget, we may need to come back to the National Assembly by way of amendment to make additional provision for fuel subsidy from July, 2022, going forward, or to whatever period that is agreed as the right time.
“Also, while we are exploring ways and means through discussions with various stakeholders in the executive as well as the civil societies and labour unions by which we can address this removal in a manner that is graduated and will have as minimal impact on the citizens as possible.
“So, we will come back to make further amendments on the fiscal framework as well as in the 2022 budget.”
Others at the meeting include; Senate President Ahmad Lawan, Senate Leader Yahaya Abdullahi; Deputy Whip Aliyu Sabi Abdullahi; Chief Executive Officer of the Nigerian Midstream and Downstream Regulatory Authority Farouk Ahmed; Nigerian National Petroleum Corporation (NNPC) Managing Director Mele Kyari and Chief Executive Officer of the Nigerian Upstream Regulatory Commission Gbenga Komolafe, Special Assistant to the President on Natural Resources, Habib Nuhu; Permanent Secretary, Federal Ministry of Finance, Aliyu Shehu Shinkafi, and Permanent Secretary, Ministry of Petroleum Resources, Nasir Sani-Gwarzo.
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