2022 Budget: Regulators mull other provisions for fuel subsidy beyond June, says Ahmed

*The Nigerian Government has unveiled plans to make supplementary provisions for fuel subsidy in the 2022 Budget, consdiderng the timing for the removal of fuel subsidy will be problematic amid high inflation

Isola Moses | ConsumerConnect

The Federal Government has unveiled plans to make additional provisions for fuel subsidy in the 2022 Budget.

Mrs. Zainab Ahmed, Honourable Minister for Finance, Budget and National Planning, said this Monday, January 24, 2022, at a meeting with Senate President Ahmad Lawan, at the National Assembly (NASS) Complex, in Abuja, FCT.

It was learnt Senator Lawan convened the meeting, which was also attended by the Minister of State for Petroleum Resources, Timipre Sylva, and representatives of oil companies, amid the current disagreement over the proposed removal of fuel subsidy.

Mrs. Ahmed further explained that the government had to reconsider its decision on the planned removal of fuel subsidy after NASS passed the 2022 Budget.

Fuel subsidy, she stated, was provided for in the 2022 Budget to run from January till June, but after consultations with stakeholders and in view of the high inflation and economic hardship, additional provisions would be made beyond the initial period.

According to the Minister for Finance, Budget and National Planning, it has become clear that the timing for the removal of fuel subsidy will be problematic as the country still experiences high inflation.

The Minister as well admitted that removing fuel subsidy at this period would ultimately worsen the condition of Nigerian consumers, especially those struggling to make ends meet.

In his comment on the matter, H.E. Chief Timipre Sylva, Honourable Minister of State for Petroleum, reportedly aligned himself with Ahmed’s position on additional measures to cushion the effect of fuel subsidy removal on the populace.

Removing fuel subsidy this period is bad timing, politically and economically, said Sylva.

Senate President Lawan, therefore, appealed to the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) to shelve their planned industrial action over subsidy removal as it has become unnecessary.