Why Fuel Subsidy Was Removed – Tinubu Explains, Reveals Alternative | READ DETAILS
The newly inaugurated president of Nigeria, Bola Tinubu, has announced the removal of fuel subsidy in the country.
Tinubu while giving a speech during his inauguration on Monday, May 29, 2023 at the Eagles Square in Abuja, revealed that the immediate past administration of Muhammadu Buhari removed fuel subsidy and provisions were not made for it in the current 2023 budget.
The current 2023 budget has provision for the fuel subsidy till June.
According to Tinubu, fuel subsidy has only favored the rich against the poor, and it can no longer “justify its ever-increasing costs in the wake of drying resources” hence the removal.
The new president noted that the funds used in subsidizing fuel would be “re-channeled into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.”
In his words;
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.
“We shall, instead, re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions”.
The Nigerian government has, for decades, subsidised fuel and fixed retail prices of petroleum products. The payment has, however, threatened the nation’s fiscal position and impacted the government’s ability to fund developmental projects across the nation.
In November 2021, the federal government announced its plan to remove the fuel subsidy and replace it with a monthly N5,000 transport grant for poor Nigerians.
However, following kicks by some Nigerians including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) who threatened to embark on mass protests, the proposal was suspended.
