FG Set To Remove Subsidy, Replace With 5k Monthly Grant For Poor Citizens| Nigeria News Today

 

The minister of finance, budget and national planning,  Ahmed says the Federal Government Of Nigeria is now totally set to completely remove the subsidy on fuel and replace with payment of a sum total of N5000 monthly to poorest Nigerians as transport monthly allowance. 

Speaking at the launch of the World Bank Nigeria Development Update (NDU) on Tuesday, the minister said the grant will go to about 30 to 40 million Nigerians who make up the poorest population of the country.

The statement was issued by her during the launch of the World Bank Nigeria Development Update (NDU)  on Tuesday, she added that the grant will go to about 30 -40 million Nigerians who denote the poorest country's population. The minister added that the total beneficiary will highly depend on the available resources after the removal of subsidy. 

Her statement reads:

“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.”

“We are very optimistic that the recent developments in the oil sector, such as the Petroleum Industry Act (PIA) 2021, hopefully, the full reactivation of the 4 public refineries in the country, and the completion and coming on stream of the 3 private refineries under construction in 2022, would significantly boost contribution from the sector to our economic growth efforts,

“I agree with the Report that with the expansion of social protection policies during the pandemic, the government has an opportunity to phase out subsidies such as the PMS subsidy while utilizing cash transfers to safeguard the welfare of poor and middle-class households.”

Ahmed said this move is set for June 2022, but the federal government hopes to do this before June — in line with the Petroleum Industry Act (PIA).

The minister concluded that the move is set to commence by June 2022 and the federal government will do this inline with Petroleum Industry Act (PIA).