Fuel subsidy removal suspended by the Nigerian Government
The anticipated elimination of the subsidy on petroleum products before the conclusion of President Muhammadu Buhari’s term was put on hold on Thursday by the National Economic Council (NEC).
After the NEC meeting at the Presidential Villa in Abuja, which was presided over by Vice President Yemi Osinbajo, Minister of Finance, Budget, and National Planning Mrs. Zainab Ahmed made this announcement.
The NEC determined at their meeting that it is not a good moment for the move, the minister claims.
She said the Council debated the issue and decided it couldn’t be changed for the time being. Still, it also decided it needed to continue discussing it and do the required planning with states and representatives of the future administration.
The subsidy has long been a contentious subject in Nigeria.
Part of the Petroleum Industry Act, which President Muhammadu Buhari signed in August 2021, does not provide for subsidy.
The Federal Government gave the National Assembly a proposal in January 2022 to extend the Petroleum Industry Act’s (PIA) implementation by 18 months.
Following current rules, the present government accepted an extension of the required term for the implementation of the withdrawal of the subsidy on Premium Motor Spirit (PMS).
However, the entire withdrawal of the gasoline subsidy was supposed to have taken place by June, but according to the present government, it is still being determined.
However, the choice to eliminate gasoline subsidies will be made by the new administration.