365NEWS gathered that the Federal Government yesterday moved to clarify that the plan to end petrol subsidy by the end of June 2023 is on course.
The government in a statement issued by Yunusa Tanko Abdullahi, Special Adviser, Media and Communications, to the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, explained that contrary to media reports the Buhari’s government has merely expanded the subsidy removal committee.
The Minister had while briefing journalists at the end of the National Economic Council (NEC) meeting, on Thursday said the decision on the removal has been left for the incoming administration of Bola Tinubu.
The government in the statement said, “it has not suspended the removal, but has rather expanded the subsidy removal committee to include teams from the incoming administration and the state governors”.
In her clarification, Mrs Ahmed said that “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.
“We agreed to form an expanded committee that will be looking at the process for the removal of the subsidy, including determining the exact time as well as the measures that need to be taken to provide support to the poor and the vulnerable. There is also the need to agree alternative measures that will be put in place to ensure that there is sufficient supply of petroleum products in the country.”
The statement added: “According to the Minister, the Subsidy Removal Committee currently comprises the Ministry of Finance, Budget and National Planning, Ministry of Petroleum Resources, Nigerian National Petroleum Company (NNPC) Limited, the downstream and upstream regulators, Central Bank of Nigeria (CBN) and the Chief Economic Adviser to the President.
“Mrs. Ahmed stated that the 2023 Fiscal Framework and Appropriation Act, as well as the Petroleum Industry Act (PIA), have made the provision that government should exit fuel subsidy by June 2023.
The committee is to work out a road map for the removal of the subsidy. No change in the overall policy direction regarding the petrol subsidy is envisaged by June 2023”.
