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FG Suspends Planned Petrol Subsidy Removal


MINISTER of Finance, Budget and National Planning, Zainab Ahmed, and her counterpart in the Ministry of Petroleum Resources, Timipre Sylva, have said the Federal Government is not in a hurry to remove subsidy on petroleum products. 

The duo explained that provision was made for subsidy payment to marketers in the 2022 budget. 

They made the disclosures on Monday at a session with the President of the Senate, Dr Ahmad Lawan, and other principal officers of the Red Chamber. 

The Minister of Finance, Zainab Ahmed, in her submission, said that there was provision for subsidy payment in the 2022 budget till the end of June, declaring that the payment would cease effective from July. 

She said: “Provision was made in the 2022 budget for subsidy payment from January till June. That suggests that from July, there will be no subsidy. The provision was made as a sequel to the passage of the Petroleum Industry Act, which indicated that all petroleum products would be deregulated. 

“Following the passage of the PIA, we went back to amend the fiscal framework to incorporate the subsidy removal. However, after the budget was passed, we had consultations with a number of stakeholders and it became clear that the timing was problematic. We discovered that practically, there is still heightened inflation and that the removal of subsidy would further worsen the situation and impose more difficulties on the citizenry. 

“Mr President does not want to do that. What we are now doing is to continue with the ongoing discussions and consultations in terms of putting in place a number of measures. One of these include the rollout of the refining capacities of the existing refineries and the new ones, which would reduce amount of products that would be imported into the country. 

“We, therefore, need to return to the National Assembly to now amend the budget and make additional provision for subsidy from July 22 to whatever period that we agreed was suitable for the commencement of the total removal.” Continue Reading 


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