Minister says removal of fuel subsidy would further worsen the situation of the economy and impose more difficulties
ABUJA, Nigeria – For fear of inflation rise, the government of Nigeria has suspended the planned removal of fuel subsidy by the first quarter of the year.
Country’s finance minister, Zainab Ahmed, said government’s attempt to remove the fuel subsidy anytime this year might spell economic catastrophe for the country, hence the suspension.
“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.”
