Federal Government of Nigeria has postponed the planned petrol subsidy removal till further notice, citing “high inflation and economic hardship”.
Report has it that Zainab Ahmed, minister of finance, budget, national planning, announced this on Monday, January 24, in Abuja made the disclosure at a meeting with the president of the Senate, Ahmad Lawan.
Meanwhile Mr Timipre Sylva, minister of state for petroleum resources; representatives of oil companies, among others, were also present at the meeting.
Ahmed Lawan disclosed at the meeting that the government had to reconsider its decision after the 2022 budget was passed.
According to the finance minister, petrol subsidy was provided for in the 2022 budget to run from January till June.
She, however, said that after consultations with stakeholders, additional provisions would be made beyond the initial period.
She further noted that the timing for the removal of petrol subsidy will be problematic as the country still experiences heightened inflation.
“Provision was made in the 2022 budget for subsidy payment from January till June. That suggested that from July, there would be no subsidy,” Ahmed said.