Nigeria To Scrap Fuel Subsidy In 2023

The Federal Government will scrap petroleum subsidy by June 2023.

This was disclosed by Minister of Finance, Budget and National Planning,  Zainab Ahmed said this on Tuesday in Abuja during a press conference to mark the end of the 28th National Economic Summit.

It was reported that fuel subsidy gulped N2.565tn between January and August 2022.

Also, in the Medium-Term Expenditure Framework, the Federal Government proposed to spend N3.3tn on fuel subsidy between January and June 2023.

According to Ahmed, removal of fuel subsidy is part of the FG’s medium-term plan in the budget.

She, however, said that the challenge was how to go about removing the subsidy.

“First, we have to engage. We have already engaged with the states and the public before it was approved as part of the medium-term plan.

“We have to do it by systematically informing the citizens about the size and the quantum of the fuel subsidy.

“We also have to educate them about the opportunity cost of what we are unable to do because of the fuel subsidy,” she said.

According to the minister, the fuel subsidy, in addition to budget deficit, is putting enormous pressure on the “fiscals”.

“It is not money that we have; it is money that we have to borrow to maintain the fuel subsidy”, she added.