We’ve not suspended petrol subsidy removal — FG clarifies

The Minister of Finance, Budget and National Planning, Zainab Ahmed revealed that the federal government has not suspended the removal of petrol subsidy.

On Thursday April 27, the Vice President Professor Yemi Osinbajo-led National Economic Council (NEC) said it has suspended the removal of petrol subsidy.

The NEC said this is not the right time to remove petrol subsidy, stressing that consultations with states and other relevant stakeholders, including the incoming administration should continue.

But on Friday April 28, the finance minister said the federal government has not suspended the petrol subsidy removal.

This was revealed in a statement released by the minister’s Special Adviser, Media & Communications, Yunusa Tanko Abdullahi.

The minister said the federal government has expanded the committee on subsidy removal, to ensure that the incoming government and state’s governors have representatives in the committee.

The statement reads, “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, said that NEC deliberated on the issue extensively and came to the conclusion that the 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.

“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. 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.

“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.”