FG to replace fuel subsidy with N5000 monthly transport grant for Nigerians

The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Tuesday, said the federal government will remove fuel subsidies by 2022, adding that fuel subsidies will be replaced with N5000-a-month transport grant to the poorest Nigerians.

While speaking at the launch of the World Bank Nigeria Development Update (NDU), Ahmed made this statement.

She noted that the grant will go to about 30 to 40 million Nigerians, who make up the poorest population of the country.

“The subsidies regime in the [oil] sector remains unsustainable and economically disingenuous.

The Minister said: “Ahead of the target date of mid-2022 for the complete elimination of fuel subsidies, we are working with our partners on measures to cushion potential negative impact of the removal of the subsidies on the most vulnerable at the bottom 40% of the population.

“One of such measures would be to institute a monthly transport subsidy in the form of cash transfer of N5,000 to between 30 – 40 million deserving Nigerians.”