Fuel subsidy removal in Nigeria to proceed despite reports of suspension

The Minister clarified that the subsidy removal committee has been expanded to include teams from the incoming administration and state governors.

The Minister also stated that the 2023 Fiscal Framework and Appropriation Act as well as the Petroleum Industry Act (PIA) have made the provision that the government should exit fuel subsidy by June 2023.

Ahmed said: “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."

The Minister’s clarification comes barely 24 hours after media reports that the National Economic Council had suspended subsidy removal in June.

Ahmed’s media aide, Tanko Abdullahi, signed the statement.

The committee will be responsible for determining the exact time for the removal of the subsidy and the measures that need to be taken to provide support to the poor and vulnerable.

She noted that the committee is to work out a roadmap for the removal of the subsidy, including agreeing to alternative measures that will be put in place to ensure that there is sufficient supply of petroleum products in the country.

“There is also the need to agree to alternative measures that will be put in place to ensure that there is sufficient supply of petroleum products in the country,” Ahmed said.

She added that the Subsidy Removal Committee currently comprises the Ministry of Finance, Budget, and National Planning, Ministry of Petroleum Resources, Nigerian National Petroleum Company (NNPC) Limited, downstream and upstream regulators, Central Bank of Nigeria (CBN), and the Chief Economic Adviser to the President.

The Minister emphasised that there is no change in the overall policy direction regarding the petrol subsidy.