FGN postpones removal of fuel subsidy over inflation fears

Nigeria’s Finance Minister, Zainab Ahmed, on Monday said that the government has suspended the plan to remove fuel subsidy by the end of the first quarter of 2022.

Ahmed said the removal of the subsidy anytime this year may worsen inflationary trends in the country.

“We discovered that practically, there is still heightened inflation and that the removal of subsidy would further worsen the situation and impose more difficulties on the citizenry,” Ahmed said at a meeting with the President of the Senate, Sen. Ahmad Lawan at the National Assembly.

“Mr. President does not want to do that. What we are now doing is to continue with the ongoing discussions and consultations in terms of putting in place a number of measures.

“One of these include the roll-out of the refining capacities of the existing refineries and the new ones which would reduce the amount of products that would be imported into the country.

“We, therefore, need to return to the National Assembly to now amend the budget and make additional provision for subsidy from July 22 to whatever period that we agreed was suitable for the commencement of the total removal.”