Nigeria suspends fuel subsidy removal

The National Economic Council (NEC) on Thursday suspended the removal of fuel subsidy.

The Federal Government had earlier planned to remove the fuel subsidy in June and had gone ahead to secure an $800 million relief package from the World Bank to help cushion the effects of the decision on Nigerians.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this to State House correspondents shortly after the valedictory council meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

The council, according to the minister agreed on the need for continued discussions on the issue before a final decision would be taken by the incoming administration.

She, however, added that the federal government work with the state governments between now and June.

Ahmed said: “Council agreed that the timing of the removal of fuel subsidy should not be now. But that we should continue with all of the preparatory works that need to be done and this preparatory has to be done in consultation with the states and other key stakeholders including representatives of the incoming administration.

Read also:Nigerian govt to replace fuel subsidy with N5,000 transport grant for poor citizens —Zainab Ahmed

“Council also agreed that the fuel subsidy must be removed earlier rather than later because it is not sustainable. We cannot afford it anymore. But we have to do it in such a way that the impact of the subsidy is as much as possible, mitigated on the lives of ordinary Nigerians.

“So, this will require looking at alternatives to the fuel subsidy that needs to be planned for and subsequently put in place. But also what needs to be done to support the people that will be most affected as a result of the removal.”

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