The National Economic Council has announced that petrol subsidy will not be removed as earlier planned for June 2023. This decision was made known by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, after the valedictory Council meeting presided over by Vice President Yemi Osinbajo at the Council Chambers of the Presidential Villa in Abuja.
The Council has agreed on the need for continued discussions on the issue of fuel subsidy removal, as the Federal Government, states, and representatives of the incoming administration require more preparatory work. While the Council acknowledged that the fuel subsidy must be removed earlier rather than later, it is not sustainable and cannot be afforded anymore. The impact of the subsidy on the lives of ordinary Nigerians must be mitigated as much as possible.
According to Ahmed, alternatives to the fuel subsidy will be explored and planned for, and subsequently put in place. Measures will also be taken to support those that will be most affected by the removal of the subsidy. The Federal Government will work together with representatives of the states between now and June 2023 to put in place the building blocks towards the eventual removal.
It is worth noting that the budget for 2023 has a provision for fuel subsidy only up to June 2023, and the Petroleum Industry Act has a provision that requires all petroleum products to be deregulated 18 months after the effective date of the PMS removal, which is also up to June 2020.