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Market Digest Nigeria

Economy

FG announces plans to remove fuel subsidy by 2022

Nigeria’s Minister of Finance, Budget and National Planning, Zainab Ahmed, has said the federal government will remove fuel subsidies by 2022

Zainab Ahmed FG

According to her, fuel subsidies will be replaced with N5000-a-month transport grant to the poorest Nigerians.

Ahmed stated this on Tuesday, while speaking at the launch of the World Bank Nigeria Development Update (NDU).

The minister noted the grant will go to about 30 to 40 million Nigerians, who make up the poorest population of the country.

“The subsidies regime in the [oil] sector remains unsustainable and economically disingenuous.

“Ahead of the target date of mid-2022 for the complete elimination of fuel subsidies, we are working with our partners on measures to cushion potential negative impact of the removal of the subsidies on the most vulnerable at the bottom 40% of the population.

“One of such measures would be to institute a monthly transport subsidy in the form of cash transfer of N5,000 to between 30 – 40 million deserving Nigerians,” Ahmed said.

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