FG denies suspending removal of fuel subsidy

Key Highlights

• The statement said the National Economic Council (NEC) set up a subsidy removal committee that includes teams from the incoming administration, the state governors.
• NEC concluded that fuel 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.’
• The finance minister stated that there is no change in the overall policy direction regarding the petrol subsidy removal, noting that the Petroleum Industry Act (PIA) has made provision that government should exit fuel subsidy by June 2023.

The Federal Government has refuted reports that it has suspended fuel subsidy removal  stating that the implementation of the policy is still on course.

The reaction is against the backdrop of some media reports that the Minister of Finance, Budget and National Planning, Zainab Ahmed, on Thursday said that the Federal government has suspended the removal of fuel subsidy which was supposed to take effect from June, 2023.

This disclosure is contained in a statement by the Federal Ministry of Finance, Budget and National Planning, and can be seen on its official Twitter account.

The statement noted that the National Economic Council rather set up a subsidy removal committee that includes teams from the incoming administration, the state governors.

It stated that although NEC insisted that the fuel subsidy must be removed as it is not sustainable, it however pointed out that there is need for further consultations, especially the need to involve members of the incoming administration.

Fuel subsidy removal not suspended

The statement from the Ministry of Finance, Budget and National Planning partly reads,

• ‘’Against the backdrop of the story in some media that the Nigerian Government has suspended the removal of petrol subsidy, the government has said that it has not suspended the removal as stated by Honourable Minster of Finance, Budget and National Planning, Zainab Ahmed.
• ‘’The subsidy removal committee is rather to include teams from the incoming administration, the State Governors.
• The Minister, Zainab Ahmed, stated this in Abuja on Thursday after the National Economic Council (NEC) meeting, chaired by the vice president, Professor Yemi Osinbajo.
• ‘’The minister said that NEC deliberated on Fuel Subsidy extensively and came to the conclusion that it 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.’’

No change in fuel subsidy removal policy.

The minister also said that there is no change in the overall policy direction regarding the petrol subsidy removal, noting that the Petroleum Industry Act (PIA) has made provision that government should exit fuel subsidy by June 2023.

• She said, “No change in the overall policy direction regarding the petrol subsidy is envisaged by June 2023. 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.”-

In case you missed it

• Recall that yesterday, Nairametrics reported that Zainab Ahmed  announced that the Fuel subsidy removal has been suspended.
• She made the announcement while speaking on Thursday to State House correspondents at the Council Chambers of the Presidential Villa in Abuja, where she said that the National Economic Council, agreed that the petrol subsidy should “not be removed” as earlier planned for June 2023.
• She said in her words, “Council agreed that the timing of the removal of fuel subsidy should not be now., but that we should continue with all of the preparatory works that need to be done, as this preparation has to be done in consultation with the states and other key stakeholders including representatives of the incoming administration.’’