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FG Plans To Spend N3.3tr On Fuel Subsidies Between Jan And June 2023 – Minister Reveals



The Nigerians government has revealed that it planned to spend N3.3 trillion on fuel subsidies between January and June 2023. This was disclosed by the Minister of Finance, Budget and National Planning, Zainab Ahmed.

However, the minister said the Federal Government will do away with petroleum subsidies by June 2023, Daily Nigerian reports.

She made this known during a press conference to mark the end of the 28th National Economic Summit, NES in Abuja.

Ahmed added that the removal of fuel subsidy is part of the Federal Government’s medium-term plan in the budget. She, however, said that the challenge is how to go about removing the subsidy.

She said:

“First, we have to engage. We have already engaged with the states and the public before it was approved as part of the medium-term plan. “We have to do it by systematically informing the citizens about the size and the quantum of the fuel subsidy.

“We also have to educate them about the opportunity cost of what we are unable to do because of the fuel subsidy.” Going further, the minister said the fuel subsidy, in addition to budget deficit, is putting enormous pressure on the “fiscals”.

She added:

“It is not money that we have; it is money that we have to borrow to maintain the fuel subsidy. “Some countries introduced subsidy during COVID-19, and because of the Russia-Ukraine conflict, but they are using their money to fund such subsidy.

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“In our case, we are borrowing to pay the subsidy; that is double jeopardy. It is something that has to stop “We are glad that majority of people in decision-making positions, including the political parties, have agreed that subsidy is not sustainable. ”The plan is, by June 2023, we must have completely exited subsidy, and it has to be a gradual process.”

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