Fuel Subsidy To End In 2023, Minister Of Finance Says

According to The News Agency of Nigeria, between January and August 2022, gasoline subsidies consumed N2.565 trillion.

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.

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.

“Some countries introduced subsidy during the COVID-19, and because of the Russia-Ukraine conflict, but they are using their money to fund such subsidy.

“In our case, we are borrowing to pay the subsidy; that is double jeopardy. It is something that has to stop

“We are glad that majority of people in decision-making positions, including the political parties, have agreed that subsidy is not sustainable.

”The plan is, by June 2023, we must have completely exited subsidy, and it has to be a gradual process,” she said.