The National Economic Council (NEC), has suspended the planned removal of subsidy on petroleum products by the end of President Muhammadu Buhari’s administration.
Zainab Ahmed, Minister of Finance, Budget and National Planning, disclosed this while briefing State House correspondents at the end of the NEC meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
Ahmed noted that the removal of the subsidy will likely take effect in June because the Petroleum Industry Act, PIA and the 2023 budget provided subsidy till June, hence any delay may require the amendment of the PIA and the budget provision.
She, however, said that there was no deadline given for the subsidy removal and that the incoming administration will take decision on when possible to do that.
Meanwhile, the 2023 budget made provision for subsidy only up to June this year. Also the Petroleum Industry Act (PIA) has a “provision that requires that all petroleum products must be deregulated 18 months after the effective date of the PMs Removal and that period is also up to June 2023”.
On April 5, the federal government said it secured the sum of $800 million from the World Bank, as part of its post-subsidy palliative plans.