Mrs Zainab Ahmed, the Minister of Finance, Budget, and National Planning, has said that the Federal Government will end petroleum subsidies by June 2023.
Ahmed made this statement on Tuesday in Abuja during a press conference to announce the 28th National Economic Summit’s conclusion.
According to The News Agency of Nigeria, between January and August 2022, gasoline subsidies consumed N2.565 trillion.
Additionally, the Federal Government proposed spending N3.3 trillion on fuel subsidies between January and June 2023 in the Medium-Term Expenditure Framework.
According to Ahmed, the FG’s budget’s medium-term objective includes eliminating the fuel subsidy.
However, she claimed that the trick was figuring out how to get rid of the subsidies.
“We must first engage. Before it was adopted as part of the medium-term plan, we had already started interacting with the states and the general public.
“We must achieve so by consistently educating the public on the scope and amount of the fuel subsidies, ” Ahmed said.
”We also need to inform them of the opportunity costs associated with the things that the gasoline subsidy prevents us from doing, she added.
The minister claims that the budget deficit and gasoline subsidies are significantly straining the “fiscals.”
Ahmed said: “We don’t have the money; we have to borrow the money to keep the fuel subsidy.
”Some nations introduced subsidies during COVID-19 and as a result of the conflict between Russia and Ukraine, but they are paying for these subsidies out of their own pockets.
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“In our situation, there is double jeopardy because we are borrowing to pay the subsidies. Something needs to be done to stop it.
“We are pleased that the majority of those in positions of power, including the political parties, recognise that subsidies cannot last.
“The aim is to entirely remove subsidy by June 2023, and it needs to be a steady process.”
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NAN
