The Nigerian government has decided to postpone the removal of fuel subsidies, citing the need for further preparations and consultations with key stakeholders, including the new government.
Minister of Finance, Budget and National Planning of Nigeria Ms. Zainab Ahmed made the announcement to local media on Thursday after the Farewell Council meeting chaired by Vice President Yemi Osinbajo in the chambers of the Presidential Villa in Abuja.
The council agreed on the need for further discussions on the issue, Ahmed said, adding that the government needs more preparatory work together with the states and representatives of the new government.
She 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.”
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This comes just days after the outgoing Nigerian government recommended that President-elect Bola Tinubu’s new government grant pay rises to public sector workers after fuel subsidies were scrapped in June, Labor Minister Chris Njegi said on Tuesday.
President Muhammadu Buhari, who left office in May, had planned to end expensive and popular subsidies as part of financial and oil sector reforms in 2022 but scrapped the plan amid fears of protests ahead of last month’s elections.
Previous Nigerian governments have promised to end fuel subsidies, which most economists say put an unsustainable strain on public finances, but have not done so due to strong opposition from citizens.
Ahmed added that the FG will be working with state officials until June 2023.
