Gradual Removal Of Petrol Subsidy To Begins In April, Ahead Of Total End In June
Federal Government says it is considering the removal of petrol subsidy as from April, this year. The phased removal is to pave the way for ending the subsidy in June, as projected in the 2023 budget.
Finance Minister, Zainab Ahmed, gave this indication, during an interview with Arise News Channel at the ongoing World Economic Forum (WEF) in Davos, Switzerland.
At the moment, the minister said federal government was borrowing to sustain the subsidy on the importation of petrol.
N253 Subsidy Paid On Every Liter Of Imported 66 Million Liters Of Petrol Daily
Ahmed explained that $3.25 billion to be saved from the total removal of petrol subsidy as from June would be a huge relief for the 2023 budget.
She also said that Nigeria needs to take proactive measures in order to cope with the shocks of another round of projected global recession which is being anticipated.
With $34 billion now in external reserves, the minister said Nigeria could survive the projects shock, and sustain its imports and services for at least six months.
Asked if she felt betrayed that the petrol subsidy had not been removed despite her best efforts to ensure removal, she stressed that it was a collective decision to retain the payments.
She replied, “No”. Ahmed went further to say that it was a decision that was taken as a collective, recognising the fact that due to the lingering impact of the COVID-19 pandemic, and also heightened inflation, that removal of the fuel subsidy at that time, would have increased more burden on the citizen.