The Federal government, on Friday, denied reports that it has suspended the planned removal of subsidy on petrol.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, made the clarification through a statement by her Special Adviser on Media and Communications, Yunusa Tanko Abdullahi.
Media reports on Thursday said the National Economic Council (NEC) had ordered the suspension of planned removal of subsidy by the President Muhammadu Buhari administration, which elicited the commendation of the Nigeria Labour Congress (NLC).
But Ahmed, in her clarification, said the government had only expanded the subsidy removal committee to include teams from the incoming administration and the state governors.
The statement reads: “Against the backdrop of the story in some media that the federal government has suspended the removal of petrol subsidy, the government has said that 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.
“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.
“According to the Honourable 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.”
