Finance minister reiterates that subsidy will end in June 2023

Finance, Budget and National Planning Minister Zainab Ahmed said oil subsidies will be phased out completely by June 2023.

Speaking on Tuesday, November 15 in Abuja at a press conference marking the end of the 28th National Economic Summit, Ahmed revealed that while removing fuel subsidies is part of the FG’s medium term plan in the 2023 budget, how to do it was the challenge.

She says;

“First, we have to engage. We have already engaged with states and the public before it was approved as part of the medium-term plan.

“We must do this by systematically informing citizens about the size and amount of the fuel subsidy.

“We also need to educate them about the opportunity cost of what we can’t do because of the fuel subsidy.”

The minister noted that the fuel subsidy, in addition to the budget deficit, puts enormous pressure on the “fiscals”.

Ahmed added;

“It’s not money we have; it is money that we have to borrow to maintain the fuel subsidy.

“Some countries have introduced subsidies during COVID-19 and because of the Russian-Ukrainian conflict, but they are using their money to finance these subsidies.

“In our case, we are borrowing to pay the subsidy; it is a double jeopardy. It’s something that has to stop

“We are happy that the majority of people in decision-making positions, including political parties, have agreed that subsidies are not sustainable.

“The plan is that by June 2023, we must have completely phased out subsidies, and it must be a gradual process.”